Question

To increase productivity, several key lessons were learned by top management at London-based International Power concerning email. Which is not in that list of lessons?

A.	Executives need to be taught to be more deliberate in their use of email.

B.	Executives need to set goals for reducing the number of messages sent.

C.	Executives need to provide weekly feedback.

D.	Executives need to eliminate email completely.

Which of the following statements about the introduction stage of the market life cycle is true?

A.	It produces relatively large, positive cash flows.

B.	Strong brand recognition seldom serves as an important switching cost.

C.	Market share gains by pioneers are usually easily sustained for many years.

D.	Products offered by pioneers may be perceived as differentiated because they are new.

Which of the following statements is NOT CORRECT?

a.	"Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
b.	Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC.
c.	When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
d.	It is possible for a firm to go public and yet not raise any additional new capital.
e.	When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."

Which of the following statements concerning common stock and the investment banking process is NOT CORRECT?

a.	If a firm sells 1,000,000 new shares of Class B stock, the transaction occurs in the primary market.
b.	Listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity and reputation probably outweigh the additional costs to the firm.
c.	Stockholders have the right to elect the firm's directors, who in turn select the officers who manage the business. If stockholders are dissatisfied with management's performance, an outside group may ask the stockholders to vote for it in an effort to take control of the business. This action is called a tender offer.
d.	The announcement of a large issue of new stock could cause the stock price to fall. This loss is called "market pressure," and it is treated as a flotation cost because it is a cost to stockholders that is associated with the new issue.
e.	The preemptive right gives each existing common stockholder the right to purchase his or her proportionate share of a new stock issue. Which of the following statements about listing on a stock exchange is most CORRECT? a. Any firm can be listed on the NYSE as long as it pays the listing fee. b. Listing provides a company with some "free" advertising, and it may enhance the firm's prestige and help it do more business. c. Listing reduces the reporting requirements for firms, because listed firms file reports with the exchange rather than with the SEC. d. The OTC is the second largest market for listed stock, and it is exceeded only by the NYSE. e. Listing is a decision of more significance to a firm than going public.

Answer 1

To increase productivity, several key lessons were learned by top management at London-based International Power concerning email. Which is not in that list of lessons?

A.	Executives need to be taught to be more deliberate in their use of email.

B.	Executives need to set goals for reducing the number of messages sent.

C.	Executives need to provide weekly feedback.

D.	Executives need to eliminate email completely.

Answer to Question 1:

In london based International Conference, for increasing the productivity, executives were taught for more deliberate in their use of emails and also goals were set to reduce the number of messages sent. This will increase the time efficiency of the employees so that the focuss will be more on critical areas of their job profiles. Also, encouraging executives for weekly feedback will boost their confidence and management can also know the problems and loopholes, if any , in the functioning of the organization which will help in increasing the overall productivity and efficiency.

In this Conference, The executive team received weekly reports on both their and the top management team progress. Within three months, team total email output dropped by54%. Even though the other 75 Londonbased employees received no training, their email output dropped by an even greater amount (64 percent). The result was significant and a savings of 10,400 manhours, which translates to a 7 percent increase in productivity.

However, the recommendation did not include eliminating email entirely.

Hence, Option D, " Executive need to eliminate email completely" is not in that list of reasons.

Which of the following statements about the introduction stage of the market life cycle is true?

A.	It produces relatively large, positive cash flows.

B.	Strong brand recognition seldom serves as an important switching cost.

C.	Market share gains by pioneers are usually easily sustained for many years.

D.	Products offered by pioneers may be perceived as differentiated because they are new.

Answer to Question 2:

Introduction stage is the first stage in the product life cycle. The highlighting factor of this stage is that the product is new in the market, sales are slow and to push it higher the company has to incur heavy expenditure on advertisement to make it appealing to customers.This is the stage where a company tries to build awareness about the product or service in a market where there is less or no competition. Once the company makes adequate publicity about the product either by promotion or through branding, it can look at other aspects such as pricing, as well as distribution.

Thus, we cannot expect large and positive cash flows in the introduction stage of product life cycle. Also, the product is relatively new into the mark and it take necessary time to create strong branding image.

Market share gains by the pioneer are usually not seen in the introduction stage of life cycle as the product is in introductory stage and take time to gain market share.

However, Option D " Products offered by pioneers may be perceived as differentiated because they are new" is correct and true.

Which of the following statements is NOT CORRECT?

a.	"Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
b.	Publicly owned companies have sold shares to investors who are not associated with management, and they must register with and report to a regulatory agency such as the SEC.
c.	When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
d.	It is possible for a firm to go public and yet not raise any additional new capital.
e.	When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held."

Answer to Question 3:

The answer is ‘A’. “Going public establishes a firm's true intrinsic value, and it also insures that a highly liquid market will always exist for the firm’s shares.”

This is incorrect because the process of public listing opens up a trading market for the stock, but it does not mean that there will always be a liquid market for the share and the intrinsic value is not always correct. The market price often differs from the intrinsic value depending on the investors' demand for the stock, the company's performance, history and forecasts, the company's image, etc. Again, some of these factors also determine the demand or liquidity of the market share.

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