1. EB Company sells a large pack of "Cutie" diapers for $20. One pack of diapers requires two pounds of raw material and one hour of direct labor for manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and EB rents its factory for $4,000 per month. How many packs of diapers should EB sell every month to break even?

a. 500.
b. 400.
c. 600.
d. 800.

2. Cynthia Buchelli, the Vice President (Sales) of MGT 460 Inc. manages a portfolio of three products in the computer division. The new Intel M ULV 773 processor-based Sleekline model has a low market share of around 5%, but has just been introduced, and since the market is booming, Cynthia is hopeful that it will grow into maturity. Stallion, the Xenon-based system, has a market share of 88% in the industry segment it operates in, but the market is stable and not growing too fast. Finally, there is the Pentium4-based Thunderbird, which only sells in discount markets in rural areas.

Which of the following describes the product portfolio under Cynthia?
a. Sleekline-question mark, Stallion-star, Thunderbird-cash cow
b. Sleekline-question mark, Stallion-cash cow, Thunderbird-dog
c. Sleekline-Star, Stallion-cash cow, Thunderbird-dog
d. Sleekline-question mark, Stallion-dog, Thunderbird-cash cow

3. Ned Micic, Microsoft's CFO finds that the company has a current ratio of 3.7. He would conclude that the firm is
a. Over-leveraged
b. Too-liquid
c. Undercapitalized
d. Profitable

4. Which ones of the four examples below is an example of value-migration?
a. No one buys typewriters anymore, but they buy PCs even to type.
b. HP now produces laser printers that can accept emailed inputs as well.
c. Honda used its expertise in small engines to enter the lawn-mower market
d. Sony lost share in the video recorder market, but gained the camcorder market.

5. Benetton is a brand name that is supplied by a variety of firms that operate in a network. These firms not only compete with each other, but also collaborate and share resources at times. This phenomenon represents:
a. a white-space opportunity
b. a business ecosystem
c. lowered transaction costs
d. asset specificity