AICPA CPA-Business Exam Dumps

Choice 'b' is correct. In the integrated enterprise stage of supply chain management, the firm's management will move away from simple consolidation of its operations to an internally-integrated supply chain, which all work together towards the main business issue of the cost of customer service.

Choice 'a' is incorrect. In the cross-functional teams stage of supply chain management, the firm's management will turn its attention to consolidation of the various departments that make up operations in order to solve the firm's problems, and the focus will be on customer service.

Choice 'c' is incorrect. In the extended supply chain stage of supply chain management, integration moves external to the firm to involve those outside the firm who are able to work as a unified team in an attempt to obtain slow, profitable growth.

Choice 'd' is incorrect. In the supply chain communities stage of supply chain management, the extended supply chain forms a single competitive entity with a synchronized supply chain and a complex system of networks.

Choice 'c' is correct. The future asset depreciation expense is not included in discounted cash flow analysis.

Choices 'a', 'b', and 'd' are incorrect. All of these are included in discounted cash flow analysis:

* Future operating cash savings

* Current asset disposal price

* Tax effects of future asset depreciation

* Future asset disposal price

Choice 'd' is correct. Amendment of the articles of incorporation, albeit proposed by the directors, cannot usually be effected without the affirmative vote of the shareholders.

Choice 'a' is incorrect. The directors ordinarily have the power to repeal bylaws unless the articles or the specific bylaw to be repealed provides otherwise.

Choice 'b' is incorrect. The directors have the power to declare dividends at their discretion as long as the dividends do not violate any statute, article provision, bylaw, or contract with a creditor.

Choice 'c' is incorrect. Although it seems like there would be a conflict of interest, directors do have the power to set their own compensation, limited only by the fiduciary duties owed to the corporation (e.g., the directors cannot set salaries so high as to constitute waste).

Choice 'c' is correct. Shareholders in a voting agreement must vote their shares in accordance with the agreement. There is no requirement that majority shareholders be elected as directors or officers.

Business Cycles and Reasons for Business Fluctuations

Choice 'b' is correct. Return on investment is the ratio of operating income to average operating assets and is computed as follows based on Year 2 and Year 3 data:

Choice 'a' is incorrect per the above computation.

Choice 'c is incorrect. The year 3 return on investment is not computed by combining revenues, expenses, and assets for all year's presented.

Choice 'd' is incorrect. The year 3 return on investment is based on the average assets (($1,200,000 + $2,000,000)/2 = $1,600,000), not simply on the total assets at the end of year 3 ($2,000,000).