CESIM Quiz
1. What is the parent company?
US
2. How can the company reduce long term debt?
3. Which of the following statement are true:
a. The budgets in the game are updated automatically as you make decisions.
b. By having unrealistically high demand estimates your budgeted profit would be
high, but the actual profit would not be affected.
c. Budgets are calculated after each decision input. You can update your team
decisions as many times as you want until the deadline.
d. Calculate is performed only when you leave the decision making area. Only the
team decisions affect the actual results.
4. If you decide to build a new production plant…
a. It will be ready for the same round.
b. It will be ready for the following round.
c. It will take two rounds before the plant is ready for production.
5. Our group didn’t manage to change the team decisions before the deadline. What will
happen?
The system will either use default decisions, or decisions from the previous round.
6. To be able to produce new technology:
a. You must wait that the general level of technology will get higher.
b. You must buy a technology license and wait for the next round to be able to use
it.
c. You can invest the required sum in R&D. In-house R&D has a one period lag.
d. You must pay a specific sum each round in order to be allowed to use the
technology.
7. Which of the following statements are true?
a. Own production increases the learning curve effect.
b. Contract manufacturing doesn’t move you forward on the learning curve.
c. You can increase your learning curve effect by investing R&D.
d. The learning curve effect affects the costs of own production.
e. The learning curve effect learned in US can be utilized globally in all production.
8. Is it possible to change team after the registration?
Yes
9. How much is the minimum amount of cash you should keep on your parent company
balance sheet.
The minimum requirement is $2,000,000, or 2000 K USD.
https://www.coursehero.com/file/25932884/CESIM-Quizdocx/
10. When do long-term debts have to be repaid?
a. When you want to, but the must be paid by the end of the game.
b. You don’t have to settle your debts at any round if you don’t want to.
11. Which of the following statements are true?
a. The payment for plant investment is always paid and depreciated in the area
where the investment is made.
b. Plant investment is paid one round after the investment decision.
c. The payment for plant investment is paid by the parent company.
d. The plant is depreciated over 10 years, i.e., 10%/year.
12. Which of the following statements are true?
a. Losses from previous periods are tax deductible.
b. Loss carry-forward principle doesn’t apply in this game.
c. Loss carry-forward principle applies only for the parent company.
13. The products from contract manufacturing…
a. Are scaled down first if the demand doesn’t actualize as planned.
b. Is always more expensive than own production.
c. Doesn’t directly affect the learning curve effect.
14. Which of the following statements are true?
a. The income tax for the group is paid in the US, where the parent company
resides.
b. Each business unit pays income tax according to the area specific tax rate.
c. The tax rate varies depending on the parent company.
d. Losses from previous periods are tax deductible.
15. How does promotion affect sales?
16. Do the practice round results affect the first round?
17. The transfer multipliers…
a. Must be between 1 and 5.
b. Have an impact on the financial results.
c. Are used to adjust profits between different areas.
18. On the decisions-demand page you…
a. Enter estimates on how the market will develop.
b. Enter estimates on how your market share will develop.
c. Are given your market share for the next round.
d. Decide the network coverage for your products.
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19. You can decrease the variable production costs by…
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