Free Access HBX.CORe.v2026-08-07.q212 Practice Test (Page 13)

Question 56

Which of the following items can be found in the "Operating Section" of an indirect method cash flow statement? (Select all that apply.)

A.Depreciation and amortization amounts

B.Cash paid in business combination

C.Issuance of common stock

D.Purchases of property and equipment

E.Changes in inventory and accounts payable

Question 57

A supply manager for TUV, Inc. contracts with a new supplier of a critical raw material. After receiving several shipments, TUV's manufacturing team finds too much variation in the material dimensions. A meeting is held between the engineering and quality staffs of both companies to discuss the situation. Which of the following should the supply manager do NEXT?

A.Suggest that the engineering and quality staffs visit the supplier's facility to review processes

B.Assess a financial penalty against the supplier for shipping uncertified materials

C.Change the supplier from the approved list to probationary status and cancel current orders

D.Return the unacceptable material and demand a replacement shipment that meets all specifications

Question 58

A regulatory agency decides to enforce a price ceiling equal to marginal cost for a local utility provider which acts as a monopoly. Which of the following observations is true?

A.The price will be exactly the same as it would be without regulation.

B.The government might have to pay the firm a subsidy to prevent it from exiting the industry.

C.The demand curve will shift outward.

D.New utility companies will be incentivized to enter the industry.

Question 59

After some recent problems regarding the anti-lock brake systems in its cars, a major automobile company decides to take a random sample of 50 cars from its manufacturing plant. To make things easier, management decides to conduct the sampling from all cars produced on a particular day. Which of the options below represents the BEST way to take this sample?

A.Test the first 50 cars manufactured that day to eliminate any bias in the selection process.

B.Have the plant manager select 50 cars, because the manager will be most informed about the manufacturing process.

C.Assign a random number to each car manufactured that day.Then identify the first 50 numbers in ascending order, and select the cars corresponding to those numbers.

D.Create a focus group of managers from the plant to determine which cars should be selected for the sample.

Question 60

According to the Kraljic matrix, how should a product with high business impact and low supply market complexity be categorized?

A.Bottleneck

B.Leverage

C.Strategic

D.Noncritical

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