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NEW QUESTION: 1
Sampson Aerospace is a publicly-traded U.S. manufacturer. Sampson supplies communication and navigation control systems to manufacturers of airplanes for commercial and government use. The company operates two divisions: Commercial Operations and Government Operations. Revenues from the Government Operations division comprise 80% of Sampson's total company revenues. Revenues for other companies in the industry are also driven primarily by sales to the U.S. government.
Sampson has gained a reputation for offering unique products and services. Sampson's market share has been increasing, and its net profit margin is among the highest in its industry.
As part of its business strategy, Sampson seeks out opportunities to enhance internal growth by acquiring smaller companies that possess new technologies that would allow Sampson to offer unique products and services. To this end, Sampson CEO, Drew Smith, recently asked his acquisitions team to consider the purchase of a controlling interest in either NavTech or Aerospace Communications, both software applications firms. Smith provides his acquisitions team with an aerospace analyst's industry report that addresses many key issues within the industry. Selected passages from the report are reproduced below:
Sales in the aerospace electronics industry depend primarily on government military spending, which, in turn, depends on defense budgets. Sales depend on commercial travel to a much lesser extent. The government defense spending budget outlook is fairly bleak as the current administration is looking for ways to reduce the budget deficit. We feel the commercial airline segment has more upside than downside, especially as the global economy improves, so we might see a gradual shift in industry focus toward the commercial airline sector. Companies that already have a foothold in the commercial sector are well-positioned to grow during the global recovery. Even so, companies in this industry will remain highly sensitive to government spending for their revenues. Research and development costs are high and the industry is highly capital intense. While there are only a few companies in this industry, good opportunities exist, especially for companies that have developed sustainable profits through wise acquisitions, cost containment, and the ability to secure long-term government contracts.
Sampson Aerospace recently announced that it is reducing its investment return assumption on its pension assets from 6% to 5%, and that it has entered negotiations to possibly acquire controlling equity interests in communications software firms, NavTech and Aerospace Communications. NavTech recently has decided to capitalize a significant portion of its research and development expense, and Aerospace Communications has restructured and reclassified many of its leases from operating to financial leases.
Sampson CEO Drew Smith recently announced that Sampson had dropped out of negotiations with Knowledge Technologies, claiming it was likely not a sustainable business model.
Consensus forecasts for NavTech and Aerospace Communications are presented in Exhibit 1.

Which of the following is most likely a negative factor in assessing the profitability of Sampson over the medium to long term?
A. Bargaining power of suppliers.
B. New entrants to the industry.
C. Bargaining power of customers.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Since 80% of Sampsons business is with one customer (the U.S. government), we can expect a great deal of bargaining power from that customer. The government will likely use competitive bidding to encourage strong price competition. There is no indication that suppliers have great bargaining power. The threat of new entrants is likely low because of barriers to entry, including high capital expenditures required to enter the industry and perhaps proprietary knowledge about production and company-owned patents. (Study Session 11, LOS 37.b)

NEW QUESTION: 2
An administrator has backups failing with status code 96 due to tapes being prevented from returning to the scratch volume pool after the images they contain expire.
What prevented the media from returning to the scratch pool?
A. media was created in volume pools other than the scratch pool
B. media was in an off-site location
C. an application other than NetBackup wrote to the media
D. media was written with multiplexed images
Answer: A

NEW QUESTION: 3
HOTSPOT
For each of the following statements, select Yes if the statement is true. Otherwise, select No. Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 4
Patient is admitted for elective cholecystectomy for treatment of chronic cholecystitis with cholelithiasis.
Prior to administration of general anesthesia, patient suffers cerebral thrombosis. Surgery is subsequently canceled. Code and sequence the coding from the following codes.

A. 997.02, 434.00, V64.1
B. 574.10, 434.00, V64.1
C. 997.02, 574.10, 51.22
D. 434.00, V64.1
Answer: B

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