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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.

By claiming that Knowledge Technologies is "not a sustainable business model," Sampson CEO Drew Smith would most likely estimate Knowledge Technologies's value using:
A. balance sheet value.
B. going concern value.
C. liquidation value.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
If the company's business model is not sustainable, the liquidation value is more appropriate than its value as a going concern (which could be negative). Balance sheet value is an accounting concept, not a valuation concept. (Study Session 10, LOS 33.b)

NEW QUESTION: 2
How can you prevent multihomed customers with connections to two service providers from acting as a transit AS?
A. Use static routing to the ISPs
B. Use conditional advertisements when sending BGP updates to the ISPs
C. Enable BGP synchronization on all the customer routers
D. Use an AS-path access-list to filter the BGP updates to the ISPs
E. Use MED to influence the inbound traffic from the ISPs
Answer: D

NEW QUESTION: 3
Datacenter access is controlled with proximity badges that record all entries and exits from the datacenter. The access records are used to identify which staff members accessed the data center in the event of equipment theft. Which of the following MUST be prevented in order for this policy to be effective?
A. Phishing
B. Tailgating
C. Password reuse
D. Social engineering
Answer: B