Question

How many operations (Spain, North Africa and Middle East, ...) of the company accounted for less than 5% of the total revenue earned in 1999?

• A. 2
• B. 3
• C. 4
• D. None of these
• A. 1
• B. 2
• C. 3
• D. None of these
• A. 3
• B. 4
• C. 5
• D. None of these
• A. 0
• B. 1
• C. 2
• D. None of these
• A. The Far East operations witnessed its highest profitability in 1998.
• B. The North Sea operations increased its profitability from 1998 to 1999.
• C. The operations in Argentina witnessed a decrease in profitability from 1998 to 1999.
• D. Both 2 and 3 are true.
• A. North Africa and Middle East
• B. Spain
• C. Rest of Latin America
• D. Far East
• A. Spain
• B. Argentina
• C. Far East
• D. None of these
• A. The operations in Spain had the best efficiency in 2000.
• B. The Far East operations witnessed an efficiency improvement from 1999 to 2000.
• C. The North Sea operations witnessed an efficiency improvement from 1998 to 1999.
• D. In 1998, the operations in Rest of Latin America were the least efficient

Answer 1

The Correct Option is C

From the table, we check the revenue percentage for each region in 1999:
- Spain: \(\frac{55}{3374} \times 100 = 1.63%\), which is less than 5%.
- North Africa & Middle East: \(\frac{666}{3374} \times 100 = 19.7%\), which is greater than 5%.
- Argentina: \(\frac{2006}{3374} \times 100 = 59.5%\), which is greater than 5%.
- Rest of Latin America: \(\frac{115}{3374} \times 100 = 3.41%\), which is less than 5%.
- Far East: \(\frac{301}{3374} \times 100 = 8.92%\), which is greater than 5%.
- North Sea: \(\frac{140}{3374} \times 100 = 4.15%\), which is less than 5%.
- Rest of the World: \(\frac{91}{3374} \times 100 = 2.7%\), which is less than 5%.
Thus, 4 operations (Spain, Rest of Latin America, North Sea, and Rest of the World) accounted for less than 5% of the total revenue earned in 1999.

Answer 2

We check the revenue percentage increase from 1999 to 2000 for each region:
- Spain: \(\frac{394 - 55}{55} \times 100 = 618.18%\), which is greater than 200%.
- North Africa & Middle East: \(\frac{1290 - 666}{666} \times 100 = 93.33%\), which is less than 200%.
- Argentina: \(\frac{5539 - 2006}{2006} \times 100 = 176.1%\), which is less than 200%.
- Rest of Latin America: \(\frac{482 - 115}{115} \times 100 = 318.26%\), which is greater than 200%.
- Far East: \(\frac{603 - 301}{301} \times 100 = 100.67%\), which is less than 200%.
- North Sea: \(\frac{0 - 140}{140} \times 100 = -100%\), which is not greater than 200%.
- Rest of the World: \(\frac{20 - 91}{91} \times 100 = -78.02%\), which is not greater than 200%.
\ Thus, 2 operations (Spain and Rest of Latin America) saw more than 200% revenue increase from 1999 to 2000.

Answer 3

We examine the income before taxes and charges for each region from 1998 to 2000:
- Spain: 31 (1998), 341 (1999), 760 (2000), showing a sustained increase.
- North Africa & Middle East: 111 (1998), 325 (1999), 530 (2000), showing a sustained increase.
- Argentina: 94 (1998), 838 (1999), 2999 (2000), showing a sustained increase.
- Rest of Latin America: -23 (1998), 230 (1999), 292 (2000), showing a sustained increase.
- Far East: 19 (1998), 97 (1999), 75 (2000), showing a sustained increase.
- North Sea: 26 (1998), 75 (1999), 33 (2000), showing a sustained increase.
- Rest of the World: -10 (1998), 33 (1999), -13 (2000), not showing a sustained increase.
Thus, 5 operations registered a sustained yearly increase in income before taxes and charges from 1998 to 2000.

Answer 4

We check the percentage increase in net income before taxes and charges for each operation: - Spain: 31 (1998), 341 (1999), increase = \(\frac{341 - 31}{31} \times 100 = 1003.23%\).
- North Africa & Middle East: 111 (1998), 325 (1999), increase = \(\frac{325 - 111}{111} \times 100 = 193.69%\).
- Argentina: 94 (1998), 838 (1999), increase = \(\frac{838 - 94}{94} \times 100 = 789.36%\).
- Rest of Latin America: -23 (1998), 230 (1999), increase = \(\frac{230 - (-23)}{-23} \times 100 = -1000%\).
- Far East: 19 (1998), 97 (1999), increase = \(\frac{97 - 19}{19} \times 100 = 411.58%\).
- North Sea: 26 (1998), 75 (1999), increase = \(\frac{75 - 26}{26} \times 100 = 188.46%\).
- Rest of the World: -10 (1998), 33 (1999), increase = \(\frac{33 - (-10)}{-10} \times 100 = -430%\).
We find that only Spain had a percentage increase higher than the average, which is about 411.58%. Therefore, only 1 operation meets this condition.

Answer 5

We calculate the profitability (net income after taxes and charges divided by expenses) for each region: - Far East: In 1998, net income = 19, expenses = 204, profitability = \(\frac{19}{204} = 0.093\), which was the highest for Far East.
- North Sea: In 1998, profitability = \(\frac{26}{75} = 0.347\); in 1999, profitability = \(\frac{75}{75} = 1.0\), showing an increase in profitability.
- Argentina: In 1998, profitability = \(\frac{94}{1168} = 0.080\); in 1999, profitability = \(\frac{838}{2540} = 0.33\), showing an increase, but when compared with 2000, the profitability decreased.
Thus, both statements 2 and 3 are true.

Answer 6

We compare profitability for each region in 2000: - North Africa and Middle East: Net income = 19, expenses = 75, profitability = \(\frac{19}{75} = 0.25\).
- Spain: Net income = 341, expenses = 760, profitability = \(\frac{341}{760} = 0.448\).
- Rest of Latin America: Net income = 230, expenses = 2999, profitability = \(\frac{230}{2999} = 0.077\).
- Far East: Net income = 97, expenses = 292, profitability = \(\frac{97}{292} = 0.332\).
The highest profitability in 2000 was for Spain with 0.448. Thus, Spain had the best profitability.

Answer 7

We calculate the efficiency (revenue divided by expenses) for each region in 2000: - Spain: Revenue = 394, expenses = 760, efficiency = \(\frac{394}{760} = 0.518\).
- Argentina: Revenue = 5539, expenses = 2999, efficiency = \(\frac{5539}{2999} = 1.85\).
- Far East: Revenue = 603, expenses = 292, efficiency = \(\frac{603}{292} = 2.07\).
- North Sea: Revenue = 140, expenses = 75, efficiency = \(\frac{140}{75} = 1.87\).
Thus, Argentina had the lowest efficiency in 2000.

Answer 8

We check the efficiency (revenue to expenses ratio) for each region in 2000: - Spain: Efficiency = \(\frac{394}{760} = 0.518\).
- Far East: Efficiency = \(\frac{603}{292} = 2.07\).
- North Sea: Efficiency = \(\frac{140}{75} = 1.87\).
- Rest of Latin America: Efficiency = \(\frac{20}{33} = 0.606\).
Thus, the operations in Spain did not have the best efficiency in 2000; it was the Far East. So, statement (1) is not true.