C201 BUSINESS ACUMEN UPDATED SCRIPTED EXAM
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Which aspect of operations management do the ISO 9000 Standards address? -
✔✔Establishment of effective quality systems?
✔✔Which manufacturing model uses technology to produce small runs of customized
products cost effectively? - ✔✔Flexible
✔✔Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers - ✔✔Limited function merchant wholesaler, full function
merchant wholesaler
✔✔Which economic graph is used by organizations to regulate production by predicting
the amount of product buyers will purchase at different prices? - ✔✔Demand curve
✔✔Which two factors drive demand in a microeconomics system? Choose 2 answers -
✔✔Customer preference, price of substitute goods
✔✔How does a sudden shortage of a commodity product affect the immediate demand
for the product at its current price? - ✔✔There is no immediate effect on demand
✔✔Which two impacts result from a nation's increase in productivity? Choose 2
answers - ✔✔Economy expands, Personal wealth increases
✔✔For which two purposes will the U.S Federal Reserve System follow an
expansionary monetary policy? Choose 2 answers - ✔✔To encourage bankers to make
loans, to cut the cost of borrowing
✔✔Which two economic impacts should a manager anticipate when the U.S.
government reduces the number of Treasury bills, Treasury Notes, and Treasury bonds
it sells? Choose 2 answers - ✔✔An increase in overall cost of debt to private borrowers,
an increase of funds for public services
✔✔What is one role of a financial manage? - ✔✔Analyzing major investment decisoins
✔✔Which two activities are finance activities rather than accounting activities? Choose
2 answers - ✔✔Making capital market investments, creating a financial plan
✔✔Which three sources should a business consider when seeking a long-term source?
Choose 3 answers - ✔✔Hedge funds, Venture capital, public sale of stocks
, ✔✔In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? - ✔✔Commercial paper
✔✔Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public? - ✔✔It insures the value of the security
to the investor
✔✔Why should a manager use financial controls in a firm's financial plan? - ✔✔to
determine the accuracy of forecasted revenues, costs, and expenses
✔✔What does a CFO use in financial planning to determine the expected level of
revenue for future periods? - ✔✔Sales forecast plus non-sales revenue
✔✔How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - ✔✔capped the debit card fee at 21 cents
✔✔Which two activities are prohibited by insider trading laws and should be avoided by
a firm's employees? Choose 2 answers - ✔✔Selling company stock because a co-
worker told the employee the company's new drug is failing in clinical trial, buying stock
in the public company for which the employee works based on a conversation the
employee overheard at a cocktail party between two of the company's executives.
✔✔Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? Choose 2 ansers - ✔✔Volatility of interest rates, frequent
renewals
✔✔Which funding source should a firm use if it wishes to secure long-term financing
while retaining all of its equity? - ✔✔private equity fund
✔✔Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? - ✔✔It has a maturity that ranges between 1 and 270
days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make
large amounts of money available
✔✔What should a firm do to manage the risk of using leverage when exploring long-
term funding options? - ✔✔Ensure that earnings remain larger than interests payments
✔✔Which financial statement should an investor examine to identify the liabilities of a
firm? - ✔✔The balance sheet
✔✔A company wishes to determine if it should fund a project with bonds or equity.
Which business concept would it most likely use to assist in the decision? - ✔✔leverage
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Which aspect of operations management do the ISO 9000 Standards address? -
✔✔Establishment of effective quality systems?
✔✔Which manufacturing model uses technology to produce small runs of customized
products cost effectively? - ✔✔Flexible
✔✔Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers - ✔✔Limited function merchant wholesaler, full function
merchant wholesaler
✔✔Which economic graph is used by organizations to regulate production by predicting
the amount of product buyers will purchase at different prices? - ✔✔Demand curve
✔✔Which two factors drive demand in a microeconomics system? Choose 2 answers -
✔✔Customer preference, price of substitute goods
✔✔How does a sudden shortage of a commodity product affect the immediate demand
for the product at its current price? - ✔✔There is no immediate effect on demand
✔✔Which two impacts result from a nation's increase in productivity? Choose 2
answers - ✔✔Economy expands, Personal wealth increases
✔✔For which two purposes will the U.S Federal Reserve System follow an
expansionary monetary policy? Choose 2 answers - ✔✔To encourage bankers to make
loans, to cut the cost of borrowing
✔✔Which two economic impacts should a manager anticipate when the U.S.
government reduces the number of Treasury bills, Treasury Notes, and Treasury bonds
it sells? Choose 2 answers - ✔✔An increase in overall cost of debt to private borrowers,
an increase of funds for public services
✔✔What is one role of a financial manage? - ✔✔Analyzing major investment decisoins
✔✔Which two activities are finance activities rather than accounting activities? Choose
2 answers - ✔✔Making capital market investments, creating a financial plan
✔✔Which three sources should a business consider when seeking a long-term source?
Choose 3 answers - ✔✔Hedge funds, Venture capital, public sale of stocks
, ✔✔In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? - ✔✔Commercial paper
✔✔Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public? - ✔✔It insures the value of the security
to the investor
✔✔Why should a manager use financial controls in a firm's financial plan? - ✔✔to
determine the accuracy of forecasted revenues, costs, and expenses
✔✔What does a CFO use in financial planning to determine the expected level of
revenue for future periods? - ✔✔Sales forecast plus non-sales revenue
✔✔How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - ✔✔capped the debit card fee at 21 cents
✔✔Which two activities are prohibited by insider trading laws and should be avoided by
a firm's employees? Choose 2 answers - ✔✔Selling company stock because a co-
worker told the employee the company's new drug is failing in clinical trial, buying stock
in the public company for which the employee works based on a conversation the
employee overheard at a cocktail party between two of the company's executives.
✔✔Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? Choose 2 ansers - ✔✔Volatility of interest rates, frequent
renewals
✔✔Which funding source should a firm use if it wishes to secure long-term financing
while retaining all of its equity? - ✔✔private equity fund
✔✔Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? - ✔✔It has a maturity that ranges between 1 and 270
days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make
large amounts of money available
✔✔What should a firm do to manage the risk of using leverage when exploring long-
term funding options? - ✔✔Ensure that earnings remain larger than interests payments
✔✔Which financial statement should an investor examine to identify the liabilities of a
firm? - ✔✔The balance sheet
✔✔A company wishes to determine if it should fund a project with bonds or equity.
Which business concept would it most likely use to assist in the decision? - ✔✔leverage
