WGU C201 BUSINESS ACUMEN | Complete
Guide with Questions and Answers |
Question and Answer | Grade A+
• Why does a line organization structure function most effectively in a crisis situation? -
✓✓It establishes a direct flow of authority
• A company might divide itself into smaller groups that best match the types of
customers it serves. What is this an example of? -✓✓Departmentalization
• Which primary driver does management use for an organization's structure? -
✓✓Achievement of company goals
• Which step in the organizing process results in management grouping work activities
into units within the organization? -✓✓Departmentalization
• A high-tech startup company is launching a marketing campaign for its new social
media portal by highlighting how the portal exceeds the connectivity and collaboration
capabilities of all other social media sites.
Which type of competitive advantage is this company leveraging? -✓✓product
• Which marketing strategy is devoted to maintaining continuous bottom line prices
rather than relying on short-term price-cutting tactics such as cents-off coupons,
rebates, and special sales? -✓✓Everyday Low Pricing
• When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? -✓✓When demand for the product is driven by the
end user
• Which marketing tool is often used to build effective relationship marketing
campaigns? -✓✓Affinity Programs
• Which element of the promotional mix has the advantage of messaging that can be
tailored for each customer but the disadvantage of a high cost per contact? -
✓✓Personal Selling
• What three factors should be addressed in a successful marketing plan? -✓✓Target
Market, Sales Revenue Goals and Plan Implementation Timeline
• Which three characteristics are measured in demographic segmentation? -✓✓Race &
Ethnicity, Income and Household Size
,• In which three ways does business-buying behavior differ from consumer-buying
behavior? -✓✓A group or committee often makes decisions
Purchasers often invite selected providers to bid on a purchase
Buyers face organizational influences that affect their own preferences
• Which three factors suggest a product should be marketed as a specialty product? -
✓✓Priced high
Purchased infrequently
Available from a small number of retail outlets
• With which two types of products does a marketing strategy rely on advertising more
than personal selling? -✓✓Accessories to primary products
Consumable supplies
• After years of marketing a body lotion, a cosmetics company begins promoting the
lotion as an insect repellent as well.In which three product life cycle extension strategies
did this company engage? -✓✓Adding new users, finding new uses for the product,
increasing frequency of use.
• What are three qualities of strong brand equity? -✓✓Awareness, Loyalty and favorable
images
• A customer intends to purchase her favorite cereal. It is out of stock, so she purchases
an alternative brand of cereal instead.Which stage of brand loyalty is this customer in? -
✓✓brand preference
• Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? -✓✓Direct
• Which three tasks are key responsibilities of operations managers? -✓✓Planning the
overall production process
Determining the best layout for the firm's facilities
Implementing the production plan
• Which two characteristics does a Just-In-Time (JIT) System have? -✓✓Production
using JIT reduces a firm's inventory costs.
A JIT system seeks to eliminate anything that does not add value in operations
activities.
• 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? -✓✓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 microeconomic system? -✓✓Price of substitute
goods
Customer preference
• How does a sudden shortage of a commodity product affect the immediate demand for
the product at its current price? -✓✓Demand increases
• Which two impacts result from a nation's increase in productivity? -✓✓Economy
expands
Personal wealth increases
• For which two purposes will the U.S. Federal Reserve System follow an expansionary
monetary policy? -✓✓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? -
✓✓A rise of interest rates on these securities
An increase in overall cost of debt to private borrowers
• What is one role of a financial manager? -✓✓Analyzing major investment decisions
• Which two activities are finance activities rather than accounting activities? -✓✓Making
capital market investments
Creating a financial plan
• Which three sources should a business consider when seeking a long-term funding
source? -✓✓Venture capital
Public sale of stocks
Hedge funds
• In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? -✓✓commerical paper
• Which role does the underwriter play in financing business operations when using the
capital market to sell securities to the public? -✓✓It assumes the risk of the assessed
value of the security from the issuer.
, • 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? -✓✓It capped the debit card swipe fee at 21 cents.
• Which two activities are prohibited by insider trading laws and should be avoided by a
firm's employees? -✓✓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
Selling company stock because a co-worker told the employee the company's new drug
is failing in clinical trial
• Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? -✓✓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? -✓✓Long-term commercial bank loan
• Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? -✓✓It can make large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank loans.
It has a maturity that ranges between 1 and 270 days.
• What should a firm do to manage the risk of using leverage when exploring long-term
funding options? -✓✓Ensure that earnings remain larger than interest 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
• Which calculation determines a firm's return on equity? -✓✓Net income divided by
average equity
• Why should companies that are conservative investors with liquidity concerns invest
their excess cash in money market funds? -✓✓It converts easily into cash.
Guide with Questions and Answers |
Question and Answer | Grade A+
• Why does a line organization structure function most effectively in a crisis situation? -
✓✓It establishes a direct flow of authority
• A company might divide itself into smaller groups that best match the types of
customers it serves. What is this an example of? -✓✓Departmentalization
• Which primary driver does management use for an organization's structure? -
✓✓Achievement of company goals
• Which step in the organizing process results in management grouping work activities
into units within the organization? -✓✓Departmentalization
• A high-tech startup company is launching a marketing campaign for its new social
media portal by highlighting how the portal exceeds the connectivity and collaboration
capabilities of all other social media sites.
Which type of competitive advantage is this company leveraging? -✓✓product
• Which marketing strategy is devoted to maintaining continuous bottom line prices
rather than relying on short-term price-cutting tactics such as cents-off coupons,
rebates, and special sales? -✓✓Everyday Low Pricing
• When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? -✓✓When demand for the product is driven by the
end user
• Which marketing tool is often used to build effective relationship marketing
campaigns? -✓✓Affinity Programs
• Which element of the promotional mix has the advantage of messaging that can be
tailored for each customer but the disadvantage of a high cost per contact? -
✓✓Personal Selling
• What three factors should be addressed in a successful marketing plan? -✓✓Target
Market, Sales Revenue Goals and Plan Implementation Timeline
• Which three characteristics are measured in demographic segmentation? -✓✓Race &
Ethnicity, Income and Household Size
,• In which three ways does business-buying behavior differ from consumer-buying
behavior? -✓✓A group or committee often makes decisions
Purchasers often invite selected providers to bid on a purchase
Buyers face organizational influences that affect their own preferences
• Which three factors suggest a product should be marketed as a specialty product? -
✓✓Priced high
Purchased infrequently
Available from a small number of retail outlets
• With which two types of products does a marketing strategy rely on advertising more
than personal selling? -✓✓Accessories to primary products
Consumable supplies
• After years of marketing a body lotion, a cosmetics company begins promoting the
lotion as an insect repellent as well.In which three product life cycle extension strategies
did this company engage? -✓✓Adding new users, finding new uses for the product,
increasing frequency of use.
• What are three qualities of strong brand equity? -✓✓Awareness, Loyalty and favorable
images
• A customer intends to purchase her favorite cereal. It is out of stock, so she purchases
an alternative brand of cereal instead.Which stage of brand loyalty is this customer in? -
✓✓brand preference
• Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? -✓✓Direct
• Which three tasks are key responsibilities of operations managers? -✓✓Planning the
overall production process
Determining the best layout for the firm's facilities
Implementing the production plan
• Which two characteristics does a Just-In-Time (JIT) System have? -✓✓Production
using JIT reduces a firm's inventory costs.
A JIT system seeks to eliminate anything that does not add value in operations
activities.
• 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? -✓✓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 microeconomic system? -✓✓Price of substitute
goods
Customer preference
• How does a sudden shortage of a commodity product affect the immediate demand for
the product at its current price? -✓✓Demand increases
• Which two impacts result from a nation's increase in productivity? -✓✓Economy
expands
Personal wealth increases
• For which two purposes will the U.S. Federal Reserve System follow an expansionary
monetary policy? -✓✓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? -
✓✓A rise of interest rates on these securities
An increase in overall cost of debt to private borrowers
• What is one role of a financial manager? -✓✓Analyzing major investment decisions
• Which two activities are finance activities rather than accounting activities? -✓✓Making
capital market investments
Creating a financial plan
• Which three sources should a business consider when seeking a long-term funding
source? -✓✓Venture capital
Public sale of stocks
Hedge funds
• In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability? -✓✓commerical paper
• Which role does the underwriter play in financing business operations when using the
capital market to sell securities to the public? -✓✓It assumes the risk of the assessed
value of the security from the issuer.
, • 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? -✓✓It capped the debit card swipe fee at 21 cents.
• Which two activities are prohibited by insider trading laws and should be avoided by a
firm's employees? -✓✓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
Selling company stock because a co-worker told the employee the company's new drug
is failing in clinical trial
• Which two risks does a firm face by funding the purchase of long-term assets with
short-term funding sources? -✓✓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? -✓✓Long-term commercial bank loan
• Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? -✓✓It can make large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank loans.
It has a maturity that ranges between 1 and 270 days.
• What should a firm do to manage the risk of using leverage when exploring long-term
funding options? -✓✓Ensure that earnings remain larger than interest 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
• Which calculation determines a firm's return on equity? -✓✓Net income divided by
average equity
• Why should companies that are conservative investors with liquidity concerns invest
their excess cash in money market funds? -✓✓It converts easily into cash.
