GEB 4522 -UCF Final Exam Study
Guide Questions Solved Correctly.
Module 7 - Answer Study Guide
An index would help measure: - Answer Market penetration
For ratios to be useful and meaningful, they should be? - Answer Calculated consistently
from period to period
The following are ratios regularly used for comparison: - Answer -Other companies in your
industry
-Internal goals
-Prior periods
(P.I.C)
The following ratio is NOT regularly used for comparison: - Answer Other companies outside
of your industry
Type of ratio that measures how well the business is performing over a specific period, and will
it have the resources to continue? - Answer Profitability Sustainability Ratios
List of challenges of using historical data to forecast future performance? - Answer -Changes
in policy established by management
-Failure to adjust for inflation
-Changes in the general state of the economy
(F.C.C)
NOT a challenge of using historical data to forecast future performance? - Answer
Benchmark values change over time
A sales increase of 5% is always good. - Answer False
Benchmarking is? - Answer An activity that tells you your position/status by comparing
yourself to others
Benefits of benchmarking? - Answer -Improved quality
, -Leveraging areas of strength
-Better performance
(L.I.B)
Which is NOT a benefit of benchmarking - Answer Mimicking another company
The following are factors in evaluating the data used to benchmark? - Answer -Timeliness
-Accuracy
-Comparability
(C.A.T)
The following is NOT a factor in evaluating the data used to benchmark? - Answer Variance
The most important ratios to a business are always those that apply across all industries. -
Answer False
Describe the role industry specific ratios perform in evaluating the operating performance of a
business: - Answer Ratios measure the strength of companies by performing simple
calculations on income statement, balance sheet, and cash flow statements
Profitability Sustainability Ratios: - Answer How well is our business performing over a
specific period, will your social enterprise have the financial resources to continue serving its
constituents tomorrow as well as today?
Benchmarking: - Answer An activity that tells you the positioning/status of your company as
compared to your competitors (where you stand)
Benchmarking (2): - Answer -Allows you to gain a better understanding of sales, margin, staff
productivity, expense management, and efficiency
-Make sure comparisons are done correctly
-Relevant to your business because you can see if your making more money than your
competitors, facing similar problems etc.
Benchmarking steps: - Answer 1. Define what you want to benchmark
2. Define appropriate measures (KPI)
3. Ensure that your comparisons are comparable
4. Gather data in an independent manner and make sure it's consistent
Guide Questions Solved Correctly.
Module 7 - Answer Study Guide
An index would help measure: - Answer Market penetration
For ratios to be useful and meaningful, they should be? - Answer Calculated consistently
from period to period
The following are ratios regularly used for comparison: - Answer -Other companies in your
industry
-Internal goals
-Prior periods
(P.I.C)
The following ratio is NOT regularly used for comparison: - Answer Other companies outside
of your industry
Type of ratio that measures how well the business is performing over a specific period, and will
it have the resources to continue? - Answer Profitability Sustainability Ratios
List of challenges of using historical data to forecast future performance? - Answer -Changes
in policy established by management
-Failure to adjust for inflation
-Changes in the general state of the economy
(F.C.C)
NOT a challenge of using historical data to forecast future performance? - Answer
Benchmark values change over time
A sales increase of 5% is always good. - Answer False
Benchmarking is? - Answer An activity that tells you your position/status by comparing
yourself to others
Benefits of benchmarking? - Answer -Improved quality
, -Leveraging areas of strength
-Better performance
(L.I.B)
Which is NOT a benefit of benchmarking - Answer Mimicking another company
The following are factors in evaluating the data used to benchmark? - Answer -Timeliness
-Accuracy
-Comparability
(C.A.T)
The following is NOT a factor in evaluating the data used to benchmark? - Answer Variance
The most important ratios to a business are always those that apply across all industries. -
Answer False
Describe the role industry specific ratios perform in evaluating the operating performance of a
business: - Answer Ratios measure the strength of companies by performing simple
calculations on income statement, balance sheet, and cash flow statements
Profitability Sustainability Ratios: - Answer How well is our business performing over a
specific period, will your social enterprise have the financial resources to continue serving its
constituents tomorrow as well as today?
Benchmarking: - Answer An activity that tells you the positioning/status of your company as
compared to your competitors (where you stand)
Benchmarking (2): - Answer -Allows you to gain a better understanding of sales, margin, staff
productivity, expense management, and efficiency
-Make sure comparisons are done correctly
-Relevant to your business because you can see if your making more money than your
competitors, facing similar problems etc.
Benchmarking steps: - Answer 1. Define what you want to benchmark
2. Define appropriate measures (KPI)
3. Ensure that your comparisons are comparable
4. Gather data in an independent manner and make sure it's consistent
