WGU C201 BUSINESS ACUMEN COMPREHENSIVE
QUESTIONS AND DETAILED ANSWERS |ALL PASSED AND
VERIFIED| NEWEST 2024 UPDATE
Which part of the organizing process aids in effective and efficient progress toward
planned goals and often results in changes within the organization? - (correct answer)
Evaluating results
What is the result of a company increasing the delegation of authority and the span of
control? - (correct answer) Increased number of direct reports per manager
Which two key elements does an effective organization include? - (correct answer)
Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation? -
(correct answer) It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last. -
(correct answer) 1) Define job requirements, 2) Contact and visit colleges for
applicants/interns, 3) Conduct employment tests, 4) Review resumes, 5) Conduct
candidate interviews, 6) Follow up interviews, 7) Hiring determination
Which primary driver does management use for an organization's structure? - (correct
answer) Achievement of company goals
Which step in the organizing process results in management group work activities into
units within the organization? - (correct answer) 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 sits. Which type of competitive advantage is this
company leveraging? - (correct answer) Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than
relying on short term price cutting tactics such as cents off coupons, rebates, and
special sales? - (correct answer) Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? - (correct answer) When demand for the
product is driven by the end user
Which marketing tool is essential to building an effective relationship marketing
campaign? - (correct answer) An affinity program
,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? - (correct
answer) Personal Selling
What three factors should be addressed in a successful marketing plan? Choose 3
answers. - (correct answer) Target Market, Sales revenue goals, Plan
implementation timeline (not on list, marketing budget)
Which three characteristics are measured in demographic segmentation? Choose 3
answers - (correct answer) Race anVd ethnicity, Income, Household size
In which three ways does business-buying behavior differ from consumer-buying
behavior? Choose 3 answers - (correct answer) Buyers face organizational
influences in addition to their own preferences, purchasers often invite selected
providers to bid on a purchase, a group or committee often makes decisions
Which three conditions, in a global selling environment, should a small company
leverage to create a competitive advantage? Choose 3 answers - (correct answer)
cultural homogeneity, mobility of labor, local labor costs
With which two types of products does a marketing strategy rely on advertising more
than personal selling? Choose 2 answers. - (correct answer) Consumable supplies,
accessories to primary products
After years of marketing a body lotion, a cosmetics company begins promoting the
lotion as an the lotion as an insect repellent as well. In which three product life cycle
extension strategies did this company engage? Choose 3 answers - (correct answer)
Adding new users, finding new uses for the product, increasing frequency of use.
What are three ways that an effective brand name can influence consumer product
recognition? Choose 3 answers - (correct answer) It conveys an image, it depicts
trademark protection, it reflects brand equity.
A customer has purchased a product twice and intends to do so again. Which stage of
brand loyalty is this customer in? - (correct answer) Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - (correct answer) retail
Which three tasks are key responsibilities of operations managers? Choose 3 answers -
(correct answer) Planning the overall production process, implementing the production
plan, determine the best layout for the firm's facilities.
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers -
(correct answer) A JIT system seeks to eliminate anything that does not add value in
operations activities, production using JIT reduces a firm's inventory costs.
,Which aspect of operations management do the ISO 9000 Standards address? -
(correct answer) Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized
products cost effectively? - (correct answer) Flexible
Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers - (correct answer) 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? - (correct answer)
Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers -
(correct answer) 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? - (correct answer) There is no immediate effect on
demand
Which two impacts result from a nation's increase in productivity? Choose 2 answers -
(correct answer) Economy expands, Personal wealth increases
For which two purposes will the U.S Federal Reserve System follow an expansionary
monetary policy? Choose 2 answers - (correct answer) 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 - (correct answer) 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? - (correct answer) Analyzing major
investment decisoins
Which two activities are finance activities rather than accounting activities? Choose 2
answers - (correct answer) Making capital market investments, creating a financial
plan
Which three sources should a business consider when seeking a long-term source?
Choose 3 answers - (correct answer) 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? - (correct answer) Commercial paper
Which role does the underwriter play in financing business operations when using the
capital market to sell securities to the public? - (correct answer) It insures the value
of the security to the investor
Why should a manager use financial controls in a firm's financial plan? - (correct
answer) 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? - (correct answer) Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - (correct answer) 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 - (correct answer) 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 - (correct answer) 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? - (correct answer) private equity fund
Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? - (correct answer) 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? - (correct answer) Ensure that earnings remain larger than
interests payments
Which financial statement should an investor examine to identify the liabilities of a firm?
- (correct answer) 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? - (correct answer)
leverage
QUESTIONS AND DETAILED ANSWERS |ALL PASSED AND
VERIFIED| NEWEST 2024 UPDATE
Which part of the organizing process aids in effective and efficient progress toward
planned goals and often results in changes within the organization? - (correct answer)
Evaluating results
What is the result of a company increasing the delegation of authority and the span of
control? - (correct answer) Increased number of direct reports per manager
Which two key elements does an effective organization include? - (correct answer)
Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation? -
(correct answer) It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last. -
(correct answer) 1) Define job requirements, 2) Contact and visit colleges for
applicants/interns, 3) Conduct employment tests, 4) Review resumes, 5) Conduct
candidate interviews, 6) Follow up interviews, 7) Hiring determination
Which primary driver does management use for an organization's structure? - (correct
answer) Achievement of company goals
Which step in the organizing process results in management group work activities into
units within the organization? - (correct answer) 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 sits. Which type of competitive advantage is this
company leveraging? - (correct answer) Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than
relying on short term price cutting tactics such as cents off coupons, rebates, and
special sales? - (correct answer) Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? - (correct answer) When demand for the
product is driven by the end user
Which marketing tool is essential to building an effective relationship marketing
campaign? - (correct answer) An affinity program
,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? - (correct
answer) Personal Selling
What three factors should be addressed in a successful marketing plan? Choose 3
answers. - (correct answer) Target Market, Sales revenue goals, Plan
implementation timeline (not on list, marketing budget)
Which three characteristics are measured in demographic segmentation? Choose 3
answers - (correct answer) Race anVd ethnicity, Income, Household size
In which three ways does business-buying behavior differ from consumer-buying
behavior? Choose 3 answers - (correct answer) Buyers face organizational
influences in addition to their own preferences, purchasers often invite selected
providers to bid on a purchase, a group or committee often makes decisions
Which three conditions, in a global selling environment, should a small company
leverage to create a competitive advantage? Choose 3 answers - (correct answer)
cultural homogeneity, mobility of labor, local labor costs
With which two types of products does a marketing strategy rely on advertising more
than personal selling? Choose 2 answers. - (correct answer) Consumable supplies,
accessories to primary products
After years of marketing a body lotion, a cosmetics company begins promoting the
lotion as an the lotion as an insect repellent as well. In which three product life cycle
extension strategies did this company engage? Choose 3 answers - (correct answer)
Adding new users, finding new uses for the product, increasing frequency of use.
What are three ways that an effective brand name can influence consumer product
recognition? Choose 3 answers - (correct answer) It conveys an image, it depicts
trademark protection, it reflects brand equity.
A customer has purchased a product twice and intends to do so again. Which stage of
brand loyalty is this customer in? - (correct answer) Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - (correct answer) retail
Which three tasks are key responsibilities of operations managers? Choose 3 answers -
(correct answer) Planning the overall production process, implementing the production
plan, determine the best layout for the firm's facilities.
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers -
(correct answer) A JIT system seeks to eliminate anything that does not add value in
operations activities, production using JIT reduces a firm's inventory costs.
,Which aspect of operations management do the ISO 9000 Standards address? -
(correct answer) Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized
products cost effectively? - (correct answer) Flexible
Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers - (correct answer) 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? - (correct answer)
Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers -
(correct answer) 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? - (correct answer) There is no immediate effect on
demand
Which two impacts result from a nation's increase in productivity? Choose 2 answers -
(correct answer) Economy expands, Personal wealth increases
For which two purposes will the U.S Federal Reserve System follow an expansionary
monetary policy? Choose 2 answers - (correct answer) 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 - (correct answer) 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? - (correct answer) Analyzing major
investment decisoins
Which two activities are finance activities rather than accounting activities? Choose 2
answers - (correct answer) Making capital market investments, creating a financial
plan
Which three sources should a business consider when seeking a long-term source?
Choose 3 answers - (correct answer) 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? - (correct answer) Commercial paper
Which role does the underwriter play in financing business operations when using the
capital market to sell securities to the public? - (correct answer) It insures the value
of the security to the investor
Why should a manager use financial controls in a firm's financial plan? - (correct
answer) 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? - (correct answer) Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact
retailers? - (correct answer) 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 - (correct answer) 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 - (correct answer) 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? - (correct answer) private equity fund
Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business? - (correct answer) 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? - (correct answer) Ensure that earnings remain larger than
interests payments
Which financial statement should an investor examine to identify the liabilities of a firm?
- (correct answer) 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? - (correct answer)
leverage
