1
(C201 VERIFIED)
BUSSINESS ACUMEN C201 EXAM UPDATE -2025- SET OF
QUESTIONS AND CORRECT VERIFIED ANSWERS|
GUARANTEED SUCCESS
Which two risks does a firm face by funding the purchase of long-term assets with short-term funding
sources? Choose 2 answers
A. Volatility of interest rates
B. Faster depreciation of long-term assets
C. Negative credit rating
D. Frequent renewals
A. Volatility of interest rates
D. Frequent renewals
Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its
equity?
A. Venture capital
B. Public stock sale
C. Long-term commercial bank loan
D. Private equity fund
C. Long-term commercial bank loan
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for
a business? Choose 3 answers
A. It can make large amounts of money available.
B. It carries interest rates that are 1 to 2 percent less than bank loans.
C. It can be issued by virtually any business.
D. It is sold in multiples as low as $10,000.
E. It has a maturity that ranges between 1 and 270 days.
A. It can make large amounts of money available.
B. It carries interest rates that are 1 to 2 percent less than bank loans.
E. It has a maturity that ranges between 1 and 270 days.
, 2
(C201 VERIFIED)
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
A. Ensure that earnings remain larger than interest payments
B. Capitalize returns to shareholders to maximize retained earnings on invested funds
C. Hedge against borrowed funds with an equal amount of equity capital
D. Subordinate dividends to interest payments to creditors
A. Ensure that earnings remain larger than interest payments
What is this is an example of?
A. Departmentalization
B. Organization
C. Strategic Planning
D. Decentralization
A. Departmentalization
Which primary driver does management use for an organization's structure?
A. Ease of employee interaction
B. Hierarchical accountability
C. Company business processes
D. Achievement of company goals
D. Achievement of company goals
Which step in the organizing process results in management grouping work activities into units within the
organization?
A. Delegation
B. Centralization
C. Decentralization
D. Departmentalization
D. Departmentalization
, 3
(C201 VERIFIED)
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?
A. Brand recognition
B. Customer loyalty
C. Price
D. Product
D. 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?
A. Skimming pricing
B. Penetration pricing
C. Cost-based pricing
D. Everyday low pricing
D. Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product better than
a push strategy?
A. When the product is best sold through personal selling activities.
B. When demand for the product is driven by marketing intermediaries.
C. When demand for the product is driven by the end user.
D. By combining messages of price-value, product differentiation, and prestige into a focused campaign.
C. When demand for the product is driven by the end user.
Which marketing tool is often used to build effective relationship marketing campaigns?
A. Affinity programs
B. Logistics
, 4
(C201 VERIFIED)
C. Distribution strategies
D. Product mix
A. 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?
A. Advertising
B. Personal selling
C. Sales promotion
D. Sponsorships
B. Personal selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers
A. Target market
B. Product gross margin target
C. Sales revenue goals
D. Product specifications
E. Plan implementation timeline
A. Target market
C. Sales revenue goals
E. Plan implementation timeline
Which three characteristics are measured in demographic segmentation? Choose 3 answers
A. Race and ethnicity
B. Geographic location
C. Income
D. Purchase history
E. Household size
A. Race and ethnicity
C. Income
E. Household size
(C201 VERIFIED)
BUSSINESS ACUMEN C201 EXAM UPDATE -2025- SET OF
QUESTIONS AND CORRECT VERIFIED ANSWERS|
GUARANTEED SUCCESS
Which two risks does a firm face by funding the purchase of long-term assets with short-term funding
sources? Choose 2 answers
A. Volatility of interest rates
B. Faster depreciation of long-term assets
C. Negative credit rating
D. Frequent renewals
A. Volatility of interest rates
D. Frequent renewals
Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its
equity?
A. Venture capital
B. Public stock sale
C. Long-term commercial bank loan
D. Private equity fund
C. Long-term commercial bank loan
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for
a business? Choose 3 answers
A. It can make large amounts of money available.
B. It carries interest rates that are 1 to 2 percent less than bank loans.
C. It can be issued by virtually any business.
D. It is sold in multiples as low as $10,000.
E. It has a maturity that ranges between 1 and 270 days.
A. It can make large amounts of money available.
B. It carries interest rates that are 1 to 2 percent less than bank loans.
E. It has a maturity that ranges between 1 and 270 days.
, 2
(C201 VERIFIED)
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
A. Ensure that earnings remain larger than interest payments
B. Capitalize returns to shareholders to maximize retained earnings on invested funds
C. Hedge against borrowed funds with an equal amount of equity capital
D. Subordinate dividends to interest payments to creditors
A. Ensure that earnings remain larger than interest payments
What is this is an example of?
A. Departmentalization
B. Organization
C. Strategic Planning
D. Decentralization
A. Departmentalization
Which primary driver does management use for an organization's structure?
A. Ease of employee interaction
B. Hierarchical accountability
C. Company business processes
D. Achievement of company goals
D. Achievement of company goals
Which step in the organizing process results in management grouping work activities into units within the
organization?
A. Delegation
B. Centralization
C. Decentralization
D. Departmentalization
D. Departmentalization
, 3
(C201 VERIFIED)
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?
A. Brand recognition
B. Customer loyalty
C. Price
D. Product
D. 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?
A. Skimming pricing
B. Penetration pricing
C. Cost-based pricing
D. Everyday low pricing
D. Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product better than
a push strategy?
A. When the product is best sold through personal selling activities.
B. When demand for the product is driven by marketing intermediaries.
C. When demand for the product is driven by the end user.
D. By combining messages of price-value, product differentiation, and prestige into a focused campaign.
C. When demand for the product is driven by the end user.
Which marketing tool is often used to build effective relationship marketing campaigns?
A. Affinity programs
B. Logistics
, 4
(C201 VERIFIED)
C. Distribution strategies
D. Product mix
A. 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?
A. Advertising
B. Personal selling
C. Sales promotion
D. Sponsorships
B. Personal selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers
A. Target market
B. Product gross margin target
C. Sales revenue goals
D. Product specifications
E. Plan implementation timeline
A. Target market
C. Sales revenue goals
E. Plan implementation timeline
Which three characteristics are measured in demographic segmentation? Choose 3 answers
A. Race and ethnicity
B. Geographic location
C. Income
D. Purchase history
E. Household size
A. Race and ethnicity
C. Income
E. Household size
