Engineering Economics and Financial Statement
Analysis for Business Decisions Correct and
Verified Answers Graded A
QUESTION 1
Question: What does Principle 1 of Engineering Economics state?
Correct Answer: A nearby penny is worth a distant dollar; money's value changes over
time.
QUESTION 2
Question: List one of the five common types of engineering economic decisions.
Correct Answer: Equipment or Process Selection.
QUESTION 3
Question: What is the definition of demand?
Correct Answer: The amount of a product that a market is willing to buy.
QUESTION 4
Question: What does 'capital' refer to in engineering economics?
Correct Answer: Any asset that can enhance the power to perform economically useful
work.
QUESTION 5
Question: What is a corporation?
Correct Answer: A legal entity created under regional laws that is separate from its owners
and managers.
QUESTION 6
Question: What distinguishes a partnership from a proprietorship?
Correct Answer: A partnership has more than one owner.
QUESTION 7
1
, Question: Define proprietorship.
Correct Answer: A business owned by one individual who is responsible for policies, owns
all assets, and is personally liable for its debts.
QUESTION 8
Question: What is a key factor in the success of engineering firms?
Correct Answer: The ability to find well-performing, cost-friendly alternatives.
QUESTION 9
Question: What is the significance of mathematics in economics according to Galileo
Galilei?
Correct Answer: Mathematics is the language with which God has written the universe.
QUESTION 10
Question: What is the primary focus of economics?
Correct Answer: The study of how to allocate limited resources to satisfy unlimited
demands.
QUESTION 11
Question: What is the accounting equation?
Correct Answer: Assets = Liabilities + Stockholders' Equity.
QUESTION 12
Question: Define asset.
Correct Answer: Property owned by a person or company, regarded as having value and
available to meet debts.
QUESTION 13
Question: What is net worth?
Correct Answer: The amount by which a company's or individual's assets exceed their
respective liabilities.
QUESTION 14
Question: What is liquidity?
2
Analysis for Business Decisions Correct and
Verified Answers Graded A
QUESTION 1
Question: What does Principle 1 of Engineering Economics state?
Correct Answer: A nearby penny is worth a distant dollar; money's value changes over
time.
QUESTION 2
Question: List one of the five common types of engineering economic decisions.
Correct Answer: Equipment or Process Selection.
QUESTION 3
Question: What is the definition of demand?
Correct Answer: The amount of a product that a market is willing to buy.
QUESTION 4
Question: What does 'capital' refer to in engineering economics?
Correct Answer: Any asset that can enhance the power to perform economically useful
work.
QUESTION 5
Question: What is a corporation?
Correct Answer: A legal entity created under regional laws that is separate from its owners
and managers.
QUESTION 6
Question: What distinguishes a partnership from a proprietorship?
Correct Answer: A partnership has more than one owner.
QUESTION 7
1
, Question: Define proprietorship.
Correct Answer: A business owned by one individual who is responsible for policies, owns
all assets, and is personally liable for its debts.
QUESTION 8
Question: What is a key factor in the success of engineering firms?
Correct Answer: The ability to find well-performing, cost-friendly alternatives.
QUESTION 9
Question: What is the significance of mathematics in economics according to Galileo
Galilei?
Correct Answer: Mathematics is the language with which God has written the universe.
QUESTION 10
Question: What is the primary focus of economics?
Correct Answer: The study of how to allocate limited resources to satisfy unlimited
demands.
QUESTION 11
Question: What is the accounting equation?
Correct Answer: Assets = Liabilities + Stockholders' Equity.
QUESTION 12
Question: Define asset.
Correct Answer: Property owned by a person or company, regarded as having value and
available to meet debts.
QUESTION 13
Question: What is net worth?
Correct Answer: The amount by which a company's or individual's assets exceed their
respective liabilities.
QUESTION 14
Question: What is liquidity?
2
