WGU C201 BUSINESS ACUMEN OBJECTIVE ASSESSMENT
COMPLETE QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
Which three characteristics are measured in demographic segmentation? -
CORRECT ANSWER ✔✔- Race & Ethnicity, Income and Household Size
In which three ways does business-buying behavior differ from consumer-buying
behavior? - CORRECT ANSWER ✔✔- 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?
- CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Adding new users,
finding new uses for the product, increasing frequency of use.
What are three qualities of strong brand equity? - CORRECT ANSWER ✔✔-
Awareness, Loyalty and favorable images
1
,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? - CORRECT ANSWER ✔✔- brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - CORRECT ANSWER ✔✔- Direct
Which three tasks are key responsibilities of operations managers? - CORRECT
ANSWER ✔✔- 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? - CORRECT
ANSWER ✔✔- 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? -
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? - 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
2
,Which two factors drive demand in a microeconomic system? - CORRECT ANSWER
✔✔- 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? - CORRECT ANSWER ✔✔- Demand
increases
Which two impacts result from a nation's increase in productivity? - CORRECT
ANSWER ✔✔- Economy expands
Personal wealth increases
For which two purposes will the U.S. Federal Reserve System follow an
expansionary monetary policy? - 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Analyzing
major investment decisions
Which two activities are finance activities rather than accounting activities? -
CORRECT ANSWER ✔✔- Making capital market investments
Creating a financial plan
Which three sources should a business consider when seeking a long-term
funding source? - CORRECT ANSWER ✔✔- Venture capital
Public sale of stocks
3
, 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? - CORRECT ANSWER ✔✔- commerical
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
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? - 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 ✔✔- 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Volatility of interest rates
Frequent renewals
4
COMPLETE QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR JUST RELEASED
Which three characteristics are measured in demographic segmentation? -
CORRECT ANSWER ✔✔- Race & Ethnicity, Income and Household Size
In which three ways does business-buying behavior differ from consumer-buying
behavior? - CORRECT ANSWER ✔✔- 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?
- CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Adding new users,
finding new uses for the product, increasing frequency of use.
What are three qualities of strong brand equity? - CORRECT ANSWER ✔✔-
Awareness, Loyalty and favorable images
1
,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? - CORRECT ANSWER ✔✔- brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - CORRECT ANSWER ✔✔- Direct
Which three tasks are key responsibilities of operations managers? - CORRECT
ANSWER ✔✔- 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? - CORRECT
ANSWER ✔✔- 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? -
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? - 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
2
,Which two factors drive demand in a microeconomic system? - CORRECT ANSWER
✔✔- 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? - CORRECT ANSWER ✔✔- Demand
increases
Which two impacts result from a nation's increase in productivity? - CORRECT
ANSWER ✔✔- Economy expands
Personal wealth increases
For which two purposes will the U.S. Federal Reserve System follow an
expansionary monetary policy? - 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Analyzing
major investment decisions
Which two activities are finance activities rather than accounting activities? -
CORRECT ANSWER ✔✔- Making capital market investments
Creating a financial plan
Which three sources should a business consider when seeking a long-term
funding source? - CORRECT ANSWER ✔✔- Venture capital
Public sale of stocks
3
, 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? - CORRECT ANSWER ✔✔- commerical
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
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? - 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 ✔✔- 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? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Volatility of interest rates
Frequent renewals
4
