1|Page
WGU C201 BUSINESS ACUMEN OBJECTIVE
ASSESSMENT 2 TEST BANK CONTAINS
(VERSION A &B ) WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
RATIONALES ANSWERS 2024(NEWEST)
ALREADY GRADED A+
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
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
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.
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
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
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?
Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global
package delivery service?
retail
,2|Page
Which three tasks are key responsibilities of operations managers? Choose 3 answers
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
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?
Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized products cost
effectively?
Flexible
Which two of the following distribution channels would take title of the products they handle? Choose 2
answers
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?
Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers
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?
There is no immediate effect on demand
Which two impacts result from a nation's increase in productivity? Choose 2 answers
Economy expands, Personal wealth increases
For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy?
Choose 2 answers
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
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?
Analyzing major investment decisoins
,3|Page
Which two activities are finance activities rather than accounting activities? Choose 2 answers
Making capital market investments, creating a financial plan
Which three sources should a business consider when seeking a long-term source? Choose 3 answers
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?
Commercial paper
Which role does the underwriter play in financing business operations when using the capital market to
sell securities to the public?
It insures the value of the security to the investor
Why should a manager use financial controls in a firm's financial plan?
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?
Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?
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
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
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?
private equity fund
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding
for a business?
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
, 4|Page
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
Ensure that earnings remain larger than interests payments
Which financial statement should an investor examine to identify the liabilities of a firm?
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?
leverage
Which calculation determines a firm's return on equity?
net income divided by average equity
Why should companies that are conservative investors with liquidity concerns invest their excess cash in
money market funds?
it converts easily to cash
Which regulatory relationship with the Securities and Exchange Commission (SEC) historically has acted
to prohibit the U.S. from adopting the International Financial Reporting Standards (IFRS)?
FASB requires companies to comply with GAAP that differ from IFRS
Which users of financial statements use the financial statements to evaluate operations of the firm and
to make investment decisions?
owners and creditors
What is considered the heart of any information system?
The Database
Which type of information system should be accessed by the vice president of sales for a national
department store chain who wants to see the previous day's sales receipts?
A transaction processing system
How does a virtual private network contribute to a firm's workforce productivity?
employers are enabled to work remotely with secure connectivity to the corporate network via the
internet
What are three ways cloud computing services enhance company productivity? Choose 3 answers
Through better resource utilization, through elimination of application downtime, through dedication of
resources to each user
For which type of communication should employees have an ethical expectation of privacy from
company monitoring?
Personal letters sent through the company mail room
WGU C201 BUSINESS ACUMEN OBJECTIVE
ASSESSMENT 2 TEST BANK CONTAINS
(VERSION A &B ) WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
RATIONALES ANSWERS 2024(NEWEST)
ALREADY GRADED A+
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
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
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.
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
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
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?
Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global
package delivery service?
retail
,2|Page
Which three tasks are key responsibilities of operations managers? Choose 3 answers
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
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?
Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized products cost
effectively?
Flexible
Which two of the following distribution channels would take title of the products they handle? Choose 2
answers
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?
Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers
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?
There is no immediate effect on demand
Which two impacts result from a nation's increase in productivity? Choose 2 answers
Economy expands, Personal wealth increases
For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy?
Choose 2 answers
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
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?
Analyzing major investment decisoins
,3|Page
Which two activities are finance activities rather than accounting activities? Choose 2 answers
Making capital market investments, creating a financial plan
Which three sources should a business consider when seeking a long-term source? Choose 3 answers
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?
Commercial paper
Which role does the underwriter play in financing business operations when using the capital market to
sell securities to the public?
It insures the value of the security to the investor
Why should a manager use financial controls in a firm's financial plan?
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?
Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?
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
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
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?
private equity fund
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding
for a business?
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
, 4|Page
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
Ensure that earnings remain larger than interests payments
Which financial statement should an investor examine to identify the liabilities of a firm?
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?
leverage
Which calculation determines a firm's return on equity?
net income divided by average equity
Why should companies that are conservative investors with liquidity concerns invest their excess cash in
money market funds?
it converts easily to cash
Which regulatory relationship with the Securities and Exchange Commission (SEC) historically has acted
to prohibit the U.S. from adopting the International Financial Reporting Standards (IFRS)?
FASB requires companies to comply with GAAP that differ from IFRS
Which users of financial statements use the financial statements to evaluate operations of the firm and
to make investment decisions?
owners and creditors
What is considered the heart of any information system?
The Database
Which type of information system should be accessed by the vice president of sales for a national
department store chain who wants to see the previous day's sales receipts?
A transaction processing system
How does a virtual private network contribute to a firm's workforce productivity?
employers are enabled to work remotely with secure connectivity to the corporate network via the
internet
What are three ways cloud computing services enhance company productivity? Choose 3 answers
Through better resource utilization, through elimination of application downtime, through dedication of
resources to each user
For which type of communication should employees have an ethical expectation of privacy from
company monitoring?
Personal letters sent through the company mail room
