WGU C201 BUSINESS ACUMEN ALL-
WORKBOOK QUESTIONS 101-185- (PART 2)
Questions and Answers (Verified Answers)
Latest Update 2024-25
Briefly explain double bookkeeping. - ✔✔✔Process by which accounting transactions are entered and
each individual transaction always has an offsetting transaction.
Briefly explain the role of financial institutions in the sale of securities. - ✔✔✔Financial institutions
purchase new securities issues from corporations or state and local governments and then resell the
securities to investors. The institutions charge a fee for their services.
Define Accounting. - ✔✔✔Process of measuring, interpreting, and communicating financial information
to support internal and external business decision making.
Define Accrual Accounting. - ✔✔✔Accounting method that records revenues and expenses when they
occur, not necessarily when cash changes hands.
Define GAAP. - ✔✔✔Generally Accepted Accounting Principles: Principles that encompass the
conventions, rules, and procedures for determining acceptable accounting practices at a particular time.
Define Insider trading. - ✔✔✔The use of material nonpublic information to make an investment profit.
Define Microeconomics and Macroeconomics. - ✔✔✔Micro is the study of the economic behavior
among individual consumers, families, and businesses. Macro is the study of a nation's overall economic
issues and how an economic issue and how an economic system maintains and allocates its resources.
Define synergy. - ✔✔✔Synergy is the term used to describe the benefits produced by a merger or
acquisition. It is the notion that the combined company is worth more than the buyer and the target are
individually.
, Define the following ratios: - ✔✔✔Current Ratio: The current ratio compares current assets to current
liabilities, giving executives information about the company's abilities to pay its current debts as they
mature. Inventory Turnover: Indicates the number of time merchandise moves through a business. Net
Profit Margin equals net income divided by sales. The debt ratio equals total liabilities divided by total
assets.
Describe 2 ways in which global expansion can benefit a US firm. - ✔✔✔By attracting more customers
and using less expensive labor and production in other parts of the world to produce goods and services.
Describe the 4 stages of the business cycle. - ✔✔✔Prosperity, recession, depression, and recovery.
Prosperity is characterized by low unemployment and string consumer confidence. Recession may
include consumers postponing major purchases, layoffs, and decreased household savings. A Depression
occurs when an economic slowdown continues in a downward spiral over a long period of time. In
Recovery, consumer spending increases and business activity accelerates.
Describe venture capitalists. - ✔✔✔Venture capitalists raise money from wealthy individuals and
institutional investors and invest the funds in promising companies. If the business succeeds, venture
capitalists can earn substantial profits.
Distinguish between primary and secondary financial markets. - ✔✔✔Primary markets are financial
markets in which corporations and governments issue securities and sell them initially to the general
public. Secondary markets are a collection of financial markets in which previously issued securities are
traded among investors.
Do other countries have organizations that play roles similar to those played by the federal reserve? -
✔✔✔Yes, virtually all nations have central banks that perform many of the same functions that he US
Federal Reserve System does.
Does a balanced budget erase the national debt? - ✔✔✔No, a balanced budget does not erase the
national debt; it's just doesn't increase it/
Explain Cybercrime, Computer hacking and Cyber Terrorism. - ✔✔✔Cybercrime is stealing or altering
data in several ways. Computer hacking is a breach of a computer system by unauthorized users.
Sometimes the hackers motive is just to see if they can get in. other times, hackers have more sinister
WORKBOOK QUESTIONS 101-185- (PART 2)
Questions and Answers (Verified Answers)
Latest Update 2024-25
Briefly explain double bookkeeping. - ✔✔✔Process by which accounting transactions are entered and
each individual transaction always has an offsetting transaction.
Briefly explain the role of financial institutions in the sale of securities. - ✔✔✔Financial institutions
purchase new securities issues from corporations or state and local governments and then resell the
securities to investors. The institutions charge a fee for their services.
Define Accounting. - ✔✔✔Process of measuring, interpreting, and communicating financial information
to support internal and external business decision making.
Define Accrual Accounting. - ✔✔✔Accounting method that records revenues and expenses when they
occur, not necessarily when cash changes hands.
Define GAAP. - ✔✔✔Generally Accepted Accounting Principles: Principles that encompass the
conventions, rules, and procedures for determining acceptable accounting practices at a particular time.
Define Insider trading. - ✔✔✔The use of material nonpublic information to make an investment profit.
Define Microeconomics and Macroeconomics. - ✔✔✔Micro is the study of the economic behavior
among individual consumers, families, and businesses. Macro is the study of a nation's overall economic
issues and how an economic issue and how an economic system maintains and allocates its resources.
Define synergy. - ✔✔✔Synergy is the term used to describe the benefits produced by a merger or
acquisition. It is the notion that the combined company is worth more than the buyer and the target are
individually.
, Define the following ratios: - ✔✔✔Current Ratio: The current ratio compares current assets to current
liabilities, giving executives information about the company's abilities to pay its current debts as they
mature. Inventory Turnover: Indicates the number of time merchandise moves through a business. Net
Profit Margin equals net income divided by sales. The debt ratio equals total liabilities divided by total
assets.
Describe 2 ways in which global expansion can benefit a US firm. - ✔✔✔By attracting more customers
and using less expensive labor and production in other parts of the world to produce goods and services.
Describe the 4 stages of the business cycle. - ✔✔✔Prosperity, recession, depression, and recovery.
Prosperity is characterized by low unemployment and string consumer confidence. Recession may
include consumers postponing major purchases, layoffs, and decreased household savings. A Depression
occurs when an economic slowdown continues in a downward spiral over a long period of time. In
Recovery, consumer spending increases and business activity accelerates.
Describe venture capitalists. - ✔✔✔Venture capitalists raise money from wealthy individuals and
institutional investors and invest the funds in promising companies. If the business succeeds, venture
capitalists can earn substantial profits.
Distinguish between primary and secondary financial markets. - ✔✔✔Primary markets are financial
markets in which corporations and governments issue securities and sell them initially to the general
public. Secondary markets are a collection of financial markets in which previously issued securities are
traded among investors.
Do other countries have organizations that play roles similar to those played by the federal reserve? -
✔✔✔Yes, virtually all nations have central banks that perform many of the same functions that he US
Federal Reserve System does.
Does a balanced budget erase the national debt? - ✔✔✔No, a balanced budget does not erase the
national debt; it's just doesn't increase it/
Explain Cybercrime, Computer hacking and Cyber Terrorism. - ✔✔✔Cybercrime is stealing or altering
data in several ways. Computer hacking is a breach of a computer system by unauthorized users.
Sometimes the hackers motive is just to see if they can get in. other times, hackers have more sinister
