C201 BUSINESS ACUMEN EVALUATION EXAM 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Planning the overall production process, implementing the production plan,
determine the best layout for the firm's facilities. - ✔✔Which three tasks are key
responsibilities of operations managers? Choose 3 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 two
characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
✔✔Establishment of effective quality systems? - ✔✔Which aspect of operations
management do the ISO 9000 Standards address?
✔✔Flexible - ✔✔Which manufacturing model uses technology to produce small runs of
customized products cost effectively?
✔✔Limited function merchant wholesaler, full function merchant wholesaler - ✔✔Which
two of the following distribution channels would take title of the products they handle?
Choose 2 answers
✔✔Demand curve - ✔✔Which economic graph is used by organizations to regulate
production by predicting the amount of product buyers will purchase at different prices?
✔✔Customer preference, price of substitute goods - ✔✔Which two factors drive
demand in a microeconomics system? Choose 2 answers
✔✔There is no immediate effect on demand - ✔✔How does a sudden shortage of a
commodity product affect the immediate demand for the product at its current price?
✔✔Economy expands, Personal wealth increases - ✔✔Which two impacts result from a
nation's increase in productivity? Choose 2 answers
✔✔To encourage bankers to make loans, to cut the cost of borrowing - ✔✔For which
two purposes will the U.S Federal Reserve System follow an expansionary monetary
policy? Choose 2 answers
✔✔An increase in overall cost of debt to private borrowers, an increase of funds for
public services - ✔✔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
✔✔Analyzing major investment decisoins - ✔✔What is one role of a financial manage?
, ✔✔Making capital market investments, creating a financial plan - ✔✔Which two
activities are finance activities rather than accounting activities? Choose 2 answers
✔✔Hedge funds, Venture capital, public sale of stocks - ✔✔Which three sources should
a business consider when seeking a long-term source? Choose 3 answers
✔✔Commercial paper - ✔✔In which type of security should a business invest its excess
cash in anticipation of paying off the current year's tax liability?
✔✔It insures the value of the security to the investor - ✔✔Which role does the
underwriter play in financing business operations when using the capital market to sell
securities to the public?
✔✔to determine the accuracy of forecasted revenues, costs, and expenses - ✔✔Why
should a manager use financial controls in a firm's financial plan?
✔✔Sales forecast plus non-sales revenue - ✔✔What does a CFO use in financial
planning to determine the expected level of revenue for future periods?
✔✔capped the debit card fee at 21 cents - ✔✔How did the Dodd-Frank Wall Street
Reform and Consumer Protection Act impact retailers?
✔✔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 activities are prohibited by insider trading
laws and should be avoided by a firm's employees? Choose 2 answers
✔✔Volatility of interest rates, frequent renewals - ✔✔Which two risks does a firm face
by funding the purchase of long-term assets with short-term funding sources? Choose 2
ansers
✔✔private equity fund - ✔✔Which funding source should a firm use if it wishes to
secure long-term financing while retaining all of its equity?
✔✔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 -
✔✔Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business?
✔✔Ensure that earnings remain larger than interests payments - ✔✔What should a firm
do to manage the risk of using leverage when exploring long-term funding options?
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Planning the overall production process, implementing the production plan,
determine the best layout for the firm's facilities. - ✔✔Which three tasks are key
responsibilities of operations managers? Choose 3 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 two
characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
✔✔Establishment of effective quality systems? - ✔✔Which aspect of operations
management do the ISO 9000 Standards address?
✔✔Flexible - ✔✔Which manufacturing model uses technology to produce small runs of
customized products cost effectively?
✔✔Limited function merchant wholesaler, full function merchant wholesaler - ✔✔Which
two of the following distribution channels would take title of the products they handle?
Choose 2 answers
✔✔Demand curve - ✔✔Which economic graph is used by organizations to regulate
production by predicting the amount of product buyers will purchase at different prices?
✔✔Customer preference, price of substitute goods - ✔✔Which two factors drive
demand in a microeconomics system? Choose 2 answers
✔✔There is no immediate effect on demand - ✔✔How does a sudden shortage of a
commodity product affect the immediate demand for the product at its current price?
✔✔Economy expands, Personal wealth increases - ✔✔Which two impacts result from a
nation's increase in productivity? Choose 2 answers
✔✔To encourage bankers to make loans, to cut the cost of borrowing - ✔✔For which
two purposes will the U.S Federal Reserve System follow an expansionary monetary
policy? Choose 2 answers
✔✔An increase in overall cost of debt to private borrowers, an increase of funds for
public services - ✔✔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
✔✔Analyzing major investment decisoins - ✔✔What is one role of a financial manage?
, ✔✔Making capital market investments, creating a financial plan - ✔✔Which two
activities are finance activities rather than accounting activities? Choose 2 answers
✔✔Hedge funds, Venture capital, public sale of stocks - ✔✔Which three sources should
a business consider when seeking a long-term source? Choose 3 answers
✔✔Commercial paper - ✔✔In which type of security should a business invest its excess
cash in anticipation of paying off the current year's tax liability?
✔✔It insures the value of the security to the investor - ✔✔Which role does the
underwriter play in financing business operations when using the capital market to sell
securities to the public?
✔✔to determine the accuracy of forecasted revenues, costs, and expenses - ✔✔Why
should a manager use financial controls in a firm's financial plan?
✔✔Sales forecast plus non-sales revenue - ✔✔What does a CFO use in financial
planning to determine the expected level of revenue for future periods?
✔✔capped the debit card fee at 21 cents - ✔✔How did the Dodd-Frank Wall Street
Reform and Consumer Protection Act impact retailers?
✔✔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 activities are prohibited by insider trading
laws and should be avoided by a firm's employees? Choose 2 answers
✔✔Volatility of interest rates, frequent renewals - ✔✔Which two risks does a firm face
by funding the purchase of long-term assets with short-term funding sources? Choose 2
ansers
✔✔private equity fund - ✔✔Which funding source should a firm use if it wishes to
secure long-term financing while retaining all of its equity?
✔✔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 -
✔✔Which three characteristics make commercial paper a low-risk, attractive source of
short-term funding for a business?
✔✔Ensure that earnings remain larger than interests payments - ✔✔What should a firm
do to manage the risk of using leverage when exploring long-term funding options?
