C201 BUSINESS ACUMEN Exam Questions with
correct answers
What is management - ✅✅The process of guiding the development, maintenance, and allocation of
resources to attain organizational goals
How do the jobs of top managers, middle managers, and supervisory managers differ - ✅✅Top
managers set overall direction, middle managers implement policies, and supervisory managers oversee
day-to-day operations
What is the relationship between a manager's planning and controlling functions - ✅✅Planning sets
goals and controlling ensures activities are achieving those goals
What is meant by a vision for the company - ✅✅A clear, inspiring long-term desired change resulting
from the organization's work
Why is it important for a top executive to set high ethical standards - ✅✅It fosters an ethical culture
and guides employee behavior
Outline the planning process. Set objectives → Develop strategies → Determine resources → Implement
→ Evaluate - ✅✅
What is the purpose of a mission statement - ✅✅To define a company's core purpose, values, and
direction
Operations & Quality Management What is mass production - ✅✅The manufacture of goods in large
quantities, often using assembly lines or automation
What is the difference between flexible production and customer-driven production - ✅✅Flexible
adapts to changing specifications
,customer-driven tailors output based on specific customer needs - ✅✅
What are the two main production systems - ✅✅Analytic (breaking down raw materials) and
synthetic (combining inputs)
List reasons businesses invest in robots. Increased efficiency, consistency, and safety, and reduced labor
costs - ✅✅
What is a flexible manufacturing system (FMS) - ✅✅A production method that allows for quick
changes in manufacturing
What is ISO 9000 certification - ✅✅A global standard for quality management systems
What is utility in marketing - ✅✅The value added by marketing in the form of time, place, ownership,
and form
What is the marketing concept - ✅✅A philosophy that satisfying customer needs leads to long-term
success
What is data mining - ✅✅The process of analyzing data to identify patterns useful for marketing
decisions
What is segmentation - ✅✅Dividing a market into groups with similar characteristics
What are the three approaches to product-related segmentation - ✅✅Usage rate, brand loyalty, and
benefits sought
What are the stages of the product life cycle - ✅✅Introduction, Growth, Maturity, Decline
What is distribution intensity - ✅✅The level of market exposure a product receives: intensive,
selective, or exclusive
,Define brand equity. The value a brand adds to a product beyond its functional benefits - ✅✅
What is a marketing intermediary - ✅✅An entity that moves products from producers to consumers
What is an information system - ✅✅A combination of people, technology, and processes to manage
data
What is the difference between data and information - ✅✅Data are raw facts
information is processed data that is meaningful - ✅✅
What is cloud computing - ✅✅Storing and accessing data over the internet rather than on local
servers
What is malware - ✅✅Malicious software designed to damage or disrupt systems
What is the difference between microeconomics and macroeconomics - ✅✅Micro focuses on
individual markets
macro studies the overall economy - ✅✅
Define supply and demand. Supply is the amount a market offers - ✅✅
demand is how much people want - ✅✅
What are the four stages of the business cycle - ✅✅Expansion, Peak, Contraction, Trough
What is fiscal policy - ✅✅Government spending and taxation decisions to influence the economy
, What is the accounting equation - ✅✅Assets = Liabilities + Owner's Equity
What is the purpose of the balance sheet - ✅✅To show a company's financial position at a specific
time
What are the four major financial statements - ✅✅Income statement, balance sheet, cash flow
statement, statement of owner's equity
What is the role of the FASB - ✅✅To develop U.S. accounting standards
What is a financial system - ✅✅A network that allows funds to flow between savers and borrowers
What are the two main types of financial markets - ✅✅Primary (new issues) and secondary (resale)
What are the roles of the Federal Reserve - ✅✅Managing inflation, supervising banks, and
maintaining financial stability
What is the risk-return trade-off - ✅✅The principle that higher risk can lead to higher potential
returns
What is management - ✅✅Management is the process of planning, organizing, leading, and
controlling resources (human, financial, material, and informational) to achieve organizational goals
efficiently and effectively
How do the jobs of top managers, middle managers, and supervisory managers differ - ✅✅Top
managers (CEOs, presidents, VPs) focus on strategic planning, long-term vision, and overall company
direction. Middle managers (department heads, division managers) translate strategic goals into specific
objectives and oversee implementation. Supervisory managers (team leads, first-line managers) handle
daily operations, directly managing employees and ensuring tasks are completed efficiently
correct answers
What is management - ✅✅The process of guiding the development, maintenance, and allocation of
resources to attain organizational goals
How do the jobs of top managers, middle managers, and supervisory managers differ - ✅✅Top
managers set overall direction, middle managers implement policies, and supervisory managers oversee
day-to-day operations
What is the relationship between a manager's planning and controlling functions - ✅✅Planning sets
goals and controlling ensures activities are achieving those goals
What is meant by a vision for the company - ✅✅A clear, inspiring long-term desired change resulting
from the organization's work
Why is it important for a top executive to set high ethical standards - ✅✅It fosters an ethical culture
and guides employee behavior
Outline the planning process. Set objectives → Develop strategies → Determine resources → Implement
→ Evaluate - ✅✅
What is the purpose of a mission statement - ✅✅To define a company's core purpose, values, and
direction
Operations & Quality Management What is mass production - ✅✅The manufacture of goods in large
quantities, often using assembly lines or automation
What is the difference between flexible production and customer-driven production - ✅✅Flexible
adapts to changing specifications
,customer-driven tailors output based on specific customer needs - ✅✅
What are the two main production systems - ✅✅Analytic (breaking down raw materials) and
synthetic (combining inputs)
List reasons businesses invest in robots. Increased efficiency, consistency, and safety, and reduced labor
costs - ✅✅
What is a flexible manufacturing system (FMS) - ✅✅A production method that allows for quick
changes in manufacturing
What is ISO 9000 certification - ✅✅A global standard for quality management systems
What is utility in marketing - ✅✅The value added by marketing in the form of time, place, ownership,
and form
What is the marketing concept - ✅✅A philosophy that satisfying customer needs leads to long-term
success
What is data mining - ✅✅The process of analyzing data to identify patterns useful for marketing
decisions
What is segmentation - ✅✅Dividing a market into groups with similar characteristics
What are the three approaches to product-related segmentation - ✅✅Usage rate, brand loyalty, and
benefits sought
What are the stages of the product life cycle - ✅✅Introduction, Growth, Maturity, Decline
What is distribution intensity - ✅✅The level of market exposure a product receives: intensive,
selective, or exclusive
,Define brand equity. The value a brand adds to a product beyond its functional benefits - ✅✅
What is a marketing intermediary - ✅✅An entity that moves products from producers to consumers
What is an information system - ✅✅A combination of people, technology, and processes to manage
data
What is the difference between data and information - ✅✅Data are raw facts
information is processed data that is meaningful - ✅✅
What is cloud computing - ✅✅Storing and accessing data over the internet rather than on local
servers
What is malware - ✅✅Malicious software designed to damage or disrupt systems
What is the difference between microeconomics and macroeconomics - ✅✅Micro focuses on
individual markets
macro studies the overall economy - ✅✅
Define supply and demand. Supply is the amount a market offers - ✅✅
demand is how much people want - ✅✅
What are the four stages of the business cycle - ✅✅Expansion, Peak, Contraction, Trough
What is fiscal policy - ✅✅Government spending and taxation decisions to influence the economy
, What is the accounting equation - ✅✅Assets = Liabilities + Owner's Equity
What is the purpose of the balance sheet - ✅✅To show a company's financial position at a specific
time
What are the four major financial statements - ✅✅Income statement, balance sheet, cash flow
statement, statement of owner's equity
What is the role of the FASB - ✅✅To develop U.S. accounting standards
What is a financial system - ✅✅A network that allows funds to flow between savers and borrowers
What are the two main types of financial markets - ✅✅Primary (new issues) and secondary (resale)
What are the roles of the Federal Reserve - ✅✅Managing inflation, supervising banks, and
maintaining financial stability
What is the risk-return trade-off - ✅✅The principle that higher risk can lead to higher potential
returns
What is management - ✅✅Management is the process of planning, organizing, leading, and
controlling resources (human, financial, material, and informational) to achieve organizational goals
efficiently and effectively
How do the jobs of top managers, middle managers, and supervisory managers differ - ✅✅Top
managers (CEOs, presidents, VPs) focus on strategic planning, long-term vision, and overall company
direction. Middle managers (department heads, division managers) translate strategic goals into specific
objectives and oversee implementation. Supervisory managers (team leads, first-line managers) handle
daily operations, directly managing employees and ensuring tasks are completed efficiently
