Updated C201 Business Acumen Practice
Test Questions and Correct Answers
Which two activities are finance activities rather than accounting activities? correct answer Choose 2
answers
Making capital market investments, creating a financial plan
Which three sources should a business consider when seeking a long-term source? correct answer
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? correct answer
Commercial 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 insures the value of the security to the investor
.
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
capped the debit card fee at 21 cents
What is the result of a company increasing the delegation of authority and the span of control? correct
answer
Increased number of direct reports per manager
.
Which two key elements does an effective organization include? correct answer
Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation? correct answer
It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last.
1) Define job requirements, 2) Contact and visit colleges for applicants/interns, 3) Conduct employment
tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up interviews, 7) Hiring
determination
, Which primary driver does management use for an organization's structure? correct answer
Achievement of company goals
Which step in the organizing process results in management group work activities into units within the
organization? correct answer
Departmentalization
A high tech startup company is launching a marketing campaign for its new social media portal by
highlighting how the portal exceeds the connectivity and collaboration capabilities of all other social
media sites. Which type of competitive advantage is this company leveraging? correct answer
Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short
term price cutting tactics such as cents off coupons, rebates, and special sales? correct answer
Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product better
than a push strategy? correct answer
When demand for the product is driven by the end user
.
Which marketing tool is essential to building an effective relationship marketing campaign? correct
answer
An affinity program
Test Questions and Correct Answers
Which two activities are finance activities rather than accounting activities? correct answer Choose 2
answers
Making capital market investments, creating a financial plan
Which three sources should a business consider when seeking a long-term source? correct answer
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? correct answer
Commercial 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 insures the value of the security to the investor
.
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
capped the debit card fee at 21 cents
What is the result of a company increasing the delegation of authority and the span of control? correct
answer
Increased number of direct reports per manager
.
Which two key elements does an effective organization include? correct answer
Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation? correct answer
It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last.
1) Define job requirements, 2) Contact and visit colleges for applicants/interns, 3) Conduct employment
tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up interviews, 7) Hiring
determination
, Which primary driver does management use for an organization's structure? correct answer
Achievement of company goals
Which step in the organizing process results in management group work activities into units within the
organization? correct answer
Departmentalization
A high tech startup company is launching a marketing campaign for its new social media portal by
highlighting how the portal exceeds the connectivity and collaboration capabilities of all other social
media sites. Which type of competitive advantage is this company leveraging? correct answer
Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short
term price cutting tactics such as cents off coupons, rebates, and special sales? correct answer
Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product better
than a push strategy? correct answer
When demand for the product is driven by the end user
.
Which marketing tool is essential to building an effective relationship marketing campaign? correct
answer
An affinity program
