WGU C201 Business Acumen
OBJECTIVE ASSESSMENT Frequently
Tested Exam Questions With Verified
Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is one role of a financial manager? - ANSWER Analyzing major
investment decisions
2. Which two activities are finance activities rather than accounting activities?
- ANSWER Making capital market investments
Creating a financial plan
3. Which three sources should a business consider when seeking a long-term
funding source? - ANSWER Venture capital
Public sale of stocks
Hedge funds
4. In which type of security should a business invest its excess cash in
anticipation of paying off the current year's tax liability? - ANSWER
commerical paper
,5. Which role does the underwriter play in financing business operations when
using the capital market to sell securities to the public? - ANSWER It
assumes the risk of the assessed value of the security from the issuer.
6. Why should a manager use financial controls in a firm's financial plan? -
ANSWER To determine the accuracy of forecasted revenues, costs, and
expenses
7. What does a CFO use in financial planning to determine the expected level
of revenue for future periods? - ANSWER Sales forecast plus non-sales
revenue
8. How did the Dodd-Frank Wall Street Reform and Consumer Protection Act
impact retailers? - ANSWER It capped the debit card swipe fee at 21
cents.
9. Which two activities are prohibited by insider trading laws and should be
avoided by a firm's employees? - ANSWER 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
Selling company stock because a co-worker told the employee the company's
new drug is failing in clinical trial
,10.Which two risks does a firm face by funding the purchase of long-term
assets with short-term funding sources? - ANSWER Volatility of interest
rates
Frequent renewals
11.Which funding source should a firm use if it wishes to secure long-term
financing while retaining all of its equity? - ANSWER Long-term
commercial bank loan
12.Which three characteristics make commercial paper a low-risk, attractive
source of short-term funding for a business? - ANSWER It can make
large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank loans.
It has a maturity that ranges between 1 and 270 days.
13.What should a firm do to manage the risk of using leverage when exploring
long-term funding options? - ANSWER Ensure that earnings remain
larger than interest payments
14.Which financial statement should an investor examine to identify the
liabilities of a firm? - ANSWER The balance sheet
15.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? - ANSWER Leverage
, 16.Which calculation determines a firm's return on equity? - ANSWER Net
income divided by average equity
17.Why should companies that are conservative investors with liquidity
concerns invest their excess cash in money market funds? - ANSWER It
converts easily into cash.
18.Which regulatory relationship within the Securities and Exchange
Commission (SEC) historically has acted to prohibit the U.S. from adopting
the International Financial Reporting Standards (IFRS)? - ANSWER FASB
requires companies to comply with GAAP that differ from IFRS
19.Which users of financial statements use the financial statements to evaluate
operations of the firm and to make investment decisions? - ANSWER
Owners and creditors
20.What is considered the heart of any information system? - ANSWER
Database
21.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? - ANSWER A transaction processing
system
22.How does a virtual private network contribute to a firm's workforce
productivity? - ANSWER Employees are enabled to work remotely with
secure connectivity to the corporate network via the internet.
OBJECTIVE ASSESSMENT Frequently
Tested Exam Questions With Verified
Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. What is one role of a financial manager? - ANSWER Analyzing major
investment decisions
2. Which two activities are finance activities rather than accounting activities?
- ANSWER Making capital market investments
Creating a financial plan
3. Which three sources should a business consider when seeking a long-term
funding source? - ANSWER Venture capital
Public sale of stocks
Hedge funds
4. In which type of security should a business invest its excess cash in
anticipation of paying off the current year's tax liability? - ANSWER
commerical paper
,5. Which role does the underwriter play in financing business operations when
using the capital market to sell securities to the public? - ANSWER It
assumes the risk of the assessed value of the security from the issuer.
6. Why should a manager use financial controls in a firm's financial plan? -
ANSWER To determine the accuracy of forecasted revenues, costs, and
expenses
7. What does a CFO use in financial planning to determine the expected level
of revenue for future periods? - ANSWER Sales forecast plus non-sales
revenue
8. How did the Dodd-Frank Wall Street Reform and Consumer Protection Act
impact retailers? - ANSWER It capped the debit card swipe fee at 21
cents.
9. Which two activities are prohibited by insider trading laws and should be
avoided by a firm's employees? - ANSWER 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
Selling company stock because a co-worker told the employee the company's
new drug is failing in clinical trial
,10.Which two risks does a firm face by funding the purchase of long-term
assets with short-term funding sources? - ANSWER Volatility of interest
rates
Frequent renewals
11.Which funding source should a firm use if it wishes to secure long-term
financing while retaining all of its equity? - ANSWER Long-term
commercial bank loan
12.Which three characteristics make commercial paper a low-risk, attractive
source of short-term funding for a business? - ANSWER It can make
large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank loans.
It has a maturity that ranges between 1 and 270 days.
13.What should a firm do to manage the risk of using leverage when exploring
long-term funding options? - ANSWER Ensure that earnings remain
larger than interest payments
14.Which financial statement should an investor examine to identify the
liabilities of a firm? - ANSWER The balance sheet
15.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? - ANSWER Leverage
, 16.Which calculation determines a firm's return on equity? - ANSWER Net
income divided by average equity
17.Why should companies that are conservative investors with liquidity
concerns invest their excess cash in money market funds? - ANSWER It
converts easily into cash.
18.Which regulatory relationship within the Securities and Exchange
Commission (SEC) historically has acted to prohibit the U.S. from adopting
the International Financial Reporting Standards (IFRS)? - ANSWER FASB
requires companies to comply with GAAP that differ from IFRS
19.Which users of financial statements use the financial statements to evaluate
operations of the firm and to make investment decisions? - ANSWER
Owners and creditors
20.What is considered the heart of any information system? - ANSWER
Database
21.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? - ANSWER A transaction processing
system
22.How does a virtual private network contribute to a firm's workforce
productivity? - ANSWER Employees are enabled to work remotely with
secure connectivity to the corporate network via the internet.
