WGU C201 BUSINESS ACUMEN EXAM
SCRIPT PREMIUM REVIEW SHEET TESTED
QUESTIONS AND ANSWERS
●● Virtual Private Network (VPN)
Answer: A technology that enables employers to work remotely with
secure connectivity to the corporate network via the internet.
●● Cloud Computing Services
Answer: Services that enhance company productivity through better
resource utilization, elimination of application downtime, and dedication
of resources to each user.
●● Ethical Expectation of Privacy
Answer: The expectation that employees have privacy from company
monitoring for personal letters sent through the company mail room.
●● Data Mining Ethical Issues
Answer: Selling customer data for external marketing research raises
ethical issues heightened by the capabilities of data mining.
●● Spyware Intent
,Answer: The intent to report on a user's internet activity creates a
company security issue.
●● Departmentalization
Answer: A company might divide itself into smaller groups that best
match the types of customers it services.
●● Total Productivity
Answer: Output (goods or services) divided by input (human, natural
resources, capital).
●● Liquidity Ratio
Answer: Current assets divided by current liabilities.
●● Acid Test
Answer: Current assets minus inventory divided by current liabilities.
●● Inventory Turnover
Answer: Cost of goods sold divided by average inventory (average of
2013 + 2014).
●● Receivables Turnover
,Answer: Credit sales divided by average account receivables (average of
2013 + 2014).
●● Total Assets Turnover
Answer: Sales divided by average total assets.
●● Liquidity Ratios
Answer: Ratios that measure the firm's abilities to meet its short-term
obligations, including the liquidity ratio and acid test.
●● Activity Ratios
Answer: Measure management's use of the firm's resources and include
all turnover ratios.
●● Profitability Ratios
Answer: Gross profit, net profit, and return on equity.
●● Gross Profit Margin
Answer: Gross profit / sales.
●● Net Profit Margin
Answer: Net income / sales.
, ●● Return on Equity
Answer: Net income / average equity.
●● Leverage Ratios
Answer: Measure the extent to which a firm relies on debt financing and
includes debt ratio and long-term debt to equity.
●● Debt Ratio
Answer: Total liabilities / total assets.
●● Long-term Debt to Equity
Answer: Long-term debt / owner's equity.
●● Management Support Systems
Answer: Used for decisions.
●● Operational Support Systems
Answer: Information systems for activities fall under this support
system.
●● Process Control System
Answer: One of the two information systems that are operational support
systems.
SCRIPT PREMIUM REVIEW SHEET TESTED
QUESTIONS AND ANSWERS
●● Virtual Private Network (VPN)
Answer: A technology that enables employers to work remotely with
secure connectivity to the corporate network via the internet.
●● Cloud Computing Services
Answer: Services that enhance company productivity through better
resource utilization, elimination of application downtime, and dedication
of resources to each user.
●● Ethical Expectation of Privacy
Answer: The expectation that employees have privacy from company
monitoring for personal letters sent through the company mail room.
●● Data Mining Ethical Issues
Answer: Selling customer data for external marketing research raises
ethical issues heightened by the capabilities of data mining.
●● Spyware Intent
,Answer: The intent to report on a user's internet activity creates a
company security issue.
●● Departmentalization
Answer: A company might divide itself into smaller groups that best
match the types of customers it services.
●● Total Productivity
Answer: Output (goods or services) divided by input (human, natural
resources, capital).
●● Liquidity Ratio
Answer: Current assets divided by current liabilities.
●● Acid Test
Answer: Current assets minus inventory divided by current liabilities.
●● Inventory Turnover
Answer: Cost of goods sold divided by average inventory (average of
2013 + 2014).
●● Receivables Turnover
,Answer: Credit sales divided by average account receivables (average of
2013 + 2014).
●● Total Assets Turnover
Answer: Sales divided by average total assets.
●● Liquidity Ratios
Answer: Ratios that measure the firm's abilities to meet its short-term
obligations, including the liquidity ratio and acid test.
●● Activity Ratios
Answer: Measure management's use of the firm's resources and include
all turnover ratios.
●● Profitability Ratios
Answer: Gross profit, net profit, and return on equity.
●● Gross Profit Margin
Answer: Gross profit / sales.
●● Net Profit Margin
Answer: Net income / sales.
, ●● Return on Equity
Answer: Net income / average equity.
●● Leverage Ratios
Answer: Measure the extent to which a firm relies on debt financing and
includes debt ratio and long-term debt to equity.
●● Debt Ratio
Answer: Total liabilities / total assets.
●● Long-term Debt to Equity
Answer: Long-term debt / owner's equity.
●● Management Support Systems
Answer: Used for decisions.
●● Operational Support Systems
Answer: Information systems for activities fall under this support
system.
●● Process Control System
Answer: One of the two information systems that are operational support
systems.
