C201 BUSINESS ACUMEN END OF COURSE EXAM 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔What are three qualities of strong brand equity? Choose 3 answers
A. Awareness
B. Loyalty
C. Favorable images
D. Trademark
E, Cost-based pricing - ✔✔A. Awareness
B. Loyalty
C. Favorable images
✔✔A customer intends to purchase her favorite cereal. It is out of stock, so she
purchases an alternative brand of cereal instead.Which stage of brand loyalty is this
customer in?
A. Brand equity
B. Brand insistence
C. Brand preference
D. Brand recognition - ✔✔C. Brand preference
✔✔Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service?
A. Wholesale
B. Retail
C. Drop ship
D. Direct - ✔✔D. Direct
✔✔Which three tasks are key responsibilities of operations managers?Choose 3
answers
A. Selecting the goods to offer customers
B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
E. Monitoring product distribution - ✔✔B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
✔✔Which two characteristics does a Just-In-Time (JIT) System have? Choose 2
answers
A. Production using JIT reduces a firm's inventory costs.
,B. JIT production reduces the risk of a production shutdown.
C. A JIT system seeks to eliminate anything that does not add value in operations
activities.
D. JIT reduces the need for forecasts. - ✔✔A. Production using JIT reduces a firm's
inventory costs.
C. A JIT system seeks to eliminate anything that does not add value in operations
activities.
✔✔Which aspect of operations management do the ISO 9000 standards address?
A. Efficient use of resources
B. Adherence to environmental regulations
C. Establishment of effective quality systems
D. Development and manufacture of products that are high-quality - ✔✔C.
Establishment of effective quality systems
✔✔Which manufacturing model uses technology to produce small runs of customized
products cost effectively?
A. Computer-aided
B. Computer-integrated
C. Interchangeable
D. Flexible - ✔✔D. Flexible
✔✔Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers
A. Limited-function merchant wholesaler
B. Agents
C. Full-function merchant wholesaler
D. Brokers - ✔✔A. Limited-function merchant wholesaler
C. Full-function merchant wholesaler
✔✔Which economic graph is used by organizations to regulate production by predicting
the amount of product buyers will purchase at different prices?
A. Demand curve
B. Price sensitivity scale
C. Product value scale
D. Product-price equilibrium - ✔✔A. Demand curve
✔✔Which two factors drive demand in a microeconomic system? Choose 2 answers
A. Production
B. Component shortage
,C. Price of substitute goods
D. Customer preference - ✔✔C. Price of substitute goods
D. Customer preference
✔✔How does a sudden shortage of a commodity product affect the immediate demand
for the product at its current price?
A. Demand diminishes
B. Demand increases
C. Demand is unchanged
D. Demand curve is skewed - ✔✔B. Demand increases
✔✔Which two impacts result from a nation's increase in productivity? Choose 2
answers
A. Hourly wages increase
B. Per capita output diminishes
C. Economy expands
D. Commodity prices increase
E. Personal wealth increases - ✔✔C. Economy expands
E. Personal wealth increases
✔✔For which two purposes will the U.S. Federal Reserve System follow an
expansionary monetary policy? Choose 2 answers
A. To hedge against inflation
B. To encourage bankers to make loans
C. To discourage overexpansion
D. To cut the cost of borrowing - ✔✔B. To encourage bankers to make loans
D. To cut the cost of borrowing
✔✔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
A. A rise of interest rates on these securities
B. An increase in overall cost of debt to private borrowers
C. An increase of foreign investment
D. An increase of funds for public services - ✔✔A. A rise of interest rates on these
securities
B. An increase in overall cost of debt to private borrowers
✔✔What is one role of a financial manager?
A. Preparing tax returns
, B. Collecting accounting information
C. Auditing the firm's accounting books
D. Analyzing major investment decisions - ✔✔D. Analyzing major investment decisions
✔✔Which two activities are finance activities rather than accounting activities? Choose
2 answers
A. Reconciliation of financial statements
B. Recording of business transactions
C. Making capital market investments
D. Managing cash flow
E. Creating a financial plan - ✔✔C. Making capital market investments
E. Creating a financial plan
✔✔Which three sources should a business consider when seeking a long-term funding
source? Choose 3 answers
A. Venture capital
B. Public sale of stocks
C. Commercial paper
D. Hedge funds
E. Trade credit - ✔✔A. Venture capital
B. Public sale of stocks
D. Hedge funds
✔✔In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability?
A. Commercial paper
B. Preferred stock
C. Municipal bonds
D. Common stock - ✔✔A. Commercial paper
✔✔Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public?
A. It insures the value of the security to the investor.
B. It determines the qualifications of an investor to securities from the issuer.
C. It arranges financing for the issuer to support the initial public offering.
D. It assumes the risk of the assessed value of the security from the issuer. - ✔✔D. It
assumes the risk of the assessed value of the security from the issuer.
✔✔Why should a manager use financial controls in a firm's financial plan?
A. To prevent unauthorized expenditures in variance with the financial plan
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔What are three qualities of strong brand equity? Choose 3 answers
A. Awareness
B. Loyalty
C. Favorable images
D. Trademark
E, Cost-based pricing - ✔✔A. Awareness
B. Loyalty
C. Favorable images
✔✔A customer intends to purchase her favorite cereal. It is out of stock, so she
purchases an alternative brand of cereal instead.Which stage of brand loyalty is this
customer in?
A. Brand equity
B. Brand insistence
C. Brand preference
D. Brand recognition - ✔✔C. Brand preference
✔✔Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service?
A. Wholesale
B. Retail
C. Drop ship
D. Direct - ✔✔D. Direct
✔✔Which three tasks are key responsibilities of operations managers?Choose 3
answers
A. Selecting the goods to offer customers
B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
E. Monitoring product distribution - ✔✔B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
✔✔Which two characteristics does a Just-In-Time (JIT) System have? Choose 2
answers
A. Production using JIT reduces a firm's inventory costs.
,B. JIT production reduces the risk of a production shutdown.
C. A JIT system seeks to eliminate anything that does not add value in operations
activities.
D. JIT reduces the need for forecasts. - ✔✔A. Production using JIT reduces a firm's
inventory costs.
C. A JIT system seeks to eliminate anything that does not add value in operations
activities.
✔✔Which aspect of operations management do the ISO 9000 standards address?
A. Efficient use of resources
B. Adherence to environmental regulations
C. Establishment of effective quality systems
D. Development and manufacture of products that are high-quality - ✔✔C.
Establishment of effective quality systems
✔✔Which manufacturing model uses technology to produce small runs of customized
products cost effectively?
A. Computer-aided
B. Computer-integrated
C. Interchangeable
D. Flexible - ✔✔D. Flexible
✔✔Which two of the following distribution channels would take title of the products they
handle? Choose 2 answers
A. Limited-function merchant wholesaler
B. Agents
C. Full-function merchant wholesaler
D. Brokers - ✔✔A. Limited-function merchant wholesaler
C. Full-function merchant wholesaler
✔✔Which economic graph is used by organizations to regulate production by predicting
the amount of product buyers will purchase at different prices?
A. Demand curve
B. Price sensitivity scale
C. Product value scale
D. Product-price equilibrium - ✔✔A. Demand curve
✔✔Which two factors drive demand in a microeconomic system? Choose 2 answers
A. Production
B. Component shortage
,C. Price of substitute goods
D. Customer preference - ✔✔C. Price of substitute goods
D. Customer preference
✔✔How does a sudden shortage of a commodity product affect the immediate demand
for the product at its current price?
A. Demand diminishes
B. Demand increases
C. Demand is unchanged
D. Demand curve is skewed - ✔✔B. Demand increases
✔✔Which two impacts result from a nation's increase in productivity? Choose 2
answers
A. Hourly wages increase
B. Per capita output diminishes
C. Economy expands
D. Commodity prices increase
E. Personal wealth increases - ✔✔C. Economy expands
E. Personal wealth increases
✔✔For which two purposes will the U.S. Federal Reserve System follow an
expansionary monetary policy? Choose 2 answers
A. To hedge against inflation
B. To encourage bankers to make loans
C. To discourage overexpansion
D. To cut the cost of borrowing - ✔✔B. To encourage bankers to make loans
D. To cut the cost of borrowing
✔✔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
A. A rise of interest rates on these securities
B. An increase in overall cost of debt to private borrowers
C. An increase of foreign investment
D. An increase of funds for public services - ✔✔A. A rise of interest rates on these
securities
B. An increase in overall cost of debt to private borrowers
✔✔What is one role of a financial manager?
A. Preparing tax returns
, B. Collecting accounting information
C. Auditing the firm's accounting books
D. Analyzing major investment decisions - ✔✔D. Analyzing major investment decisions
✔✔Which two activities are finance activities rather than accounting activities? Choose
2 answers
A. Reconciliation of financial statements
B. Recording of business transactions
C. Making capital market investments
D. Managing cash flow
E. Creating a financial plan - ✔✔C. Making capital market investments
E. Creating a financial plan
✔✔Which three sources should a business consider when seeking a long-term funding
source? Choose 3 answers
A. Venture capital
B. Public sale of stocks
C. Commercial paper
D. Hedge funds
E. Trade credit - ✔✔A. Venture capital
B. Public sale of stocks
D. Hedge funds
✔✔In which type of security should a business invest its excess cash in anticipation of
paying off the current year's tax liability?
A. Commercial paper
B. Preferred stock
C. Municipal bonds
D. Common stock - ✔✔A. Commercial paper
✔✔Which role does the underwriter play in financing business operations when using
the capital market to sell securities to the public?
A. It insures the value of the security to the investor.
B. It determines the qualifications of an investor to securities from the issuer.
C. It arranges financing for the issuer to support the initial public offering.
D. It assumes the risk of the assessed value of the security from the issuer. - ✔✔D. It
assumes the risk of the assessed value of the security from the issuer.
✔✔Why should a manager use financial controls in a firm's financial plan?
A. To prevent unauthorized expenditures in variance with the financial plan
