GEB 4522 - Data Driven for Decision Making
Questions with Correct Answers
Describe the role industry-specific ratios perform in evaluating the
operating performance of a business Correct Answer-To compare
performance of a company with other firms in same industry before
investing
Compare enterprise ratios and industry ratios and evaluate the meaning
to the individual enterprise Correct Answer-
What are the 4 types of ratios? Correct Answer-- Profitability
Sustainability
- Operational Efficiency
- Liquidity
- Leverage
What do Profitability Sustainability Ratios measure? Correct Answer--
How well the business is performing over a period of time
- If your social enterprise will have the financial resources to continue
What do Operational Efficiency Ratios measure? Correct Answer-- How
efficiently you're utilizing your assets and managing your liabilities
- These ratios are used to compare performance over multiple periods.
,What do Liquidity Ratios measure? Correct Answer-If your enterprise
has enough cash on an ongoing basis to meet operational obligations
What do Leverage Ratios measure? Correct Answer-To what degree
does an enterprise utilizes borrowed money (determines a business's
ability to repay debt and its risk level)
Characteristics of Persuasive Writing (3 elements) Correct Answer-1)
The evidence: facts and judgements supporting claim (the information
you want your readers to consider)
2) The reasoning: logic used to derive claim from evidence (logic used
to connect evidence to your claim)
3) The claim: idea you're communicating (the conclusion you want your
readers to accept)
What would an index measure? Correct Answer-Market penetration
good = indexes over 100 (strong market penetration)
bad = indexes under 100 (weak market penetration)
For ratios to be useful and meaningful, they should be... Correct
Answer-Calculated consistently from period to period
, What are ratios regularly used to compare? Correct Answer--Prior
periods
-Other companies in your industry
-Internal goals
Which type of ratios measure how well the business is performing over a
specific period, and will it have the resources to continue? Correct
Answer-Profitability Sustainability Ratios
A challenge of using historical data to forecast future performance?
Correct Answer--Changes in the general state of the economy
-Changes in policies established by management
-Failure to adjust for inflation
True or False: A sales increase of 5% is always good. Correct Answer-
False
Benchmarking is... Correct Answer-An activity that tells you your
position or status by comparing yourself to others
Benefits of benchmarking? Correct Answer-- Better performance
- Leveraging areas of strength
- Improved quality
- Cost efficient
Questions with Correct Answers
Describe the role industry-specific ratios perform in evaluating the
operating performance of a business Correct Answer-To compare
performance of a company with other firms in same industry before
investing
Compare enterprise ratios and industry ratios and evaluate the meaning
to the individual enterprise Correct Answer-
What are the 4 types of ratios? Correct Answer-- Profitability
Sustainability
- Operational Efficiency
- Liquidity
- Leverage
What do Profitability Sustainability Ratios measure? Correct Answer--
How well the business is performing over a period of time
- If your social enterprise will have the financial resources to continue
What do Operational Efficiency Ratios measure? Correct Answer-- How
efficiently you're utilizing your assets and managing your liabilities
- These ratios are used to compare performance over multiple periods.
,What do Liquidity Ratios measure? Correct Answer-If your enterprise
has enough cash on an ongoing basis to meet operational obligations
What do Leverage Ratios measure? Correct Answer-To what degree
does an enterprise utilizes borrowed money (determines a business's
ability to repay debt and its risk level)
Characteristics of Persuasive Writing (3 elements) Correct Answer-1)
The evidence: facts and judgements supporting claim (the information
you want your readers to consider)
2) The reasoning: logic used to derive claim from evidence (logic used
to connect evidence to your claim)
3) The claim: idea you're communicating (the conclusion you want your
readers to accept)
What would an index measure? Correct Answer-Market penetration
good = indexes over 100 (strong market penetration)
bad = indexes under 100 (weak market penetration)
For ratios to be useful and meaningful, they should be... Correct
Answer-Calculated consistently from period to period
, What are ratios regularly used to compare? Correct Answer--Prior
periods
-Other companies in your industry
-Internal goals
Which type of ratios measure how well the business is performing over a
specific period, and will it have the resources to continue? Correct
Answer-Profitability Sustainability Ratios
A challenge of using historical data to forecast future performance?
Correct Answer--Changes in the general state of the economy
-Changes in policies established by management
-Failure to adjust for inflation
True or False: A sales increase of 5% is always good. Correct Answer-
False
Benchmarking is... Correct Answer-An activity that tells you your
position or status by comparing yourself to others
Benefits of benchmarking? Correct Answer-- Better performance
- Leveraging areas of strength
- Improved quality
- Cost efficient
