C201 Business Acumen Exam with complete solutions

Which part of the organizing process aids in effective and efficient progress toward planned goals and often results in changes within the organization? - ANSWER Evaluating results What is the result of a company increasing the delegation of authority and the span of control? - ANSWER Increased number of direct reports per manager Which two key elements does an effective organization include? - ANSWER Human interaction, structure Why does a line organizational structure function most effectively in a crisis situation? - ANSWER It established a direct flow of authority Number the seven steps in the recruiting and interviewing process from first to last. - ANSWER 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? - ANSWER Achievement of company goals Which step in the organizing process results in management group work activities into units within the organization? - 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 sits. Which type of competitive advantage is this company leveraging? - 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? - ANSWER Everyday low pricing When would a pull promotional strategy enhance a competitive advantage to market a product better than a push strategy? - ANSWER When demand for the product is driven by the end user Which marketing tool is essential to building an effective relationship marketing campaign? - ANSWER An affinity program Which element of the promotional mix has the advantage of messaging that can be tailored for each customer, but the disadvantage of a high cost per contact? - ANSWER Personal Selling What three factors should be addressed in a successful marketing plan? Choose 3 answers. - ANSWER Target Market, Sales revenue goals, Plan implementation timeline (not on list, marketing budget) Which three characteristics are measured in demographic segmentation? Choose 3 answers - ANSWER Race and ethnicity, Income, Household size In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3 answers - ANSWER Buyers face organizational influences in addition to their own preferences, purchasers often invite selected providers to bid on a purchase, a group or committee often makes decisions Which three conditions, in a global selling environment, should a small company leverage to create a competitive advantage? Choose 3 answers - ANSWER cultural homogeneity, mobility of labor, local labor costs With which two types of products does a marketing strategy rely on advertising more than personal selling? Choose 2 answers. - ANSWER Consumable supplies, accessories to primary products After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the lotion as an insect repellent as well. In which three product life cycle extension strategies did this company engage? Choose 3 answers - ANSWER Adding new users, finding new uses for the product, increasing frequency of use. What are three ways that an effective brand name can influence consumer product recognition? Choose 3 answers - ANSWER It conveys an image, it depicts trademark protection, it reflects brand equity. A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty is this customer in? - ANSWER Brand preference Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global package delivery service? - ANSWER retail Which three tasks are key responsibilities of operations managers? Choose 3 answers - ANSWER Planning the overall production process, implementing the production plan, determine the best layout for the firm's facilities. Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers - ANSWER A JIT system seeks to eliminate anything that does not add value in operations activities, production using JIT reduces a firm's inventory costs. Which aspect of operations management do the ISO 9000 Standards address? - ANSWER Establishment of effective quality systems? Which manufacturing model uses technology to produce small runs of customized products cost effectively? - ANSWER Flexible Which two of the following distribution channels would take title of the products they handle? Choose 2 answers - ANSWER Limited function merchant wholesaler, 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? - ANSWER Demand curve Which two factors drive demand in a microeconomics system? Choose 2 answers - ANSWER Customer preference, price of substitute goods How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price? - ANSWER There is no immediate effect on demand Which two impacts result from a nation's increase in productivity? Choose 2 answers - ANSWER Economy expands, Personal wealth increases For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy? Choose 2 answers - ANSWER To encourage bankers to make loans, 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 - ANSWER An increase in overall cost of debt to private borrowers, an increase of funds for public services What is one role of a financial manage? - ANSWER Analyzing major investment decisoins Which two activities are finance activities rather than accounting activities? Choose 2 answers - ANSWER Making capital market investments, creating a financial plan Which three sources should a business consider when seeking a long-term source? Choose 3 answers - ANSWER 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? - ANSWER Commercial paper Which role does the underwriter play in financing business operations when using the capital market to sell securities to the public? - ANSWER It insures the value of the security to the investor Why should a manager use financial controls in a firm's financial plan? - 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? - ANSWER Sales forecast plus non-sales revenue How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers? - ANSWER capped the debit card fee at 21 cents Which two activities are prohibited by insider trading laws and should be avoided by a firm's employees? Choose 2 answers - ANSWER Selling company stock because a co-worker told the employee the company's new drug is failing in clinical trial, 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. Which two risks does a firm face by funding the purchase of long-term assets with short-term funding sources? Choose 2 ansers - ANSWER Volatility of interest rates, frequent renewals Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its equity? - ANSWER private equity fund Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for a business? - ANSWER It has a maturity that ranges between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make large amounts of money available 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 interests payments Which financial statement should an investor examine to identify the liabilities of a firm? - ANSWER The balance sheet 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 Which calculation determines a firm's return on equity? - ANSWER net income divided by average equity Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds? - ANSWER it converts easily to cash Which regulatory relationship with 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 Which users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions? - ANSWER owners and creditors What is considered the heart of any information system? - ANSWER The Database 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 How does a virtual private network contribute to a firm's workforce productivity? - ANSWER employers are enabled to work remotely with secure connectivity to the corporate network via the internet What are three ways cloud computing services enhance company productivity? Choose 3 answers - ANSWER Through better resource utilization, through elimination of application downtime, through dedication of resources to each user For which type of communication should employees have an ethical expectation of privacy from company monitoring? - ANSWER Personal letters sent through the company mail room Which activity raises ethical issues heightened by the capabilities of data mining? - ANSWER Selling customer data for external marketing research Which intent of spyware creates a company security issue? - ANSWER The intent to report on a user's internet activity A company might divide itself into smaller groups that best match the types of customers it service. this is an example of - ANSWER departmentalization. Total productivity - ANSWER output (goods or services) / input (human, natural resources, capital) Liquidity ratio - ANSWER current assets / current liabilities acid test - ANSWER current assets - inventory / current liabilities inventory turnover - ANSWER cost of goods sold / average inventory (average of 2013 + 2014) receivables turnover - ANSWER credit sales / average account receivables (average of 2013 + 2014) total assets turnover - ANSWER sales / average total assets what ratios are considered liquidity ratios - ANSWER the firms abilities to meet its short term obligations and include the liquidity ratio and acid test what ratios are considered activity ratios - ANSWER measue managements use of the firms resources and include all turn over ratios what ratios are considered 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 what are 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 what do management use support systems for - ANSWER decisions information systems for activities fall under which support system - ANSWER operational support systems which of the two information systems are operational support systems - ANSWER process control system, transaction process system a decision support system (DSS) belongs to which support system - ANSWER management is ethical and legal the same thing - ANSWER no when two or more users connect using Ethernet or WiFi to the same server to share printers or other information - ANSWER local area network (LAN what are advantages to WiFi - ANSWER mobility, expansion of LAN the coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer-focused message. - ANSWER integrated marketing communications used in the growth and maturity stage of the product life cycle to improve competitive status of a product. - ANSWER persuasive advertising compares products directly with their competitors ether by name or by inference - ANSWER comparative advertising advertising to maintain awareness of the importance and usefulness of a product - ANSWER reminder-oriented potential buyers will request that their suppliers-retailers or local distributors - carry the products thereby pulling it through the distribution channel - ANSWER pulling strategy companies promote the product to members of the marketing channel, not to end users - ANSWER pushing strategy concentrating marketing efforts on the product (features, quality, value), distribution, and promotional elements of the marketing mix. - ANSWER competitive pricing three different product types - ANSWER specialty, shopping, convenience which of the product types is purchased most infrequently - ANSWER specialty what are the four stages of the product life cycle - ANSWER introductory, growth, maturity, decline which stage of the product life cycle requires focusing on attracting the competitors customers - ANSWER maturity which advantage does brand loyalty provide - ANSWER competitive advantage the highest form of brand loyalty is - ANSWER imsistence brand preference is a higher form or loyalty than brand recognition - ANSWER true a brand is recognized by potential customers, and is correctly associated with a particular product - ANSWER brand awareness connect the brand to the a positive image (GE to eco friendly) - ANSWER brand association what are marketing intermediaries - ANSWER retailer and broker using what can make a price cheaper to a consumer - ANSWER wholesaler what adds value to a product - ANSWER marketing intermediaries what is the purpose of a strategic marketing stratey - ANSWER achieve organizational goals what is not a non-traditional marketing technique - ANSWER team what is a non-traditional marketing technique you would use to market yourself as a real-estate agent - ANSWER people the 4 P's product, place, promotion, price make up what - ANSWER marketing mix name three personal, determinants that influence your consumer behavior - ANSWER learned experience, perception, self-concept what market segmentations are used in B2B and B2C - ANSWER demographic and geographic targeting consumer markets based on lifestyle is what kind of segmentation - ANSWER psychographic the advantage of being able to offer a product at a much lower price than a competitor is - ANSWER comparative advantage B2B relationship marketing is easier to create with - ANSWER new businesses which type of production carries the highest inventory - ANSWER mass which type of productions has little to no finished inventory - ANSWER customer driven which type of production utilizes the most information technology (automation). - ANSWER flexible which type of production requires the highest level of skilled workers - ANSWER mass production what are two advantages to computer aided manufacturing - ANSWER accuracy, faster what do we call a facility hat can utilize computer-integrated manufacturing to produce a product from start to finish - ANSWER lights out facility the computer based planning system used by production managers to ensure parts and materials are on hand - ANSWER MRP (materials requirement planning) a process lay-out where all of the materials must be brought to the product being