(WGU C201) BUS 5000 Business Acumen - Readiness Assessment Guide Q & S (WGU C201) BUS 5000 Business Acumen - Readiness Assessment Guide Q & S (WGU C201) BUS 5000 Business Acumen - Readiness Assessment Guide Q & S
,1. Multiple Choice: Which financial statement best demonstrates
the profitability of a company over a specific period?
a) Balance Sheet
b) Income Statement
c) Cash Flow Statement
d) Statement of Shareholders' Equity
Correct Answer: b) Income Statement
Rationale: The income statement provides detailed information
about a company's revenues, expenses, and net income, which
reflects profitability.
2. Fill-in-the-Blank: The ________ is a strategic tool used to
analyze a company's competitive environment by examining
strengths, weaknesses, opportunities, and threats.
Correct Answer: SWOT Analysis
Rationale: SWOT Analysis is a common strategic planning tool
for evaluating those four key aspects of a business.
3. True/False: In the context of business acumen, 'liquidity' refers
to the ease with which a company's shares can be bought or sold in
the market.
Correct Answer: False
Rationale: Liquidity actually refers to a company's ability to meet
its short-term obligations.
, Correct Answers: a), b), d)
Rationale: While speaking multiple languages can be beneficial, it
is not considered a core component of business acumen.
5. Multiple Choice: What does the term 'market capitalization'
refer to?
a) The total value of a company's outstanding shares
b) The maximum market share a company can achieve
c) The capital raised from the market through the sale of shares
d) The capital allocated for marketing purposes
Correct Answer: a) The total value of a company's outstanding
shares
Rationale: Market capitalization is calculated by multiplying the
current share price by the total number of outstanding shares.
6. Fill-in-the-Blank: The process of evaluating the financial health
of a company by reviewing its financial statements is known as
________.
Correct Answer: Financial Analysis
Rationale: Financial analysis involves assessing the viability,
stability, and profitability of a business.
7. True/False: A high debt-to-equity ratio always indicates a
company is at financial risk.
Correct Answer: False
Rationale: While a high debt-to-equity ratio can indicate higher
financial risk, it can also reflect a company's aggressive growth
strategy through debt financing.
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