WGU C201 BUSINESS ACUMEN OBJECTIVE
ASSESSMENT EXAM ACTUAL EXAM
COMPLETE 400 QUESTIONS AND DETAILED
ANSWERS RATED A | BRAND NEW!!!
Which two activities are prohibited by insider trading laws and
should be avoided by a firm's employees?
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
Selling company stock because a co-worker told the employee
the company's new drug is failing in clinical trial
Why should a manager use financial controls in a firm's
financial plan?
To determine the accuracy of forecasted revenues, costs, and
expenses
,Which role does the underwriter play in financing business
operations when using the capital market to sell securities to
the public?
It assumes the risk of the assessed value of the security from
the issuer.
What does a CFO use in financial planning to determine the
expected level of revenue for future periods?
Sales forecast plus non-sales revenue
How did the Dodd-Frank Wall Street Reform and Consumer
Protection Act impact retailers?
It capped the debit card swipe fee at 21 cents.
Which three characteristics make commercial paper a low-risk,
attractive source of short-term funding for a business?
It can make large amounts of money available.
It carries interest rates that are 1 to 2 percent less than bank
loans.
,It has a maturity that ranges between 1 and 270 days.
Which two risks does a firm face by funding the purchase of
long-term assets with short-term funding sources?
Volatility of interest rates
Frequent renewals
Which regulatory relationship within the Securities and
Exchange Commission (SEC) historically has acted to prohibit
the U.S. from adopting the International Financial Reporting
Standards (IFRS)?
FASB requires companies to comply with GAAP that differ
from IFRS
Which funding source should a firm use if it wishes to secure
long-term financing while retaining all of its equity?
Long-term commercial bank loan
, What should a firm do to manage the risk of using leverage
when exploring long-term funding options?
Ensure that earnings remain larger than interest payments
How does a virtual private network contribute to a firm's
workforce productivity?
Employees are enabled to work remotely with secure
connectivity to the corporate network via the internet.
Which financial statement should an investor examine to
identify the liabilities of a firm?
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?
Leverage
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