WGU C201 BUSINESS ACUMEN OBJECTIVE ASSESSMENT TEST | 433 QUESTIONS WITH ACCURATE SOLUTIONS | GRADED A+

Which two key elements does an effective organization include?

Human Interaction & Structure

Why does a line organization structure function most effectively in a crisis situation?

It establishes a direct flow of authority

A company might divide itself into smaller groups that best match the types of customers it serves. What is this an example of?

Departmentalization

Which primary driver does management use for an organization's structure?

Achievement of company goals

Which step in the organizing process results in management grouping work activities into units within the organization?

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 sites.

Which type of competitive advantage is this company leveraging?

product

Which marketing strategy is devoted to maintaining continuous bottom line prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales?

Everyday Low Pricing

When would a pull promotional strategy enhance a competitive advantage to market a product better than a push strategy?

When demand for the product is driven by the end user

Which marketing tool is often used to build effective relationship marketing campaigns?

Affinity Programs

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?

Personal Selling

What three factors should be addressed in a successful marketing plan?

Target Market, Sales Revenue Goals and Plan Implementation Timeline

Which three characteristics are measured in demographic segmentation?

Race & Ethnicity, Income and Household Size

In which three ways does business-buying behavior differ from consumer-buying behavior?

A group or committee often makes decisions

Purchasers often invite selected providers to bid on a purchase

Buyers face organizational influences that affect their own preferences

Which three factors suggest a product should be marketed as a specialty product?

Priced high

Purchased infrequently

Available from a small number of retail outlets

With which two types of products does a marketing strategy rely on advertising more than personal selling?

Accessories to primary products

Consumable supplies

After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an insect repellent as well.In which three product life cycle extension strategies did this company engage?

Adding new users, finding new uses for the product, increasing frequency of use.

What are three qualities of strong brand equity?

Awareness, Loyalty and 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?

brand preference

Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global package delivery service?

Direct

Which three tasks are key responsibilities of operations managers?

Planning the overall production process

Determining the best layout for the firm's facilities

Implementing the production plan

Which two characteristics does a Just-In-Time (JIT) System have?

Production using JIT reduces a firm's inventory costs.

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?

Establishment of effective quality systems

Which manufacturing model uses technology to produce small runs of customized products cost effectively?

Flexible

Which two of the following distribution channels would take title of the products they handle?

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?

Demand Curve

Which two factors drive demand in a microeconomic system?

Price of substitute goods

Customer preference

How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price?

Demand increases

Which two impacts result from a nation's increase in productivity?

Economy expands

Personal wealth increases

For which two purposes will the U.S. Federal Reserve System follow an expansionary monetary policy?

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?

A rise of interest rates on these securities

An increase in overall cost of debt to private borrowers

What is one role of a financial manager?

Analyzing major investment decisions

Which two activities are finance activities rather than accounting activities?

Making capital market investments

Creating a financial plan

Which three sources should a business consider when seeking a long-term funding source?

Venture capital

Public sale of stocks

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?

commerical paper

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.

Why should a manager use financial controls in a firm's financial plan?

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?

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 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

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 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

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.

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

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

Which calculation determines a firm's return on equity?

Net income divided by average equity

Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds?

It converts easily into cash.

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 users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions?

Owners and creditors

What is considered the heart of any information system?

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?

A transaction processing system

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.

What are three ways cloud computing services enhance company productivity?

Through more efficient application updates

Through better resource utilization

Through greater application availability for remote workers

For which type of communication should employees have an ethical expectation of privacy from company monitoring?

Personal letters sent through the company mail room

Which activity raises ethical issues heightened by the capabilities of data mining?

Selling customer data for external marketing research

Which intent of spyware creates a company security issue?

The intent to report on a user's Internet activity

True or False: Macroeconomics is the study of small economic units such as households and individual businesses.

False

Which of the following is true of supply and demand curves?

Movement along the supply curve is the opposite of movement along the demand curve.

In which of the following market structures are there a large numbers of buyers and sellers, each of whom has some significant control over price?

Monopolistic competition

A few industries in the United States, like transportation, energy, and communications, were deregulated in the 1980s and 1990s to

improve customer service and reduce prices.

If labor hours increase, the amount of natural resources used remains the same, and output remains constant, productivity is said to have:

decreased.

Core inflation rate is the inflation rate of an economy after ______and______ prices are removed.

energy; food

_____ is formulated by the Federal Reserve System

Monetary policy

A(n) _____ reduces the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth.

restrictive monetary policy

What are the 4 stages of the business cycle?

prosperity, recession, depression, recovery

Total productivity = ________/_____________

output divided by input

What are the 4 types of unemployment?

frictional, seasonal, structural, cyclical

The study of the choices people and governments make when allocating scarce resources.

Economics

situation in which total revenues raised by taxes equal the total proposed spending for the year

Balanced Budget

organization's plan for how it will raise and spend money during a given period of time

Budget

a situation in which the government spends more than it raises through taxes

budget deficit

excess funding that occurs when government spends less than the amount of funds raised through taxes and fees

Budget Surplus

Economic System in which all property would be shared equally by the people of a community under the direction of a strong central government

Communism

measurement of the monthly average change in prices of goods and services

Consumer Price Index (CPI)

inflation rate of an economy after energy and food prices are removed

Core Inflation Rate

people who are out of work because of a cyclical contraction in the economy

cyclical unemployment

opposite of inflation, occurs when prices continue to fall

Deflation

the willingness and ability of buyers to purchase a good or service

Demand

graph of the amount of a product that buyers will purchase at different prices

Demand Curve

Social science that analyzes the choices people and governments make in allocating scarce resources

Economics

prevailing market price at which you can buy an item

equilibrium price

government actions to increase the money supply in an effort to cut the cost of borrowing, which encourages business decision makers to make new investments, in turn stimulating employment and economic growth

expansionary monetary policy

government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth

Fiscal Policy

applies to members of the workforce who are temporarily not working but are looking for jobs

frictional unemployment

the sum of all goods and services produced within a country's boundaries during a specific time period, such as a year

Gross Domestic Product (GDP)

economic situation characterized by soaring prices

Hyperinflation

Economic situation characterized by rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.

Inflation

study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a government's policies affect the standards of living of its citizens

Macroeconomics

study of small economic units, such as individual consumers, families, and businesses

Microeconomics

economic system that draws from both types of economies, to different degrees

Mixed Market Economy

government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans

Monetary Policy

market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price

monopolistic competition

market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.

Monopoly

money owed by government to individuals, businesses, and government agencies who purchase Treasury bills, Treasury notes, and Treasury bonds sold to cover expenditures

National debt

market structures in which relatively few sellers compete and high start-up costs form barriers to keep out new competition

Oligopoly

economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms

Planned economy

conversion of government-owned and operated companies into privately held businesses

Privatization

relationship between the number of units produced and the number of human and other production inputs necessary to produce them

productivity

market structure in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price

pure competition

cyclical economic contraction that lasts for six months or longer

Recession