Question 1

Achieving financial performance is measured in a number of ways; the primary ones being profit,return on investment,cash flow,and net worth.

Accepted Answer

A) True 
 B)False

Question 2

A sustainable competitive advantage is a competitive advantage that a company can continue to exploit over time as it is not easily duplicated.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a critical success factor for any business?

Accepted Answer

A)  being environmentally friendly 
B)  meeting and exceeding customer needs 
C)  low employee turnover 
D)  increase in stock price

Question 4

Which of the following is one of the ways to measure financial performance?

Accepted Answer

A)  value of assets 
B)  return on capital 
C)  gross sales 
D)  net worth

Question 5

In a company in which an effective vision has been provided,which of the following is the most likely result?

Accepted Answer

A)  There is no need for tactical planning. 
B)  The economic and competitive environments tend to be much more predictable. 
C)  Employees are likely to have a sense of purpose and a common set of values. 
D)  Goals and objectives are no longer needed.

Question 6

Explain the purpose of a SWOT analysis.

Accepted Answer

The answer of Explain the purpose of a SWOT analysis....

Question 7

An organization's mission statement is usually a complex document that provides a detailed description of the principles that guide the organization and the way those principles should be applied to its major business initiatives.

Accepted Answer

A) True 
 B)False

Question 8

For Google,to organize the world's information and make it universally accessible and useful is which of the following?

Accepted Answer

A)  a tactical plan 
B)  a strategic plan 
C)  a direction 
D)  a mission

Question 9

Which of the following measures a company's ability to pay debts as they come due?

Accepted Answer

A)  liquidity ratios 
B)  asset management ratios 
C)  leverage ratios 
D)  profitability ratios

Question 10

In today's day and age,customers expect that companies not only provide value but demand that the companies be which of the following?

Accepted Answer

A)  good corporate citizens 
B)  green companies 
C)  good to their employees 
D)  generous contributors to charity

Question 11

Companies are more likely to earn good publicity if they are which of the following?

Accepted Answer

A)  good stewards of the environment 
B)  large donators to charity 
C)  big sponsors of community events 
D)  politically active

Question 12

Gina Raiter,the president and CEO of AutoMotion Auto Service Centres,has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company.The result of this effort is likely to be which of the following?

Accepted Answer

A)  payoff matrix 
B)  mission statement 
C)  tactical plan 
D)  organization chart

Question 13

One of the critical success factors for any business is providing value.

Accepted Answer

A) True 
 B)False

Question 14

What are two major projected financial statements developed during financial planning?

Accepted Answer

A)  predicted statement of cash flows and predicted income statement 
B)  pro forma balance sheet and pro forma income statement 
C)  forecasted balance sheet and forecasted statement of cash flows 
D)  prototype retained earnings statement and prototype balance sheet

Question 15

What does the statement of cash flows show about a company?

Accepted Answer

A)  money coming in and money going out 
B)  a schedule of payments for the debts that come due in the next year 
C)  a net profit or loss 
D)  the current assets and current liabilities that are likely to result in cash flows over the next accounting period

Question 16

An income statement is the financial statement that reports revenues,expenses,and profit or loss resulting from a company's operations over an accounting period.

Accepted Answer

A) True 
 B)False

Question 17

"Make the best product,cause no unnecessary harm,and use business to inspire and implement solutions to the environmental crisis." This statement by Yvon Chouinard,founder of Patagonia,can be best described as which of the following?

Accepted Answer

A)  a strategic plan 
B)  a direction 
C)  a mission statement 
D)  a tactical plan

Question 18

Pro forma income statements forecast the assets a company will need in the next accounting period.

Accepted Answer

A) True 
 B)False

Question 19

For a company like Starbucks,what would their core competency be?

Accepted Answer

A)  premium products 
B)  unique product offerings 
C)  great customer service 
D)  making great coffee

Question 20

An overall explanation of why an organization exists and where it is trying to head is referred to as which of the following?

Accepted Answer

A)  tactical plan 
B)  prime directive 
C)  corporate charter 
D)  vision

Exam 7: Analyzing the Business

Achieving financial performance is measured in a number of ways; the primary ones being profit,return on investment,cash flow,and net worth.

A sustainable competitive advantage is a competitive advantage that a company can continue to exploit over time as it is not easily duplicated.

Which of the following is a critical success factor for any business?

Which of the following is one of the ways to measure financial performance?

In a company in which an effective vision has been provided,which of the following is the most likely result?

Explain the purpose of a SWOT analysis.

An organization's mission statement is usually a complex document that provides a detailed description of the principles that guide the organization and the way those principles should be applied to its major business initiatives.

For Google,to organize the world's information and make it universally accessible and useful is which of the following?

Which of the following measures a company's ability to pay debts as they come due?

In today's day and age,customers expect that companies not only provide value but demand that the companies be which of the following?

Companies are more likely to earn good publicity if they are which of the following?

Gina Raiter,the president and CEO of AutoMotion Auto Service Centres,has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company.The result of this effort is likely to be which of the following?

One of the critical success factors for any business is providing value.

What are two major projected financial statements developed during financial planning?

What does the statement of cash flows show about a company?

An income statement is the financial statement that reports revenues,expenses,and profit or loss resulting from a company's operations over an accounting period.

"Make the best product,cause no unnecessary harm,and use business to inspire and implement solutions to the environmental crisis." This statement by Yvon Chouinard,founder of Patagonia,can be best described as which of the following?

Pro forma income statements forecast the assets a company will need in the next accounting period.

For a company like Starbucks,what would their core competency be?

An overall explanation of why an organization exists and where it is trying to head is referred to as which of the following?