Question 1

Which of the following is a mathematical tool financial managers use to assess the financial strengths and weaknesses of their company?

Accepted Answer

A)  CAD/CAM 
B)  value stream mapping 
C)  capital budgeting 
D)  ratio analysis

Question 2

Revenue,expenses,and net income are the key sections found on a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Jennifer is starting college in September and she needs a computer.She doesn't have a lot of money,but needs something that she can do all her assignments on.She wants value,which can be best described as which of the following?

Accepted Answer

A)  the lowest price 
B)  a quality product at a reasonable price 
C)  the highest quality product at the best price 
D)  the store that has the product she wants at the lowest price

Question 4

A pro forma balance sheet projects the types and amounts of revenues a company will need to execute future plans and shows the amount of additional financing needed to acquire those assets.

Accepted Answer

A) True 
 B)False

Question 5

ABC company has been very successful in Canada.However there is not much more room for growth in Canada so they have to expand internationally.What is the expectation of how they operate internationally?

Accepted Answer

A)  how everyone else operates in the country they are in 
B)  by the laws of the country they are in 
C)  in a manner consistent as though they were operating in Canada 
D)  according to international law

Question 6

What are some of the critical success factors for a business?

Accepted Answer

The answer of What are some of the critical success...

Question 7

Companies can be analyzed based on their commitment to the environment and to sustainable business.Companies that demonstrate that they are good stewards of the environment are more likely to earn higher profits than those that are not.

Accepted Answer

A) True 
 B)False

Question 8

What does providing value mean for a business?

Accepted Answer

The answer of What does providing value mean for a...

Question 9

When a company makes use of SWOT analysis,one of its objectives is to do which of the following?

Accepted Answer

A)  identify the best employees to fill each position within the organization 
B)  set specific short-term performance standards for each department 
C)  evaluate the desirability of issuing stocks or bonds in the current financial climate 
D)  identify the things it does well as an organization and the things it needs to improve

Question 10

A vision for a company is which of the following?

Accepted Answer

A)  an explanation of why the company exists and where it wants to go 
B)  the same thing as an objective 
C)  a detailed plan that outlines the major organizational structure of the company 
D)  very relevant for the short-term, but less useful for the long-term

Question 11

Going above the heads of sales people and customer service reps to complain is referred to as which of the following?

Accepted Answer

A)  first-level communications 
B)  second-level communications 
C)  third-level communications 
D)  fourth-level communications

Question 12

Canadian companies are answerable not only to the shareholders,but also to the other stakeholders,including the customers.The customers expect that the company is not only providing value,but being good corporate citizens.

Accepted Answer

A) True 
 B)False

Question 13

Dave has a small clothing store.He wants to open a 2nd store but needs investors to finance his expansion.Investors will look at which of the following primary financial performance measurements to evaluate the store's performance?

Accepted Answer

A)  cash flow 
B)  return on assets 
C)  inventory turnover 
D)  net sales

Question 14

Explain how ratio analysis can provide management with insights into a company's financial performance.

Accepted Answer

The answer of Explain how ratio analysis can provide management...

Question 15

The main purpose of liquidity ratios is to determine whether a company will be able to repay its debts as they come due.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following projects the types and amounts of assets a company will require to carry out its future plans and forecasts the amount of additional funds that will be needed to acquire those assets?

Accepted Answer

A)  prototype operating budget 
B)  statement of net working capital 
C)  pro forma income sheet 
D)  pro forma balance sheet

Question 17

Companies measure their ability to encourage creativity and innovation by which of the following?

Accepted Answer

A)  the percentage of sales that came from new ideas 
B)  number of ideas that are patented 
C)  how many creative awards they win 
D)  how many of their ideas get copied by other companies

Question 18

Monica has just been hired by the Misty Mount Corporation to take over as the new chief executive officer.Her initial impression is that the company is in disarray,primarily because the employees do not have a sense of purpose or a common set of values.Monica's observations suggest that she needs to provide which of the following for Misty Mount?

Accepted Answer

A)  vision 
B)  contingency plan 
C)  objective function 
D)  corporate logo

Question 19

A large sector of the Canadian economic activity is in the commodity industries; often having a positive impact on the environment by extracting,refining,and transporting these commodities.

Accepted Answer

A) True 
 B)False

Question 20

Companies today cannot just provide what the customer wants.They need to satisfy customers beyond their expectations.

Accepted Answer

A) True 
 B)False

Exam 7: Analyzing the Business

Which of the following is a mathematical tool financial managers use to assess the financial strengths and weaknesses of their company?

Revenue,expenses,and net income are the key sections found on a statement of cash flows.

Jennifer is starting college in September and she needs a computer.She doesn't have a lot of money,but needs something that she can do all her assignments on.She wants value,which can be best described as which of the following?

A pro forma balance sheet projects the types and amounts of revenues a company will need to execute future plans and shows the amount of additional financing needed to acquire those assets.

ABC company has been very successful in Canada.However there is not much more room for growth in Canada so they have to expand internationally.What is the expectation of how they operate internationally?

What are some of the critical success factors for a business?

Companies can be analyzed based on their commitment to the environment and to sustainable business.Companies that demonstrate that they are good stewards of the environment are more likely to earn higher profits than those that are not.

What does providing value mean for a business?

When a company makes use of SWOT analysis,one of its objectives is to do which of the following?

A vision for a company is which of the following?

Going above the heads of sales people and customer service reps to complain is referred to as which of the following?

Canadian companies are answerable not only to the shareholders,but also to the other stakeholders,including the customers.The customers expect that the company is not only providing value,but being good corporate citizens.

Dave has a small clothing store.He wants to open a 2nd store but needs investors to finance his expansion.Investors will look at which of the following primary financial performance measurements to evaluate the store's performance?

Explain how ratio analysis can provide management with insights into a company's financial performance.

The main purpose of liquidity ratios is to determine whether a company will be able to repay its debts as they come due.

Which of the following projects the types and amounts of assets a company will require to carry out its future plans and forecasts the amount of additional funds that will be needed to acquire those assets?

Companies measure their ability to encourage creativity and innovation by which of the following?

A large sector of the Canadian economic activity is in the commodity industries; often having a positive impact on the environment by extracting,refining,and transporting these commodities.

Companies today cannot just provide what the customer wants.They need to satisfy customers beyond their expectations.