Exam 7: Understanding the Business

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. What will they create? 

Which of the following are the four basic categories of financial ratios?

Which of the following is NOT one of the key financial statements?

The basic concept of doing a cost/benefit analysis is to compare the costs and benefits of a particular decision using a common unit of measurement such as money.

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

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.

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

What is the ultimate indicator that a company has met and exceeded customer needs?

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

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

What is a vision statement?

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.

What is a sustainable competitive advantage?

Explain the purpose of a SWOT analysis.

What does SWOT stand for?

For Google, what is organizing the world's information and making it universally accessible and useful?

The industry life cycle model analyzes the effects of an industry's evolution on competitive forces.

A distinctive competence is a unique core competence, something that a company can do better than the competition.

Which of the following compare(s) select items in financial statements by computing percentages, rates, and proportions?