Exam 7: Understanding the Business

A profitable company can still go bankrupt.

SWOT stands for strengths, weaknesses, opponents, and threats.

As part of the financial planning process, planners create projected financial statements. What are those statements?

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

Mark has just graduated from college. He is looking for a full-time job. He doesn't want to jump from company to company every few years; he wants to have a long career preferably at one company. What is one of the questions he needs to ask himself before accepting an offer of employment?

What is a way to measure if a business is meeting its customers' needs?

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

The five stages of industry evolution are evolution, growth, shakeout, mature, and declining industry environment.

Which of the following defines the organization's purpose, values, and core goals, providing the framework for all other plans?

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

Which of the following indicates whether a company earned a profit or suffered a loss over the past accounting period?

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

Providing value means that a business must constantly strive to lower the price of its products and services.

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

One way to measure if a business is meeting its customers' needs is through "third-level communications."

Which of the following measures the ability to pay debts as they come due?

What is a pro forma statement? Describe the two major types of pro forma statements, and explain the role they play in financial planning.

The development of pro forma income statements and balance sheets is an important step in the financial planning function performed by financial managers.

A SWOT analysis is used to analyze which of the following about a company?

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.