Question 1

The mission statement is used to differentiate an organization from its competition and further refines the direction articulated in the vision statement, answering questions such as, "Who are we?" and "What businesses are we in?"

Accepted Answer

A) True 
 B)False

Question 2

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 3

Which of the following is NOT one of five stages of industry evolution?

Accepted Answer

A)  introduction 
B)  decline 
C)  peak 
D)  maturity

Question 4

What is an overall explanation of why an organization exists and where it is trying to head?

Accepted Answer

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

Question 5

ABC company has been very successful in Canada. However, there is not much more room for growth in Canada so the company must expand internationally. What is the expectation in Canada of how ABC operates internationally?

Accepted Answer

A)  how everyone else operates in the country ABC is in 
B)  by the laws of the country ABC is in 
C)  in a manner consistent with the way ABC operates in Canada 
D)  according to international law

Question 6

Which item would be listed first on an income statement?

Accepted Answer

A)  revenue 
B)  cost of goods sold 
C)  net operating income 
D)  retained earnings

Question 7

The key numbers that financial managers use to calculate ratios usually come from which of the following financial statements of a company?

Accepted Answer

A)  prospectus and operating budget 
B)  statement of cash flows 
C)  balance sheet and income statement 
D)  pro forma statements

Question 8

Which of the following is NOT one of Porter's five forces?

Accepted Answer

A)  the risk of new entry by potential competitors 
B)  the bargaining power of buyers 
C)  the threat of substitute products 
D)  government changing laws or taxes

Question 9

In conducting a stakeholder analysis, what two dimensions should a company assess of each stakeholder?

Accepted Answer

A)  potential to threaten the company and potential to cooperate 
B)  ability to invest and willingness to participate 
C)  potential for more investment and potential for raising objections 
D)  ability to bring in new investors and potential for disruption

Question 10

A discipline that involves the management of people, process, and technology around the care of information is referred to as computer science.

Accepted Answer

A) True 
 B)False

Question 11

What are the major financial statements? Describe each one.

Accepted Answer

The answer of What are the major financial statements? Describe...

Question 12

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 13

Lisa and Debbie are very serious shoppers but are also concerned about human rights issues. Every weekend they go to different malls around the city. They look for quality products at reasonable prices. But they also demand that the companies that they buy products from produce their products in which of the following ways?

Accepted Answer

A)  in a safe, ethical manner 
B)  in an environmentally friendly manner 
C)  using only Canadian made components 
D)  following ISO 9000 and ISO 14000 rules

Question 14

Which sector of the Canadian economy has had a negative impact on the environment?

Accepted Answer

A)  automobile industry 
B)  commodity industry 
C)  high tech industry 
D)  wine industry

Question 15

Which of the following global business issues are most important to Canadian businesses?

Accepted Answer

A)  fair trade 
B)  environment 
C)  global warming 
D)  workers' rights

Question 16

Financial performance is measured in a number of ways. What are the primary measurements?

Accepted Answer

The answer of Financial performance is measured in a number...

Question 17

Dave has a small clothing store. He wants to open a second 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 18

When a company makes use of SWOT analysis, what is one of its objectives?

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 19

Which of the following is NOT one of the ways to measure financial performance?

Accepted Answer

A)  profit 
B)  return on investment 
C)  market share 
D)  net worth

Question 20

According to the text, which of the following is one of the best ways to measure financial performance?

Accepted Answer

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

Exam 7: Understanding the Business

The mission statement is used to differentiate an organization from its competition and further refines the direction articulated in the vision statement, answering questions such as, "Who are we?" and "What businesses are we in?"

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.

Which of the following is NOT one of five stages of industry evolution?

What is an overall explanation of why an organization exists and where it is trying to head?

ABC company has been very successful in Canada. However, there is not much more room for growth in Canada so the company must expand internationally. What is the expectation in Canada of how ABC operates internationally?

Which item would be listed first on an income statement?

The key numbers that financial managers use to calculate ratios usually come from which of the following financial statements of a company?

Which of the following is NOT one of Porter's five forces?

In conducting a stakeholder analysis, what two dimensions should a company assess of each stakeholder?

A discipline that involves the management of people, process, and technology around the care of information is referred to as computer science.

What are the major financial statements? Describe each one.

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

Which sector of the Canadian economy has had a negative impact on the environment?

Which of the following global business issues are most important to Canadian businesses?

Financial performance is measured in a number of ways. What are the primary measurements?

Dave has a small clothing store. He wants to open a second 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?

When a company makes use of SWOT analysis, what is one of its objectives?

Which of the following is NOT one of the ways to measure financial performance?

According to the text, which of the following is one of the best ways to measure financial performance?