C8 Online Practice Questions and Answers

What best describes a necessary skill and/or behavior in relation to business acumen?

A. An understanding of the culture and subcultures of your organization

B. The capacity to manage multiple projects and priorities and meet deadlines

C. A willingness to take on additional duties and responsibilities when resources are limited

D. A thorough understanding of the products and/or services your organization provides

What most accurately describes a reason why organizations use financial reports?

A. To differentiate company financial data from industry competitors to prevent loss of proprietary information

B. To provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities

C. To create a historical record of financial performance and identify trends that may justify changes in strategy

D. To promote consistency of communication regarding company performance and value

The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?

A. Operational excellence

B. Product/service leadership

C. Customer intimacy D. Brand loyalty

What is the top line or starting point of an organization's income?

A. Gross profit

B. Revenue

C. Net income

D. Operating profit

If employees have a significant impact on the bottom line, what type of pay mix is most appropriate?

A. A varying mix depending on employee influence on goals to provide the necessary incentive to maximize profits

B. 100% variable pay to motivate all employees to maximize productivity and sales

C. 90/10 for the majority of employees (base/variable) to share in the company's success with increased variable pay for management/executives to motivate employees to seek higher positions

D. High base pay and low variable pay to ensure predictability of total compensation expense

What question is answered by the organization's mission statement?

A. What direction will we take?

B. How do we work?

C. Why are we in business?

D. How will we achieve our objectives?

Which of the following best describes present value?

A. The current value of holdings

B. The current value of holdings and how much it will grow over time at a given rate of return

C. The desired value in the future and what needs to be invested today to realize that amount

D. The difference between the desired value in the future and the current value as a percentage of the desired value

Which of the following is the best example of applying business acumen to data analysis?

A. Compiling data needed to calculate salary budgets and merit increases

B. Identifying trends and key messages emerging over time

C. Reviewing historical trends to complete annual budgets

D. Providing quarterly incentive estimates for accruals

Internal process metrics are most useful in which of the following situations?

A. Assessing how well the business is running

B. Determining employee satisfaction levels

C. Measuring the financial success of the business

D. Evaluating customer perceptions of products or services

The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?

A. Earnings

B. Shares

C. Market capitalization

D. Increased market value and reinvested dividends paid