Business Degree Business Administration 5

Question 1

Which stage of the business cycle is characterized by declining GDP, rising unemployment, and reduced consumer spending?

Accepted Answer

Recession

Answer

A recession is defined as a period of significant economic decline, typically marked by two consecutive quarters of negative GDP growth.

Question 2

A company practicing 'just-in-time' (JIT) inventory management aims to:

Accepted Answer

Receive goods only as they are needed in the production process

Answer

JIT inventory management minimizes holding costs by receiving materials only when needed for production, reducing waste and storage expenses.

Question 3

Which financial statement shows the sources and uses of cash during a specific period?

Accepted Answer

Cash flow statement

Answer

The cash flow statement reports cash inflows and outflows from operating, investing, and financing activities over a given accounting period.

Question 4

Porter's Five Forces model is primarily used to:

Accepted Answer

Analyze the competitive forces shaping an industry

Answer

Porter's Five Forces framework assesses industry competitiveness by examining rivalry, threat of new entrants, supplier power, buyer power, and threat of substitutes.

Question 5

What does 'accounts receivable' represent on a company's balance sheet?

Accepted Answer

Money owed to the company by its customers

Answer

Accounts receivable is an asset representing money customers owe the company for goods or services already delivered but not yet paid for.

Business Degree Practice Test

Business Degree Practice Test

Business Degree Business Administration 5