Key Concepts in Business Administration and Finance

Business Administration and Finance Q&A

Financial Management and Cost of Capital

• The regular treasury ratio represents a: Situation.
• Considering the beneficial tax effects makes the cost of debt: Diminishing.
• In calculating the Weighted Average Cost of Capital (WACC), the weights utilized are: Market values from various sources.
• One of the primary reasons why the cost of equity is superior to the cost of debt is: The greatest risk of depreciation.
• The maneuver fund (working capital) is defined as: Current assets less current liabilities.
• When computing the substantial value of a company using the German valuation method, why is only half of the goodwill added? Due to the uncertainty that affects the determination of goodwill.

Operations and Project Management

• The expression P(S ∩ T) = P(T) · P(S) applies when events S and T are: Independent.
• If dummy activities are not used for parallel activities in a PERT chart, it violates the principle of: Unambiguous designation (Unívoca).
• To calculate the average manufacturing period, the annual production value is rated: At its cost.
• Which of the following are not basic types of relationships in a PERT chart? Linear, convergence, and divergence (not procedural).
• A system based on small orders that minimizes reception and storage times is called: None of the options are correct (Sequential Production, Sequential Manufacturing).
• One of the alternatives to address variations between supply and demand is: Inventory.

Marketing and Sales Strategy

• The bargaining power of suppliers is: A competitive force.
• Which of the following is not a disadvantage of organizing the sales force by product? Allowing sellers to specialize technically (which is actually an advantage).
• An effort restricted to increasing a company's market share with its current products in current markets is called: Market Penetration (None of the options are correct: Diversification, Market Development, Product Development).
• In commercial experimentation, variability due to uncontrollable factors is reflected by the calculation of: Residual dispersion.
• What are collective surveys (omnibus polls) called? Those performed on behalf of several companies.
• Commercial research is concluded: None of the options are correct (with data management, with data analysis and interpretation, or with producing reports for management).
• At which stage of product planning and development is the concept test conducted? Feasibility Analysis.

Strategic Management and Decision Making

• Routine decisions tend to be: Decentralized.
• In the job enrichment approach, how are the determining factors that cause a lack of motivation or satisfaction measured? By taking the scores of each one of them.
• When a company has a high proportion of fixed assets in its economic structure, it is said to have: High operating leverage.
• In a transition matrix: None of the options are correct (The sum of all elements must equal 1, the elements of each column must sum to 1, or the unit must be stationary).
• Which of the following are considered "soft" elements of management? Skills.