Topic 2: Business Management Archivo

What is the main purpose of understanding international business jargon?. To replace technical knowledge. To improve personal relationships only. To ensure effective communication in global business contexts. To avoid using financial data.

Which of the following is NOT a benefit of understanding business jargon?. Professional credibility. Better networking. Increased misunderstandings. Improved decision-making.

Which financial statement shows a company’s financial position on a specific date?. Income Statement. Cash Flow Statement. Balance Sheet. Statement of Changes in Equity.

Which element is included in the Income Statement?. Assets and liabilities. Revenues and expenses. Share capital. Cash balances only.

What does the Cash Flow Statement show?. Company profits. Changes in cash over a period. Asset depreciation. Equity structure.

What is a financial ratio?. A legal obligation. A market price indicator. A relationship between two financial statement values. A type of tax.

What does ROIC measure?. Company liquidity. Capital structure. How capital generates income. Market value.

What does WACC represent?. Cost of equity only. Average cost of financing assets. Operating profit. Tax rate.

Working Capital is calculated as: Total assets – total liabilities. Current assets – current liabilities. Equity + assets. Revenues – expenses.

What does a working capital ratio below 1 indicate?. High efficiency. Excess liquidity. Negative working capital. High profitability.

What does Net Present Value (NPV) help evaluate?. Employee productivity. Investment profitability. Market share. Inflation levels.

An investment should be accepted if: NPV < 0. NPV = 0. NPV > 0. IRR = 0.

What is the Internal Rate of Return (IRR)?. The accounting profit. The tax rate. The discount rate where NPV equals zero. The inflation rate.

What does compound interest mean?. Interest only on the initial capital. Interest on interest and principal. Fixed interest payments. Interest without time effect.

What does EAPR measure?. Nominal interest only. Real return on savings. Total annual cost of borrowing. Company profitability.

What is CAPEX?. Day-to-day operating expenses. Interest expenses. Long-term investment in assets. Employee salaries.

EBIT measures: Net income after tax. Earnings before interest and taxes. Cash flow. Equity value.

EBITDA is mainly used as: A liquidity indicator. A proxy for earnings potential. A tax calculation tool. A market valuation method.

Who ultimately pays VAT?. The manufacturer. The retailer. The government. The final consumer.

What is the break-even point?. Maximum profit level. The point of highest sales. Where total costs equal total revenue. When variable costs are zero.