BUSS3 Quiz

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1. Name the four marketing strategies in Ansoff's matrix

  • Market penetration, market development, product development and diversification
  • Correlation, Test marketing, Moving averages and Extrapolation
  • Star, Cash cow, Question mark and dog
  • Cost leadership, differentiation, focus cost leadership and focus differentiation
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2. What is the difference between the acid test ratio and current ratio?

  • Acid test excludes inventories
  • Nothing
  • Current ratio excludes inventories
  • Acid test includes inventories

3. What is working capital?

  • money used to purchase capital equipment
  • current assets / current liabilities
  • The capital a firm possesses to fund its day-to-day operations
  • the money a firm possesses to pay back its long-term debts

4. What is gearing?

  • Total equity + non current liabilities / cash flow x 100
  • The amount of a firm's capital that is funded by share capital as opposed to loans
  • The amount of a firm's capital that is funded by loans as opposed to share capital
  • Preparing to enter a new market

5. A benefit of critical path analysis is that

  • it measures the risks of a decision
  • it can beused to calculate the impact of delays to the completion of a project
  • it allows a firm to complete a project quickly
  • it automatically increases a business's profits

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