Business Acumen - SHRM

EBITDA stands for:

• Expenses before interest, taxes, depreciation, and amortization

• Earnings before interest, taxes, depreciation, and amortization

• Earnings below interest, taxes, depreciation, and amortization

• Earnings before insurance, taxes, depreciation, and amortization

Which of the following are things that you own?

• Owner's Equity

• Liabilities

• Income Statement

• Assets

_____ is equal to sales minus costs of goods sold and operating expenses.

What is the balance sheet equation?

• Assets + Liabilities= Owner's Equity

• Assets + Owner's Equity= Liabilities

• Assets= Liabilities + Owner's Equity

• Assets = Liabilities - Owner's Equity

Why do business owners depend on the income statement?

• It tells them all the accounts that the company has.

• It tells them whether or not the company is operating efficiently.

• It tells them what types of activities have an effect on the cash balance of the company.

• It tells them whether they have made money or not.

The purpose of a(n) _____ is to tell whether or not a business made money or lost money in a given time period

A company has reached a point of stability in its internal processes and ways of doing business. What stage of the life cycle characterizes this company?

If the threat of new entry (in Porter's Five Forces Analysis) is high, which action HR professionals should perform?

• HR must be sure that the job descriptions include skills such as negotiation and managing risk and competencies such as Ethical Practice and Relationship Management.

• HR may need to align compensation practices to motivate marketing and sales toward behaviors important to the organization’s strategic objectives—e.g., developing long-term or sole-source relationships.

• HR may focus on developing an entrepreneurial culture.

• HR professionals must examine the organization’s structure to support rapid decision making and response.

• HR will need to develop a strategy that promotes cost efficiency.

_____ is the ability to use information to gain a deeper understanding of an organization and its parts, to see how the whole organization and its parts are performing (through business metrics) and to make sound business decisions.

Which of these are nonfinancial metrics?

(More than one correct answer)

• Social responsibility

• EBITDA

• Shareholder’s equity

• Earnings per share

• Employee retention