1. You are a financial analyst at Company A. Your company is looking to acquire Company B. You have been tasked to evaluate their financial performance and you notice the following:

• Sales have declined for the last five years by roughly 1.5% each year
• Operating expenses have also been increasing by 2.1% each year in the same time period
• COGS as a percentage of revenue has stayed the same

You want to recommend to the director that your company should not look to acquire Company B. Which of the following statements is best for making this recommendation?

a. Company B is not an investment opportunity that would bring positive returns as shown by their persistent sales declines of 1.5% and continuous operating expense increases of 2.1% every year for the past five years.

b. Our company should avoid acquiring Company B. Their financial performance has been declining for the past five years. We can achieve better returns without acquiring them.

c. Due to the trend of declining financial performance, investing in Company B is an inefficient method for our capital to be spent. This is not the correct way our capital should be allocated.

d. Company B should not be acquired by our company. For the past five years, their financial performance has not been performing well. Acquiring them would not be well-advised.

2. Which of the following statements is true about writing in the active voice?

a. Active voice requires a reader to actively try to interpret the message, slowing the reader, whereas passive voice allows for passive reading.

b. Active voice is engaging, thus engaging the reader to act as well.

c. Active voice is more positive, making readers more receptive to recommendations.

d. Active voice improves reading flow, allowing the reader to understand the message quicker.

3. Which three factors out of the 5Ws and H are most important for business writing preparation?

a. How, where, what

b. When, how, who

c. How, who, why

d. Why, when, who

4. Which is NOT one of the three most important factors to consider before you begin your business writing?

a. Purpose

b. Topic

c. Audience

d. Delivery