Business Analysis Exam – ECBA Certification Made Easy

Test your skills by taking this questionnaire and to figure out if you are ready to get trained and certified in Business Analysis

1. UML stand for?
a. Universal Modeling Language
b. Unified Modeling Language
c. Universal Modeling List
d. Undefined Modeling Language

2. FRD stand for?
a. Flight Requirements Document
b. Foundation Requirement Document
c. Functional Requirement Document

d. Fatal Requirement Document

3. SDD stand for?
a. System Developing Document
b. System Disintegration Document
c. Synonyms Design Document
d. System Design Document

4. Which tool is used in business analyst?
a. My Sql
b. MS Excel
c. MS Access
d. SQL

5. INVEST stands for?
a. Independent Negotiable Valuable Estimable Sized Appropriately Testable
b. Investments
c. International Navigation Valuable Estimable Sized Appropriately Technic
d. Independent Negotiable Valuable Effects System Analysis Testable

6. SAAS stands for?
a. System Aerosurface Actuator Simulation
b. Systems as a Service
c. Software as a Service
d. Software acting as Service

7. SQUARE stands for?
a. Security Quality Requirements Engineering
b. Smallest Quality Requirements Engineering
c. System Quality Requirements Engineering
d. Special Quality Requirements Engineering

8. BPMN stands for?
a. Business Process Modeling and Navigation
b. Business Process Mode and Notation
c. Business Process Model and Notation
d. Business Process Manage and Notation

9. _________ Analysis is used to analyze a system in terms of its requirements to identify its impact on customers’ satisfaction.
A Kano
B Paretto
C Root Cause
D Impact

10. The ______ Technique is used to give priority to various items in a process
a. Pair-Choice
b. Paretto
c. Root Cause
d. Impact

11. BCG stands for?
a. Boston Collections Group
b. Boston Corporations Group
c. Boston Consulting Group
d. Boston Customizations Group

12. JAD stand for?
a. Join Application Design
b. Joint Application Development
c. Java Application Descriptor
d. Join Application Description

13. Which elements’ category is NOT used in BPMN?
a. Flow Objects
b. Artifacts
c. Data
d. Text

14. Which key areas is NOT used in Kano Analysis?
a. Data Elements
b. Unexpected Delighters
c. Performance Attributes
d. Must Have Attributes

15. FMEA stands for?
a. Functions Managed Extension Activities
b. Failure Mode and Effects Analysis
c. Functions Mode and Effects Analysis
d. Failure Mode and Effects Application

16. With strategy implementation, analysis and design activities are needed. Analysis is concerned with understanding the business and user requirements for a new system. Process modelling captures the processes and sub-processes required for the business information system. Davenport (1993) noted that even large multinationals would rarely exceed ______ main processes?
a. 6
b. 10
c. 8
d. 12

17. Before a process can be designed and implemented, a detailed deconstruction of the task is needed. This can be referred to as:
a. Process
b. Task analysis
c. Process mapping
d. Activity-based process definition method

18. Process dependencies summarise the order in which activities occur according to the business rules that govern the processes. There are three common techniques that are often applied in an e-business analysis. Which of the following is not one of these processes?
a. Flow process chart
b. Network diagram
c. Task manual development
d. Event-driven process chain model

19. Whichever method has been used to deconstruct and define the tasks and sub-tasks in the design analysis, this process needs testing or validating. Data modelling uses tried and tested techniques to do this. Entity relationship modelling can be used to review databases in three main stages. Initially, ‘identify entities’ followed by ‘identify attributes for entities’, but what is the third stage?
a. Establish database table
b. Define fields and records
c. Identify relationships between entities
d. All of the above

20. E-business systems manage many transactions and a key design issue is how use the data recorded to improve the effectiveness and business contribution of these systems. One web analytics model used to examine storage and rapid analysis of time-based data is known as:
a. Primary and secondary key investigations
b. Normalisation
c. Star schema data model
d. E-business architecture modeling

21. The starting point for design of e-business systems is to ensure that a common architecture exists across the company in terms of hardware and software technology, applications and business processes. E-business systems follow the same architecture of many business information systems created in the 1990s and is known as:
a. Client server
b. Data systems architecture
c. Client-server model
d. Client database structures

22. E-business systems are often customer- or employee-facing systems so the importance of human-computer interaction in the design of web applications is high. User-centred design starts with understanding the nature and variation within the user groups and issues to consider include:
a. What is their purpose in visiting the site
b. How large a screen or window they will use
c. What type of browsers will they use
d. All of the above

23. Bevan (1999) argued that a test of effective design is dependent on three areas of effectiveness, productivity, and satisfaction. Another effective technique for assessing design effectiveness is:
a. Eye tracking
b. Crowdsourcing
c. Usability audit
d. Eyeball test

24. The ‘use-case’ method of process analysis and modelling was developed in the early 1990s as part of the development of object-orientated techniques. It is part of a methodology known as ‘unified modelling language’ (UML) that attempts to unify preceding approaches. Website designers and marketers use a similar model but use different terminology and create ______________ for typical site visitors?
a. Expert review
b. Eye tracking
c. Web design personas
d. Use-case modeling

25. Schneider and Winters (1998) identified a series of stages to be used in analysis using the use-case method. Which is the correct sequence?
a. Identify actors, identify use-cases, relate actors to use-cases, develop use-case scenarios
b. Identify use-cases, identify actors, relate actors to use-cases, develop use-case scenarios
c. Develop use-case scenarios, identify use-cases, identify actors, relate actors to use-cases
d. Develop use-case scenarios, identify actors, identify use-cases, relate actors to use-cases

26. With effective website design, the creation of an information architecture involves creating a plan to group information logically and creating a site structure which is commonly known as:
a. Site map
b. Web index
c. Blueprint
d. Wireframe

27. A well-designed website will have been developed to achieve customer orientation and for a B2B company the three main types of audience are customers, other companies and organisations, and staff. Designers also need to take into account different types of familiarity:
a. With the organisation’s products
b. With the site
c. With the internet
d. With the organization
e. All of the above

28. Once the requirements of the user are known, the human-computer interface takes on additional meaning regarding web usability. Nielsen (2000) wrote that a website has three main areas to consider; site design and structure, page design, and content design. Which of the following features come under the heading of ‘site design and structure’?
a. Site personality
b. Site navigation
c. Site organisation
d. Site style
e. All of the above

29. Web accessibility is fundamental for websites and needs to take into account user characteristics such as disability. What have some countries introduced to address this point?
a. Much larger screens
b. Accessibility legislation
c. Mandatory free access for those with certain disabilities
d. None of the above

30. Security is a serious concern for e-business mangers and there are many potential risks concerning unauthorised access to customer and company data. One way this occurs is through misleading users through setting up a bogus website and gaining user details online. What is this method known as?
a. Phishing
b. Denial of service
c. Malware
d. Firewalling

31. Lemons problems arise in capital markets when
a. Managers are better informed about the value of their business ideas than investors
b. Managers have an incentive to understate the value of their business ideas
c. Managers and investors have conflicting interests
d. A, B, and C
e. A and C.

32. Consider the following statement: “In countries with a model of strong legal protection of investors’ rights, information intermediaries play a bigger role in preventing lemons problems than in countries with a model of weak legal protection of investors’ rights.” This statement is
a. True
b. False

33. Mandatory publication of audited financial statements is an imperfect solution to incentive and information problems between managers and investors because
a. Accounting profits are typically less informative about firms’ economic performance than cash flows
b. The accounting standards governing the preparation of such financial statements are typically too loosely defined
c. Managers unintendedly as well as strategically introduce noise into reported accounting performance through their accounting decisions
d. None of the above

34. Consider the following statement: “The extent to which financial statements accurately reflect the consequences of managers’ operating, investment and financing decisions is a function of characteristics of the accounting environment and managers’ accounting strategy.” This statement is
a. True
b. False

35. Consider the following statement: “Accounting conventions and regulations that leave management no accounting discretion lead to more useful financial statements than accounting conventions and regulations that do grant accounting discretion.” This statement is
a. True
b. False

Attend live webinar on Business analysis

36. Consider the following statement: “Financial reports of publicly listed firms are prepared using accrual accounting rather than cash accounting.” This statement is
a. True
b. False

37. Consider the following statement: “The outcomes of business strategy analysis affect the financial and prospective analyses but have no relevance for the accounting analysis.” This statement is
a. True
b. False

38. Which of the following statements is correct?
a. The accounting analysis follows the financial analysis
b. The prospective analysis precedes the strategy analysis
c. The prospective analysis follows the financial analysis
d. The financial analysis precedes the strategy analysis

39. The outcomes of the strategy analysis affect the accounting analysis because
a. The strategy analysis also includes an analysis of the firm’s accounting strategy
b. Firms with poor strategies are more likely to have low-quality financial statements than firms with successful strategies
c. A firm’s industry and competitive strategy affect which accounting choices are appropriate.
d. None of the above.

40. Two reasons for why financial statements tend to be less useful in the analysis of privately held businesses than in the analysis of publicly held businesses (within the EU) is that
a. (i)Private firm’s financial statements are strongly influenced by tax rules and (ii) managers of private firms have less incentive to prepare informative financial statements than managers of public firms.
b. Private firm’s financial statements (i) do not comply with tax rules and (ii) are not publicly available.
c. Private firm’s (i) financial reporting is unregulated and (ii) financial statements are not publicly available.
d. None of the above.

41. Industry profitability is a function of
a. Rivalry among existing firms
b. Competitive advantage of industry members
c. Bargaining power of customers
d. A, B, and other factors
e. A, C, and other factors

42. Which of the following industry factors does not affect the nature of rivalry among existing firms in the industry?
a. Ratio of fixed to variable costs
b. Concentration of competitors
c. Industry growth
d. First mover advantage

43. Which of the following industry factors does not affect the threat of new firms entering the industry?
a. Legal barriers
b. Ratio of fixed to variable costs
c. Price sensitivity of buyers
d. First mover advantage

44. Which of the following industry factors does not affect the bargaining power of buyers in the industry?
a. Concentration of buyers relative to the concentration of sellers
b. Ratio of fixed to variable costs
c. Price sensitivity of customers
d. None of the above

45. European airlines’ structural excess capacity (i.e., low load factors) negatively affected the average profitability in the European airline industry between 1995 and 2004. This is an example of how
a. The rivalry among existing firms affects industry profitability.
b. The threat of new entrants affects industry profitability.
c. The threat of substitute products affects industry profitability.
d. The bargaining power of buyers affects industry profitability.
e. The bargaining power of suppliers affects industry profitability.

46. The price sensitivity of customers in the hotel industry
a. Varies depending on what day of the week it is.
b. Is positively affected by the availability of web booking systems and the resulting price transparency in the industry.
c. Is negatively affected by the lack of hotels in a particular geographical area.
d. None of the above

47. Consider the following statement: “Discount retailers follow a cost leadership strategy.” This statement is
a. True
b. False

48. Consider the following statement: “In industries with high rivalry among existing firms, the optimal competitive strategy is to be a cost leader.” This statement is
a. True
b. False

49. Consider the following statement: “Very few firms are successful in combining a cost leadership strategy with a differentiation strategy because both strategies require different and typically irreconcilable core competencies.” This statement is
a. True
b. False

50. Consider the following statement: “Firms following a cost leadership strategy tend to earn higher margins on their products or services than firms following a differentiation strategy.” This statement is
a. True
b. False

51. Managers’ choice whether or not to diversify activities across geographical areas or product segments is part of the
a. Corporate strategy decision
b. Competitive strategy decision
c. None of the above

52. Economic theory indicates that the optimal corporate strategy and structure minimizes the firm’s
a. Production costs
b. Service costs
c. Book value of assets
d. Transaction costs
e. None of the above

53. The existence of conglomerates in emerging markets is partly the result of
a. Low transaction costs in emerging labor markets
b. High transaction costs in emerging capital markets
c. High transaction costs in emerging production markets
d. Low transaction costs in emerging production markets
e. None of the above

54. Consider the following statement: “Single-segment businesses have lower transaction costs than multi-segment businesses.” This statement is
a. True
b. False

55. Consider the following statement: “A firm’s industry choice, competitive positioning and corporate strategy all influence the difference between the firm’s actual and required return on capital.” This statement is
a. True
b. False

56. The objective of accounting analysis is typically not to
a. Identify areas in the financial statements that are most strongly affected by management’s discretionary accounting choices.
b. Identify accounting choices that are most critical to a firm’s accounting performance.
c. Assess whether the financial statements fully comply with accounting conventions and regulations.
d. Understand management’s reporting incentives and strategy.
e. Undo the financial statements from distortions.

57. Which of the following items is not a required component of European public firms’ financial statements?
a. A comprehensive income statement (or statement of total recognized income and expense)
b. An income statement
c. A cash flow statement (or statement of cash flows)
d. A balance sheet (or statement of financial position)
e. All of the above items are required components

58. Consider the following statement: “An economic resource whose future benefits cannot be measured with a reasonable degree of certainty is not considered to be an asset for accounting purposes.” This statement is
a. True
b. False

59. Which of the following statements is correct?
a. Revenues cannot be recognized before cash is collected.
b. Expenses cannot be recognized before the cash outflow has occurred.
c. Revenues cannot be recognized if cash collection is uncertain.
d. Expenses will always be recognized before or when the cash outflow occurs.
e. None of the above.

60. Consider the following statement: “International Financial Reporting Standards (IFRS) are typically considered to be more principles-based than the US Generally Accepted Accounting Principles (US GAAP).” This statement is
a. True
b. False

61. Consider the following statement: “The use of rules-based standards rather than principles-based standards decreases the verifiability of financial statements but increases the extent to which financial statements reflect the economic substance of a firm’s transaction.” This statement is
a. True
b. False

62. Which of the following statements is true?
a. The implementation of the Eight Company Law Directive in the European Union has removed all systematic differences in the effectiveness of external auditing across countries.
b. One of the objectives of the Eight Company Law Directive in the European Union is to set minimum standards for public audits that improve auditor independence.
c. All audits of public firms within the European Union must be carried out in accordance with the set of Generally Accepted Auditing Standards, as promulgated by the Public Company Accounting Oversight Board.
d. None of the above

63. Which of the following statements is true?
a. Managerial legal liability regimes are equally strict across the member states of the European Union.
b. Under a strict legal liability regime, managers tend to provide more forward-looking disclosures than under a loose regime.
c. Managerial legal liability regimes are less strict in Germany and the UK than in the US.
d. None of the above

64. One of the primary tasks of the Committee of European Securities Regulators is to
a. Improve the consistency of public enforcement activities across European countries.
b. Publicly disclose all European public enforcement decisions.
c. Develop a set of International Public Enforcement Standards.
d. Discipline European public companies for violations of International Financial Reporting Standards.

65. Which of the following statements is true?
a. Managers of firms that are close to violating accounting-based debt covenants have an incentive to manage earnings and working capital ratios downwards.
b. In share-for-share mergers managers of the acquiring firm have an incentive to understate their firm’s accounting performance.
c. Managers have an incentive to understate accounting performance shortly before a large option award is granted to them.
d. Managers who aggressively manage their firm’s taxes have an incentive to consistently overstate their firm’s accounting performance.

66. Which of the following accounting policies is most likely to be a key accounting policy of Carrefour, one of the world’s largest retailers?
a. Accounting for payables
b. Accounting for legal claims
c. Accounting for revenues
d. Accounting for property

67. Which of the following factors is not relevant in evaluating a firm’s accounting strategy?
a. Management’s incentives to manage earnings
b. The presence of mandatory changes in accounting policies
c. Average accounting choices in the industry
d. Accuracy of past accounting estimates
e. The presence of voluntary changes in accounting policies

Click here to Download the Answers