BUS 151 final

_____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

notes receivable

_____ is a scheduling tool that assigns three time estimates for each activity (optimistic, most probable, and pessimistic). This technique allows managers to anticipate delays and potential problems and schedule accordingly.

the program and evaluation review technique

Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.

true

Financial management is the art and science of managing a firm's money so the firm can meet its goals.

true

For most corporations, physical-distribution activities are usually the responsibility of the marketing department.

true

How do distribution channels improve product distribution?

Distribution channels reduce the number of transactions needed to get the product from the manufacturer to the consumer

How does an executive information system (EIS) differ from a decision support system (DSS)?

EIS is customized for an individual executive, and DSS is not

Which of the following is an example of an advertising medium?

all of the above

One of the biggest shortcomings of Gantt charts is that they:

are static

Which of the following calculations is a formal expression of the accounting equation?

assets=liabilities+owner's equity

In its role as lender to member banks, the Federal Reserve is called the:

banker's bank

net sales:

deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales

Bo Riley pays his rent and utility bills each month by writing checks. Riley is using a _____ account.

demand deposit

A basic form of market segmentation that uses such variables as age, education, and income is called:

demographic

Which of the following business products would be considered an accessory in the offices of a travel agency?

filing cabinet

_____ allows people with PCs or other types of machines connected to the Internet to donate processor cycles to the search for extraterrestrial life. This process involves sifting through the static of deep space on billions of radio channels looking for stray signals that are generated by alien civilizations.

grid computing

Office automation decisions are specifically designed to:

improve organizational communications

Any object or objects that a group of people use to buy and sell goods and services is called:

money

Which of the following is an example of a liability that might be owned by an antique mall?

money owed to utility companies

A CAD/CAM system is a(n):

production design and control system

Any communication or activity designed to win goodwill or prestige for a company or person is called:

public relations

A current asset is one that can or will be converted into cash within one year.

true

A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.

true

By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy.

true

Depository financial institutions include commercial banks, thrift institutions, and credit unions.

true

Equity is the owner's investment in the businesses.

true

In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.

true

Product layout is also called assembly-line layout.

true

Sales promotions are marketing events or sales efforts that stimulate consumer buying.

true

Selling retirement plans to people over the age of 50 is an example of demographic segmentation.

true

Service companies generally use a repetitive or intermittent production process rather than the continuous process.

true

The Federal Deposit Insurance Corporation (FDIC) monitors the banking practices of the institutions that it insures.

true

The five-step process that takes a transaction from being mere raw financial data to its being summarized in the financial statements is called the accounting cycle.

true

The marketing concept emphasizes a consumer orientation.

true

The strategy that is based on the demand for the product and the cost of producing it is called the pricing strategy.

true

U.S. banks provide loans to foreign governments.

true

When Clorox targets heavy users of bleach, it is using volume segmentation.

true

When compared to the consumer market, the business-to-business market

uses more direct channels of distribution

The categories of heavy, moderate, and light users have to do with which type of segmentation?

volume

When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The Web site O'Hare visited used _____ to make trip planning easier and more economical.

bundling

_____ is the action that people take in buying and using goods and services.

buyer behavior

Financial managers focus on _____, the inflow and outflow of cash.

cash flows

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

certified public accountant

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt, which is called:

commercial paper

An IOU is most similar to which type of bank loan?

commercial paper

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. Its gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:

cost of goods sold

_____ are debts that are to be paid within twelve months.

current liabilites

Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to distribution trucks. Georges is involved in:

distribution

Manufacturing resource planning II (MRPII):

does all of the above

Another term for net worth is working capital.

false

At the first level of a management support system is a(n) _____ system, which uses summary data collected by the transaction processing system to provide managers with decision-making information.

information reporting

Which type of information systems is used by both operational managers and middle managers?

information reporting system

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

intangible assets

The maker of Centrum multivitamins introduced Centrum Silver, a vitamin designed specifically for older people. Centrum Silver is an example of a _____, a product that uses an existing brand name in an existing category but with a new formula.

line extension

Gerald Cooksie owns a restaurant in Panama Beach, Florida. He has arranged a business loan with the bank where he has his business account. The terms of the loan allow him to borrow up to $13,500 within the next year if the bank has funds available to lend; he must pay interest only on the unpaid loan balance. Cooksie has arranged a:

line of credit

Which of the following is NOT one of the six steps in the accounting cycle?

paying accounts payable

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts. This is called a(n) _____ inventory.

perpetual

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

personal selling costs can be adjusted by controlling the size of the sales force

_____ pricing is the strategy of increasing the price of a product so that consumers will perceive it being of higher value.

prestige

In the production of corn meal for baking, corn is ground. This conversion process is an example of:

process manufacturing

The first step in controlling production is:

routing

Which of the following is NOT an example of a cost of goods sold for a manufacturer of electric fans?

sales commissions

_____ are investment certificates that represent either ownership of a corporation or a loan to the corporation.

securities

Inventory management performs all of the following tasks EXCEPT:

selling

Products that are bought after comparing price, suitability, quality, and style are called _____ products.

shopping

Abercrombie & Fitch stores are aimed at college-aged consumers. The parent company also operates retail clothing stores under the name Hollister, which are targeted to 14- to 18-year-olds and under the name Abercrombie, which sell children's wear. Abercrombie & Fitch operate

specialty stores

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

statement of cash flows

Accounting involves the _____ of the financial activities for firms.

summarizing

In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

suppliers

Which of the following companies would be LEAST likely to use the continuous process?

a bakery

Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?

a company that provides fresh baked goods for restaurants

Managerial accounting provides information that would probably be most beneficial to:

a middle manager of the company

The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.

acid-test

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are called:

angel investors

Which of the following is NOT one of the current trends in business management today?

application of the expectancy theory

Which of the following is a consumer nondurable?

breakfast cereal

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

create awareness

_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.

depreciation

Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?

distributing currency

Victorinox is the name of the company that manufacturers Swiss army knives. The _____ channel the company utilizes to get its knives to market is to wholesalers, than to retailers, and finally to consumers.

distribution

Thrift institutions were formed specifically to make home mortgage loans and to:

encourage household savings

Oscar Ramirez's job has been redesigned. He has more authority and responsibility and feels the job now is very challenging to him. The company has used job _____ to challenge Ramirez.

enrichment

Through the use of a(n) _____ physicians with patients at many hospitals can access and interact with multiple, disparate hospital information systems through a single, secure, Web-based application. Data that is accessible may include demographics, lab results, radiological images or other diagnostic data. In addition, physicians can use the technology to view patients' aggregated clinical data, electronically sign orders, and order medications and lab tests in both ambulatory and inpatient settings.

enterprise portal

_____ is the process in which a firm continuously collects and evaluates information about its external environment.

environmental scanning

A listing of the components and the number of each required to make the product is called the bill of lading.

false

Durability and simplicity are two important characteristics of money.

false

Facilities layout is all-important in production lines but it is not important in service-oriented businesses.

false

Just-in-time (JIT) is an inventory system that was developed in California and is starting to catch on in Japan.

false

Operations management refers to the role that computers play in the production process.

false

Profitability ratios measure how well a firm uses its assets.

false

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

false

The prime rate is the interest rate that the Federal Reserve charges member banks for loans.

false

The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs.

false

The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate.

false

A bank is engaged in _____ when it accepts the farmer's deposit of $127,000, and then makes a business loan of $50,000 to a small business owner.

financial intermediation

Cellular manufacturing combines aspects of both:

fixed position and assembly-line layouts

During production planning, the operations manager must make decisions about all of the following EXCEPT:

product design

The process that products go through as they pass through their introduction, growth, maturity, and decline stages is called the:

product life cycle

Life Savers Gummies Fruit Splosions, liquid-filled gummies combined with a burst of real fruit juice, are a new product for The Wrigley Co.. Before marketing the product nationwide, Wrigley gave out samples of the candy at several rock concerts and then recorded consumers' feelings about the candy, its taste, and its name. In which stage of the new-product development process would this have happened?

test marketing