Business 101 true/ false
An operating lease is a long-term contract that shows up on the balance sheet as an asset and liability
False
Eurodollar deposits can only be made at banks located in London
False
Marketing occurs only in large business organizations
False
The longer a project or asset is expected to last, the smaller is its potential risk
False
The principal is the amount of money a business pays to use a banks funds
False
A bond can be transferred from one owner to another
True
A marketable security is a temporary investment of cash
True
An individual retirement account (IRA) is a type of savings account
false
Bonds can only be issued by corporations
false
Common stock is safer than preferred
false
Distribution channels for consumer products and business products are the same
false
In organized exchanges, investors buy and sell only for their own accounts
false
Most business failures are the result of poor long-term financial planning
false
Most new product ideas are rejected during the business analysis phase
false
Negative cash flow always indicates that a company is in financial trouble
false
Pricing objectives are influenced solely by marketing mix decisions
false
The capital in excess of par account is usually significantly larger than the par value account on a balance sheet
false
The par value is the interest rate on a bond
false
as long as both the buyer and seller have something to exchange, the exchange will take place
false
exclusive distribution makes a product available in as many outlets as possible
false
of the thousands of products introduced every year, most succeed
false
profitability ratios measure how effectively a firm uses its assets to generate $1 of sales
false
promotion is used only to sell products
false
the use of a pull strategy means that marketers attempt to motivate middlemen to make a product available to their customers
false
A marketing strategy is a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
true
Although customer satisfaction is the goal of the marketing concept, a business must also achieve its own objectives
true
An example of double taxation is when dividends per share payments are made from earnings after taxes by the corp but is still taxable income for the shareholder
true
Factors such as characteristics of the intended audience, the objective, and the platform used can all affect how an advertising campaign is conducted and its message
true
Interest is a percentage of the principal that the bank charges for use of its money
true
Maximizing profits and sales, boosting market share, maintaining the status quo, and survival are common pricing abjectives
true
One aspect of financial management involves managing cash flow for a business on a daily, weekly, monthly, and yearly basis
true
The best products in the world will not be successful unless companies make them available where and when customers want to buy them
true
The over-the-counter market is a network and does not have a central location for trading
true
a medium of exchange known as bartering is trading one good for or service for another of similar value
true
buying behavior refers to the decision process and actions of people who purchase and use products
true
customer satisfaction is a goal of the marketing concept
true
expenses are the costs incurred in the day to day operations of an organization
true
if an exchange is to occur, each participant must be willing to give up something of value to receive something the other has
true
marketers are blurring the lines between television ads an the internet by directing consumers to a website for more information
true
penetration pricng is less flexible than price skimming
true
products can be goods services and ideas
true
psychographic characteristics of segmentation include personality characteristics, motives and lifestyles
true
raw materials are natural products taken from the earth
true
securities markets provide liquidity
true
stimulating demand is especially important when a firm is using a pull strategy
true
the income statement, the balance sheet, and the statement of cash flows are all considered financial statements
true
the second major monetary policy tool is the reserve requirement
true