Business Test 2

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

A. newspapers B. television C. magazines D. direct mail E. all of the above

differential sustainable competitive advantage

A firm has the ability to provide a unique product or service that offers something of value to buyers besides simply a lower price

Continuous process

A system that utilizes long production runs resulting in high-volume, standardized products

make-or-buy

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs

certified managerial accountants

Certified Management Accountant is a professional certification credential in the management accounting and financial management fields

Factoring

Company sells its accounts receivables, at a discount, to someone in exchange for financing. Typically more expensive than bank loan

Depreciation

Depreciation is an accounting method that spreads the cost of an asset over its expected useful life to give you a more accurate view of its value and your business's profitability.

Which of the following factors will be important in the selection of a site for a production facility? A. labor costs B. proximity to raw materials C. nearness to customers D. access to transportation E. all of the above

E. all of the above

•Investment (spending money)

Investing firms money in projects and securities that bring in returns

capital expenditures

Items that will be used for more than a year

advertising mediums

Movies, TV, video games, Newspaper, direct mail, magazines, Sports, Internet

Managerial accounting provides information that would probably be most beneficial to

a middle manager of the company

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

assets = liabilities + owners' equity

Assets, liabilities, owners equity

assets- economic resources owned by a business liabilities-the financial obligations or debts of a business owners' equity- owners claims on the assets of a business.

Funds invested in long-lived assets, such as land, buildings, machinery, and equipment, are called

capital expenditures

In the accounting field, CMA stands for

certified managerial accountant

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called

collateral

A secured loan requires the borrower to pledge specific assets as _____ or security

collateral

current assets vs fixed assets

current: assets that can or will be converted to cash within the next 12 months fixed: Long term assets that will be use for over a year. Could be land, buildings, machinery

types of distribution channels

direct, indirect, online, hybrid

competative advantage

enables a company to perform better than its competitors

process layout vs product layout vs fixed layout

process: workflow is arranged around the layout, people that do similar jobs are grouped together product: traditional assembly line fixed: product stays in one place and the people move around

the 5 P's

product, price, place, promotion, people

The statement of cash flows is a

summary of the money flowing into and out of a firm. It is used to assess the sources and uses of cash during a certain period of time

Operations Management

. if managed effectively everyone can get what they want

Sales Process

1. Prospecting and qualifying 2. Approach 3. Presentation 4. Demonstration 5. Handling objections 6. Closing 7. Follow-up

GAAP vs FASB

GAAP-Generally accepted accounting principles •Used by firms when preparing financial statements FASB-Financial Accounting Standards Board •They set the accounting standards in the US

cash management

Making sure there is enough cash on hand to pay expected (and unexpected) bills as needed

managerial accounting vs financial accounting

Managerial accounting: •Provides financial info for managers to use/see •Helps them plan for the future Financial accounting: •Provides financial info for people outside the organization •Used by lenders, suppliers, investors, government

marketable securities

Marketable securities are assets that can be liquidated to cash quickly.

Because Avril Peters is investing in the commodities market, she stands a chance of losing money._____ is the term used to describe her potential for loss

Risk

intermittent processing

Short time production runs to make a single item or batch of items

accounting

The process of planning, recording, analyzing, and interpreting financial information.

The sales process begins with the salesperson locating companies or people who are most likely to buy the seller's offerings. This activity is called:

prospecting

accounts receivable vs accounts payable

receivable- you can offer incentives for customers to pay early payable- Accounts payable is money owed by a business to its suppliers shown as a liability on a company's balance sheet

Customer satisfaction

refers to the customer's feeling that a product has met or exceeded expectations

an exchange

takes place when the consumer trades money for desired goods and services.

promotional strategies

target audience, budget, plan of action

Production

the combining of natural resources, human resources, and capital to produce goods and services

Market segmentation

the division of markets into different groups

Marketing

the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

In which of the following industries are you most likely to find factoring being used?

appliance industry

Current liabilities

are bills and claims that will have to be paid within the next twelve months

A broker

are go-betweens that bring buyers and sellers together

Marketable securities

are temporary investments of excess cash in bonds and stocks that can readily be converted into cash

Things of value owned by a firm are called its

assets

the introduction stage of the product life cycle

competition is light, production and marketing costs are high, and profits are either small or negative.

Total quality management focuses on:

continuous improvement

Continuous Process

uses long production runs that may last days, weeks, or months without equipment shutdown.

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as

generally accepted accounting principles

Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation?

geographic

Mass customization

goods are produced using mass production techniques up to a point. Then production is custom tailored to the needs or desires of individual customers

The two types of distribution channels are

industrial and consumer

product life cycle

introduction, growth, maturity, and decline

Common stock vs preferred stock

is a security that represents an ownership interest in a corporation and has voting rights preferred is company stock with dividends that are paid to shareholders before common stock dividends are paid out.

Public relations

is any communication or activity designed to win goodwill or prestige for a company or person

Marketing Mix

is based on the five P's

Depreciation

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

Accounting provides a framework for looking at

A. past performance B. current financial health C. possible future performance D. financial performances of different firms E. all of the above

Long-term debt would be used to

A. pay employees' salaries B. buy new tablecloths for a restaurant C. replace broken glass in a window D. provide customer with a cash discount E. do none of the above

Promotional Mix

A promotional mix is a combination of different marketing methods like advertising, sales promotion, direct marketing, and public relations (press releases) that a business uses to reach its target audience.

sales promotion

A sales promotion is a marketing strategy in which a business uses a temporary campaign or offer to increase interest or demand in its product or service.

Which of the following organizations would analyze their market environments, find a competitive advantage, and create a marketing mix?

A. a publisher of hunting and fishing magazines B. a manufacturer of gym equipment C. the United States Postal Service D. a Pizza Hut franchise in Mumbai, India E. all of the above All businesses need a competitive advantage to survive

distribution channel

a series of marketing entities through which goods and services pass on their way from producers to end-users

Target Market

a specific group of consumers toward which a firm directs its marketing efforts

Just in Time (JIT)

a system in which production inputs arrive just when they are needed for production rather than being stored on site

Which of the following is NOT a popular form of sales promotion?

advertising

The elements of the promotional mix are

advertising, personal selling, sales promotion and public relations

types of segmentation

demographic, geographic, psychographic, benefit, behavioral

Which of the following is NOT an element of the promotional mix?

distribution

Total Quality Management (TQM)

Focuses on continuous improvement Everyone is involved in the process

Capital budgeting

is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash

management

The three main types of facility layouts are

product, process, and fixed-position

Manufacturers' representatives usually

A. do not take title to goods B. receive commissions on sales C. act as independent agents D. represent noncompeting manufacturers E. do all of the above

The funds that are reinvested in the firm out of profits and after dividends are paid are called

retained earnings