C201 Business Acumen

Number the seven steps in the recruiting and interviewing process from first to last.

1) Define job requirements, 2) Contact and visit colleges for applicants/interns, 3) Conduct employment tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up interviews, 7) Hiring determination

Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers

A JIT system seeks to eliminate anything that does not add value in operations activities, production using JIT reduces a firm's inventory costs.

Which type of information system should be accessed by the vice president of sales for a national department store chain who wants to see the previous day's sales receipts?

A transaction processing system

Which three characteristics are measured in demographic segmentation? Choose 3 answers

Race and ethnicity, Income, Household size

What is considered the heart of any information system?

The Database

Which financial statement should an investor examine to identify the liabilities of a firm?

The balance sheet

Which intent of spyware creates a company security issue?

The intent to report on a user's internet activity

How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price?

There is no immediate effect on demand

What are three ways cloud computing services enhance company productivity? Choose 3 answers

Through better resource utilization, through elimination of application downtime, through dedication of resources to each user

For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy? Choose 2 answers

To encourage bankers to make loans, to cut the cost of borrowing

When would a pull promotional strategy enhance a competitive advantage to market a product better than a push strategy?

When demand for the product is driven by the end user

compares products directly with their competitors ether by name or by inference

comparative advertising

which advantage does brand loyalty provide

competitive advantage

concentrating marketing efforts on the product (features, quality, value), distribution, and promotional elements of the marketing mix.

competitive pricing

inventory turnover

cost of goods sold / average inventory (average of 2013 + 2014)

receivables turnover

credit sales / average account receivables (average of 2013 + 2014)

Which three conditions, in a global selling environment, should a small company leverage to create a competitive advantage? Choose 3 answers

cultural homogeneity, mobility of labor, local labor costs

acid test

current assets - inventory / current liabilities

Liquidity ratio

current assets / current liabilities

what do management use support systems for

decisions

A company might divide itself into smaller groups that best match the types of customers it service. this is an example of

departmentalization.

How does a virtual private network contribute to a firm's workforce productivity?

employers are enabled to work remotely with secure connectivity to the corporate network via the internet

gross profit margin

gross profit / sales

what ratios are considered profitability ratios

gross profit, net profit, and return on equity

the highest form of brand loyalty is

imsistence

the coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer-focused message.

integrated marketing communications

what are the four stages of the product life cycle

introductory, growth, maturity, decline

Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds?

it converts easily to cash

A company wishes to determine if it should fund a project with bonds or equity. Which business concept would it most likely use to assist in the decision?

leverage

when two or more users connect using Ethernet or WiFi to the same server to share printers or other information

local area network (LAN

long-term debt to equity

long-term debt / owner's equity

a decision support system (DSS) belongs to which support system

management

what adds value to a product

marketing intermediaries

which stage of the product life cycle requires focusing on attracting the competitors customers

maturity

what ratios are considered activity ratios

measue managements use of the firms resources and include all turn over ratios

what are leverage ratios

measure the extent to which a firm relies on debt financing and includes debt ratio and long-term debt to equity

what are advantages to WiFi

mobility, expansion of LAN

return on equity

net income / average equity

net profit margin

net income / sales

Which calculation determines a firm's return on equity?

net income divided by average equity

is ethical and legal the same thing

no

information systems for activities fall under which support system

operational support systems

Total productivity

output (goods or services) / input (human, natural resources, capital)

Which users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions?

owners and creditors

used in the growth and maturity stage of the product life cycle to improve competitive status of a product.

persuasive advertising

Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its equity?

private equity fund

which of the two information systems are operational support systems

process control system, transaction process system

potential buyers will request that their suppliers-retailers or local distributors - carry the products thereby pulling it through the distribution channel

pulling strategy

companies promote the product to members of the marketing channel, not to end users

pushing strategy

advertising to maintain awareness of the importance and usefulness of a product

reminder-oriented

Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global package delivery service?

retail

what are marketing intermediaries

retailer and broker

total assets turnover

sales / average total assets

which of the product types is purchased most infrequently

specialty

three different product types

specialty, shopping, convenience

what ratios are considered liquidity ratios

the firms abilities to meet its short term obligations and include the liquidity ratio and acid test

Why should a manager use financial controls in a firm's financial plan?

to determine the accuracy of forecasted revenues, costs, and expenses

debt ratio

total liabilities / total assets

brand preference is a higher form or loyalty than brand recognition

true

using what can make a price cheaper to a consumer

wholesaler

Which three sources should a business consider when seeking a long-term source? Choose 3 answers

Hedge funds, Venture capital, public sale of stocks

Which two key elements does an effective organization include?

Human interaction, structure

What is the result of a company increasing the delegation of authority and the span of control?

Increased number of direct reports per manager

What is one role of a financial manage?

Analyzing major investment decisoins

In which type of security should a business invest its excess cash in anticipation of paying off the current year's tax liability?

Commercial paper

Which primary driver does management use for an organization's structure?

Achievement of company goals

After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the lotion as an insect repellent as well. In which three product life cycle extension strategies did this company engage? Choose 3 answers

Adding new users, finding new uses for the product, increasing frequency of use.

Which marketing tool is essential to building an effective relationship marketing campaign?

An affinity program

Which two economic impacts should a manager anticipate when the U.S. government reduces the number of Treasury bills, Treasury Notes, and Treasury bonds it sells? Choose 2 answers

An increase in overall cost of debt to private borrowers, an increase of funds for public services

A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty is this customer in?

Brand preference

In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3 answers

Buyers face organizational influences in addition to their own preferences, purchasers often invite selected providers to bid on a purchase, a group or committee often makes decisions

Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short term price cutting tactics such as cents off coupons, rebates, and special sales?

Everyday low pricing

With which two types of products does a marketing strategy rely on advertising more than personal selling? Choose 2 answers.

Consumable supplies, accessories to primary products

A high tech startup company is launching a marketing campaign for its new social media portal by highlighting how the portal exceeds the connectivity and collaboration capabilities of all other social media sits. Which type of competitive advantage is this company leveraging?

Customer loyalty

Which two factors drive demand in a microeconomics system? Choose 2 answers

Customer preference, price of substitute goods

Which economic graph is used by organizations to regulate production by predicting the amount of product buyers will purchase at different prices?

Demand curve

Which step in the organizing process results in management group work activities into units within the organization?

Departmentalization

Which regulatory relationship with the Securities and Exchange Commission (SEC) historically has acted to prohibit the U.S. from adopting the International Financial Reporting Standards (IFRS)?

FASB requires companies to comply with GAAP that differ from IFRS

Which two impacts result from a nation's increase in productivity? Choose 2 answers

Economy expands, Personal wealth increases

What should a firm do to manage the risk of using leverage when exploring long-term funding options?

Ensure that earnings remain larger than interests payments

Which aspect of operations management do the ISO 9000 Standards address?

Establishment of effective quality systems?

Which part of the organizing process aids in effective and efficient progress toward planned goals and often results in changes within the organization?

Evaluating results

Which manufacturing model uses technology to produce small runs of customized products cost effectively?

Flexible

What are three ways that an effective brand name can influence consumer product recognition? Choose 3 answers

It conveys an image, it depicts trademark protection, it reflects brand equity.

Why does a line organizational structure function most effectively in a crisis situation?

It established a direct flow of authority

Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for a business?

It has a maturity that ranges between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make large amounts of money available

Which role does the underwriter play in financing business operations when using the capital market to sell securities to the public?

It insures the value of the security to the investor

Which two of the following distribution channels would take title of the products they handle? Choose 2 answers

Limited function merchant wholesaler, full function merchant wholesaler

Which two activities are finance activities rather than accounting activities? Choose 2 answers

Making capital market investments, creating a financial plan

Which element of the promotional mix has the advantage of messaging that can be tailored for each customer, but the disadvantage of a high cost per contact?

Personal Selling

For which type of communication should employees have an ethical expectation of privacy from company monitoring?

Personal letters sent through the company mail room

Which three tasks are key responsibilities of operations managers? Choose 3 answers

Planning the overall production process, implementing the production plan, determine the best layout for the firm's facilities.

What does a CFO use in financial planning to determine the expected level of revenue for future periods?

Sales forecast plus non-sales revenue

Which two activities are prohibited by insider trading laws and should be avoided by a firm's employees? Choose 2 answers

Selling company stock because a co-worker told the employee the company's new drug is failing in clinical trial, buying stock in the public company for which the employee works based on a conversation the employee overheard at a cocktail party between two of the company's executives.

Which activity raises ethical issues heightened by the capabilities of data mining?

Selling customer data for external marketing research

What three factors should be addressed in a successful marketing plan? Choose 3 answers.

Target Market, Sales revenue goals, Plan implementation timeline (not on list, marketing budget)

Which two risks does a firm face by funding the purchase of long-term assets with short-term funding sources? Choose 2 ansers

Volatility of interest rates, frequent renewals

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?

capped the debit card fee at 21 cents

connect the brand to the a positive image (GE to eco friendly)

brand association

a brand is recognized by potential customers, and is correctly associated with a particular product

brand awareness