Final Exam Intro to Busn BRCC

Assume the net profit for manufacturer of mountain bikes was $1,000,000 last year. The firm paid out $40,000 in dividends and has 200,000 shares of common stock outstanding. Its earnings per share (EPS) was:

$5

Assume a company has inventory valued at $50,000, its total current assets, including this inventory, total $90,000. Its total current liabilities total $20,000. Its quick ratio is:

2

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio?

2 times

A kennel designed for boarding small dogs has current assets of $8,000, current liabilities of $2,000, and fixed assets of $25,000. The small company has a current ratio of:

4

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

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

Marketable securities

_____ 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

_____ involves creating a unique marketing mix for every consumer.

One-to-one marketing

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.

_____ is any paid form of nonpersonal presentation by an identified sponsor.

advertising

Things of value owned by a firm are called its:

assets

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Which of the following is a consumer durable?

bedroom dresser

What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?"

closing the sale RATIONALE: See Exhibit 12.5 Steps in Making a Successful Sale

Compressor pumps installed in General Electric refrigerators would be considered:

component parts

CPM in advertising terms means:

cost per thousand

Which of the following is the BEST example of a current asset for a university bookstore?

credit card charges by book buyers

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

customer value

_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

debt

Profitability ratios are used to:

determine how efficiently a company is being managed

Which of the following is NOT one of the stages in the product life cycle?

development

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

The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a(n) ______ channel.

distribution

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

The ratio of net profit to the number of shares of common stock outstanding is called the:

earnings per share

The ratio of net profit to total owners' equity is called return on:

equity

What is the final step in the selling process?

following up on sales

Which of the following is a type of sales promotion that can be used if the organization's goal is to increase brand loyalty?

frequent-buyer programs

On an income statement, expenses, such as professional salaries, utilities, office supplies, rent, and insurance, are called _____ expenses.

general and administrative

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

generally accepted accounting principles

When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this advertising campaign was most likely to:

get customers to try the new product

The difference between net sales and cost of goods sold is:

gross profit

Which of the following is an example of nonstore retailing?

home shopping network

A(n) _____ is a summary of what a company has earned and spent over a given period.

income statement

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from operating activities would include:

increases in the manufacturer's inventory RATIONALE: Financial activities relate to the debt and equity financing.

The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short-term debts as they come due are called _____ ratios.

liquidity

The craft store marked skeins of embroidery thread down to a quarter apiece to attract more customers into the store. This was below the store's cost. The skeins of thread was intended to be a _____ to increase store traffic:

loss leader

Which of the following products would be correctly described as being in the decline stage of their product life cycle?

manual typewriters

A manufacturers' representative is sometimes called a(n):

manufacturer' agent

Which of the following is NOT a type of retailer?

manufacturers' representative

The _____ is the belief that the firm should dedicate all of its planning, policies, operations, and efforts to the satisfaction of the customer.

marketing concept

_____ is the collection, recording, and analysis of data important in marketing and communicating that information to management.

marketing research

American Pet Pro purchases pet grooming supplies from various manufacturers, sorts them, and resells them to retailers. American Pet Pro is a(n) _____ wholesaler.

merchant

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are:

merchant wholesalers

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

money owed to utility companies

The Art Institute, a school for training artists to be financially self-sufficient, has a debt-to-equity ratio of 120 percent. This means the school has:

more debt than equity

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.

net profit

Gross sales for Nevada Silver, a retailer of silver jewelry was $120,000 for the month of May. Sales discounts amounted to $18,000. There were no returns. The difference, $102,000, is Nevada Silver's:

net sales

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

paying accounts payable

A face-to-face sales presentation of a good or service to a prospective customer is called:

personal selling

Accountants employed within organizations are called:

private accountants

The _____ is the person who develops and implements a complete strategy and marketing program for a specific product or brand.

product manager

The brand name Cover Girl appeared in a young adult novel called Cathy's Book: If Found Call (650) 266-8233. One sentence in the book reads: "a killer coat of Lipslicks, a line of Cover Girl lip glosses. Procter &Gamble promoted the novel at beinggirl.com Web site in exchange for the mention. This is an example of"

product placement

Channels of distribution make distribution easier by performing all of the following functions EXCEPT:

production

_____ is the act of informing, persuading, and reminding the target market about a product.

promotion

_____ are independent accountants who serve organizations and individuals on a fee basis.

public accountants

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

public relations

When Nike donated $25,000 to a low-income area to provide job training, it received free and positive _____ in the news media.

publicity

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

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

shopping

Liquidity ratios measure:

short-term financial stability

A strategy of charging a high introductory price for a new product that invites eventual competition is called price:

skimming

Drew Pastrin bought an AZPX brand skateboard because all of the "other guys" were buying them. Pastrin was influenced by a(n) _____ factor.

social

A(n) _____ is a summary of the money flowing into and out of a firm.

statement of cash flows

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

Katherine Cozzine is a talented violinist. She is also pragmatic. When she graduated from high school, she chose a college that would provide her a strong business foundation even though she would have preferred to major in music. Cozzine did not know that there are over 200 music-business programs in the U.S., which would have allowed her to continue her music and prepare for a career in the industry. To Cozzine the music-business programs were ______ products.

unsought

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

volume

What is the primary difference between a merchant wholesaler and an agent?

whether it takes title to the product

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

wholesalers

What are the two distinct markets toward which sales promotions can be targeted?

consumers and members of the marketing channel

_____ segmentation is based on what the product will do rather than on consumer characteristics.

benefit

Which of the following is an example of a capital product that would be found in a brewery?

bottling machine

Which is the following is a consumer nondurable?

breakfast cereal

Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called:

breaking bulk

Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment?

cans of yellow paint for refurbishing equipment

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

Radial tires installed on four-wheel drive vehicles are examples of:

component parts

As a promotional tool, podcasting offers the advantage to listeners of:

convenience

There are two types of expenses recorded on the income statement. They are:

cost of goods sold and operating expenses

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

niche competitive advantage

A(n) _____ is a retail store that sells at prices 25 percent or more below traditional department store prices in spartan environments.

off-price retailer

Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a _____ product.

specialty

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

all of the above

Advertising can be found:

in any of the above media

Which one of the following is a commonly used method for market segmentation?

all of the above: geographic psychographic benefit volume

_____ is 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.

marketing

The channels through which advertising is carried to prospective customers are advertising:

media

Holiday Confections has the following balance sheet figures for the year ending December 31, 2018: Cash $1,000 Marketable securities 5,000 Inventory 3,000$ 9,000 Accounts payable $2,000 Notes payable 1,000 $3,000 Its networking capital is:

$6,000

Which of the following is an example of an industrial service?

a management consulting company

The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?

demographic

When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

distribution

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

distribution

_____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

distribution

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

distribution channel

There are a lot of talented people. Many singers who have not been discovered are as talented or more so than some of the best-known musical artists. For instance, pricing a musical act at $20,000 when a small community arts center can get just as great an entertainment experience for its audience for $5,000 is an example of:

prestige pricing

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _____ strategy.

product RATIONALE: Packaging is an element of product strategy and contests are an element of the promotion strategy.

Customer satisfaction:

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

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

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

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

debt-to-equity RATIONALE: The debt-to-equity ratio measures the relationship between the amount of debt financing and the amount of equity financing.

Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers. On the cover of each individualized brochure was an image of the customer's vehicle, the customer's name, and vehicle model name. Inside was the vehicle's estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure. On the back of the brochure were four coupons directly related to the service recommendations. Jay Pontiac used:

one-to-one marketing

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

In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe. The clerk is engaged in:

personal selling

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

prestige

Which of the following is an example of an asset that might be owned by a minor league baseball team?

reputation as a winning team

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

Manufacturers' representatives usually:

do all of the above

Public relations departments:

do all of the above

Companies that use blogs in their promotions use them because they:

do all of these

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

pricing

Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition. In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas. In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus. By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

product

Compassion International is a nonprofit organization dedicated to releasing poor children from spiritual, economic, social and physical poverty. What would be the most likely goal for an advertising campaign for this international organization?

provide information

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of:

psychological pricing

In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested consumers to see who can hold on to the car the longest to win it. An article in USA Today about the winner of the competition is an example of which promotional activity?

public relations

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