final for business

A firm's marketing mix refers to the combination of: a)strategies regarding product, price, place, and promotion. b)people directly involved in making marketing decisions. c)goods the firm offers to different market segments. d)advertising media the firm utilizes to promote its products.

a

Herb has $20,000 in an interest-bearing time deposit with the Applebottom Bank and Trust Company. While earning a relatively attractive rate of interest, Herb had to agree to not withdraw any of the funds until the end of a three-year period. Herb's investment represents a(n): a)negotiable order of withdrawal (NOW) account. b)passbook savings account. c)certificate of deposit (CD). d)individual deferred earnings account (IDEA).

a

The redesign of and new colors added to U.S. paper money are intended to: a)make the currency more difficult to counterfeit. b)increase the portability of our money. c)improve the durability of our monetary system. d)increase the use of the barter system.

a

Depending upon the promotional campaign, advertising may include paid and nonpaid forms of nonpersonal communication. True False

false

Discount stores and department stores sell different brands of products that are usually priced about the same. True False

false

Economic events in other nations seldom impact the powerful U.S. economy. True False

false

Factoring refers to the process of selling inventory to generate short-term funds. True False

false

Harrison Manufacturing owns land worth $600,000 and has $130,000 worth of cash in its bank account. In the asset section of the balance sheet, Harrison lists its land holdings prior to listing its cash since it is a higher value. True False

false

Money received from tickets sold for the Katy Perry concert is recorded as net income on the concert promoter's income statement. True False

false

The Federal Trade Commission (FTC) regulates the security markets in the United States. True False

false

The M-1 money supply includes money in savings accounts, mutual funds, and money market accounts. True False

false

The World Bank primarily finances projects to protect the environment. True False

false

The bottom line of the Collins Corporation's income statement is equal to the net worth of the firm. True False

false

The interest paid to bondholders represents the principal of the bond. True False

false

The number of customers in business-to-business markets is quite large compared to the number of customers in the consumer market. True False

false

As a registered representative of a stock brokerage firm, a stockbroker works as an intermediary to buy and sell securities for clients. True False

true

Population growth and changing demographics are two elements of a firm's socio-cultural environment. True False

true

Preemptive rights provide common stockholders the first right to purchase any new shares of common stock issued by the firm. True False

true

Revenue on the income statement represents the dollar amount of what is received for goods sold, services rendered and/or from other revenue sources. True False

true

Smart cards can allow the user to access secure areas within buildings or buy gas with the swipe of the card. True False

true

The McGowan Group wants to know the value of its owners' equity. It will total its assets and subtract its liabilities. True False

true

The currencies of some countries, although durable and portable, are relatively unstable, which makes international exchanges difficult. True False

true

The operating (master) budget identifies the funds (and the allocation of those funds) required to operate a business at a projected level of revenue. True False

true

As a finance manager at AllSports Communication, Charlie worries about the firm's borrowing requirements for the upcoming year. He knows the benefit of estimating AllSports' cash disbursements and short-term investment expectations. Facing these concerns, a(n) ________ would provide Charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. a)line item budget b)operating budget c)capital budget d)cash budget

d

Budd's Floral Shoppe is located in a large town that has several other florists. The owner, Rose Budd, is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock-bottom prices. True False

false

Cash flow statements identify three sources of cash receipts and disbursements: assets, liabilities and owners' equity. True False

false

Financial accounting is used to provide information and analysis managers within the organization can use to assist them in decision making. True False

false

Freight forwarders are particularly useful to large firms who must ship very large quantities on short notice. True False

false

Jennifer prefers corporate bonds as an investment option because investors always receive the face value of the bond whenever it is sold. True False

false

Marketers provide a total of four types of utility: primary, secondary, marginal, and total. True False

false

The income statement reports the difference between a firm's assets and its liabilities as of a certain date. True False

false

The marketing concept was used heavily by business when it was first suggested in the 1950s. True False

false

Tyler is looking for an investment that will pay a little better than what he can get from a government bond. You suggest that he consider a new issue of debenture bonds by Very Vegetarian that pay 8.5% annually. You explain that Very Vegetarian has operated for a long time, and the debenture feature makes these bonds more secure than others. True False

false

A key way for traditional retailers to compete with direct marketing is by providing outstanding service utility. True False

true

A pickup truck can be classified as either a consumer good or an industrial good. True False

true

A testimonial represents communication from a customer that praises a firm's products. True False

true

A traditional McDonald's and a McCafe are examples of the McDonald's Corporation product mix. True False

true

Although the interest rate is fixed when the bond is issued, the interest rate that one firm must pay compared to another may vary depending upon risk factors such as the reputation of the firm. True False

true

As a salesperson for an electrical contractor, Greg is included as part of the target audience for sales promotions from his own company. True False

true

As the chief financial officer (CFO) for a medium-sized service company, Shelley is concerned about the possibility of temporary cash shortages. Given the irregular cash flows from seasonal sales, she wants to ensure that her company's bank will provide adequate funds to cover any potential cash flow problem. The best strategy to ease Shelley's concern would be to arrange a revolving credit agreement with the bank. True False

true

Bark Three Times Pet Store recently hired an accountant to make sense of each day's transactions, and keep better financial records for the business. The accountant showed the owner that the ledger in a computerized accounting system would automatically take entries and post them to the correct accounts in the ledger, making the bookkeeping tasks much easier. True False

true

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location. True False

true

By issuing bonds, a firm's debt level increases, which may adversely affect the firm's image in the financial community. True False

true

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities. True False

true

Concept testing involves taking a product idea to consumers to test their reactions. True False

true

Consumer databases, blogs, and social networking are some of the technological factors that are used by marketers to develop goods and services. True False

true

Endorsements by sports or movie celebrities can help create a favorable brand association. True False

true

Free TV and radio broadcasting is made possible by advertising. True False

true

Inputs to the accounting system include sales documents. True False

true

Internal sales promotion efforts include training for salespeople and participation at trade shows where salespeople can meet potential customers. True False

true

Jack Deck is a computer salesperson for a major retail electronics chain. When he advises customers to help them select a computer that will meet their needs, Jack is providing information utility. True False

true

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes. True False

true

Learning involves changes in an individual's behavior resulting from previous experiences and information. True False

true

Leverage ratios are concerned with the extent to which a firm relies on borrowed funds in its operations. True False

true

Marketing goods and services to the B2B market relies more heavily on advertising than marketing efforts aimed toward the consumer market. True False

true

One step in the financial planning process is to establish financial control procedures that allow managers to monitor the organization's performance. True False

true

One way to make ratio analysis more meaningful is to compare the ratios of one firm to those of other firms in the same industry. True False

true

Payola Promotions has offered to give Lisa free tickets to a concert it is promoting in return for Lisa's agreement to share her positive experience with others on Facebook. The concert tickets Lisa receives represent "swag." True False

true

Sales promotion programs can be used as a means to generate employee enthusiasm. True False

true

Short-term financing refers to borrowed funds that must be repaid in a year or less. True False

true

Small firms often rely on nonprice competition when competing against larger firms. True False

true

Small investors can spread the risk of investing by purchasing shares of mutual funds or ETFs. True False

true

The Adapting to Change box shows us that product reviews, like those featured on Amazon, are extremely powerful but sometimes are unreliable. True False

true

The accounting cycle is a six-step procedure that results in the preparation and analysis of major financial statements. True False

true

The chief financial officer (CFO) is responsible for accounting and financial functions. True False

true

The process of identifying the factors that can affect marketing success is called environmental scanning. True False

true

To be effective, an internal auditor must be critical of any improprieties or deficiencies found in the financial activities of the firm. True False

true

A(n) __________ sells general merchandise directly from the manufacturer at a discount; items may be discontinued or have certain product flaws. a)outlet store b)discount store c)specialty store d)department store

a

According to the product life cycle model, profits tend to: a)peak before sales reach their highest level. b)rise rapidly during the market preference stage. c)reach a peak near the end of the maturity stage. d)remain relatively constant until the decline stage, when they begin to drop.

a

Indiana Processing promotes its services through Mechanical Engineers Today, a trade magazine that charges Indiana Processing and other companies $5,000 per page for ______________ to help offset the magazine's publishing costs. a)advertising b)publicity c)public relations d)trade shows

a

Lenora just finished writing a news release regarding a new product developed by her firm. She intends to e-mail the message to local radio stations and newspapers in hope that they will find the information newsworthy and run a story about the product. Lenora's efforts represent the firm's: a)public relations. b)secondary advertising. c)interactive marketing. d)institutional advertising.

a

The first step in the marketing research process is to: a)define the problem and determine the present situation. b)decide upon the best ethical solution. c)collect relevant data from primary and secondary sources. d)analyze the research data.

a

A __________ allows B2B buyers to see products online 24 hours a day, 365 days a year without having to leave their office. a)direct marketing show b)virtual trade show c)cyber market d)shopping network

b

An advertisement for the Xerox Corporation encourages customers to say, "Copy it" rather than "Xerox it." This indicates that Xerox is fearful that its brand name might become a(n): a)public domain good. b)equity name. c)private brand. d)generic name.

d

A time deposit that earns interest is a ______________. a)NOW account b)passbook account c)discount deposit d)certificate of deposit

d

A mutual fund that carries a load will require the investor to pay a commission, only if the fund appreciates in price. True False

false

Although there are many features about online banking that customers do not care for, they are seldom concerned with security due to continued assurances by the banking industry. True False

false

A barter exchange is a system where you input into a system the goods and services that you are willing to trade, and receive trade credit. True False

true

A direct payment is a preauthorized electronic payment. True False

true

Both the M-1 and M-2 definitions of money include coins and paper money. True False

true

Commercial banks attempt to profit by using funds deposited by customers to make interest-bearing loans to borrowers. True False

true

Debenture bonds represent bonds that are not secured by collateral. True False

true

Growth stocks are the stocks of corporations whose earnings are expected to grow faster than the overall economy. True False

true

In the 1930s, during the Great Depression, the government started an insurance program to protect the public from bank failures. True False

true

Last week Dave was looking for a place to deposit a $30,000 inheritance from his Great Aunt Martha, who passed away three months ago. He does not plan to spend his money frivolously. He will need part of the funds from time to time for his college education, which he promised Great Aunt Martha he would complete. After speaking with several sales consultants in banking and nonbank institutions, he likes the fact that he can open a stock brokerage account and a money-market account at Goodman Stacks Investment Company (a nonbank company), and will be issued checks for paying bills. You remind him that with the recent mergers between banking and nonbank institutions, he may be able to find a company that provides (both) the convenience of banking services (ATM, cash availability) and low-risk/high-risk securities products. True False

true

The management of GamesPeople designed a comprehensive strategy that unifies advertising, personal selling, public relations and sales promotion activities creating a consistent message. This effort to promote a positive brand image represents a(n) ________ program. a)global marketing b)interactive promotion c)integrated marketing communication d)unified segmentation

c

Bonds represent a permanent source of funding for companies. The money firms acquire by issuing bonds does not need to be repaid. True False

false

As restaurant chains that specialize in Mexican cuisine, Fernando's and Carmelita's offer similar items on their menus. However, Fernando's restaurants are positioned in the market as elegant establishments with high prices. Carmelita's restaurants, on the other hand, are located in middle-class neighborhoods, with a casual atmosphere that welcomes families with young children. The prices at Carmelita's are in the moderate range. When evaluating the marketing strategies used by these restaurants, we can conclude that: a)Fernando's has chosen a shopping good strategy. b)they utilize product differentiation. c)their target markets differ, with one intended to appeal to the industrial market, and the other designed to attract the consumer market. d)both practice product mix effectiveness.

b

In the past, companies have designed intricate products that markets did not perceive any need for. They have aired promotional campaigns that have offended audiences. They have priced products out of reach of the target market. Marketing experts defend the importance of ________________, the process of gathering all sorts of information about customers and products in order to make informed decisions about the product, price, place, and promotion. a)global trekking b)marketing research c)target marketing d)market segmentation

b

In the terminology of multilevel marketing, which of the following statements about the relationship between upliners and downliners is most accurate? In multilevel marketing, a)upliners use intensive distribution strategies to sell a good, while downliners use either a selective or exclusive distribution strategy to sell the same type of good. b)upliners are salespeople who act as independent contractors, earning commissions on their own sales and also on the sales of downliners, who are additional salespeople that they recruit. c)upliners are intermediaries who deal directly with final customers, while downliners are intermediaries who coordinate the transportation and storage services the upliners need to move the goods they sell through the channel of distribution. d)upliners sell through electronic retailing arrangements, while downliners use more traditional methods of retail selling.

b

Money has a time value because: a)inflation increases the value of money over time. b)money earns interest over time. c)a dollar received today is worth more than a dollar received yesterday. d)monetary systems are more automated than in the past.

b

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following? a)Provide limited service and delivery for their products b)Carry a large inventory of their products c)Pay attention to the multiple competing brands that they carry d)Sell their products at substantially discounted prices

b

Retailers who have stores at convenient locations are trying to add value by: a)using a broad resource allocation strategy. b)providing place utility. c)using a horizontal distribution strategy. d)achieving market concentration.

b

Stores that remain open 24 hours a day, seven days a week are providing _________ utility to their customers. a)service b)time c)schedule d)possession

b

The Bay Street Bakery has a respected following. When it moved the business to a famous resort area, it took a big risk; however, the owners were confident that its unique cookies and pastries would win customer raves. Fortunately, one of the members of the family business was convinced the bakery needed to stay in touch with its customers. While visiting the bakery, the business collected names and addresses in order to send messages about promotions and coupons to valued customers. Marketing professionals refer to this strategy as: a)production management. b)customer relationship management. c)sales management. d)niche marketing.

b

The apple is Apple Computer's: a)label. b)trademark. c)brand. d)generic name.

b

The effectiveness of direct mail advertising suffers from: a)the limited length of the message. b)the consumer perception that it is junk mail. c)its inflexibility. d)its inability to target specific markets.

b

The last step in the marketing process often includes: a)collecting the cash from sales to consumers. b)building relationships with customers. c)developing a written report to summarize the results of the period's marketing activities. d)deciding the best way to distribute the product.

b

A __________ offers a huge selection of one type of product (such as books, toys, or sporting goods) to dominate that category of goods. a)cash-and-carry retailer b)category killer store c)saturation retailer d)department store

b)

By employing a relationship marketing strategy, Jocelyn found success as an entrepreneur. The goal of this strategy is to: a)target large market segments of potential customers by working closely with a variety of suppliers. b)use radio and television advertising to attract new customers. c)work closely with existing customers to better satisfy their wants and needs. d)communicate to buyers the advantages offered by your firm's low prices and standardized products.

c

Carolina Financial Services is considering the purchase and installation of an expensive computer network. This is the type of expenditure that would be included in a(n): a)asset budget. b)operating budget. c)capital budget. d)cash budget.

c

Companies that adopt a pull strategy target their promotional efforts toward: a)wholesalers. b)manufacturers. c)consumers. d)retailers.

c

Companies who send salespeople to customers' homes or places of work are making use of __________ selling. a)nonretail b)point of contact c)direct d)downline

c

Roosevelt Community College has experienced declining enrollment for the past three years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, Roosevelt Community College would benefit from: a)a stakeholder audit. b)sales promotions. c)marketing research. d)test marketing.

c

Jill wants to start her own business, but knows little about how to set up an accounting system or interpret financial information. "I'm not worried about accounting," she tells her friends. "I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on what I like—finding ways to satisfy my customers." Which of the following is the best response to Jill's comments? a)Most entrepreneurs would agree with your opinion. The work done by accountants is mainly clerical in nature, so time spent by business owners on accounting tends to take them away from more important tasks. b)You have a good plan. Only managers of large firms require knowledge of accounting. Owners and managers of small businesses can easily get by with just a part-time bookkeeper. c)Fine. Just make sure the bookkeeper you hire knows how to use a database, since this type of software is the heart of any efficient accounting system. d)Although you can hire someone to keep your books, you'll still need to know how to read, understand, and interpret basic accounting reports in order to make good business decisions.

d

Northern Lights Electronics just completed plans to distribute its new tablet. The product has several unique features that differentiate it from competitor products. The marketing team plans to begin a roll-out with ____________ to only one traditional retailer for the first two months. This strategy will give consumers the perception of the product's stand-out personality and increase demand. Marketing will proceed with _______________ for the next four months, where it plans to distribute to three other retailers, as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. As the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with ____________, as described above. a)intensive distribution; selective distribution; exclusive distribution b)tertiary level distribution; secondary level distribution; mono-level distribution c)mono-level distribution; secondary level distribution; tertiary level distribution d)exclusive distribution; selective distribution; intensive distribution

d

Product screening is designed to: a)shorten the product life cycle. b)reduce the time involved in new-product development. c)move production to low-wage countries. d)reduce the number of new-product ideas being worked on at any one time.

d

The first step in the financial planning process is: a)developing budgets. b)preparing financial statements. c)establishing financial control. d)forecasting financial needs.

d

A bank's product line may include safety deposit boxes, car loans, and traveler's checks. True False

false

A bond sold with a sinking fund provision requires the firm to allow a stockholder to exchange his/her bond for a specified number of shares of common stock. True False

false

A stock exchange provides a marketplace where the public can directly buy and sell securities without the help of intermediaries. True False

false

According to the box, Adapting to Change, it is impossible for small businesses to bring in venture capital from investors. True False

false

After thoroughly studying the feasibility for expansion, Preferred Pet Care Inc., a mobile pet care company that operates in the greater Chicago area, plans to offer a similar service in the Indianapolis metropolitan area. This endeavor will require a large capital expenditure. Due to the nature of this project, the firm will consider only equity financing. True False

false

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson that comes directly to their home or place or work. True False

false

An internal auditor is responsible for paying the company's bills and collecting overdue payments from customers. True False

false

At this point in time, Bark Three Times Pet Store's balance sheet shows $100,000 in assets and $90,000 in liabilities. The company's accounting system will show the owners' equity as $190,000. True False

false

Because customers eventually lose interest, businesses achieve the best results when they use sales promotion activities on a limited and irregular basis. True False

false

Because supply chains are so complex, firms have found it difficult to outsource supply chain management. True False

false

Big Ticket Technologies holds commercial paper issued by Prude Insurance Corporation that matures in 180 days. However, shortly after Big Ticket purchased the commercial paper, Prude Insurance went out of business. The finance manager for Big Ticket is not worried because his loan to the corporation is secured by collateral that he can now claim. True False

false

Bob is a salesperson for a firm that markets products in a B2B market. His wife, Sally, is a salesperson for a retail store selling top-quality electronics goods. While Bob is likely to be successful using follow-up after the sale, Sally should avoid this approach. True False

false