Intro to Business // TEST #2 QUESTIONS **

Which of the following statements best describes a highly leveraged firm? -It is a firm that relies heavily on equity -It is a firm that has higher current assets than current liabilities -It is a firm that has equity that is twice its debt -It is a firm that relies heavily on debt

- It is a firm that relies heavily on debt

The preparation of operating budget begins with the development of a(n)___________. -budgeted income statement -expenditure budget -sales budget -capital an taxes budget

-Sales Budget

Involved in private placements,__________ are individuals, businesses, or other organizations that meet specific financial requirements set by the Securities and Exchange Commission. -money managers -angel investors -venture capitalists -accredited investors

-accredited investors

Lina, along with ten of her colleagues, starts a financial cooperative to financially assist each other. The members pool their savings in the cooperative, and they can also take loans from it on a low interest rate. Members of the cooperative benefit from higher returns on savings and lower rates on loans. In this scenario, the cooperative started by Lina and her colleagues exemplified a(n)__________. -savings and loan association -credit union -investment bank -private equity firm

-credit union

Which of the following statements is true of current ratio? -current ratio is computed by dividing a firm's current liabilities by its current assets -the large a firm's current ratio, the harder it is for the firm to pay its short term debts -the current ratio is a type of leverage ratio -current ratio that is below 1.0 signifies a company's inability to pay its short-term liabilities with its current assets

-current ratio that is below 1.0 signifies a company's inability to pay its short-term liabilities with its current assets

Pagpartet is asupermarket that sells good quality products and renders excellent client service. Pagpartet's membership program for regular clients offers good discounts on perishable products. Its popularity and business generally increases through word-of-mouth. Consumers who shop at Pagpartet rarely switch to another supermarket for their monthly grocery shopping. In the context of marketing, which of the following concepts does this scenario best illustrate? -customer loyalty -cognitive dissonance -market segmentation -marketing mix

-customer loyalty

In financial management, risk is referred to as the: -degree of uncertainty -internal factors that may disrupt the smooth functioning of a company -environmental factors that may affect a business adversely -various stages implemented by managers to increase returns

-degree of uncertainty about the actual outcome of a decision

One drawback of offering liberal credit to customers is that it can: -increase the cost of credit to customers -delay the receipt of cash that the firm needs to meet its financial obligations -delay sales to a future period -decrease sales by the extension of credit and cause a loss to the company

-delay the receipt of cash that the firm needs to meet its financial obligations

Which of the following is a difference between demographic segmentation and geographic segmentation? -demographic segmentation refers to dividing the market based on how people behave toward various products, whereas geographic segmentation refers to dividing the market based on consumer attitudes, interests, values, and lifestyles. -demographic segmentation refers to dividing the market based on where consumers live, whereas geographic segmentation refers to dividing the market based on how people behave toward various products. -demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live. -demographic segmentation refers to dividing the market based on consumer attitudes, interests, values, and lifestyles, whereas geographic segmentation refers to dividing the market based on measurable characteristics about people.

-demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live.

Which of the following elements is a personal influence on the consumer decision-making process? -culture -family -demographics -friends

-demographics

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational comapny, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in ______________. -cost accounting -follow-up-accounting -financial accounting -social auditing

-financial accounting

In the context of budget preparation, the master budget of a firm organizes the ___________ into a unified whole. -cash flow budget and the operating budget -static budget and the financial budget -static budget and the cash flow budget -financial budget and the operating budget

-financial budget and the operating budget

Amforted is a company that provides various multinational corporations with housekeeping staff on contract basis. Each relationship manager is allotted one client to work with until the contract period is over. In the context of customer relationship management, Amforted most likely establishes ________ with its customers -full partnerships -limited relationships -partial relationships -distinct relationships

-full partnerships

Spacelace is a company that provides plumbing solutions to luxury hotels and resorts. It enters into contracts with multinational builders to take up all of their construction projects. The company has a customer support team that can work out of clients' offices when requirements arise. In the context of customer relationship management, Spacelace most likely establishes _______________ with its customers. -full partnerships -limited relationships -partial relationships -distinct relationships

-full partnerships

Altacey, multinational company that sells consumer durables, divides its target markets on the basis of the density of population in the areas it operates in. It employs more salesmen and spends more money on promotions in cities with high population densities. In the context of consumer market segmentation, which of the following types of market segmentation does Altacey most likely follow? -Behavioral segementation -physchological segmentation -geographic segmentation -customer-based segmentation

-geographic segmentation

Lucy opens a restaurant that uses only organic ingredients in its dishes. The restaurant quickly gains popularity as its customers recommend it to their friends and family. In this scenario, Lucy's restaurant business is benefiting from________. -guerilla marketing -call-to-action marketing -social marketing -close range marketing

-guerilla marketing

Habetts, a company that sells cell phone accessories, introduced a new range of cell phone covers in various patterns that read the following: "I don't drink and drive because I love my family." Which of the following marketing strategies does this scenario best illustrate? -place marketing -people marketing -idea marketing -event marketing

-idea marketing

which of the following is a drawback of primary data? -it cannot be customized -it is frequently -it may not meet your specific needs -it tends to be expensive

-it tends to be expensive

In the context of balance sheets, retained earnings are a major component of the ______ section. -articles of corporation -owners' equity -statement of cash flows -company's liabilities

-owners' equity

The characteristics of a product that a marketer offers are known as__________. -product visions -product features -product facets -product qualities

-product features

In the context of owner's equity, which of the following is true of retained earnings? -they refer to a firm's additional profits that are used for paying executive salary -they refer to salaries that are withheld in case of an employee is involved in fraudulent activities. -they are accumulated earnings reinvested in a company rather than beings paid to the owners -they are a firm's earnings that are kept aside for crisis management situations

-they are accumulated earnings reinvested in a company rather than beings paid to the owners

Financial managers emphasize the goal of maximizing the market price of stock because: -they have a fiduciary duty -they have to safeguard owner's investments -they are socially responsible -their money is at risk

-they have a fiduciary duty

A budgeted income statement is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash. True/False

False

Consumer marketers direct their efforts to customers who are buying products to use either directly or indirectly to produce other products. T/F

False

Developing specific programs to help customers validate their purchase choices is one way marketers attempt to increase cognitive dissonance. T/F

False

Financial mangers should focus solely on meeting the financial needs of their firms in the short run, leaving the long-term financial issues to the top management True/False

False

In the accounting equation, assets are equal to liabilities minus the owner's equity. True/False

False

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers True/False

False

Members of the general public can directly trade stocks in the over-the-counter market True/False

False

Return-on-equity indicates how much net income a firm earned per share of common stock outstanding True/False

False

The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission True/False

False

The two key aspects of product quality are level and longevity T/F

False

Congress passed the ________________ that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit.

Sarbanes-Oxley Act of 2002

The technology of ________________ involves taking specific steps to ensure that a particular website appears high on the list when customers look for product or service via Yahoo! or Google.

Search engine optimization

Alex needs to acquire the financial capital to purchase a printing press for his printing business. Two ways Alex could acquire the financial capital for the press is by borrowing money from a bank or purchasing the press on credit from his supplier True/False

True

Chromiate, a digital camera brand, decides to introduce a new MP3 player, GIZmo, under its brand name. Chromiate's decision is an example of brand extension. T/F

True

Product diffusion happens at different speeds, depending on the individual consumer and on the product itself T/F

True

In the context of balance sheet, account receivable is an example of ________________

current assets

In the context of new product adoption, the process of a new product spreading throughout a market after it is introduced is called ________________.

diffusion

Because it is normally unsecured, commercial paper is only offered by firms with no credit ratings True/false

false

NASDAQ started as a physical location where brokers met to buy and sell stocks for their clients false/true

false

In the context of a public offering, a(n) ____________________ is a complex document that must include a firm's key financial statements plus additional information about the company's management, its properties, its competition, and the intended uses for the funds

registration statement

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products true/false

true

Which of the following elements is a personal influence on the consumer decision-making process? -culture -family -demographics -friends

-Demographics

The physical good or delivered service that provides a core benefit is called the_______. -virtual product -actual product -augmented product -secondary product

-actual product

Cafemona, a brand of premium coffee, introduces three new variants - ginger coffee, hazelnut-flavored coffee, and rum-flavored coffee. This is an example of a __________. -disruptive innovation -discontinuous innovation -continuous innovation -dynamically continuous innovation

-continuous innovation

Which of the following is a drawback of primary data? -it cannot be customized -it may not meet your specific needs -it is frequently outdated -it tends to be expensive

-it tends to be expensive

Unsought products are expensive products that consumers purchase less frequently. T/F

False

Oscilance Inc., a watch manufacturing company, issues new stocks. However, instead of floating its shares in public, it directly negotiates with a small number of accredited investors that meet specific financial requirements set by the Securities Exchange commission (SEC). Which of the following methods of issuing is being used by Oscilance in the given scenario? -a private placement -peer-to-peer investing -proxy selling -secondary market offering

- a private placement

Ashley, a manager at a toy manufacturing company needs to create a financial document for the company that would show how the company's operating, investing, and financial activities are expected to affect the asset, liability, and owner's equity accounts. To prepare this document, Ashley needs to collect data from: -the static budget, the cash budget, and the budgeted income statement -the production budget, the capital expenditure budget, and the cash budget -the budgeted income statement, the capital expenditure budget, and the cash budget -the sales budget, the cash budget, and the budgeted income statement

- the budgeted income statement, the capital expenditure budget, and the cash budget

The Securities Exchange Act of 1934 required that all publicly traded firms with at least __________ shareholders and $10 million in in assets file quarterly and annual financial reports with the Securitites and Exchange Commission (SEC) -500 -10,000 -6,000 -100

-500

Nemfembo, a pharmaceutical company, gains most of its net income by outstanding its manufacturing plants to foreign countries. For every product it manufactures, the demand for those products becomes more pronounced. Which of the following financial ratio analysis can be used to measure how effectively Nemfembo is using its resources to generate revenues? -leverage ratios -asset management ratios -liquidity ratios -profitability ratios

-Asset management ratios

Tinix is a well-established petrochemical company that holds excellent credit ratings in the market. It provides short-term financial capital to other big firms by issuing promissory notes that are collateralized by physical assets. Which of the following short-term financing options is being offered by Tinix in the given scenario? -Factoring -Asset-backed commercial paper -Line of credit -trade credit

-Asset-backed commercial paper

Jonathan, a grocery store owner, is due to pay suppliers for delivering goods for a specific month. To ascertain how much money he owes the suppliers, Jonathan should the: -Operating Budget -Rate card -Balance sheet -pro forma statement

-Balance sheet

As part of its financial budget, Clover & Max, an advertising agency, prepared a document that identified the agency's plant investments in major fixed assets and long-term projects. The given information indicates that the agency prepared the: -static budget -sales budget -statement of cash flows -capital expenditure budget

-Capital expenditure budget

Juxipi Inc., is well known for having a stronger credit score than its competitors. That is why, buyers are more willing to buy from Juxipi than its competitors. Which of the following short-term financing options is being offered by Juxipi Inc. in the given scenario? -Factoring -Commercial paper -Short-Term bank loans -Trade credit

-Commercial Paper

Costs are deducted from revenue in several stages to show how net income is determined. The first step in this process is to deduct. -cost of purchased goods -cost of goods mortgaged -cost of damaged goods -cost of goods sold

-Cost of goods sold

Bolpalc, an automobile manufacturer, sends personalized diaries and other goodies every year to all the clients who purchased Bolpalc's luxury sedans. Which of the following marketing strategies does this scenario best illustrate? -mass customization -people marketing -customer relationship management -consumer market segmentation

-Customer relationship management

Pro Corp. and Darths Inc. are two companies that are identical in every aspect except for the fact that Pro only uses equity financing. While Darths relies heavily on debts financing. Over the past year, the firms had identical earnings before interest and taxes. If net income for both firms is high____________. -Darths would report a higher return on equity than Pro -Pro would be required to pay no taxes, unlike Darths -Pro would pay lower taxes tahn Darths -Darths would report a lower return on equity than Pro.

-Darths would report a higher return on equity than Pro

Timoth Steels, a steel manufacturing company, wants to install a new factory in Temenia. The company decides to use funds from its own account and refrain from borrowing money from banks. Which of the following sources of long-term funds is being used by Timoth Steels in the given scenario? -Term Loans -Direct Investments from owners -Corporate Bonds -Long-Term debt

-Direct investments from owners

In the context of balance sheets, the accounting equation tells us that the value of a firm's assets must be: -less than the amount of financing provided by owners plus the amount provided by creditors to purchase those are assets -greater than the amount of financing provided by the owners plus the amount provided by creditors to purchase those assets -Equal to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets -negligible when compared to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.

-Equal to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets

Exchange-traded funds and mutual funds account for: -financial diversifications -financial losses -financial liabilities -financial stagnancies

-Financial diversifications

Habetts, a company that sells cell phone accessories, introduced a new range of cell phone covers in various patterns that read the following: "I don't drink and drive because I love my family." Which of the following marketing strategies does this scenario best illustrate? -People marketing -Place marketing -Event marketing -Idea Marketing

-Idea Marketing

A famous musician sells the copyright of one of his songs to a record company for $2 Million. In this scenario, the sale of the copyright of the song exemplifies the sale of a(n)___________. -intangible asset -current liability -operating liability -tangible asset

-Intangible asset

Which of the following statements best describes a highly leveraged firm? -It is a firm that has equity that is twice its debt -It is a firm that has higher current assets that current liabilities -It is a firm that relies heavily on equity -It is a firm that relies heavily on debt

-It is a firm that relies heavily on debt

__________ are ratios that measure the extent to which a firm relies on debt financing in its capital structure. -Activity ratios -Liquidity ratios -Profitability ratios -Leverage ratios

-Leverage ratios

In the context of balance sheets, which of the following is a difference between liabilities and owner's equity? -Liabilities refer to the claimws internal stakeholders have against external stakeholders, whereas owner's equity refers to claims external stakeholders -Owners' equity indicates the claims outsiders have against the firm's assets, whereas liabilities refer to the claims the owners have against their firm's assets -Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets -Owners' equity indicates the claims internal stakeholders have against the firm's assets, whereas liabilities refer to the claims external stakeholders have against the firm's assets

-Liabilities indicate the claims outsiders have against the firm's assets, whereas owners' equity refers to the claims the owners have against their firm's assets

Mezzini Bank offers loans to companies in the form of bonds.The companies who apply for these loans can repay the amount over a prolonged period of time. Which of the following financing options is being offered by Mezzinzi Bank in the given scenario? -Long-term debt -A revolving credit agreement -Trade Credit -Commercial Paper

-Long term debt

Dominic and Matherson, a finance management company, lends money to Ebok, a fast chain, in order to help Ebok market its new product. Dominic and Matherson provides financial support in the form of bonds. Which of the following financing options is being used by Ebok in the given scenario? -Trade Credit -Long-Term Debt -Commercial Paper -Factoring

-Long-term debt

The _____________ tracks the stock prices of some of the largest and most actively traded companies listed on the Tokyo Stock Exchange -Nikkei 225 -SSE Composite -FTSE 100 -Standard & Poor's 500

-NIkkei 225

Tyler Connor, a famous politician who supports the ruling party of the island country of Blavanka, endorses a publishing house named Cenzefor that he owns. Many Blavankan writers want to get their books published by Cenzefor because of Connor's connection with the brand. Which of the following marketing strategies does this scenario best illustrate? -People marketing -Idea Marketing -Place Marketing -Event Marketing

-People marketing

The advertisements of bus tour operator companies in the city of Lubtilace increase the popularity of the city's tourist attractions. Bursilopp, a company that operates tourist buses across the city, shows the city's major tourist sports in its television advertisements. Which of the following marketing strategies does this scenario best illustrate? -People marketing -Idea Marketing -Place marketing -Event marketing

-Place Marketing

The coastal town of Olaspen offers various exotic water sports and hiking expeditions to its tourists. The town government of Olaspen advertises its adventure tourism in travel magazines, newspapers, and on the television in neighboring countries. Which of the following marketing strategies does this scenario best illustrate? -Place marketing -People marketing -Idea marketing -Event marketing

-Place marketing

Maurice, the supervising manager of a telecommunications company, requires detailed information about the expenses that the company incurred from its monthly operations in the last fiscal year. In this scenario, Maurice should refer to the ___________. -statement of retained earnings -Profit and loss statement -statement of cash flow -owner's equity statement

-Profit and Loss statement

Kenneth is very particular about his investment decisions and likes to perform an extensive market research before making any major investment. He, however, does not have the time and expertise to conduct market research. To deal with this situation, he should hire a(n)___________. -accredited investor -securities broker -securities dealer -institutional investor

-Securities broker

Jessie, the regional manager of a large electronics firm, is trying to determine whether a new warehouse for her firm would be a good investment. After discussing with her firm's financial managers, she concludes that the project carries a negative NPV (net present value). What should Jessie do and why? -She should invest in the warehouse to increase profits since a negative NPV indicates that the firm needs to generate more funds to stay afloat -She should not invest in the warehouse since a negative NPV means that the firm cannot afford the investment -She should not invest in the warehouse since a negative NPV means that the present value of the future cash flows does not justify the cost of the warehouse -She should invest in the warehouse since a negative NPV means that the cost of financing the warehouse is within the company's budget for expenses

-She should not invest in the warehouse since a negative NPV means that the present value of the future cash flows does not justify the cost of the warehouse

MVJ Corp., a market research firm, borrowed $2 Million from Trimitium Bank. While negotiating with the bank, the firm signs a promissory note, which specifies that the firm must pay the borrowed amount in 90 days with interest. However, the bank also requires the firm's inventories and receivables to be pledged as collateral to back the loan. Which of the following short-term financing options is being offered by Trimitium Bank in the given scenario? -Factoring -Short-term bank loans -Spontaneous financing -Bank debit

-Short-term bank loans

Elyon holds a savings account in Rochester City Bank in the United State. During an economic downturn, the bank suffers great losses. Elyon, however, is insured under the Federal Deposit Insurance Corporation and his savings are protected as the insurance covers his deposit value. Which of the following laws ensured the protection of depositors from a bank's failure -The Securities Act -The Sarbanes-Oxley Act -The Glass-Steagall Act -The Gramm-Bliley-Leach Act

-The Glass-Steagall Act

A public accounting firm takes up a contract to perform an external audit for an oil manufacturing. The firm, however, is already in a consulting contract with the oil company. Because of its prior association with the oil company and the hefty fee the oil company pays the firm, the firm manipulates the audit report. Which of the following laws is violated in this scenario? -Sarbanes Oxley Act -The Blaine Act -The Dawes Act -Landrum-Griffin Act

-The Sarbanes-Oxley Act

__________ forecasts the tyoes and amounts of assets a firm will need to implement its future plans and help financial managers determine the amount of additional financing the firm must arrange in order to acquire those assets -The cash budget -A query report -The budgeted balance sheet -A statement of cash flows

-The budgeted balance sheet

Duk Yu, a beverage company, buys its raw materials from Nassange, a fruits and vegetables exporting company, without making any payment at the time of purchase. Instead, Nessange allows Duk Yu to pay the total purchase amount within a period of six months. Which of the following short-term financing options is being used by Duk Yu in the given scenario? -Factoring -Trade credit -commercial paper -short-term bank loans

-Trade Credit

The Willsborough Growth Trust, an institutional investor, issues a fixed number of shares among investors. However, the is not how the trust makes its profit. For maximum returns, it uses the money received from selling its shares to investors and puts it in a portfolio of assets. This scenario is reflective of: -limited mobility -limited liability -a closed-end fund -a closed-end corporation

-a closed-end corporation

Dividends of a company are: -legally mandated earnings of stockholders -different kinds of stocks a company offers its shareholders -a distribution of earnings that are paid to a corporations stockholders -money from illegal stock transactions

-a distribution of earnings that are paid to a corporation's stockholders

Which of the following is a difference between dividends on stock and interest on bonds? -dividends on stock is paid by the stockholder, whereas interest on bond is paid by the issuer of the bond -dividend on stock is paid by the issuer of the stock, whereas interest on bond is paid by the bondholder -a firm has a legal obligation to pay interest on bonds, whereas it has no legal obligations to pay dividends on stock -a firm has a legal obligation to pay dividends on stock, whereas it has no legal obligation to pay interest on bonds

-a firm has a legal obligation to pay interest on bonds, whereas it has no legal obligations to pay dividends on stock

For successful product differentiation,: -marketers should put most of their efforts into developing an appropriate brand name -the difference between a product and its competitor products should be large rather than small -a product should have a higher cost than its competitor products -a product should not only be different from its competitors products but also better

-a product should not only be a different from its competitors products but also be better

Fit & Flare, an online shopping portal, orders a few pieces of furniture for its head office. A representative from the furniture company comes for the delivery and even oversees its setting up around the office space. In this scenario, Fit & Flare's order for furniture is categorized as a purchase of: -installations -accessory equipment -the maintenance, repair, and operating products -components parts and processed materials

-accessory equipment

Logan, an independent auditor, is assigned to perform an audit for a software company. After the audit, he notices some serious lapses and discrepancies in the numbers mentioned in the firm's financial statements. In this scenario, Logan is most likely to offer a(n) _______ opinion in his audit report. -unqualified -qualified -adverse -concurring

-adverse

________ is paid, nonpersonal communication, designed to influence a target audience with regard to a product, service, organization, or idea. -campaigning -advertising -public relations -propaganda

-advertising

An example of a pure service is: -a delivery truck delivering pizzas to customers -a watch that also acts as an altimeter and a compass -a car service center that sells automobile parts -an accountant providing financial consultant to a firm

-an accountant providing financial consultant to a firm

The purpose of a positioning statement of a company is to: -articulate how the company would like the target market to envision a product relative to the competition -convince the investors as well as manufacturing company itself about the salability of a product -understand the company's financial health -show how a particular product would be placed in the various outlets and departmental stores.

-articulate how the company would like the target market to envision a product relative to the competition

The purpose of a positioning statement of a company is to: -understand the company's financial health. -articulate how the company would like the target market to envision a product relative to the competition -convince the investors as well as the manufacturing company itself about the salability of a product -show how a particular product would be placed in the various outlets and departmental stores

-articulate how the company would like the target market to envision a product relative to the competition

Plezion Movie Palace, a film theater in Germany, gives all its customers miniatures of the main character fo the latest sueprhero film that is being exhibited. The miniature props given by Pleziob Movie Palace to its customers are examples of_________. -augmented products -core products -virtual products -cross products

-augmented products

Rolette Clemens is a financial institution that provides loans to businesses. It rejects a textile company's request for a loan after it reviews the value of the company's assets, liabilities, and owner's equity and finds them to be unsatisfactory. In this scenario, Rolette Clemens most likely analyzed the company's _______________ to assess its financial condition. -statement of cash flows -operating budget -balance sheet -income statement

-balance sheet

Financial managers evaluate a firm's current strengths and weaknesses by computing ratios that compare values of key accounts listed on their firm's: -statement pf cash flows -prospectus and operating budget -cost budget statements -balance sheet and income statement

-balance sheet and income statement

In the growth stage of the product life cycle, competition: -begins as firms enter the market with new variations of existing products -decreases with many weaker firms already leaving the market -is virtually nonexistent -spurs major price cuts, which dramatically cut into profits

-begins as firms enter the market with new variations of existing products

In the growth stage of the product life cycle, competition: -is virtually nonexistent -spurs major price cuts, which dramatically cut into profits -begins as firms enter the market with new variations of existing products -decreases with many weaker firms already leaving the market

-begins as firms enter the market with new variations of existing products

An advantage of cobranding is that: -both companies enjoy limited liability -it ensures greater consistency in products -multiple products can be marketed at the same price -both partners leverage their strengths to enter new markets

-both partners leverage their strengths to enter new markets

Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good____________. -product consistency -product mix -brand valuation -brand equity

-brand equity

A ___________ can help a firm evaluate how much internal financing (funds generated by earnings) will be available for a planning period -revolving credit agreement -budgeted balance sheet -budgeted income statement -line of credit

-budgeted income statement

Which of the following is most likely to take place when a company launches a new product that is lower in price than the current products of the company? -market penetration -market segmentation -cannibalization -augmentation

-cannibalization

My Bonnie Lass, a cosmetics company, associates with a perfume brand called Lonalove to launch a face powder that is scented with one of Lonalove's signature perfumes. This new product becomes immensely popular among consumers and both the companies benefit from it. This scenario is an example of__________. -peer-to-peer marketing -sponsorship -cobranding -licensing

-cobranding

Understanding the _________ begins with analysis of market share. -social environment -competetive environment -technological environment -demographic strengths

-competitive environment

Donton Inc., a public relations firm, buys doughnuts for an office party. In this case, Donton has purchased a __________. -credence good -business product -composite good -consumer product

-consumer product

___________ tools include premiums, promotional products, samples, coupons, rebates, and displays. -consumer promotion -sponsorship -product placement -personal selling

-consumer promotion

Which of the following is the rationale behind using the approach of integrated marketing communication? -old-school consumers view a product as more credible and trustworthy if it is marketed extensively over one form of traditional media. -integrated marketing communications lets marketers send messages exactly how they want to, instead of allowing the consumers to create their own perceptions about the messages -consumers do not think about the specific source of a message, but they instead combine the messages from all the sources to create a coherent impression about the product -integrated marketing communication is less expensive and less time consuming

-consumers do not think about the specific source of a message, but they instead combine the messages from all the sources to create a coherent impression about the product

Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her favorite kiwi-flavored candies on a stand and puts some into her shopping cart. In the context of product classifications, the candies purchased by Glinda are___________. -specialty products -unsought products -convenience products -shopping products

-convenience products

William holds shares of preferred stock in a telecommunications company. Howeveer, given the lucrative benefits that come with holding common stock, William exchanges his shares of preferred stock with shares of common stock at the conversion price. In this scenario, William was holding _____________ in preferred stock. -century bonds -callable bonds -convertible bonds -derivative securities

-convertible bonds

Gratinut Entos, an automobile company, wants to launch a new model of bike that would appeal to young adults. The company issues its own formal IOUs to fund the project. Which of the following sources of long-term funds is being used by Gratinut Entos in the given scenario? -term loans -commercial paper -corporate bonds -direct investment from owners

-corporate bonds

Rhonynn, an apparel shop, has a play area for kids in the store to keep them occupied while their parents shop. Kids of Rhonynn's loyalty cardholders are also given a toy or two or take home with them. Which of the following marketing strategies does this scenario best illustrate? -customer relationship management -consumer market segmentation -people marketing -mass customization

-customer relationship management

It is fairly easy to acquire loans in Arzenia as the financial intermediaries of the country receive sufficient funds in the form of savings from its people and businesses. This enables them to turn the funds obtained into loans. Based on the information given in the scenario, these financial intermediaries are a form of______________. -treasury companies -securities and exchange commissions -mutual funds -depository institutions

-depository institutions

Connick, a software development firm, invested on developing new products from the company's earnings from the previous year. Which of the following sources of long-term funds is being used by Connink in the given scenario? -direct investments from owners -term loans -long-term debt -corporate bonds

-direct investment from owners

Gearjazz, a company that manufactures and sells musical instruments, aims to increase its popularity among music artists and enthusiasts by sponsoring the audio system for the music and arts festival being held in the town of Flavempia. Which of the following marketing strategies does this scenario best illustrate? -people marketing -idea marketing -place marketing -event marketing

-event marketing

Goodwin Ross MidCap Growth is a fund that lets its investors buy ownership in a market basket that contains different securities. The fund's market basket has a composition that is similar to the composition of the Dow Jones Industrial Average stock index. In this scenario, Goodwin Ross MidCap Growth is a(n)__________. -offshore fund -exchange-traded fund -open-end mutual fund -hedge fund

-exchange-traded fund

The rationale behind why the Glass-Steagall Act mandated the ban on commerical banks from dealing in securities markets and selling insurance was that such activities: -exhausted the business assets of investment banks and insurance companies -encouraged the banks to engage in fraudulent acitivities -exposed banks and their depositors to higher levels of risk -reduced the banks' funds to create loans for their customers

-exposed banks and their depositors to higher levels of risk

The CEO of a software company has a meeting with the product design team to discuss a new software that the company is planning to develop. During the meeting, the CEO discards a few suggestions as executing them would be a costly affair for the company. Given the scenario, the company is most likely in the___________ stage of the new product development process. -idea generation -analysis -testing -idea screening

-idea screening

The first stage in activity-based costing is to: -identify specific activities that create indirect costs and determine the factors that drive the costs of these activities -identify specific activities that create direct costs and determine the marketing factors that influence the costs of these activities -Multiply the total cost of producing each good by the number of goods -divide the total costs of goods available for sale by the total units available for sale

-identify specific activities that create indirect costs and determine the factors that drive the costs of these activities

Which of the following is a true statement about personal investing? -individuals who invest in securities must use the services of an investment bank -in general, riskier investment strategies offer the potential for higher returns -every security investment will generate money -the buy-and-hold approach of securities results in substantial gains in a short time period

-in general, riskier investment strategies offer the potential for higher returns

Dominic is the owner of Della Robotics, a business that deals in the industrial robots that are mostly sold to the manufacturing industry. The strong point of Dominic's business is that he personally contacts his buyers and takes part in the negotiation process. Moreover, his company customizes the robots. In this scenario, the product manufactured by Della Robotics falls under the category of_____________. -the maintenance, repair, and operating products -accessory equipment -installations -component parts and processed materials

-installations

Futures Life Insurance is an insurance company in South Africa. The insurance company uses its large pool of financial capital, which it accumulates by collecting premiums from its policyholders, to purchase corporate stocks of different multinational companies. In this scenario, Futures Life Insurance is a(n)______________. -thrift institution -private equity firm -credit union -institutional investor

-institutional investor

Longevo, a watch manufacturing company, offers watches in a wide range of designs to suit all age groups. To adequately cover its wide and diversified consumer base, the company makes use of all the traditional and new age media platforms for its promotions. The promotional strategy used by Longevo is ____________. -viral marketing -integrated marketing communication -product placement -inbound marketing automation

-integrated market communication

Longevo, a watch manufacturing company, offers watches in a wide range of designs to suit all age groups. To adequately cover its wide and diversified consumer base, the company makes use of all the traditional and new age media platforms for its promotions. The promotional strategy used by Longevo is ___________. -product placement -viral marketing -inbound marketing automation -integrated marketing communication

-integrated marketing communication

Colbert Blanc is a financial intermediary that helps firms raise their capital by facilitating the firms in issuing new securities and making sure that the securities are sold out in the market. In this scenario, Colbert Blanc is a(n) ______. -commercial bank -securities dealer -securities broker -investment bank

-investment bank

Which of the following statements is true of product-use-based market segmentation? -it concludes both the benefits that consumers seek from products and how consumers use the product -it helps product industries that are clustered in certain areas. -it can incorporate countries, cities, or population density as key factors that affect products -it helps small companies in narrowing the target markets for their products

-it helps small companies in narrowing the target markets for their products

Which of the following is true of licensing? -the core brand is a partially responsible for financially supporting the company seeking the license -it involves a payment of fee to the core brand -the core brand takes on negligible risks in the licensing agreement -all the benefits of a licensed product go to the core brand, and the core brand enjoys limited liability.

-it involves a payment of fee to the core brand

Which of the following statements is true of financial leverage? -it indicates earnings per dollar invested by the owners of the company -it is the net income per share of common stock outstanding -it is the use of debt in a firm's capital structure -it indicates how much net income a firm earned per share of common stock outstanding

-it is the use of debt in a firm's capital structure

Which of the following is true of public relations? -it involves circulating stories in the media in exchange for a high fee -it is used to create a favorable impression about a company or its products -it is communication that is restricted to a company's external stakeholders -it refers to influencing the government toward making favorable policies

-it is used to create a favorable impression about a company or its products

Which of the following statements best describes a money market mutual fund? -it is the part of a firm's net income its reinvests -it pools funds from many investors and uses these funds to purchase very safe, highly liquid securities -it is a short-term marketable IOU issued by the U.S. federal government -it is a financial agreement between a firm and a bank in which the bank pre-approves credit up to a specified

-it pools funds from many investors and uses these funds to purchase very safe, highly liquid securities

Which of the following is true of the Securities Act of 1933? -it prohibited misrepresentation in the sale of newly issues stocks and bonds -it made firms issuing new securities independent of the Securities and Exchange Commission -it established the financial stability Overnight council -it issued a list of protocols for brokers and brokerage firms

-it prohibited misrepresentation in the sale of newly issues stocks and bonds

Which of the following is true of a goods and services spectrum? -it lets marketer estimate the prices that should be associated with goods and services -it exhibits different situations where services outweigh goods. -it provides a tool for analyzing the relationship between goods and services -it highlights similarities between goods and services

-it provides a tool for analyzing the relationship between goods and services

Which of the following best defines a product life cycle? -it refers to the journey of a product from production to sale -it refers to the dynamic pattern of sales and profits of a product -it refers to the shelf life of a product -it refers to the process of recycling damaged products into new products

-it refers to the dynamic pattern of sales and profits of a product

Which of the following best defines a product life cycle? -it refers to the journey of a product from production to sale -it refers to the shelf life of a product -it refers to the dynamic pattern of sales and profits of a product -it refers to the process of recycling damaged products into new products

-it refers to the dynamic pattern of sales and profits of a product

Which of the following statements is true of the Dodd-Frank Act? -It played a major role in the U.S. economy meltdown of the first decade of the 21st century -it required large firms in the financial sector top increase their debt-to-equity ratio -it required large films in the financial sector to hold more equity and less debt in their capital structure -it weakened government oversight of financial markets

-it required large films in the financial sector to hold more equity and less debt in their capital structure

Which of the following statements is true of the Dodd-Frank Act? -It played a major role in the U.S. economy meltdown of the first decade of the 21st century -it required large firms in the financial sector top increase their debt-to-equity ratio -it required large films in the financial sector to hold more equity and less dewbt in their capital structure -it weakened government oversight of financial markets

-it required large films in the financial sector to hold more equity and less debt in their capital structure

Which of the following is true about new product development? -it involves less risk and ensures a high success rate -it typically involves dramatic innovations that require extensive customer learning -it requires an understanding of the customer base and involves creativity -it works only when it involves long-term research and monitoring

-it requires an understanding of the customer base and involves creativity

Which of the following is a disadvantage of market timing? -it requires investors to make frequent trades -it is time-consuming as the stockholders have to wait for the market situation to be profitable -it has steady but low returns because the investments are low-risk -it lets investors take away bigger earnings than brokers

-it requires investors to make frequent trades

Ponlinaytion, a clothing company, imports its raw materials from different countries. To cover the cost of expensive raw materials , Ponlinaytion takes a yearly loan of $5 million from Heritage Rimier, a finance company. The remaining budget is covered by the company itself. The given scenario indicates that the firm likely relies on measuring __________ to decide how it finances its overall operations and growth by using different source of funds -leverage ratios -profitability ratios -liquidity ratios -asset management ratios

-leverage ratios

Marketers who cannot forge a close personal bond with every customer but actively gather data and pursue a connection with customers who initiate contact have a __________ with the customers. -Partial partnership -limited relationship -valued relationship -full partnership

-limited relationship

Baylaine is a company that sells affordable, low-end cell phones. Baylaine's customers can register product or service complaints with the company through emails; the company's customer support team replies to customer queries and complaints within five hours of the receipt of an email. In the context of customer relationship management, Baylaine most likely establishes ____________ with its customers. -limited relationships -partial partnerships -distinct relationships -full parterships

-limited relationships

Parchova is a multinational company that manufactures and sells stationary products. Customers who buy five or more products at a time from its retail outlets are given a notepad and a pen for free. In the context of customer relationship management, Parchova most likely etablishes ______________ with its customers. -distinct relationships -limited relationships -partial partnerships -full parnerships

-limited relationships

Tinping is an e-commerce website that sells baked goods. When customers give constructive feedback about the company's products or services, the company sends them a box of cupcakes for free. In the context of customer relationship management, Tinping most likely established _________ with its customers. -full partnerships -partial partnerships -limited relationships -distinct relationships

-limited relationships

____________ measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the next year. -activity ratios -profitability ratios -leverage ratios -liquidity ratios

-liquidity ratios

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never: -established formal listing requirements -listed stocks of large, well-known firms -maintained a physical trading location where dealers meet to trade securities -used a computerized network to trade securities

-maintained a physical trading location where dealers meet to trade securities

Daryl is an accountant in Vansert Inc., a multinational healthcare company. He is responsible for providing analysis, preparing financial statements, and reporting the financial transactions of the company to the deputy chairman of the company -forensic accounting -management accountant -government accountant -public accountant

-management accountant

sebastian is an employee at Powell Inc. HIs duties include preparing reports and analyzing company data. He also appraises financial performances and verifies the accuracy and validity of the company's internal records. In this scenario, Sebastian's role is that of a ________________ in the organization. -forensic accountant -management accountant -social audit examiner -certified fraud examiner

-management accountant

Peter is starting a new business. He selects his target market by identifying similar characteristics, attributes, and behaviors of customers and then grouping them accordingly. Which of the following strategies has Peter employed? -people marketing -customer relationship management -market segmentation -place marketing

-market segmentation

Richard has been follwoing information about a firm on a financial website. He has noticed that the firm's price-to-earnings ratio (P/E) has been steadily rising. Richard can conclude from this result that the company: -has just issued more shares of common stock -is in serious financial trouble -may have a growth in future earnings -has recently increased its dividend

-may have a growth in future earnings

Demographic segmentation divides the market based on: -people's attitudes and lifestyles -measurable characteristics about people -where consumers live -the behavior of people toward certain products

-measurable characteristics about people

Demographic segmentation divides the market based on: -people's attitudes and lifestyles -measurables characterstics about people -where consumers live -the behavior of people toward certain products.

-measurable characteristics about people

Alpha Inc. saw an increase in profits in the previous year following which the management decided to reinvest its earnings. These retained earnings will be used to: -meet the company's short-term financial needs -meet the company's long-term financial needs -pay the owners a dividend -increase the liquid assets of the company

-meet the company's long-term financial needs

Clembor AgroSciences, an agrochemical company, mainly focuses on selling its products in rural markets. The company promotes goodwill by sending teams of salespeople to instruct farmers on the right usage of the products and responding to their agriculture-related queries. In this scenario, Clembor AgroSciences is engaged in _____________. -missionary selling -social selling -green marketing -cause-related marketing

-missionary selling

Clembor AgroSciences, an agrochemical company, mainly focuses on selling its products in rural markets. The company promotes goodwill by sending teams of salespeople to instruct farmers on the right usage of the products and responding to their agriculture-related queries. In this scenario, Clembor AgroSciences is engaged in____________. -missionary selling -social selling -green marketing -cause-related marketing

-missionary selling

The management of a sugar company sets aside a sum of $50,000 in its budget for the prchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the __________ of the company -static budget -financial budget -marketing budget -operating budget

-operating budget

Aiden Brent, an international tennis player, owns a multinational chain of sports shops named Brent Deuce. The company is popular and gets the attention of sports enthusiasts because of its brand name and ownership. Which of the following marketing strategies does this scenario best illustrate? -people marketing -place marketing -idea marketing -event marketing

-people marketing

Jared Elmer is the presidential candidate of National Ernest Party, a political party. The party's election campaigns have been focusing on projecting Jared's educational qualifications, political background, ancestral glory, etc. Which of the following marketing strategies do the election campaigns illustrate? -people marketing -idea marketing -place marketing -green marketing

-people marketing

Jared Elmer is the presidential candidate of National Ernest party, a political party. The party's election campaigns have been focusing on projecting Jared's educational qualifications, political background, ancestry glory, etc. Which of the following marketing strategies -people marketing -idea marketing -place marketing -green marketing

-people marketing

All the airlines that fly to the island country of Klerwada distribute tourist information pamphlets in their flights. These pamphlets are prepared by the tourism ministry of Klerwada to attract people to explore tourist destiantions. Which of the following marketing strategies does this scenario bet illustrate? -place marketing -event marketing -people marketing -idea marketing

-place marketing

Bryce Diego, the president of the developing country of Glompacia, travels to various developed countries to meet the heads of multinational business corporations. He presents before them the factors that make Glompacia, which is also a tax haven, one of the easiest countries to do business in. Which of the following marketing strategies does this scenario best illustrate? -idea marketing -place marketing -people marketing -event marketing

-place marketing

The coastal town of Olaspen offers various exotic water sports and hiking expeditions to its tourists. The town government of Olaspen advertises its adventure tourism in travel magazines, newspapers, and on the television in neighboring countries. Which of the following marketing strategies does this scenario best illustrate? -event marketing -place marketing -people marketing -idea marketing

-place marketing

Each year, Arnold receives a stated amount of dividend from the earnings of the company he has stocks in. In a particular period, if the company skips the dividend, then Arnold wil receive the accumulated amount, that is, the dividend of that period plus the amount of the dividend the company skipped in the previous period. Based on the information given in the scenario, Arnold is most liekly a holder of: -financial bond -fidelity bond -common stock -preferred stock

-preferred stock

Abigial and Pamela both have stocks in the Rondante Group. However, if in the future the company gets out of business, Pamela will have a claim on the assets of the company before Abigail. Also, she is given higher priority when the company pays the dividends to all its stockholders. Unlike Abigail, Pamela is a __________. -preferred stockholder -value stockholder -growth stockholder -common stockholder

-preferred stockholder

In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain___________. -external data -primary data -secondary data -integrated data

-primary data

Wanderboy, a company that manufactures travels bags and luggage, promises high-quality products to its customers in terms of durability, comfort, and performance. The company also ensures that it delivers on it. This scenario demonstrates that the company succeeds at delivering___________. -brand equity -product consistency -product mix -brand valuation

-product consistency

The characteristics of a product that a marketer offers are known as__________. -product facets -product features -product visions -product qualities

-product features

A home decor company manufactures a range of bedding products such as bedspreads, pillows, and mattresses. The range of bedding products represents the _________ of the company. -product line -commodity chain -supply chain -product mix

-product line

Streetlore, a footwear manufacturing company, makes business and casual shoes for both men and women. The company also makes school bags for children between the ages of five to ten years. The entire line of goods made by Streetlore represents the ____________ of the company. -marketing mix -supply chain -product chain -product mix

-product mix

Vermontz, an automobile company, pays a film studio to include its new sports car in two scenes of its latest action movie. The company feels this would help gain maximum visibility, and the fans would also develop a postive association with the brand when they will see their favorite actor using the car in the film. Vermontz's business deal with the film studio exemplifies_________________. -product placement -native advertising -viral marketing -sponsorship

-product placement

In the context of business product categories, the marketing of component parts and processed materials emphasizes: -personal selling and efficiency -product quality, price, and service -quantity and brand -product shelf life, customization, and quantity

-product quality, price, and service

A health-drink company faces a lot of flak for misquoting the nutritional facts on its product packages. Once it clears the charges, the company hires a firm that helps it in reviving a positive image in the media as well as the broader community. The firm's primary task is to constantly communicate with the media personnel and make sure that the media runs unpaid stories that create a favorable impression about the company. This scenario exemplifies the use of: -public relations -lobbying -greenwashing strategies -social marketing

-public relations

In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to: -pursue a full partnership with each of its clients -exclude its customers from the key aspects of the product development process -develop a limited relationship with its customers -focus less on customer service

-pursue a full partnership with each of its clients

Andrew is performing an audit of the financial statements of a cosmetic company. While analyzing the financial statements, he identifies some minor concerns. However, he believes that on balance the company's statements are accurate and its accounting methods are consistent with the generally accepted accounting principles. In this scenario, the independent auditor's report will likely offer a(n)_______________. -qualified opinion -unqualified opinion -concurring opinion -adverse opinion

-qualified opinion

Nexi10, a brand of cell phones, has a marketing strategy that focuses on it cell phones' features such as batter power and processing speed. According to a survey conducted by the company, the consumers are more than satisfied with the features. The scenario reflects that Nexi10 has a good___________. -brand equity -accuracy level -brand valuation -quality level

-quality level

In the context of consumer promotion tools, _________entice consumers with cash-back offers and act as purchase motivators for higher-priced items. -rebates -samples -coupons -premiums

-rebates

A project with a negative net present value should be: -rejected as it does not take time value of money into account -accepted since the expected future cash flows from the project exceed the cost of the investment -rejected since the expected future cash flows from the project are less than the cost of the investment -accepted since the net present value does not alter the company's capital budgeting

-rejected since the expected future cash flows from the project are less than the cost of the investment

Product augmentation: -sharpens the competitive edge of the marketer's products -calls for greater purchase power at the consumer end. -results in the dilution of the actual goods. -damages the reputation of the company

-sharpens the competitive edge of the marketer's products

Product augmentation: -sharpens the competitive edge of the marketer's products. -results in the dilution of the actual goods -calls for greater purchase power at the consumer end. -damages the reputation of the company

-sharpens the competitive edge of the marketer's products.

Dimitium National Bank is well known for lending money to companies who need it as quickly as possible. Any company that takes money from the bank is required to return the amount within six months at an interest rate of 12 percent. Which of the following short-term financing options is being offered by Dimitium National Bank -factoring -trade credit -short-term bank loans -bank debit

-short-term bank loans

Jessica, a business tycoon, always buys her jewelry from a retailer. She has been a loyal customer, and she does not trust other brands. This scenario exemplifies the purchase of_________. -convenience products -unsought products -specialty products -shopping products

-specialty products

The management of an electronics company created the annual budget on a single assumed level of sales. This level of sales is to remain constant for the whole year. Later, the management finds it difficult to accurately measure the financial progress of the firm as the values in the estimated budget vary significantly from the actual sales. In the given scenario, the management most likely created a___________. -static budget -perpetual budget -zero deficit budget -black budget

-static budget

If Carl is a preferred stockholder at Cedia Inc., and Cedia goes out of business, Carl's claim on the firm's assets: -takes precedence over common stock -is limited to any capital gain that the company has not paid -takes precedence over the claims of any creditors -can be fulfilled only after the firm has paid dividends on its common stock

-takes precedence over common stock

Newot Texin, a pharmaceutical company, introduces a new pain relieveing drug in the market. It borrows $1 Million from Esterotia, a private bank, to market the drug. In return, Esterotia allows Newot Texin to return the full amount with interest in fixed amounts of $200,000 every six months. Which of the following sources of long-term funds is being used by Newot Texin in the given scenario? -trade credit -a revolving credit agreement -a term loan -commercial paper

-term loan

Aaron buys 300 shares in a Tobacco company. Within a year, he receives a capital gain on his stocks. This means that: -the company distributed its dividends among its stockholders -he retained his shares till the market prices went down -the price of the shares soared in the market

-the price of the shares soared in the market

Partypolist, a store that sells party supplies, sends discount coupons to its regular customers before Christmas and Halloween every year. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to? -the selling era -the production era -the marketing era -the relationship era

-the relationship era

In the year 1938, Popoud, a chocolate manufacturing company, was finding it difficult to trade its products because people were reluctant to spend money on nonessential goods. However, the company continued to manufacture chocolates in large quantities. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to? -the marketing era -the production era -the selling era -the relationship era

-the selling era

EatOut Pizzeria is a food joint that serves pizza, while GlowBelle is a luxury beauty salon that sells cosmetics. What do EatOut Pizzeria and Glow Belle have in common? -their products are examples of unsought products -they provide pure services -they offer pure goods -their products are a mix of goods and services

-their products are a mix of goods and services

Which of the following is a drawback of private placements? -Complex registration documents need to be prepared for their financing -they do not have the potential to raise as much money as public offerings -they are more complex and expensive than public offerings -they are required to register wit the Securities Exchange Commission

-they do not have the potential to raise as much money as public offerings

Which of the following is a drawback of private placements? -complex registration documents need to be prepared for their financing -they do not have the potential to raise as much money as public offerings -they are more complex and expensive than public offerings -they are required to register with the Securities and Exchange Commission

-they do not have the potential to raise as much money as public offerings

__________ is designed to stimulate wholesalers and retailers to push specific products more aggressively over the short term. -viral marketing -product placement -trade promotion -consumer promotion

-trade promotion

Most car dealers allow test-driving of the cars they sell to increase the________________of their product. -observability -trialability -relative advantage -compatability

-trialability

Lupebel is a company that sells cosmetic products. The quality of Lupebal's products are high and its prices are reasonable. However, the company takes little efforts to market them to the right customers. Lupebel's marketing strategies are not any different from its competitors'; and the company does not portray its product advantages and low pricing in its advertisements. In the context of customer satisfaction, which of the following traps did Lupebal most likely fall into? -limited relationship -underpromising -full partnership -foretokening

-underpromising

If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presented, the report will offer a(n)__________ opinion. -unqualified -adverse -qualified -concurring

-unqualified

Jenny, an external auditor from a public accounting firm, verified the financial statements of a real estate company. At the end of her review Jenny did not find any discrepancies in the figures presented by the company and the accounting methods of the company. In this scenario, the independent auditor's report most likely offered a(n)_____________. -concurring opinion -unqualified opinion -qualified opinion -adverse opinion

-unqualified opinion

Financial managers use_______________ to assess the financial strengths and weaknesses of their firm.

Financial ratio analysis

Cherry Doux Bakery reaches an agreement with Candy Call to use Candy Call's original dark chocolate in its popular chocolate cookies and sell them in its stores. The two companies are using a strategy known as cobranding. T/F

True