MGMT440 ch9-11

An S corporation takes its name from

Subchapter S

What is meant by product life cycle pricing?

The pricing needs to be adjusted at each stage in a product's life cycle

Which of the following is a decision rule for handling questionable costs?

The product should not be profitable if expected sales do not exceed the lower break-even point.

When using regression analysis, the entrepreneur may draw conclusions about the relationship between product sales and advertising expenditures. T/F

True

More established ventures will use a sales forcast model where the estimation of current sales will increase a certain percentage over the prior period's sales. This percentage is based upon

a trend line analysis

Penetration pricing is setting the price to

be below competition.

Investments in which returns are expected to extend beyond one year are referred to as

capital investments

The failure of a trademark owner to file an affidavit stating it is in use is referred to as which of the following trademark invalidation reasons?

cleaning-out procedure

The rate used to adjust future cash flows to determine their value in present period terms is the

cost of capital

A Chapter 11 proceeding allows the business to operate as a(n) ___, which means that the court appoints a trustee to oversee the management of the business.

debtor-in-possession

The owner of a copyright may do all of the following except

deduct the intrinsic value of the right from one's taxes

The net present value method works on the premise that a dollar today

is worth more than a dollar in the future

Specific forms of partnership include __ and __.

limited partnerships; limited liability partnerships

Which of the following can provide a structure that facilitates investments in socially beneficial, for-profit ventures?

low-profit, limited liability company (L3C)

A cost that changes in the same direction and proportion to changes in operating activity is a

variable cost.

Which of the following does the textbook identify as critical to the marketing planning process?

marketing information systems

Skimming is setting the price to

maximize profit.

Customizable links to which of the 4Ps of marketing?

price

Comparing financial numbers in order to make decisions is referred to as

ratio analysis

According to the US Patent and Trademark Office, the process of obtaining a patent takes about ___ years.

3

Works created after January 1, 1978, have a copyright for the life of the author plus

70 years

Which of the following explains how death affects the duration of a corporation?

A corporation is unaffected by the death of a shareholder.

Control versus communication is an important distinction between social media marketing and traditional marketing. T/F

False

In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities. T/F

False

It is typical for a firm to prepare an operating budget but not a cash-flow budget. T/F

False

Sales-to-assets measures the efficiency of total assets in generating net profit: the number of dollars in net profit produced for every $1 invested in net assets. T/F

False

Trademark registration and search is not costly. T/F

False

___ analysis looks at financial statements and ratios over time.

Horizontal

Patents that are not design patents have ___ years of protection.

20

Accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis. T/F

False

The traditional accounting equation is: Assets+Liabilities=Owners' Equity. T/F

False

Design patents last for 20 years. T/F

False (they last 15 years)

Which of the following statements about entrepreneurial marketing is not true?

In entrepreneurial marketing, actions are constrained by resources currently controlled

___ is the use of portable wireless devices to connect to the Internet.

Mobile computing

Which of the following is a useful rule to avoid pitfalls in selecting a trademark?

Never choose a trademark without first conducting a trademark search.

A copyright provides exclusive rights to creative individuals for the protection of their artistic productions. T/F

True

Marketing research involves the gathering of information about a particular market, followed by analysis of the information. T/F

True

Once issued, the trademark is registered with the Patent and Trademark Office. T/F

True

One of the principal advantages of a corporation is that the stockholder's liability (the most money a person can lose) is limited to an individual's investment. T/F

True

The object of a patent is to provide the holder with a temporary monopoly on his or her innovation. T/F

True

What percentage of issued patents is considered commercially valuable?

a very small percentage

Which of the following is the greatest marketing challenge facing the cannabis industry?

establishing a clean image

There are ___ steps for an entrepreneur to consider when creating a structured approach to a market plan.

five

In handling questionable costs, the cost in question is substituted first as a ___ cost and then as a ___ cost.

fixed; variable

The sales-driven philosphy

focuses on personal selling and advertising to persuade customers to buy the company's output.

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of

generic meaning

The cash flow does not come from

goods purchased on account

A market is a

group of consumers who have purchasing power and unsatisfied needs.

Sometimes consumers associate a higher price with

higher product quality.

When developing a survey, you should consider

including only questions pertaining to the study.

The key to marketing analysis is

marketing research

The net present value method is a capital budgeting technique that helps minimize some sort of shortcomings of the payback method by

recognizing future cash flows beyond the payback period

The textbook discusses all of the following aspects that distinguish social media marketing from traditional marketing except

relevancy.

Which of the following is not a method of collecting a primary data?

review of government publications

In the simple linear regression analysis equation, Y=a+bx, Y represents

the dependent variable

Market segmentation is

the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.

Attorney-hopping is the best way to keep legal fees to a minimum.

False

Because of the ___ doctrine, it is sometimes difficult to establish infringement.

fair use

When using trend analysis, how many periods are required?

five

Anyone who violates an author's exclusive rights under a copyright is liable for

actual damages plus any profits from use.

The purpose of filing for Chapter 13 bankruptcy is

adjustment

The purpose of loss-leader pricing is to

attract customers with new products.

Which of the following pricing models is not indicative of pricing in the social media age?

growth stage model

Capital budgeting is designed to show

how many projects, in total, should be selected.

Copyrights may be expressed in all of the following except

ideas

Which of the following is the first step in preperation of the cash-flow budget?

identification and timing of cash inflows

When using the graphic approach to break-even analysis, the entrepreneur must plot total ___ and total ___.

revenue; costs

Which of the following is needed to prepare a pro forma balance sheet?

the last balance sheet prepared before the budget period began

When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to

zero

Capital budgeting is used to help the entrepreneur plan for capital depreciation. T/F

False

Chapter 13 bankruptcy involves a reorganization of the enterprise. T/F

False

Pricing procedures are the same for all types of ventures. T/F

False

The role of the customer in social media marketing is an external source of intelligence and feedback. T/F

False

A trademark is a distinctive name, mark, or symbol that is identified with a company's product. T/F

True

Anyone who violates an author's exclusive rights under a copyright is liable for infringement. T/F

True

Babies and career are indicative of the priorities that shape the buying decisions of persons in the nest-building stage of the family life cycle. T/F

True

Capital investments or capital expenditures are expected to last beyond one year. T/F

True

Geographic flexibility is greater for telephone interviews than for in-person interviews. T/F

True

Horizontal analysis looks at financial statements and ratios over time. T/F

True

If infringement can be proven in court, a monetary award may be given to the trademark holder. T/F

True

Pricing for the product life cycle correlates with customer demand and sales volume. T/F

True

Shopping goods are products that consumers take time to examine carefully and compare for quality and price. T/F

True

The pro forma income statement is prepared before the pro forma balance sheet. T/F

True

A series of short paragraphs, each of which identifies a particular feature that is protected by the patent, is known as a

claim

The part of a patent application that defines and limits the patented invention is known as the

claim

Which of the following influences the choice of marketing philosophy?

competitive pressure

Contribution margin is the difference between the selling price and the fixed cost per unit. T/F

False

Inhibitors to marketing research include all of the following except

distribution

Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price. T/F

True

Financial information pulls together all information presented in the other segments of the business. T/F

True