principal management chapters 11-16

The income statement is a snapshot of the firm's financial position at a certain point in time.

False

A brokerage firm is an example of a depository financial institution.

False

Sales made, but for which payment has not yet been collected, are called accounts payable.

False

Salespeople typically use brainstorming to look for sales prospects, those people who are most likely to buy the seller's offerings.

False

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

False

_____ is the number of times an individual is exposed to an ad.

Frequency

_____ is the total market value of all goods and services produced within a country on an annual basis

Gross domestic product GDP

______ is anything (regardless of form) that is acceptable as payment for goods and services.

Money

Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization.

True

Accounts receivable or inventory usually secures short-term secured loans.

True

An example of nonstore retailing is the vending machine from which you purchased a soda.

True

Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.

True

Money is anything that is acceptable as payment for goods and services.

True

One of the trends in information technology is digital forensics.

True

U.S. banks provide loans to foreign governments.

True

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

True

Secured short-term loans are usually secured by:

accounts receivable and inventory

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

Credit terms

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

production

Which of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange?

profitability

The Sarbanes-Oxley Act:

restricts the types of nonaudit services auditors can provide audit clients

In finance, the opportunity for profit is called:

return

Money market deposit accounts and certificates of deposit are officially called ______ deposits.

time

The U.S. money supply is composed of:

currency, demand deposits, and time deposits

The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. This _____ will be used for solving crimes.

database

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

distribution

Long-term debt would be used to:

do none of the above

The marketing concept:

does all of the above

Intranets are essentially mini-Internets that operate behind a(n) _____ that prevents unauthorized access.

firewall

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

money owed to utility companies

The blend of the marketer's tools is called the five Ps. Which of the following is NOT one of the five Ps?

possession strategy

Accountants employed within organizations are called:

private accountants

If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system.

decision support

Net sales:

deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales

When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.

discount

A LAN is a:

network of computer systems that share the use of software and hardware

When a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system.

False

By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy.

True

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

True

Managerial accounting provides information that would probably be most beneficial to:

a middle manager of the company

_____ contribute to and benefit from information that use in performing, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions.

Knowledge workers

In Porter's 5-Forces Model the number and size of suppliers is a determinant in the

bargaining power of suppliers

Virtual private networks (VPNs):

connect two or more private networks using a public network

Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _____ strategy.

promotion

Accounting involves the _____ of the financial activities for firms.

summarizing

In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

suppliers

Porter's 5-Forces analysis argues that there are five forces that determine the competitiveness of an industry and therefore influence participants of that industry. These forces include all of the following except the

the securities markets

When compared to the consumer market, the business-to-business market:

uses more direct channels of distribution

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

whether it takes title to the product

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

Financial

The marketing concept emphasizes a consumer orientation.

True

The nation's insurance companies are major suppliers of funds to the U.S. financial system.

True

Credit cards:

are accurately described by all of the above

Computers can enhance accounting by:

doing all of these

Which of the following statements about computer networks is true?

A computer network is a group of two or more computers linked together by communications channels to share data and information.

_____ stock is a security that represents an ownership interest in a corporation and has voting rights.

Common

Knowledge management is much easier than information management.

False

The final figure or bottom line on an income statement is called the net revenue.

False

The goal in environmental scanning is to gather internal environmental data to identify future market opportunities and threats.

False

The shift to virtual workers has been a disappointing trend that is gradually vanishing.

False

There are no significant differences between the consumer market and the business-to-business market.

False

Which federal agency is responsible for processing and clearing checks between financial institutions?

Federal Reserve

Securities are investment certificates issued by corporations or governments.

True

Fixed assets are property and buildings that a firm expects to use for more than:

One year

A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users.

True

A retailer is showing concern for a store's atmosphere when he considers the type of store fixtures to have, the size and type of signage to use, the type of background music to play, and the number and type of employees to hire.

True

Data marts are special subsets of a data warehouse that deals with a single area of data, which are organized for quick analysis

True

Distribution strategy is another term for place strategy.

True

Equity is the owner's investment in the businesses.

True

Financial management is the art and science of managing a firm's money so the firm can meet its goals.

True

In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.

True

Independent accountants who serve organizations and individuals on a fee basis are called public accountants.

True

Public relations is the term used for any communication or activity designed to win goodwill or prestige for a company or person.

True

Geraldine Fadsi's job in the entertainment industry is to bring together entertainers and organizations looking to hire entertainers. Fadsi is paid a commission, usually by the entertainer. Fadsi is acting as a:

agent

When a firm goes public, it must reveal such information as:

all of the above

To stimulate the economy, the Federal Reserve can:

lower the reserve requirement

Short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by checking accounts are:

marketable credits

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

The primary goal of the financial manager is to:

maximize the value of the firm to its owners

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

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

distribution channel

Which of the following statements about the accounting profession is true?

Accountants are typically classified as private or public accountants.

A(n) _____ are go-betweens that bring buyers and sellers together.

Broker

_____ is the process in which a firm continuously collects and evaluates information about its external environment.

Environmental scanning