BUS 151 final
_____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.
notes receivable
_____ is a scheduling tool that assigns three time estimates for each activity (optimistic, most probable, and pessimistic). This technique allows managers to anticipate delays and potential problems and schedule accordingly.
the program and evaluation review technique
Basing market decisions on what a product will do rather than on consumer characteristics is called benefit segmentation.
true
Financial management is the art and science of managing a firm's money so the firm can meet its goals.
true
For most corporations, physical-distribution activities are usually the responsibility of the marketing department.
true
How do distribution channels improve product distribution?
Distribution channels reduce the number of transactions needed to get the product from the manufacturer to the consumer
How does an executive information system (EIS) differ from a decision support system (DSS)?
EIS is customized for an individual executive, and DSS is not
Which of the following is an example of an advertising medium?
all of the above
One of the biggest shortcomings of Gantt charts is that they:
are static
Which of the following calculations is a formal expression of the accounting equation?
assets=liabilities+owner's equity
In its role as lender to member banks, the Federal Reserve is called the:
banker's bank
net sales:
deducts sales discount and returns and allowances from gross sales deducting sales discount and returns and allowances from gross sales
Bo Riley pays his rent and utility bills each month by writing checks. Riley is using a _____ account.
demand deposit
A basic form of market segmentation that uses such variables as age, education, and income is called:
demographic
Which of the following business products would be considered an accessory in the offices of a travel agency?
filing cabinet
_____ allows people with PCs or other types of machines connected to the Internet to donate processor cycles to the search for extraterrestrial life. This process involves sifting through the static of deep space on billions of radio channels looking for stray signals that are generated by alien civilizations.
grid computing
Office automation decisions are specifically designed to:
improve organizational communications
Any object or objects that a group of people use to buy and sell goods and services is called:
money
Which of the following is an example of a liability that might be owned by an antique mall?
money owed to utility companies
A CAD/CAM system is a(n):
production design and control system
Any communication or activity designed to win goodwill or prestige for a company or person is called:
public relations
A current asset is one that can or will be converted into cash within one year.
true
A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.
true
By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy.
true
Depository financial institutions include commercial banks, thrift institutions, and credit unions.
true
Equity is the owner's investment in the businesses.
true
In the product development process, most companies utilize the concepts of brainstorming, screening, and test marketing.
true
Product layout is also called assembly-line layout.
true
Sales promotions are marketing events or sales efforts that stimulate consumer buying.
true
Selling retirement plans to people over the age of 50 is an example of demographic segmentation.
true
Service companies generally use a repetitive or intermittent production process rather than the continuous process.
true
The Federal Deposit Insurance Corporation (FDIC) monitors the banking practices of the institutions that it insures.
true
The five-step process that takes a transaction from being mere raw financial data to its being summarized in the financial statements is called the accounting cycle.
true
The marketing concept emphasizes a consumer orientation.
true
The strategy that is based on the demand for the product and the cost of producing it is called the pricing strategy.
true
U.S. banks provide loans to foreign governments.
true
When Clorox targets heavy users of bleach, it is using volume segmentation.
true
When compared to the consumer market, the business-to-business market
uses more direct channels of distribution
The categories of heavy, moderate, and light users have to do with which type of segmentation?
volume
When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The Web site O'Hare visited used _____ to make trip planning easier and more economical.
bundling
_____ is the action that people take in buying and using goods and services.
buyer behavior
Financial managers focus on _____, the inflow and outflow of cash.
cash flows
An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:
certified public accountant
Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt, which is called:
commercial paper
An IOU is most similar to which type of bank loan?
commercial paper
Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. Its gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:
cost of goods sold
_____ are debts that are to be paid within twelve months.
current liabilites
Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to distribution trucks. Georges is involved in:
distribution
Manufacturing resource planning II (MRPII):
does all of the above
Another term for net worth is working capital.
false
At the first level of a management support system is a(n) _____ system, which uses summary data collected by the transaction processing system to provide managers with decision-making information.
information reporting
Which type of information systems is used by both operational managers and middle managers?
information reporting system
Trademarks, franchises, patents, and copyrights are carried on the company's books as:
intangible assets
The maker of Centrum multivitamins introduced Centrum Silver, a vitamin designed specifically for older people. Centrum Silver is an example of a _____, a product that uses an existing brand name in an existing category but with a new formula.
line extension
Gerald Cooksie owns a restaurant in Panama Beach, Florida. He has arranged a business loan with the bank where he has his business account. The terms of the loan allow him to borrow up to $13,500 within the next year if the bank has funds available to lend; he must pay interest only on the unpaid loan balance. Cooksie has arranged a:
line of credit
Which of the following is NOT one of the six steps in the accounting cycle?
paying accounts payable
The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?
penetration pricing
Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts. This is called a(n) _____ inventory.
perpetual
Which of the following statements describes an advantage that personal selling has over other forms of promotion?
personal selling costs can be adjusted by controlling the size of the sales force
_____ pricing is the strategy of increasing the price of a product so that consumers will perceive it being of higher value.
prestige
In the production of corn meal for baking, corn is ground. This conversion process is an example of:
process manufacturing
The first step in controlling production is:
routing
Which of the following is NOT an example of a cost of goods sold for a manufacturer of electric fans?
sales commissions
_____ are investment certificates that represent either ownership of a corporation or a loan to the corporation.
securities
Inventory management performs all of the following tasks EXCEPT:
selling
Products that are bought after comparing price, suitability, quality, and style are called _____ products.
shopping
Abercrombie & Fitch stores are aimed at college-aged consumers. The parent company also operates retail clothing stores under the name Hollister, which are targeted to 14- to 18-year-olds and under the name Abercrombie, which sell children's wear. Abercrombie & Fitch operate
specialty stores
A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.
statement of cash flows
Accounting involves the _____ of the financial activities for firms.
summarizing
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
Which of the following companies would be LEAST likely to use the continuous process?
a bakery
Which of the following businesses is most likely to consider proximity to raw materials when locating a new manufacturing plant?
a company that provides fresh baked goods for restaurants
Managerial accounting provides information that would probably be most beneficial to:
a middle manager of the company
The _____ ratio is a measure of the firm's ability to pay its current liabilities once inventory is subtracted from current assets.
acid-test
Private individual investors who sometimes provide venture capital to small firms in need of equity capital are called:
angel investors
Which of the following is NOT one of the current trends in business management today?
application of the expectancy theory
Which of the following is a consumer nondurable?
breakfast cereal
The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:
create awareness
_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.
depreciation
Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?
distributing currency
Victorinox is the name of the company that manufacturers Swiss army knives. The _____ channel the company utilizes to get its knives to market is to wholesalers, than to retailers, and finally to consumers.
distribution
Thrift institutions were formed specifically to make home mortgage loans and to:
encourage household savings
Oscar Ramirez's job has been redesigned. He has more authority and responsibility and feels the job now is very challenging to him. The company has used job _____ to challenge Ramirez.
enrichment
Through the use of a(n) _____ physicians with patients at many hospitals can access and interact with multiple, disparate hospital information systems through a single, secure, Web-based application. Data that is accessible may include demographics, lab results, radiological images or other diagnostic data. In addition, physicians can use the technology to view patients' aggregated clinical data, electronically sign orders, and order medications and lab tests in both ambulatory and inpatient settings.
enterprise portal
_____ is the process in which a firm continuously collects and evaluates information about its external environment.
environmental scanning
A listing of the components and the number of each required to make the product is called the bill of lading.
false
Durability and simplicity are two important characteristics of money.
false
Facilities layout is all-important in production lines but it is not important in service-oriented businesses.
false
Just-in-time (JIT) is an inventory system that was developed in California and is starting to catch on in Japan.
false
Operations management refers to the role that computers play in the production process.
false
Profitability ratios measure how well a firm uses its assets.
false
The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.
false
The prime rate is the interest rate that the Federal Reserve charges member banks for loans.
false
The reason that Castle and Cooke processes and packages Dole pineapple products in Hawaii is more than likely because of low energy costs.
false
The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate.
false
A bank is engaged in _____ when it accepts the farmer's deposit of $127,000, and then makes a business loan of $50,000 to a small business owner.
financial intermediation
Cellular manufacturing combines aspects of both:
fixed position and assembly-line layouts
During production planning, the operations manager must make decisions about all of the following EXCEPT:
product design
The process that products go through as they pass through their introduction, growth, maturity, and decline stages is called the:
product life cycle
Life Savers Gummies Fruit Splosions, liquid-filled gummies combined with a burst of real fruit juice, are a new product for The Wrigley Co.. Before marketing the product nationwide, Wrigley gave out samples of the candy at several rock concerts and then recorded consumers' feelings about the candy, its taste, and its name. In which stage of the new-product development process would this have happened?
test marketing