Business Final Exam

Radial tires installed on four-wheel drive vehicles are examples of:

component parts

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

distribution

_____ is arrived at by subtracting current liabilities from current assets.

Net working capital

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public accountants

Amounts owed to the firm by customers who bought goods and services on credit are called:

accounts receivable

Which of the following is NOT a popular form of sales promotion?

advertising

Industrial supplies:

are accurately described by all of the above

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

net loss

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.

net profit

The _____ is the person who develops and implements a complete strategy and marketing program for a specific product or brand

product manager

_____ is the number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

Reach

In August 2006, the manufacturer of Cross pens introduced the golden toned Verve pen as featured in the Stormbreaker film. In James Bond fashion, the Cross pen serves as one of the key gadgets in the film. The use of the Cross pen is an example of:

product placement RATIONALE: Product placement is paid inclusion of brands in mass media programming.

The first step in the selling process is to:

prospect and qualifying

Which of the following is an example of an advertising medium?

all of the above

The dollar amount of sales plus any other income received from sources like interest and dividends is called:

revenues

In new-product development, _____ is the stage at which products that do not meet new-product goals are rejected.

screening

Benefit

segmentation is based on what the product will do rather than on consumer characteristics.

Which of the following is a type of sales promotion?

all of these

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.

Brokers

_____ 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.

Distribution

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

A relatively inexpensive item that requires very little shopping effort is called a _____ product.

convenience

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

A recent seminar on attracting retail customers addressed the following fact: "Time is on the mind of the consumer. If you ask anybody you know, 'Would you rather have an extra day off or an extra day's pay?' people in America would take the time off 2-to-1." This topic indicates that these retailers supported a need for more _____ segmentation to reach the time-poor consumer.

benefit

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

The acceptable turnover ratio is:

different for each industry

The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a(n) ______ channel.

distribution

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

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

distribution channel

Public relations departments:

do all of the above

Computers can enhance accounting by:

doing all of these

The two types of retailing are:

in-store and nonstore

Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?

increase the amount and frequency of use

The two types of distribution channels are:

industrial and consumer

Marketing research

is the collection, recording, and analysis of data important in marketing and communicating that information to management.

Market segmentation

is the division of markets into different groups

The Accent Modification Center helps upwardly mobile international professionals smooth accents that may be holding them back from getting that next promotion. The business's target market is from the growing Asian population in Virginia. The center has developed a(n):

niche competitive advantage

Which of the following is an example of in-store retailing?

none of the above

A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):

note receivable

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within:

one year

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

one year

In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe. The clerk is engaged in:

personal selling

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

pricing

The Financial Accounting Standards Board (FASB) is a:

private organization that is responsible for establishing financial accounting standards in the United States

Products that are bought after comparing price, suitability, quality, and style are called _____ products.

shopping

A strategy of charging a high introductory price for a new product that invites eventual competition is called price:

skimming

A retailer would separate children's clothing purchased from Carter's into various sizes and types of clothing, such as size 6 shirts, size 2T shorts, and size 4T sun dresses. This process is called:

sorting out

Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:

target market

Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers. On the cover of each individualized brochure was an image of the customer's vehicle, the customer's name, and vehicle model name. Inside was the vehicle's estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure. On the back of the brochure were four coupons directly related to the service recommendations. Jay Pontiac used:

one-to-one marketing

Which of the following is a step in the new-product development process?

all of the above

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

debt-to-equity RATIONALE: The debt-to-equity ratio measures the relationship between the amount of debt financing and the amount of equity financing.

A basic form of market segmentation that uses such variables as age, education, and income is called:

demographic

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

Customer value

is the ratio of benefits to the sacrifice necessary to obtain those benefits.

Which of the following is considered an expense item for a dentist's office?

peroxide for whitening teeth

A (n) _____ is any good or service that satisfies wants, along with its perceived attributes and benefits.

product

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

product and promotion

The first step in the new products planning process is:

setting new-product goals

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:

the sale of land adjacent to the manufacturer's administrative office building

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

agent

Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes. By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers. The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

pricing

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

All of the above statement about the accounting profession are true.

The 7-member Dover family recently purchased a mini-van because the ads for a Plymouth Horizon showed that it could haul 8 or more people and still have room for books, bags, and sports equipment. Plymouth Horizon was using what form of segmentation with its advertising?

benefit

With a _____ policy, a company offers new products at a low price in the hope of achieving a large sales volume.

penetration pricing

_____ are debts that are to be paid within twelve months.

Current liabilities

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

Roy Petrie is a flower wholesaler. He buys fresh flowers from countries in South America, divides the large batches into small bunches, and delivers them to independent florists. This process is called:

breaking bulk

What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?"

closing the sale RATIONALE: See Exhibit 12.5 Steps in Making a Successful Sale

The difference between net sales and cost of goods sold is:

gross profit

U.S. Carburetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:

gross profit

Which of the following is an example of nonstore retailing?

home shopping network

Frequency

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

American Pet Pro purchases pet grooming supplies from various manufacturers, sorts them, and resells them to retailers. American Pet Pro is a(n) _____ wholesaler.

merchant

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are:

merchant wholesalers

The Art Institute, a school for training artists to be financially self-sufficient, has a debt-to-equity ratio of 120 percent. This means the school has:

more debt than equity

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

net working capital

Another term for owners' equity is:

net worth

A(n) _____ is a retail store that sells at prices 25 percent or more below traditional department store prices in spartan environments.

off-price retailer

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?

operating

The brand name Cover Girl appeared in a young adult novel called Cathy's Book: If Found Call (650) 266-8233. One sentence in the book reads: "a killer coat of Lipslicks, a line of Cover Girl lip glosses. Procter &Gamble promoted the novel at beinggirl.com Web site in exchange for the mention. This is an example of"

product placement

On a statement of cash flows for a pizza restaurant, the cash flows from investment activities section would include:

the brick oven stove used to cook the pizzas

A kennel designed for boarding small dogs has current assets of $8,000, current liabilities of $2,000, and fixed assets of $25,000. The small company has a current ratio of:

4

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio?

2 times

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

Expense items that have undergone little or no processing and are used in the manufacture of end products are called:

raw materials

In selling telephone service, AT&T tries to gather as much information as possible about the consumer's income, buying habits, service preferences, and occupation. AT&T is utilizing:

marketing research

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

Marketing

is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.