busn final exam

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

demographic

When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this advertising campaign was most likely to:

get customers to try the new product

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

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

Activity

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

merchant wholesalers

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

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

note receivable

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

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

one year

One never knows the connections that can be made when singles get together to do the laundry. As such, Whirlpool is taking its laundry appliances to the social scene by hosting Spin Cycle events that will give singles a chance to meet, mingle and have some good clean fun while playing laundry-themed games that can earn them Whirlpool prizes. Whirlpool is using these events as part of its _____ strategy.

promotion

The first step in the selling process is to:

prospect and qualifying

In which stage of the product life cycle are you most likely to find the manufacturer using a line extension strategy?

maturity

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

skimming

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

Another name for a stockbroker is a(n):

account executive

Customer satisfaction:

refers to the customer's feeling that a product has met or exceeded expectations

The Securities Act of 1933:

requires full disclosure of information about new securities issues

In finance, the opportunity for profit is called:

return

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

revenues

_____ has a group think of as many ways as possible to generate new-product ideas, vary a product, or solve a problem.

Brainstorming

Which of the following statements about preferred stock is true?

Preferred stock produces a fixed-amount dividend.

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

Common

____ 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

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

Financial accounting; Managerial accounting

Which of the following statements does NOT describe an advantage inherent in equity financing?

Interest is tax-deductible.

How has the Sarbanes-Oxley Act affected accountants?

It has eliminated many nonauditing tasks they use to provide for their customers.

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

What is the name of the SEC regulation that requires public companies to share information with all investors at the same time?

Regulation FD

The cost of inventory to the firm includes all of the following EXCEPT:

selling costs

The first step in the new products planning process is:

setting new-product goals

Three important forms of long-term (capital) expenditures are:

term loans, mortgage loans, and bonds

A secured Internet service provider would be very likely to attract the attention of _____ because it is in a high-tech industry with lots of opportunity for rapid growth.

venture capitalists

_____ is the process of buying securities from corporations and governments and reselling them to the public.

Underwriting

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Wholesalers

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

Financial managers focus on _____, the inflow and outflow of cash.

cash flows

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

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and:

commercial paper

Compressor pumps installed in General Electric refrigerators would be considered:

component parts

The Securities Exchange Act of 1934 gave the SEC the power to:

control the organized exchanges

CPM in advertising terms means:

cost per thousand

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 RATIONALE: The goal of the frequency programs is to create loyal customers.

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

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

distribution

International accounting standards:

do not exist

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

financing plans product details financial data operating data >>all of the above

Public relations departments:

furnish company speakers for business and civic clubs write speeches for corporate officers encourage employees to take active roles in community organizations write press releases >do all of the above

Which of the following is an example of nonstore retailing?

home shopping network

The two types of retailing are:

in-store and nonstore

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

Public accountants

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

Ratio analysis

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

Reach

_____ is a strategy that focuses on forging long-term partnerships with customers.

Relationship marketing

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

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n):

investment banker

For which of the following assets would a wholesale company use depreciation?

its warehouses

Which of the following is a type of sales promotion?

loyalty marketing programs sweepstakes and contests bonus packs product sampling > all of these

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

a patent on titanium lock mechanism

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.

management

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:

management

A manufacturers' representative is sometimes called a(n):

manufacturer' agent

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

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

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

newspapers television magazines direct mail >all of the above

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.

The _____ is a law that requires full disclosure of information on new issues and registration statements of financial information.

Securities Act of 1933

_____ are the link between public companies and the investors interested in buying their stock.

Stockbrokers

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

Venture capitalists

In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n):

account payable

In which of the following industries are you most likely to find factoring being used?

appliance industry

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

Benefit

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

_____ 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

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

_____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

Market segmentation

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

Most CPAs first work for public accounting firms and later become private accountants or financial managers. Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program. Public accountants serve individuals and organizations on a fee basis. Private accountants are also called corporate accountants. >>All of the above statement about the accounting profession are true.

The _____ system is the first electronic-based stock market and the largest over-the-counter market.

NASDAQ

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

Net working capital

Term loans:

are available from commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries may be repaid on a quarterly, semiannual, or annual schedule are capital expenditure loans with a maturity of more than one year can be secured or unsecured >>>are accurately described by all of the above

Long-term debts (liabilities) for corporations and governments are called:

bonds

Funds invested in long-lived assets, such as land, buildings, machinery, and equipment, are called:

capital expenditures

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

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

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

distribution channel

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is called:

factoring

Keisha Hunter keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Hunter is a(n) _____ manager.

financial

On an income statement, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.

general and administrative

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

The two types of distribution channels are:

industrial and consumer

Regulation FD was designed to eliminate:

insider trading

_____ are investment professionals who are paid to manage other people's money.

institutional investors

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

niche competitive advantage

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

Esselte is a Swedish-based company that sells office supplies. It went public when it was founded, and it remained public until 2002 when it was taken private. Now that Esselte is private, it:

no longer sells stock to the public

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

one year

Which of the following is an example of an individual factor that influences the consumer decision-making process?

personality

Financial managers:

play such an important organizational role that they often are called operations managers focus on profit maximization are not typically involved in long-term strategic planning are simply a type of bookkeeper >>are described by none of the above

Computers can enhance accounting by:

preparing tax returns handling general ledger functions controlling purchase orders providing a means to control inventory >doing all of these

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

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

In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested consumers to see who can hold on to the car the longest to win it. An article in USA Today about the winner of the competition is an example of which promotional activity?

public relations

In which of the following industries are you most likely to find a broker?

real estate

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

Herschel George is a soybean farmer. He has arranged a business loan with terms that guarantee that he can borrow up to $30,000 whenever he needs it within the next year. He must pay interest only on the unpaid loan balance. George has arranged a:

revolving credit agreement

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

Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a _____ product.

specialty

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

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(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

unsecured bank loan

_____ is any paid form of nonpersonal presentation by an identified sponsor.

Advertising

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

Credit terms

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

Culture

The major advantage of debt financing is the:

deductibility of interest expenses

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

operating

Which of the following is an expense item for an independent bookstore?

order forms

A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?

2 times

Securities that are not traded on the organized stock exchanges are traded in the:

over-the-counter market

Accounting provides a framework for looking at:

past performance current financial health possible future performance financial performances of different firms >all of the above

Dividends are:

payments to the shareholders from company earnings

Industrial supplies:

are accurately described by all of the above

Wultec International Inc., a Canada-based manufacturer, produces end-of-line packaging equipment, such as wrapping machinery, which is used in warehouses to cover pallets and protect their contents. Wultec end-of-line packaging equipment, when purchased for warehouse use, is an example of which type of business product?

accessory

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

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

an Internet purchase from an Internet bookseller a Tupperware party the purchase of a bag of corn chips from a vending machine the purchase of a bottle of Anna Pavlova perfume that is only available at Saks Fifth Avenue stores >none of the above

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

component parts

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

A company in Maine builds portable drilling platforms used to locate new oil fields underwater. To build a platform, the company had to construct a specially designed dock with a large permanently-placed crane able to lift a twenty ton structure on to its floating base. This expensive dock and crane are examples of:

installations

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

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

The Financial Accounting Standards Board (FASB) is a:

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

The ratio of net profit to total owners' equity is called return on:

equity

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

Frequency

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

Marketable securities

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

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

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

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

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 _____ 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.

Ocean Spray first introduced cranberry juice drinks. Then it introduced Cranapple (a cranberry and apple juice mix) also sold under the Ocean Spray brand. This is an example of a:

line extension

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

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

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

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

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

penetration pricing

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 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

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

raw materials

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

screening

Things of value owned by a firm are called its:

assets

Katherine Cozzine is a talented violinist. She is also pragmatic. When she graduated from high school, she chose a college that would provide her a strong business foundation even though she would have preferred to major in music. Cozzine did not know that there are over 200 music-business programs in the U.S., which would have allowed her to continue her music and prepare for a career in the industry. To Cozzine the music-business programs were ______ products.

unsought

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

develop new-product ideas screen ideas create a marketing mix test the new product > all of the above

_____ 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 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.

Marketing

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

peroxide for whitening teeth

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

product

Holiday Confections has the following balance sheet figures for the year ending December 31, 2018:Cash $1,000Marketable securities 5,000Inventory 3,000$9,000Accounts payable $2,000Notes payable 1,000$3,000Its net working capital is:

$6,000