BUSN Final Exam part 1, BUSN Final Exam part 2, BUSN Final Exam part 3, BUSN Final Exam part 4

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

CMP in advertising terms means:

cost per thousand

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

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 manufactures' representative is sometimes called a(n):

manufacturer' agent

_____ 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

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

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

net working capital

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

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

Regulation FD

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 because non-vegs are being segregated from vegs. A Real estate broker in Mumbai who only rent or sell a home to a vegetarian as defined that group as its:

Target market

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

a patent on titanium lock mechanism

commercial paper is:

a type of IOU

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

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

accounts receivable

____ is any paid form of non-personal presentation by an identified sponsor.

advertising

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

advertising

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

agent

Which of the following is a type of sales promotion?

all of these

term loans:

are actually described by all of the above

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

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

financial managers:

are described by none of the above

short-term loans:

are shown as a current liability on the balance sheet

The 7-member Dover family recently purchased a minivan 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

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

benefit

long-term debt (liabilities) for corporations and government are called:

bonds

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

bookkeeping

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

brokers

as the toronto- based four seasons hotel chain remodels an existing hotel in mumbai to bring it to the five-star hotels exacting standards, it is building a magnificent revolving restaurant overlooking the arabian sea at world. the restaurant structure is an example of a(n):

capital expenditure

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

capital expenditures

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

capital; expense

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

cash flows

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

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

common

which of the following statements about the new york stock exchange (nyse) and the american stock exchange (amex) is true?

companies listed on the nyse cannot be listed on the amex at the same time

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

component parts

the securities exchange act of 1934 gave the sec the power to:

control the organized exchanges

in manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:

cost of goods sold

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

credit terms

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

current liabilities

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

customer value

______ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

debt

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

debt-to-equity

The major advantage of debt financing is the:

deductibility of interest expenses

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

demographic

the acceptable turnover ration is:

different for each industry

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

distribution

___ 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

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

distribution

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

distribution channel

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

Public relations departments:

do all of the above

long-term debt would be used to:

do none of the above

which of the following statements about competition among stock exchange is true?

electronic communications networks (ECNs) allow institutional traders to make direct transactions in what is called the fourth market.

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

equity

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

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

financial accounting; managerial accounting

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

gross profit

How would you describe the relationship between NYSE and NASDAQ?

heated competitors

Which of the following is an example of nonstore retailing?

home shopping network

The two types of retailing are:

in-store and nonstore

which goal are airlines trying to achieve when they use frequent-flier 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

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 20 ton structure on to it's floating base. This expensive dock in Crane samples of:

installations

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

institutional investors

the Securities Investor Protection Corporation (SIPC)

insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure.

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

The primary activity of ____ is underwriting.

investment bankers

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

it's warehouses

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

niche competitive advantage

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

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

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

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

off-price retailer

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

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

personality

Which of the following statements about preferred stock is true?

preferred stock produces a fixed-amount dividend.

Which of the following statements about preferred stock is true?

preferred stockholders are paid dividends before the company can pay any dividends to common stockholders.

The FASB:

private organizations that is responsible for establishing financial accounting standards in the US

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

product

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

promotion

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

public accountants

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

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

reach

the securities act of 1933:

requires full disclosure of information about new securities issues

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

retained earnings

In finance, the opportunity for profit is called:

return

herschel george is a soybean farmer. he has rearranged 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

In finance, _______ is the potential for loss.

risk

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

securities act of 1933

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 a new-product goals

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 the Carter's into various sizes and types of clothing, such as size 6 shirts, size to T shorts, and size for T sundresses. This process is called:

sorting out

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

stockbrokers

Accounting involves the _____ of the financial activities for firms.

summarizing

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

term loans, mortgage loans, and bonds

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

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.

____ is the process of buying securities from corporations and governments and reselling then to the public

underwriting

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

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

venture capitalists

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

wholesalers

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

over the counter market

Dividends are:

payments to the shareholders from company earnings

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

brainstorming

compressor pumps installed in general electric refrigerators would be considered:

component parts

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

convenience

Haley Optics manufacturers lens used in cameras, binoculars, and scientific equipment. It had sales of $30,000 during the last quarter. It's gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:

cost of goods sold

The owner of mercury appraisal company hold a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who may have need of his service to the event. The goal of his promotion was most likely to:

create awareness

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

culture

to the following is NOT example of a convenience product?

lawn furniture

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

market segmentation

______is the division of markets into different groups

market segmentation

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

maturity

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 manufactures 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

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

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 her pitcher than it's competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

which of the following is considered an expensive item for a dentists office?

peroxide for whitening teeth

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.

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

raw materials

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

all of the above

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

all of the above

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

frequency

within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

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

Another term for owners' equity is:

net worth

Accounting provides a framework for looking at:

all of the above

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 it's 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

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 customers vehicle, the customers name, and vehicle model name. Inside was the vehicles 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 or four coupons directly related to the service recommendations. Jay Pontiac used:

One to one marketing

Wultec international Inc., A Canada base 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 a warehouse use, is an example of which type of business product?

accessory

Victorinox is the name of the company that manufactures 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

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

general and administrative

How has the Sarbanes-Oxley Act affected accountants?

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

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

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 supermarkets chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

pricing

pharmaceutical company with headquarters in India's sells flucanazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many US generic drug manufacturers. The generic drugs industry in this country needs to we think it______strategy to stay competitive.

pricing

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

product manager

The brand-name cover girl appeared and a young adult novel called Kathy's book: if found call 650-266-8233. One sentence in the book for you: "a killer coat of lipsticks, A line of cover girl lip glosses. Procter & gamble promoted the novel at beinggirl.com website in exchange for the mention. This is an example of?

product placement

in August 2006, the manufacture of cross pen 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 in example of:

product placement

The first step in the selling process is to:

prospect and qualifying

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 a part of it is____strategy.

promotion

in 2006, consumers held onto a 2007 Chevrolet Monte Carlo at the state fair of Texas in an endurance competition that tested consumers to see who can hold onto 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

customer satisfaction:

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

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

relationship marketing

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

screening

A(n) ____ is a summary of the money flowing into and out of a firm.

statements of cash flows

Mike and Ike, their fruit flavored chewy candies, needed a major facelift. The brain had a small but loyal core of "munchers. "A relatively small brand, it needs the visibility is is he going to share leaders like starburst and skittles. The company changed its packaging and develop contests all geared to 12 to 17-year-olds. The makers of my can I can modify its _______ strategies.

production and promotion.

U.S. Carbuetion 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 NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?

operating