C201 Business Acumen
Number the seven steps in the recruiting and interviewing process from first to last.
1) Define job requirements, 2) Contact and visit colleges for applicants/interns, 3) Conduct employment tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up interviews, 7) Hiring determination
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
A JIT system seeks to eliminate anything that does not add value in operations activities, production using JIT reduces a firm's inventory costs.
Which type of information system should be accessed by the vice president of sales for a national department store chain who wants to see the previous day's sales receipts?
A transaction processing system
Which three characteristics are measured in demographic segmentation? Choose 3 answers
Race and ethnicity, Income, Household size
What is considered the heart of any information system?
The Database
Which financial statement should an investor examine to identify the liabilities of a firm?
The balance sheet
Which intent of spyware creates a company security issue?
The intent to report on a user's internet activity
How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price?
There is no immediate effect on demand
What are three ways cloud computing services enhance company productivity? Choose 3 answers
Through better resource utilization, through elimination of application downtime, through dedication of resources to each user
For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy? Choose 2 answers
To encourage bankers to make loans, to cut the cost of borrowing
When would a pull promotional strategy enhance a competitive advantage to market a product better than a push strategy?
When demand for the product is driven by the end user
compares products directly with their competitors ether by name or by inference
comparative advertising
which advantage does brand loyalty provide
competitive advantage
concentrating marketing efforts on the product (features, quality, value), distribution, and promotional elements of the marketing mix.
competitive pricing
inventory turnover
cost of goods sold / average inventory (average of 2013 + 2014)
receivables turnover
credit sales / average account receivables (average of 2013 + 2014)
Which three conditions, in a global selling environment, should a small company leverage to create a competitive advantage? Choose 3 answers
cultural homogeneity, mobility of labor, local labor costs
acid test
current assets - inventory / current liabilities
Liquidity ratio
current assets / current liabilities
what do management use support systems for
decisions
A company might divide itself into smaller groups that best match the types of customers it service. this is an example of
departmentalization.
How does a virtual private network contribute to a firm's workforce productivity?
employers are enabled to work remotely with secure connectivity to the corporate network via the internet
gross profit margin
gross profit / sales
what ratios are considered profitability ratios
gross profit, net profit, and return on equity
the highest form of brand loyalty is
imsistence
the coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer-focused message.
integrated marketing communications
what are the four stages of the product life cycle
introductory, growth, maturity, decline
Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds?
it converts easily to cash
A company wishes to determine if it should fund a project with bonds or equity. Which business concept would it most likely use to assist in the decision?
leverage
when two or more users connect using Ethernet or WiFi to the same server to share printers or other information
local area network (LAN
long-term debt to equity
long-term debt / owner's equity
a decision support system (DSS) belongs to which support system
management
what adds value to a product
marketing intermediaries
which stage of the product life cycle requires focusing on attracting the competitors customers
maturity
what ratios are considered activity ratios
measue managements use of the firms resources and include all turn over ratios
what are leverage ratios
measure the extent to which a firm relies on debt financing and includes debt ratio and long-term debt to equity
what are advantages to WiFi
mobility, expansion of LAN
return on equity
net income / average equity
net profit margin
net income / sales
Which calculation determines a firm's return on equity?
net income divided by average equity
is ethical and legal the same thing
no
information systems for activities fall under which support system
operational support systems
Total productivity
output (goods or services) / input (human, natural resources, capital)
Which users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions?
owners and creditors
used in the growth and maturity stage of the product life cycle to improve competitive status of a product.
persuasive advertising
Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its equity?
private equity fund
which of the two information systems are operational support systems
process control system, transaction process system
potential buyers will request that their suppliers-retailers or local distributors - carry the products thereby pulling it through the distribution channel
pulling strategy
companies promote the product to members of the marketing channel, not to end users
pushing strategy
advertising to maintain awareness of the importance and usefulness of a product
reminder-oriented
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global package delivery service?
retail
what are marketing intermediaries
retailer and broker
total assets turnover
sales / average total assets
which of the product types is purchased most infrequently
specialty
three different product types
specialty, shopping, convenience
what ratios are considered liquidity ratios
the firms abilities to meet its short term obligations and include the liquidity ratio and acid test
Why should a manager use financial controls in a firm's financial plan?
to determine the accuracy of forecasted revenues, costs, and expenses
debt ratio
total liabilities / total assets
brand preference is a higher form or loyalty than brand recognition
true
using what can make a price cheaper to a consumer
wholesaler
Which three sources should a business consider when seeking a long-term source? Choose 3 answers
Hedge funds, Venture capital, public sale of stocks
Which two key elements does an effective organization include?
Human interaction, structure
What is the result of a company increasing the delegation of authority and the span of control?
Increased number of direct reports per manager
What is one role of a financial manage?
Analyzing major investment decisoins
In which type of security should a business invest its excess cash in anticipation of paying off the current year's tax liability?
Commercial paper
Which primary driver does management use for an organization's structure?
Achievement of company goals
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the lotion as an insect repellent as well. In which three product life cycle extension strategies did this company engage? Choose 3 answers
Adding new users, finding new uses for the product, increasing frequency of use.
Which marketing tool is essential to building an effective relationship marketing campaign?
An affinity program
Which two economic impacts should a manager anticipate when the U.S. government reduces the number of Treasury bills, Treasury Notes, and Treasury bonds it sells? Choose 2 answers
An increase in overall cost of debt to private borrowers, an increase of funds for public services
A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty is this customer in?
Brand preference
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3 answers
Buyers face organizational influences in addition to their own preferences, purchasers often invite selected providers to bid on a purchase, a group or committee often makes decisions
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short term price cutting tactics such as cents off coupons, rebates, and special sales?
Everyday low pricing
With which two types of products does a marketing strategy rely on advertising more than personal selling? Choose 2 answers.
Consumable supplies, accessories to primary products
A high tech startup company is launching a marketing campaign for its new social media portal by highlighting how the portal exceeds the connectivity and collaboration capabilities of all other social media sits. Which type of competitive advantage is this company leveraging?
Customer loyalty
Which two factors drive demand in a microeconomics system? Choose 2 answers
Customer preference, price of substitute goods
Which economic graph is used by organizations to regulate production by predicting the amount of product buyers will purchase at different prices?
Demand curve
Which step in the organizing process results in management group work activities into units within the organization?
Departmentalization
Which regulatory relationship with the Securities and Exchange Commission (SEC) historically has acted to prohibit the U.S. from adopting the International Financial Reporting Standards (IFRS)?
FASB requires companies to comply with GAAP that differ from IFRS
Which two impacts result from a nation's increase in productivity? Choose 2 answers
Economy expands, Personal wealth increases
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
Ensure that earnings remain larger than interests payments
Which aspect of operations management do the ISO 9000 Standards address?
Establishment of effective quality systems?
Which part of the organizing process aids in effective and efficient progress toward planned goals and often results in changes within the organization?
Evaluating results
Which manufacturing model uses technology to produce small runs of customized products cost effectively?
Flexible
What are three ways that an effective brand name can influence consumer product recognition? Choose 3 answers
It conveys an image, it depicts trademark protection, it reflects brand equity.
Why does a line organizational structure function most effectively in a crisis situation?
It established a direct flow of authority
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for a business?
It has a maturity that ranges between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make large amounts of money available
Which role does the underwriter play in financing business operations when using the capital market to sell securities to the public?
It insures the value of the security to the investor
Which two of the following distribution channels would take title of the products they handle? Choose 2 answers
Limited function merchant wholesaler, full function merchant wholesaler
Which two activities are finance activities rather than accounting activities? Choose 2 answers
Making capital market investments, creating a financial plan
Which element of the promotional mix has the advantage of messaging that can be tailored for each customer, but the disadvantage of a high cost per contact?
Personal Selling
For which type of communication should employees have an ethical expectation of privacy from company monitoring?
Personal letters sent through the company mail room
Which three tasks are key responsibilities of operations managers? Choose 3 answers
Planning the overall production process, implementing the production plan, determine the best layout for the firm's facilities.
What does a CFO use in financial planning to determine the expected level of revenue for future periods?
Sales forecast plus non-sales revenue
Which two activities are prohibited by insider trading laws and should be avoided by a firm's employees? Choose 2 answers
Selling company stock because a co-worker told the employee the company's new drug is failing in clinical trial, buying stock in the public company for which the employee works based on a conversation the employee overheard at a cocktail party between two of the company's executives.
Which activity raises ethical issues heightened by the capabilities of data mining?
Selling customer data for external marketing research
What three factors should be addressed in a successful marketing plan? Choose 3 answers.
Target Market, Sales revenue goals, Plan implementation timeline (not on list, marketing budget)
Which two risks does a firm face by funding the purchase of long-term assets with short-term funding sources? Choose 2 ansers
Volatility of interest rates, frequent renewals
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?
capped the debit card fee at 21 cents
connect the brand to the a positive image (GE to eco friendly)
brand association
a brand is recognized by potential customers, and is correctly associated with a particular product
brand awareness