Strategic MGMT Ch 8

Digital advertising spending on social media and mobile devices increased nearly​ ____ percent to​ $50 billion in the United States in​ 2014, comprising 28 percent of total ad spending in the nation.

17

About​ _____ percent of all traffic on the Internet is​ fake, the result of bogus computers programmed to visit websites to take advantage of marketers who typically pay for ads whenever they are loaded when a user visits a​ webpage, regardless of whether the user is an actual person.

36

More than 40 percent of businesses that send employees out on service calls today track the location and movement of those employees by their​ company-owned/-provided hand-held devices or vehicles.

40

Regarding corporate​ valuation, a conservative rule of thumb is to establish a​ business's worth as​ ____ times the​ firm's current annual profit.

5

In​ EPS/EBIT analysis, from where does the tax rate percentage​ come?

A. Use the​ company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the​ firm's income statement.

In developing projected financial​ statements, how do you calculate retained earnings on the balance​ sheet?

Add the net income less dividends to the prior​ year's retained earnings.

Which statement below is​ false? A. FASB Rule 142 requires companies to admit once a year whether the premiums they paid for​ acquisitions, called​ goodwill, were a waste of money. B. Goodwill is not a good thing to have on a balance sheet. C. Because goodwill​ write-down accounting rules involve projections and​ judgments, companies have leeway for when to write down​ goodwill, and by how much. D. A and C E. All statements are true.

All statements are true.

Which statement below is​ false? A. ​"Going public" means selling off a percentage of a company to others to raise​ capital; consequently, it dilutes the​ owners' control of the firm. B. ​Increasingly, companies are issuing corporate bonds to buy back their own stock and to pay cash dividends to shareholders. This has become a concern. C. Many firms prefer to leave their cash outside the United States if it was earned outside the United States because to use those funds to pay dividends or purchase treasury​ stock, for​ example, would trigger a big U.S. corporate income tax payment. D. Going public is not recommended for companies with less than​ $10 million in sales because the initial costs can be too high for the firm to generate sufficient cash flow to make going public worthwhile. E. All statements are true.

All statements are true.

What is the only​ way(s) for retained earnings on the balance sheet to decrease from one year to the​ next?

B, C, and D

​____________ can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

B. Market segmentation

The corporate valuation formula for the net worth method is​ what?

B. Total​ shareholders' equity​ (SE) minus​ (goodwill +​ intangibles).

​R&D spending in China increased to about​ $___ billion in​ 2014, up​ ___ percent from 2012. In​ contrast, R&D spending in the United States grew about​ ___ percent to​ $____ billion during the same period.

B. ​285; 22;​ 4; 465

In the United States​ , only two states currently require businesses to tell employees if their electronic communicationslong dash—including ​e-mails, instant​ messages, texts,​ photos, and websites visitedlong dash—are being​ monitored; the two states are​ _____ and​ _____.

B. ​Delaware; Connecticut

Some hotel​ chains, such as​ ________, are holding off on using smartphones as keys until potential security issues can be resolved.

C. Marriott

The top 20 most valuable college football programs are listed in the chapter in terms of their monetary value. What team is most​ valuable?

C. Texas Longhorns

The common stock of a firm that is owned by the firm itself is called​ what?

C. Treasury stock

Three marketing activities are especially important in strategy implementation and thus are discussed as major sections in Chapter 8. Which activity is not one of the​ three?

D. Advertise products effectively.

What formula below is correct for valuing a company using the​ price/earnings ratio​ method?

Divide the market price of the​ firm's common stock by the annual earnings per share​ (EPS) and multiply this number by the​ firm's average net income for the past 5 years.

What two criteria does an excellent product positioning map​ meet?

E. A and C

When a firm buys more of its own common​ stock, what is the effect on the​ firm's earnings per share​ (EPS) value?

It goes up.

Which statement is​ false? A. Sometimes firms will thus increase their treasury stock near the end of the​ quarter, or near the end of the​ year, to​ "artificially" inflate their EPS. B. ​Normally, in developing projected financial​ statements, the cash account is used as the plug figure. C. Another name for the balance sheet accountlong dash—​additional-paid-in-capitallong dash—is capital surplus. D. A and B E. None of the above

None of the above

Is the following statement​ true? No federal laws in the United States currently prevent businesses from using GPS devices to monitor​ employees, and federal law does not require businesses to disclose to employees whether they are using such techniques.

Yes

Another term for product positioning is​ _______________.

perceptual mapping

Limitations of​ EPS/EBIT analysis​ include:

​A, B, and C

The marketing mix component​ variables, also called the 4​ P's of​ marketing, are:

​product, place,​ promotion, and price.