test 2 Business GBS151
Using borrowed money to increase profits (e.g. what the banks used in excess during the Great Recession) is called: •Financial leverage •Funding your business •Financial planning •None of these •All of these
Financial leverage
Which of the following is NOT one of the 3 tools used by the Federal Reserve System in managing the money supply? •Fiscal policy •Open market operations •Reserve requirements •Discount rate •None of these
Fiscal Policy
Which of the following would be associated with "equity" capital? •Bonds •Initial Public Offering (IPO) •Bank loans •Microfinance •None of these
Initial Public Offering (IPO)
Short-term investments that are easily converted into cash: •Municipal bonds •Dividends •Secured loans •Accounts receivable •Marketable securities
Marketable securities
The _____________ concept focuses on identifying and understanding consumer needs -then, creating, delivering, and communicating value to target customers. •marketing •SWOT •CRM •promotion •sales
Marketing
Samsung entered the smartphone market after Apple's success with the iPhone. Samsung priced its phones substantially lower than the iPhone, hoping to win customers who wanted to pay less for a latest-generation smartphone. This is an example of: •penetration pricing •loss leader pricing •skimming pricing •markup pricing •none of these
Penetration pricing
In general, the most expensive, but most adaptable method of the following promotion mix is •Public relations •Social media •Personal selling •Sales promotion •Advertising
Personal selling
Besides people, the "5 Ps" in your textbook also includes which of the following parts of the marketing mix? •product, planning, positioning, price •all of these •product, promotion, place/distribution, price •none of these •product, packaging, placement, price
Product promotion place/distribution price
Which of the following is NOT a balance sheet category? •Liabilities •Owner's Equity •Assets •None of these • Revenues
Revenues
A basic principle in finance which holds that the higher the risk, the greater the return that is required: • Financial management. •Factoring •Circuit breakers • Risk-return trade-off •Retained earnings
Risk-return trade-off
The purpose of this law is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. It is the: •All of these •None of these • Sarbanes-Oxley Act (SOX) •Generally Accepted Accounting Principles (GAAP), •Securities and Exchange Commission (SEC)
Sarbanes-Oxley Act (SOX)
Which of the following would be the best market coverage strategy for distributing designer jeans? •Selective •Direct •Exclusive •Sales promotion •Intensive
Selective
Which of the following statements summarizes all the money flowing into and out of a firm? •Balance sheet •Journal •Annual report •Statement of cash flows •Income statement
Statement of cash flows
Wholesalers typically perform which of the following functions? •None of these •They may (or may not) take title into the goods they sell •Self products to retailers and two other institutions All of these •They may help with other services such as advertising
•All of these
Junia grows organic strawberries on her family owned farm and sells them throughout spring and summer at her families roadside fruit stand. What type of distribution channel does she use? •Direct •Intensive •Specialty •Retail •Selective
•Direct
Campus coffee needs to attract new customers to its business. Which of the following is probably NOT in its integrated marketing communication ( IMC ) plan? •Public relations •Advertising •Sales promotion •Social media •Sales forecast
•Sales forecast
Which of the following would HP use for the " sales promotion" part of its IMC promotion strategy •Advertising •E-commerce •Personal sales •Guerilla marketing •Trade shows
•Tradeshows
Adventure Sports, Inc. is calculating its Income Statement for the past year. They've made $100,000 in sales revenue, paid $30,000 in cost of goods sold, and had $50,00d in expenses. What is their net income before taxes? •$10.000 •$50.000 •$20,000 •$30,000 •$70,000
$20,000
Although money has no intrinsic value, it is demanded throughout society. Among the reasons that money is demanded are: •All of these •None of these •It stores value •It can be used as a medium of exchange •It can be used as a measurement of value of goods and/or services
All of these
Bonds are: •Debt •A way to raise capital through borrowing (used by corporations and governments) •All of these •None of these •A formal contract to repay borrowed money with interest at fixed intervals
All of these
How do businesses raise financial capital? • All of these •Equity financing •Retained earnings •Debt nancing •None of these
All of these
How does effective branding typically benefit business? •It builds customer loyalty •None of these •It can command premium pricing •It improves product recognition •All of these
All of these
How does effective branding typically benefit businesses? •It can command premium pricing •None of these •It builds customer loyalty •All of these •It improves product recognition
All of these
The Federal Deposit Insurance Corporation (FDIC): • All of these •None of these • Is an independent, quasi-public corporation •Is backed by the full faith and credit of the United States government •Insures deposits in commercial banks and thnit institutions up to a ceiling of $250,000 per account
All of these
The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)? •All of these •None of these •Full employment •Sustainable economic growth •Price stability
All of these
The primary goal(s) of consumer marketing research include: •collecting and evaluating data on consumer preferences •all of these •helping a company understand their target market customers •serving as the voice of the consumer •none of these
All of these
What makes social media fundamentally different than traditional media? •None of these •It is relatively inexpensive to implement •Social media are designed for interaction, while traditional media are designed for one way communication •It is easier to track up people view and use social media as compared to traditional media •All of these
All of these
Which factors should marketers consider as they identify the optimal distribution channel? •Who are your target consumers and where do they like to shop? •All of these •How long will it take to get the product into the customers hands? •None of these Will this channel reach enough customers?
All of these
Which of the following are components of the external marketing environment? • All of these •None of these •Economic environment •Technological environment •Political and regulatory environment
All of these
Which of the following are the realm of financial managers? •None of these •Investment (spending money) •All of these •Financing (raising money) •Financial planning
All of these
Which of the following methods are used to finance a new business? •Crowdfunding •FFF •Angel investors •None of these •All of these
All of these
Which of the following statements is TRUE about money and financial institutions? •All of these •None of these •There are now more U.S. dollars used outside the courtry •One of the Feds Important functions is making check cashing easier •One of the feas important functions is distributing currency
All of these
You are helping Susie with her pizza business. Which of the following techniques could she use for her Customer Relationship Management (CRM) strategy? •Try using frequent shopper cards • All of these •Use social media to gather feedback •Send text updates to her list of customers •None of these
All of these
Your startup company has just created a new marketing department; which of the following function should it accomplish? •Customer service •Choose best, marketing channels •None of these •Choose appropriate promotion mix •All of these
All of these
The net worth of the Horsepants company (showcased on Jimmy Kimmel's version of Shark Tank) would be calculated in the: •Income Statement •None of these •Balance Sheet •All of these •Cash Flow Statement
Balance Sheet
What is the system used to record a firm's financial transactions a routine and clerical process)? •Financial accounting •Record keeping •Bookkeeping •Auditing •Managerial accounting
Bookkeeping
Which of the following is considered a nondepository financial institution (that may offer some banking services - but does not accept deposits)? • Brokerage firms •None of these • Commercial banks • Thrift institutions (such as Savings & Loans) •Credit unions
Brokerage firms
Which of the following product development phases would ROI be calculated? •Business analysis •Test market the new product •Developed the concept •Develop new product ideas •Screen, ideas and concepts
Business analysis
Which of the following items might be requested by a local bank to help guarantee payments on your small business loan? •Taxes •Commercial paper •Collateral •Line of credit •Horsepants
Collateral
Which of the following is NOT considered a form of U.S. currency? •Credit cards •Cash •Money orders •Cashier's checks •Treasury checks
Credit cards
Which of the following is NOT part of the Product Life Cycle? •Growth • Decline •Maturity •Introduction • Development
Development
Guellermo is trying to calculate the Breakeven Point of his hot new Horsepants T- l shirts. His equipment cost him $300, he buys plain T-shirts from his supplier for $5 each, and he charges his customers $25 for each shirt. How many T-shirts will he need to sell before he will finally be able to start making a profit? Formula = FC/(P-VC) •75 •60 •None •15 •30
15
The Dow Jones Industrial Average is an index of _____________ stocks of major industrial corporations •100 •None of these •75 •All of these •30
30
Accounting is more than simply calculating the net profit or loss from business operations. Accounting is actually a process that involves: •Following GAAP guidelines •'None of these •Measuring the financial health of companies •Preventing unethical behavior and fraud. •All of these
All of these
Which of the following statements is NOT true about money and financial institutions? •U.S. banks have few advantages in overseas markets •Fintech services will continue to disrupt the banking industry, helping them to better serve customers by innovating and streamlining their business practices •International banks operating within the United States have a substantial impact on the local economy •Mobile financial apps will continue to be a strategic advantage •Online and mobile banking services will become more popular
U.S. banks have few advantages in overseas markets
The goals of investing your money are: •None of these •To keep accurate records so you can analyze your business' performance •Using your money to make more money •To promote your product and business •All of these
Using your money to make more money
The Income Statement reports: •Your company's net income for the year •All of these •Your assets •None of these •Your company's owner's equity at this point in time
Your company's net income for the year
For marketing to be successful, companies need to understand ____________, the decision process individuals go through when they are selecting, purchasing and using a product. •none of these •demographic shifts •consumer (buying) behavior •all of these •social influences
consumer (buying) behavior
Financial institutions act as intermediaries between suppliers and demanders of funds. They accept savers' deposits and invest them in such things as business loans or mortgages. This process is called: •Financial intermediation •financial coordination •Financial equilibrium •Depository intermediaries •Intermediary banking.
financial intermediation
A creditor, such as a bank, would review a company's cash and other assets (that can easily be converted into cash) in order to determine its: •All of these •None of these •Income • Liquidity •Owner's Equity
liquidity
