busi 1301
is the creation of real or perceived differences in goods or services
Product differentiation
What is an example of a manufacturer's brand name?
Xerox
True or false: The two categories of Goods and Service that take more effort on the part of consumers are Shopping and Specialty
true
Companies usually offer a product line instead of just one product to:
-meet the competition -tailor their offerings more closely to consumer wants -appeal to similar consumer markets
When a corporation finances expansion with----there is usually no influence on management. If they use--financing by selling stock, the common stockholders have voting rights.
Blank 1: debt Blank 2: equity
Sellers are now able to commercialize new products more quickly online and through social media that enable them to reach
Blank 1: global Blank 2: markets
Capturing people while they're on the go, and while they have a relatively small communication device in their hands, is an example of using
Blank 1: mobile Blank 2: media,
Answering a customer's---- clearly during the sales process, communicates your ability to resolve the customer's issues and helps build trust.
Blank 1: objections or objection
The statement of cash flows reports cash receipts and disbursements related to --- investments, and financing.
Blank 1: operations
Stockholders are the---of a public corporation.
Blank 1: owners or investors
A carefully planned----ensures that your business has multiple strategies in place for reaching customers, making sales, and achieving both short and long-term goals.
Blank 1: promotion or promotional Blank 2: mix
Any information about an individual, a product, or an organization that is distributed to the public through the media and that's not paid for or controlled by the seller is known as
Blank 1: publicity
The assessment of a firm's financial condition and performance through calculations and interpretation of financial ratios developed from the firm's financial statements is called
Blank 1: ratio
A firm that issues a bond backed by assets that may be claimed upon default has issued a(n) ----- bond.
Blank 1: secured
Designing a product so that it satisfies customers and meets the profit margins desired by firms is called
Blank 1: target Blank 2: costing
A debenture bond—a bond that is not backed by collateral, is also known as a(n)
Blank 1: unsecured
testing reveals how frequently a customer will buy a product and at what price, among other things
Concept
What are four main types of financial ratios used in ratio analysis?
Debt ratios Liquidity ratios Profitability ratios Activity ratios
Packaging serves several critical functions in the overall success of a product. Some of these functions are
Giving a potential buyer a sense of price, value, and uses. Attracting the buyer's attention Explaining the benefits of what's inside
Anticipating concerns to counter reasons for not buying the product comes up in this phase of the selling process
Handling objections
Identify the statements that are correct regarding pledging. (Select all that apply)
In pledging, a firm's accounts receivable are used as the collateral for a loan. A percentage of the value of a firm's accounts receivable pledged is advanced to the borrowing firm.
Which statements are true regarding trade credit? (Select all that apply)
It is the most widely used source of short-term funds It is used by large and small businesses It is usually more convenient than bank loans
Which of the following are true about commercial paper?
Only large, stable firms offer it. It is a short term source of funds.
Why do sales promotions increase during economic crises?
People look more closely for coupons and other promotional deals to save money.
Convenience Shopping Specialty Unsought
Purchased often with little thought Time spent on comparison to substitutes No substitute will do Unaware of product or not looking for it
What are some benefits of using computers for accounting purposes?
Software can help if no strong accounting support is available. It frees accountants' time for more important tasks. Information can be posted from journals instantaneously.
When opening a bag of potato chips the bag is much larger than what is inside. The reason for this most likely has to do with which function of packaging.
To protect the goods inside
The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the _______ equation.
accounting
Net income is
all revenue minus all expenses and taxes
The information and analysis that comes from managerial accounting is used to
assist managers inside the organization with their decision making
A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:
brand
The value of the brand name and associated symbols is referred to as
brand equity
Grouping two or more products together and pricing them as a unit is called
bundling
When consumers look at all of the benefits of a product and subtract all of the costs related to its purchase, they are:
calculating the value of the product
Examples of convenience goods are:
candy, gum, milk, and gas
A product that could be both a consumer product or industrial product depending on its use is a:
computer
Revelations about whether or not a new product will be liked and purchased by consumers are revealed during:
concept testing
good or service is one that the consumer wants to purchase frequently and with minimum effort.
convenience
Candy, gum, milk, snacks, and gas are all examples of--
convenience good
Making a product readily available and creating the proper image is the best way to promote a good classified as a(n):
convenience good
Items purchased often and without much effort on the part of the consumer are referred to as---
convenience goods
A product the consumer wants to purchase frequently and with minimum effort is a good or service called a(n):
convenience product
B2B sales promotion can use several techniques such as
creating portfolios or sales kits for salespeople. having a booth at a trade show. attending industry conventions.
Which type of bond is not backed by any specific collateral, such as land or equipment?
debenture bonds
Firms can gain market share by creatively establishing product--that is either real or perceived by consumers.
differentiation or differences
An increase in outsourcing and alliance building has resulted in---product development that often includes coordinating with companies in other countries.
distributed
Handing off various parts of a firm's innovation process sometimes to companies in other countries is called---product development.
distributed
Not delivering what is promised is a leading cause of new-product
failure
True or false: Distributed product development is producing a firm's product without the help of other organizations.
false
True or false: Grouping two or more products together and pricing them as a unit is called stacking
false
Select the steps in financial planning.
forecasting short term needs establish financial controls develop budgets
On a balance sheet, assets may include Blank______. (Select all that apply)
goodwill tangible resources intangible resources
What are three profitability ratios?
gross margin, operating margin, net profit margin
Where is accounting data first entered?
in a journal
What type of ratios measure the degree to which a firm relies on borrowed funds in its operations?
leverage
What is another name for debts?
liabilities
Compared to a bank, the interest on commercial paper is
lower
In the long run, price is determined by the:
market
will ultimately determine the price of goods
market or marketplace
A brand manager manages all elements of a product line or the brand's
marketing mix
Convenience Shopping Specialty Unsought
milk washing machines orthopedic surgeons burial services
Not delivering what is promised is a leading cause of new-product
nameailure
Xerox, Kodak, Sony, and Dell are all examples of
national brand names.
A term-loan agreement is a promissory note that requires the borrower to:
pay interest on a loan pay specified amount in installments
A computer kept at home for personal use is considered a(n)---- whereas the same computer purchased for use in a business office is considered a(n)
personal good industrial good
The reasons why many new products fail include
poor packaging poor positioning too few differences from competitors
Companies rarely sell one product, but offer a
product line
During _____, a marketing manager should use such criteria as fit with the firm's other products, profit potential, and marketability.
product screening
Justifying a new product's fit, profit potential, and marketability is known as:
product screening
The talking arm of public relations is known as
publicity
The formula for the costs of goods sold is
purchase price + freight charges + storage costs
The promotional strategy in which the producer uses wholesaler discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise is known as a(n)
push
An accounting system is used to ______.
record and summarize accounting data into reports
If a push stagey is successful, then consumers are more likely to find out about a new product after:
seeing it in stores wholesalers and retailers decide to stock it
Companies usually offer a product line instead of just one product to:
tailor their offerings more closely to consumer wants meet the competition appeal to similar consumer markets
In factoring, the discount given depends on
the condition of the economy the nature of the business the age of the accounts receivable
Recognizing what stage of its life cycle a product is in has a direct impact on marketers' decisions about:
the marketing mix marketing strategy
A debenture bond is backed by:
the reputation of the issuer
Stockholders, or owners' equity represents
the value of the business that belongs to owners
As a function of financial management, financial managers must understand tax regulations because
they must consider the tax implications of major decisions businesses want to minimize taxes
