Business Exam #3 Chp 9,11,12

In finance, a _____ is one that can be quickly converted into cash with little risk of loss.

liquid asset

_____ refers to funds provided by creditors.

Debt Financing

Which of the following is a leverage ratio?

Debt Ratio

Which of the following is a difference between demographic segmentation and geographic segmentation?

Demographic Segmentation refers to measurable characteristic about people Segmentation based on where consumers live

During the selling era of marketing, supply in many categories exceeded demand. This led to the:

Emergence of the hard sell

In the context of marketing strategies and tactics,_____ includes marketing—or sponsoring—athletic, cultural, or charitable functions.

Event Marketing

Which of the following is a drawback of primary data?

Expensive

funds a firm uses to acquire its assets and finance its operations

Financial Capital

Companies employ_____when they actively promote the ecological benefits of their products

Green Marketing

A deep association between a marketer and a partner (usually a cultural or sporting event), which involves promotion of the marketer in exchange for either payment or the provision of goods, is known as _____.

Sponsorship

_____ refers to financing that arises during the natural course of business without the need for special arrangements.

Spontaneous Financing

In the introduction stage of the product life cycle, companies are primarily focused on:

building customer awareness of the product

An example of a pure service is:

Accountant providing financial consultation

Both invest in risky opportunities that offer the possibility of high rates of return

Angel Investors & Venture Capitalists

_____ are also sometimes called activity ratios.

Asset Management Ratios

_____ measure how effectively an organization uses its resources to generate net income.

Asset Management Ratios

_____ measures how long it takes for a firm to receive payment from customers who buy on credit.

Average Collection Period

In the growth stage of the product life cycle, competition:

Begins as firms enter the market with new variations of existing products

_____ forecasts the types and amounts of assets a firm will need to implement its future plans and help financial managers determine the amount of additional financing the firm must arrange in order to acquire those assets.

Budgeted Balance Sheet

In the context of product adoption and diffusion, which of the following questions relates to the product characteristic of complexity?

Can potential consumers easily understand what your product is and how it works?

Financial managers use _____ to assess the financial strengths and weaknesses of their firm.

Cost Accounting

In the context of the new product development process, the _____ stage leads to detailed descriptions of each concept with specific product features.

Development

_____ are brand-new ideas that radically change how people live.

Discontinuous Innovations

The goal of the _____ of a product is to deliver the product to the right people, in the right quantities, at the right time, in the right place.

Distribution Strategy

Required large firms in the financial sector to hold more equity and less debt in their capital structures.

Dodd-Frank Act

_____ require a moderate level of consumer learning in exchange for significant benefits.

Dynamically continuous Innovations

The _____ measures how many times a firm's stock is sold and replaced each year

Inventory Turnover Ratio

An example of a pure good is:

Jacket

_____ measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the following year.

Liquidity Ratios

Delventon Bank offers loans to multinational corporations which can be returned over an extended period along with interest. The bank issues such loans in the form of bonds. Which of the following financing options is being offered by Delventon Bank in the given scenario?

Lone-Term Debt

Which of the following statements is true of customer loyalty?

Loyal customers provide valuable feedback

Magnifies the financial return on the investment of stockholders when times are good

Main Advantage of Financial Leverage

Which of the following utilities satisfies wants by providing goods and services at a convenient location for customers?

Place Utility

In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain _____.

Primary Data

_____ are ratios that measure the rate of return a firm is earning on various measures of investment.

Profitability Ratios

Tusken Thaw, a shipping industry, plans to expand its customer base to other countries. To facilitate this process, Tusken Thaw seeks financial assistance from Jermino Bank. The bank agrees to lend a specified amount of money; however, it mandates Tusken Thaw to return the amount with interest in a regular schedule of fixed payments. Which of the following sources of long-term funds is being used by Tusken Thaw in the given scenario?

Term Loan

Which of the following utilities satisfies wants by providing goods and services at a convenient period for customers?

Time Utility

Maurio Inc., a publishing house, wants to invest in digital publishing. However, the company does not possess enough capital to kick start the project. In order to gain immediate funds, Maurio Inc. sells its accounts of credits to Restube, a financing firm, at a discount. Which of the following short-term financing options is being used by Maurio Inc. in the given scenario?

Trade Credit

_____ involves using all the media platforms to promote a product.

Viral Marketing

In the context of market segmentation, a well-chosen target market should have _____.

an appropriate size

In the context of business product categories, _____ include finished products used in producing other products.

component parts

In the context of liquidity ratios, a firm's _____ are the debts that must be repaid in the following year

current liabilities

An advantage of offering lenient credit terms is that it can help a firm:

increase its sales

In addition to contributions from owners, firms can also raise long-term funds by:

issuing bonds

An advantage of debt financing is that:

it does not require firms to sell stock to new investors to gain additional funds

As a current asset, firms use cash for _____.

paying dividends

A _____ can help a firm evaluate how much internal financing (funds generated by earnings) will be available for a planning period.

Budgeted Income Statement

In the context of consumer promotion tools, _____ entice consumers with cash-back offers and act as purchase motivators for higher-priced items.

Coupons

The _____ is a common measure of leverage that compares liabilities to assets.

Current Ratio

_____ compares assets that will provide cash in the following year to debts that will come due in the following year.

Current Ratio

In the context of marketing a product, which of the following statements is true of over promising?

Customers will be dissapointed if the product falls short of very high expectations

Which of the following statements is true of primary data?

Customized to meet a marketer's needs.

Habetts, a company that sells cell phone accessories, introduced a new range of cell phone covers in various patterns that read the following: "I don't drink and drive because I love my family." Which of the following marketing strategies does this scenario best illustrate?

Idea Marketing

Freldine is a company that manufactures and sells different kinds of mattresses. Since it does not have any direct retail outlets, Freldine's products are bought by customers from home furnishing stores and e-commerce websites. In the context of customer relationship management, Freldine most likely establishes _____ with its customers.

Limited Relationship

EatOut is a food joint that serves pizza, while GlowBelle is a luxury beauty salon that sells cosmetics. What do EatOut and Glow Belle have in common?

Mix of goods and services

Pools funds from many investors and uses these funds to purchase very safe, highly liquid securities.

Money Market Mutual Fund

_____ are brands that the producer owns and markets.

National Brands

Which of the following utilities satisfies wants by smoothly transferring proprietorship of goods and services from seller to buyer?

Ownership Utility

Brody Dominic is a famous movie actor and the brand ambassador for his clothing company, Dominikent. Consumers tend to like the collection at Dominikent mainly because Dominic is a style icon himself. Which of the following marketing strategies does this scenario best illustrate?

People Marketing

In the context of marketing strategies and tactics, sports, politics, and art dominate the category of _____.

People Marketing

Trestone, a guitar manufacturing company, produces a thousand units of electric guitars each year. The company has been able to sell all its guitars by the end of the fiscal year and earn twice the amount spent on production and marketing. The given scenario indicates that Trestone most likely analyzes _____ for its financial planning.

Profitability Ratios

In the context of the marketing mix, the _____ of a product includes all of the ways that marketers communicate about the product.

Promotion Strategy

_____ refers to dividing the market based on consumer attitudes, interests, values, and lifestyles.

Psycho graphic Segmentation

In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to:

Pursue a full partnership with each of its key clients

_____ measures the income earned per dollar invested by the stockholders of a firm.

Return-on-Equity

In the context of consumer product categories, both producers and retailers are apt to promote _____ but to a highly targeted audience.

Specialty Products

In the context of consumer product categories, most people perceive _____ as being so important that they are unwilling to accept substitutes.

Specialty Products

A firm's _____ refers to its holdings of currency plus demand deposits.

cash