BUSINESS FINAL

Which of following statements about international banking is true?

All of the above statements about international banking are true

A distribution channel is a series of marketing entities through which goods and services pass on their way from producers to end users

True

The internet is essentially a worldwide wide area network (WAN)

True

The nation's insurance companies are major suppliers of funds to the US financial system

True

US banks provide better customer service and have access to more sources of funding than local banks in many countries

True

Adam Hassib works fro the Federal Deposit Insurance Corporation. He arrives unannounced at member banks where he conducts audits of managerial and financial practices. Hassib is a:

bank examiner

Financial institutions can be divided into two broad categories. These are ____ institutions

depository and nondepository

The ____ is a series of marketing entities through which goods and services pass on their way from producers to end-users

distribution channel

US Carburetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:

gross profit

How would you describe the relationship between the NYSE and NASDAQ?

heated competitors

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

All of the above describe how personal selling is superior to other forms of promotion

A term loan is a loan with a maturity of less than a year

False

National banks must belong to the Federal Reserve System and must carry FDIC insurance

True

Financial managers

are described by none of the above

Things of value owned by a firm are called its:

assets

Collecting data over a period of time and then processing that data all at the same time is called ____ processing

batch

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

certified public accountant

As a promotional tool, podcasting offers the advantage to listeners of:

convenience

Which of the following is the BEST example of a current asset for a university bookstore?

credit card charges by book buyers

The primary activity of ____ is underwriting

investment bankers

Which of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange

profitability

The three principal tools of the Federal Reserve System is carrying out ____ policy

reserve requirements, discount rate, and open market operations

US banks have had no trouble competing successfully against foreign banks

False

In finance, the opportunity for a profit is called a return

True

Internet retailing is called e-retailing

True

The Federal Deposit Insurance Corporation (FDIC) monitors the banking practices of the institutions that it insures

True

The NYSE and NASDAQ are vying for supremacy in the US securities markets

True

The goal of all promotion is to stimulate action

True

Types of promotional goals include creating awareness, increasing the use of products, and identifying potential customers

True

The idea behind ____ is the need that criminal investigators have for examining evidence on computer hard drives such as in e-mails or databases in order to build cases against embezzlers and others

digital forensics

it is a paramount for a dentist to provide the best patient care possible. The dental assistant, even though he or she may perform unskilled work such as fitting a patient with a bib, must also know the proper use of surgical and sterilization techniques to ensure patient safety. Formally educated dental assistants have the knowledge to understand the difference between sterilization and disinfection, and the relative importance of both. Since such are nearly always performed by dental assistants, a dental assistant can be correctly identified as a:

knowledge workers

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:

management

A LAN is a:

network of computer systems that share the use of software and hardware

A (n) ____ is a summary of what a company has earned and spent over a given period

income statement

General Electric saves $1.6 billion per year by using its private corporate network that links its 340,000 employees. Another name for this network that operates behind a firewall in a(n):

intranet

A mortgage is a long-term loan that uses real estate as collateral

True

An intermediary that takes possession and title of goods is called a merchant wholesalers

True

By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy

True

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses

True

Examples of time deposits are savings accounts, money market deposit accounts, and certificates of deposit

True

Money is anything that is acceptable as payment for goods and services

True

The owner of Mercury Appraisal Company held a ribbon cutting event when he opened his new business. He invited city dignitaries, representatives from all the new media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

create awareness

The ratio of total current assets to current liabilities is called the ____ ratio

current

____ management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation

knowledge

The three main types of unsecured short-term loans are:

trade credit, bank loans, and commercial paper

Selling a firm's accounts receivables to a financial institution at a discount is called countertrading

False

Software piracy relates to transferring programs and information from hard disks to floppy

False

The final stage of the selling process is closing the sale

False

The frequent reference to Chili;s restaurants on the television show The Office is probably an example of co-marketing

False

Which statement describes the major drawback to the use of debt financing?

Financial risk is always a possibility with debt financing

The most important function of the Federal Reserve System is carrying out ____ policy

monetary

Larry's Kite Shack operates on the Florida beaches during the tourist season. Last year, Larry sold $20,000 worth of kites. His cost of goods was $7,000, and he paid himself a salary of $20,000. On an income statement, Larry's business would have a(n):

net loss

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the ____ when it is a positive number

net profit

Which of the following is an example of an advertising medium?

all of the above: newspapers, television, magazines, direct mail

In finance, the potential for loss is called probability

False

Publicity is any information that a company issues to the media that is paid for by the company

False

The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate

False

Trade credit is credit extended to the buyer by the seller. it is entered in the buyer's books as an account receivable

False

____ is anything (regardless of form) that is acceptable as payment for goods and services

Money

The ____ system is the first electronic-based market and the largest over-the-counter market

NASDAQ

____ are distribution channel members that buy finished products from manufacturers and sells them to retailers

Wholesalers

The primary goal of the financial managers is to:

maximize the value of the firm to its owners

Investment banker is another term for stockbrokers

False

The Banking Act of 1933 gave the Federal Reserve System the authority to:

do all the above

Competing against foreign banks can be difficult for US banks because:

foreign banks are subject to fewer regulations than US banks

Which of the following is NOT a typical task performed by a supply chain manager?

hiring packers and drivers

Which of the following is NOT a type of retailer?

manufacturer's representative

A group of two or more computer systems linked together by communications channels to share data and information is called a computer:

network

The brand name Cover Girl appeared in a young adult novel called Cathy's Book: If Found Call (650) 266-8233. One sentences in the book reads: "a killer coat of Lipslicks, a lone of Cover Girl lip glosses. Procter and Gamble promoted the novel at beinggirl.com web site in exchange for the mention. This is example of"

product placement

When Nike donated $25,000 to a low-income area to provide job training, it received free and positive ____ in the news media

publicity

Sales made, but for which payment has not yet been collected, are called accounts payable.

False

Blogs provide marketers with a real-time dialogue with customers and an avenue to promote their products

True

Securities are investment certificates issued by corporations or governments

True

Supply chain management plays a dual role. Its first role is a communicator of customer demand that extends from the point of sale all the way back to the suppliers. The second role is as a physical flow process that engineers timely and effective movement of products

True

____ is the process of buying securities from corporations and governments and reselling them to the public

Underwriting

When a firm goes public, it must reveal such information as:

all of the above: financing plans, product details, financial data, operating data

Which of the following is an example of a data security issue?

all of the above: software piracy, unauthorized access and use, deliberate damage, introduction of a computer virus

Accounting provides a framework for looking at:

all of the above: past performance, current financial health, possible future performance, financial performances of different firms

Financial intermediation is the process in which:

financial institutions act as intermediaries between the suppliers and demanders of funds

A(n) ____ is the financial statement that is used to assess the sources and users of cash flow during the year

statement of cash flows