Business Final Tests 3-5
30. _____ is best described as an Internet advertising strategy that attempts to get customers to communicate a firm's message to friends, family, and colleagues.
Phishing
32. _____ is a technology that stores information on a microchip—such as a unique serial number—and transmits it to a reader when it is within range.
Radio frequency identification
33. _____ is software that installs itself on a computer without permission and then tracks its behavior in some way.
Spyware
28. The overall value of a brand to an organization—the extra money that consumers will spend to buy that brand—is called _____.
brand equity
34. In the introduction stage of the product life cycle, marketing efforts are primarily focused on:
building customer awareness of a product.
35. Mopsun, a garment store, sells customized hoodies at $7 per unit. The total fixed costs add up to $8000 per year, and the variable costs add up to $3 per unit. How many hoodies should Mopsun sell every year in order to cover all costs?
2000
_________ are costs that are incurred as the result of some specific cost object.
A. Direct costs
45. In the context of business market segmentation, _________ refers to dividing the market based on the concentration of customers.
A. geography-based segmentation
A _________ issued by an investor instructs a broker to buy or sell a security at the current market price.
A. market order
42. Marketers wrap their actual products in additional goods and services, called the_________, that sharpen their competitive edge.
B. augmented product
44. The _________ involves determining how a product will flow through the distribution channel from producer to consumer.
B. physical distribution strategy
44. A _________ is a product's identity that sets it apart from other players in the same category.
Brand
_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.
Budgeting
45. Great _________ stems from consumer needs, but it usually includes at least a smidge of creative brilliance.
C. product packaging
27. Which of the following can happen when a company launches a new product that is lower in price than the current products of the company?
Cannibalization
Which of the following is a key external user of a company's accounting information?
Competitors
34. Which of the following refers to programs that install themselves on computers without the users' knowledge or permission and spread by attaching themselves to other files that are transferred from computer to computer?
Computer viruses
41. _________ are distribution organizations—informally called "middlemen"—that facilitate the movement of products from the producer to the consumer.
D. Channel intermediaries
A _________ is the most common depository institution.
D. commercial bank
21. _____ are files of related facts and figures organized according to a logical system and stored on hard drives or some other computer-accessible storage media.
Databases
24. _____ refers to marketing, buying, selling, and servicing of products over a network, usually the Internet.
E-commerce
31. _____ are best described as specialized Internet sites, which provide a platform to interact for businesses, specifically those involved in business-to-business (B2B) transactions.
E-marketplaces
_____ refers to the physical components used to collect, input, store, and process data, and to display and distribute information.
Hardware
12. While driving to work, Noel hears an advertisement on the radio about the annual blood donation camp organized by the American Red Cross. The American Red Cross emphasizes the importance of blood donation for the donor and recipient. This is an example of _____ marketing.
Idea
41. The type of marketing where public and private organizations market thoughts that are meant to change how people think or act is known as _________ marketing.
Idea
14. _____ is often referred to as the world's largest computer network.
Internet
26. Which of the following statements is true of business-to-business (B2B) e-commerce?
It involves businesses selling supplies, components, machinery, equipment, or services to other businesses.
13. What do gasoline for cars, ketchup for fries, and scarves have in common?
They are pure goods.
18. _____ is based on a customer's perception that a product has a better relationship between the cost and the benefits than its competitors.
Value
17. The physical good or delivered service that provides a core benefit is called the _____ product.
actual
18. The benefit that cloud computing provides to individual users is that:
allow companies access to a vast array of computing resources without the need to invest heavily in IT personnel.
41. In the context of product layers, at the most fundamental level, consumers buy a _________ that satisfies their needs.
benefit
31. United Airlines recently announced that it would promote Golden Brew's cocoa coffee on its flights. This is an example of _____.
cobranding
A(n) _____ is an example of a depository institution.
commercial bank
19. _____ are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis.
Convenience products
17. Firms create _____ by offering limited access to certain areas of their intranets to select groups of people.
extranets
20. Data become _____ when they are processed, organized, and presented in a way that makes them useful to a decision maker in a company.
information
A(n) _____ is the first time a company issues stock that may be bought by the general public.
initial public offering
29. Gregory works for Ocan Foods, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. In this case, Gregory is involved in:
logistics
A(n) _________ takes legal possession of the goods to be distributed.
merchant wholesaler
Annual reports include _____ that disclose additional information about a firm's operations and special circumstances that clarify and supplement the numbers reported on the financial statements.
notes
33. In an effort to expand its business, music retailer MovNow offers DVD rentals online. In order to spot trends in consumer interest, MovNow has decided to evaluate the data of the hyperlinks that customers click on when they visit its website. This is an example of how a company can obtain _____ data.
primary
37. A firm's _____ is a brief statement articulating how it wants the target market to envision its product relative to the competition.
statement
12. The two broad categories of software are:
system software and application software.
15. _____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.
Customer relationship management
32. Most car dealers allow test-driving of the cars they sell to increase the _____ of their product.
trialability
A(n) _____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.
unqualified
14. Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?
Channel intermediaries
12. Which of the following are the elements of the distribution strategy?
Channels of distribution and physical distribution
27. Which of the following is a difference between demographic segmentation and geographic segmentation?
Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live.
26. Which of the following is a form of non-store retailing?
Direct selling
The _____ of 2010 expanded the Fed's regulatory authority over non-depository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.
Dodd-Frank Act
_____ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.
Financial accounting
36. _____ remain constant regardless of how many products are sold.
Fixed costs
24. Which of the following is one of the characteristics of a well-chosen target market?
Good accessibility
37. _____ refers to the development and promotion of products with ecological benefits.
Green marketing
Which of the following is true of personal investing?
In general, riskier investment strategies offer the potential for higher returns.
22. _____ involves placing a producer's products such as low-cost convenience goods in as many stores as possible.
Intensive distribution
37. Which of the following statements is true of cost-based pricing?
It determines price by adding a fixed margin to the per-unit cost of the product.
28. Which of the following best describes marketing mix?
It is the blend of marketing strategies for product, price, distribution, and promotion.
40. Which of the following statements is true of odd pricing?
It is the idea that if a television costs $599 instead of $600, consumers perceive the first one to be far cheaper than it actually is.
13. Which of the following statements best defines a channel of distribution?
It is the path that a product takes from the producer to the consumer.
The _____ tracks the stock prices of some of the largest and most actively traded companies listed on the Tokyo Stock Exchange.
Nikkei 225
11. Which of the following marketing strategies can be best employed for attracting tourists?
Place marketing
23. Which of the following identifies how reliably a product delivers its promised level of quality?
Product consistency
40. Which of the following traditional promotional tools focusses on creating positive associations to generate a favorable impression about a company or its products?
Public relations and personal selling
11. A management consulting firm offers a management training program that instructs students on utilizing various tools for effective time management and aims to improve their risk management skills. Which form of product is the firm offering?
Pure services
35. _____ demands that marketers actively contribute to the needs of the broader community.
Social responsibility
16. Which of the following statements is true of the members of a distribution channel?
The businesses that buy from wholesalers can be retailers, other wholesalers, or business users.
Which of the following best defines cost?
The value of what is given up in exchange for something else
12. EatOut Pizzeria is a food joint that serves pizza, and Pure Magic is a luxury beauty salon that sells beauty products. What do EatOut Pizzeria and Pure Magic have in common?
Their products are a mix of goods and services.
Which of the following is true of a securities broker?
They act as agents for investors who want to buy or sell financial securities.
Which of the following is a difference between credit unions and commercial banks?
Unlike commercial banks, credit unions are not-for-profit organizations.
Dividends to common stockholders of a company are:
a distribution of earnings that are paid only if declared by the company's board of directors.
Horizontal analysis is the comparison of:
account values reported on financial statements over two or more years.
The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.
balance sheet
26. Demographic segmentation divides the market:
based on measurable characteristics about people.
35. In the growth stage of the product life cycle, competition:
begins as firms introduce their own versions of the product.
31. Analysis of market share is a key to understanding a firm's:
competitive environment.
16. A product has three product layers. They are the:
core benefit, actual product, and augmented product.
The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.
face value per share
One drawback of exchange-traded funds (ETFs) is that investors:
have to pay brokerage commissions every time they buy or sell shares.
A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.
investment bank
11. The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:
language of business.
22. Peter is starting a new business. He has to develop a marketing strategy by identifying similar characteristics, attributes, and behaviors of the target market, and then group the customers according to these characteristics, attributes, and behaviors. The term used to describe Peter's strategy is:
market segmentation.
13. The _____ is a philosophy that makes customer satisfaction the central focus of an entire organization.
marketing concept
21. Marketing of raw materials, one of the business product categories, primarily emphasizes:
price and service.
24. The characteristics of a product that a marketer offers are known as _____.
product features
26. Crunch Lite produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large assortment of sugar-free chocolates targeted at the same population. The sugar-free cookies and chocolates that Crunch Lite produces represent the _____ of the company.
product lines
29. Jim works in the marketing department of a smartphone manufacturing firm. He is currently working on new package design ideas for the company's latest range of smartphones. In the context of the company's marketing mix, Jim's ideas contribute to the _____.
product strategy
Kyra Inc. has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.
profit and loss statement
Managerial accounting:
provides reports and analysis to managers to help them make informed business decisions.
Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.
public accountant
17. 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.
Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.
relevant, reliable, consistent, and comparable
21. A specialty store:
sells a wide selection of merchandise within a narrow category.
The advantage of electronic communication networks (ECNs) is that they:
speed up transactions.
28. The _____ includes all organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer.
supply chain
If Carl is a preferred stockholder at Cedia Inc. and Cedia goes out of business, Carl's claim on the firm's assets:
takes precedence over common stockholders.
Assets refer exclusively to:
the resources owned by a firm.