Intro to Business Final Exam

which of the following is NOT an example of money?

A baseball card worth $10

Which of the following is considered a long-term liability?

A payment obligation that is due in two years

Which of the following is an example of penetration pricing?

A soft drink company has developed a way to reseal soft drink cans and has priced the cans lower than its competitors' regular cans to attract customers

What are liabilities?

Amounts that are owed

Which of the following represents the account equation?

Assets=liabilities and owner's equity

If Sam, owner of a bicycle repair shop, repairs Jim's bicycle in exchange for a dinner at Jim's restaurant, what has just occurred?

Barter

Why is the format for recording each journal entry known as double-entry bookkeeping?

Because each transaction is recorded in two different accounts.

What is the term given to the recording of a firm's financial transactions?

Bookkeeping

What is the name given to commitment to a particular brand—the degree to which consumers are satisfied with a product and will buy it again?

Brand Loyalty

Which of the following describes manufacturers' brands?

Brands attached to products by companies that distribute nationwide or even worldwide

Which of the following is NOT true of the U.S. money supply?

Cash or currency makes up roughly 80% of it.

A big question at this stage in developing a new product is whether to roll out the product gradually in selected geographical areas or roll it out nationwide all at once.

Commercialization

Which of the following is NOT considered an incentive under employee compensation structures?

Commissions

Who is the pull promotional strategy aimed at?

Consumers

Current assets divided by which of the following gives the current ratio?

Current liabilities

Which product is in a different category of innovation from the others?

E-book readers

Which advertising method would MOST likely be used to sell customers life insurance?

Fear-Appeal Advertising

Which of the following is an example of a nonbank?

Finance Company

Flora is interested in studying how to investigate suspected crimes within the field of finance. What type of accountant will she become?

Forensic accountant

Which of the following is NOT one of the four Ps of the marketing mix?

Four P's: Place, Product, Promotion & Price

Idaho potatoes are likely sold all over the United States, but it is unlikely that the Idaho potato industry spends many marketing dollars to promote its potatoes in New England, due to the large potato production in Maine. This is an example of what kind of consumer marketing segmentation?

Geographic Segmentation

Warren is an intermediary who serves as an agent. What must be true of Warren's work?

He tends to maintain long-term relationships with the people he represents.

If Bennett is a private certified management accountant, which of the following statements is TRUE about him?

He works for only one business

Which of the following gives the stages in developing a new product in the correct order?

Idea generation > product screening > product analysis > product development > test marketing > commercialization

Which of the following is NOT one of the reports or financial statements the bookkeeper issues at the end of every accounting period?

Income Tax Return

Which of the following is one of the 3 goals of promotion?

Inform, Persuade, Remind (answer: Persuade)

What characteristic must an asset have in order to count as a current asset?

Liquidity

When intermediaries bring flowers from greenhouses to stores, which of the following are they affecting?

Location

Which of the following is true of logistics?

Logistics is concerned with tactics

Lark argues that in another 10 years, paper checks will be used only for ceremonial purposes. Which of the following is she assuming?

Most banks (and the Fed) would like to see people stop using paper checks and go digital.

What is one difference between savings and loan associations and mutual savings banks?

Mutual savings banks are owned by their depositors, rather than by shareholders

Which of the following is NOT among those who are protecting your money in banks?

New York Stock Exchange

Which of the following is an example of convenience goods and services?

Newspapers

Go Red for Women is a campaign put on by the American Heart Association to raise awareness of heart disease in women. This campaign is an example of what type of marketing?

Not-for-profit marketing

Which of the following is NOT one of the four steps in marketing research?

Obtain Feedback

Amazon, Travelocity, and Priceline all principally utilize which type of marketing?

Online Retailing or Electronic Retailing

What is setting a low price to attract many customers and deter competition called?

Penetration pricing

Which of the following is a form of publicity?

Press release

Which of the following gives the five steps in the consumer buying process in the correct order?

Problem recognition > information search > evaluating alternatives > purchase decision > post purchase evaluation

Which of the following is the most likely example of a distribution channel with three intermediaries?

Producer to agent/broker to wholesaler to retail to consumer.

Which of the following lists the four Ps of the marketing mix in order of consideration?

Product > Pricing > Place > Promotion

Which product is in a different stage of the product life cycle than the other products?

Product D: Managers are adding staff and building inventory while maintaining product quality

Products that don't fit the company's product mix, are too expensive, will take too long to execute, or won't generate enough sales are addressed at this stage in developing a new product.

Product screening

What is the name given to the total of all the techniques that companies use to motivate consumers to buy their products?

Promotion

Advertising, public relations, publicity, personal selling, and other kinds of sales come into play at which stage in the marketing process?

Promotion Strategy

What is the process of identifying potential customers known as?

Prospecting

Which kind of pricing is the technique of pricing products or services in odd rather than even amounts to make products seem less expensive?

Psychological pricing

Which of the following is NOT among the six major types of advertising strategies?

Publicity

Which of the following is true of rail transport?

Rail transportation is good for long-distance transportation of heavy, bulky items.

Which of the following represents the pricing goal of attracting customers?

Selling soft drinks at a loss to increase market share

Income level, profession, educational level, and political status all reflect which factor that affects our consumer decision making?

Social Class

What is the strategy of planning and coordinating the movement of materials and products from raw materials to final buyers called?

Supply-chain management

Which of the following is an example of a source of primary data?

Surveys

At which stage in the marketing process do concept testing and test marketing come into play?

The Product Strategy

Which of the following shows a firm's assets and liabilities?

The balance sheet

Which of the following BEST defines the distribution mix?

The combination of​ advertising, personal​ selling, sales​ promotions, direct or interactive​ marketing, publicity, and public relations is referred to

Which of the following is considered an intangible asset?

The copyright on a book

Which of the following occurred as a direct result of a specific high-profile accounting scandal?

The enactment of the Sarbanes-Oxley Act of 2002

What is price skimming?

This strategy is setting a high price to make a large profit; it can work when there is little competition

Which of the following is NOT among the standards of the generally accepted accounting principles?

To ensure that financial statements are affordable

What is the chief purpose of the process known as financial control?

To identify deviations from the financial plan so that corrective action can be taken

Which of the following is NOT one of the four goals of branding?

To start a new company

What differentiates M1 from M2?

Transactions must be made before some forms of M2 assets can be used in ways that resemble virtually all M1 money?

Which of the following is defined as a customer's perception that a certain product offers a better relationship between costs and benefits than competitors' products do?

Value

What is the name given to intermediaries who sell products to other businesses for resale to ultimate customers or to institutions and businesses for use in their operations?

Wholesalers (a.k.a: middlemen)

When are financial reports required of a company?

at the end of the firm's fiscal year

What percentage of a bank's transaction account funds does the reserve requirement say must be kept as vault cash or in a Federal Reserve bank account?

between 3% and 10%

Which of the following is NOT among the promotional tools used in the promotional mix?

distribution

Anti-smoking warning labels on cigarette packages, dosage information on cough medicine packages, and liner notes on DVD packaging all come under which function of packaging?

To provide product information

Which of the following is an example of a source of secondary data?

Academic Journals

Which of the following is an example of unsought goods and services?

Acne Cream

Which of the following is NOT one of the functions of money?

Acts as a form of collateral

What are the non-deposit institutions that provide retirement benefits to workers and their families called?

Pension funds

In the definition of value, what is the most important word to note?

Perception

Which of the following is MOST likely to use a distribution center rather than a storage warehouse?

A grocer storing produce for redistribution to its several retail locations