ISOM 125 Test #3 Questions

What is a social role that a person may have?

A student

For money to serve effectively as a measure of value, all items must be valued in terms of comparable units. Which of the following characteristics of money does this statement reflect?

Divisibility

Every time David wants to change his cell phone, he takes the opinion of his colleagues and friends to decide which phone to buy. This is his _____________.

Reference Group

The group with whom buyers identify and whose values or attitudes they adopt are referred to as his _____________.

Reference Group

What is the equation to calculate return on equity?

Return on equity = net income/owners equity

During the period of ___________ orientation, the supply of goods caught up with and then exceeded demand, which made business people realize they would have to promote their products to get buyers to desire them.

Sales

What is the first step in the accounting cycle?

Examine source documents

What is the main function of a finance company?

They offer shoer term loans

A repair shop started the accounting period with $8,000 worth of shovels in inventory. During the accounting period, it purchased $9,000 worth of ?shovels and sold $7,500. In this scenario, what is the cost of goods sold

$7,500

What is the difference between debit and credit cards?

Debit cards do not have the same level of protection as credit cards

A company develops a skin care product for adults and a wrinkle reducing cream for old people. These face creams have been developed on the basis of _____________ segmentation.

Demographic

Paying dividends decreases what accounts of a company?

Its cash and capital accounts

Who can raise and lower minimum down payment amounts and payment periods?

The Federal Reserve Board

Record, Measure, and Interpret financial information

The basic idea of accounting

What is likely to be a competitive or economic force in the marketing environment?

The laws related to employment in a country

A website does not trust the value of money in relation to the product, they require members to use only trades of physical items as currency, rather than money. Which characteristic of money does this scenario best relate to?

Acceptability

A financial plan for how a company plans to make more from point A to point B over the course of the year is it's....

Budget

Plain Auto Parts manufactures engines, brakes, and batteries and sells them to car makers. This is an example of ______________.

Business to business marketing

The major difference between banks and credit unions is that...

Credit unions are owned and controlled by their depositors

____________ is the goal of marketing concept.

Customer Satisfaction

Almost never provide as much useful info as an absolute value. True or False?

False

The _________ Act puts U.S. commercial banks on the same competitive footing as European banks.

Gramm Leach Bliley

What is NOT a function of a credit card company when people make purchases?

Merchants charge moneycard a transaction fee for each customer purchase

What is the purpose of a balance sheet?

To keep all transactions conducted by an organization since its founding.