MQM 223 Chapter 9-12
Which of the following accounting functions has been accurately described? A. Investments records help produce accurate billing of customers, and thus help to maintain good customer relations. B. Payroll records track if your business keeps surplus cash invested in securities. C. Accounts payable records help to make timely payments in order to capture prompt pay discounts and to maintain a good credit rating for the business. D. Credit card sales function enables that payroll and employment taxes are kept current.
Accounts payable records help to make timely payments in order to capture prompt pay discounts and to maintain a good credit rating for the business.
From an entrepreneur's perspective, marketing is all about connecting your customer to your product or service. The first step in this process is: A. connecting the two through price. B. connecting the two through the value proposition. C. connecting the two through promotion. D. connecting the two through product placement.
Connecting the two through the value proposition
Eddie, the owner of a fast-food joint, finds that he spends far lesser when he bakes breads in dozens than when he bakes two or three loafs at a time. This idea of Eddie's is similar to the concept of: A. break-even point. B. economy of scale. C. economy of scope. D. monopoly.
Economy of scale
While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to help her students understand its concepts. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years, Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Given that Jessica has a very limited budget, which of the following forms of direct mail will be most appropriate for her to adopt? A. Brochure B. Direct response advertising C. E-mail D. Telemarketing
Which of the following statements is true of price elasticity? A. Elastic products have few substitutes and price changes make little difference in demand. B. Inelastic products have many substitutes and price changes lower demand. C. Elasticity is the idea that the market's demand for a product or service is sensitive to changes in its price. D. Gas for your car is an example of an elastic product.
Elasticity is the idea that the market's demand for a product or service is sensitive to changes in its price.
_____ uses creative and relatively inexpensive ways such as door-knob hangers, T-shirts, balloons, flyers under windshield wipers to reach customers. A. Direct mail B. Guerilla marketing C. Telemarketing D. Direct sales
Guerilla marketing
Raven has been researching for product ideas by interacting with children, young mothers, and by carefully studying the competitors' toys. This has helped her generate several ideas. Which of the following is most likely to be the next step for Raven? A. Test marketing B. Product development C. Idea screening D. Commercialization
Idea Screening
Paying for a local organization's needs in exchange for recognition is referred to as _____. A. publicity B. donation C. personal selling D. sponsorship
Sponsorship
In new product development process, the product development stage typically involves: A. testing the feasibility of product ideas. B. creating a marketing plan for the final product. C. introducing product prototypes to test markets. D. commercializing the new product.
Introducing product prototypes to test markets
In the context of accounting functions, which of the following is true of accounts receivable? A. It tracks what one owes and helps to make timely payments. B. It is independent of the extension of credit. C. It records all checks written and payments made. D. It records provision of credit to customers.
It is independent of the extension of credit
Which of the following is a characteristic feature of a message for a target market? A. It is repeated less often. B. It must contain the elements of a product's value proposition. C. It must be abstract. D. It must always be distinctive from target customers.
It must contain the elements of a product's value proposition
_____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. A. Market penetration B. Market expansion C. Product expansion D. Diversification
Market expansion
_____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base. A. Market penetration B. Product expansion C. Market expansion D. Diversification
Market penetration
ZestOne Technologies has launched a series of tablet computers that are similar to a competitor's product that already exists in the market. Such products are typically termed as _____. A. me-too products B. prototypes C. augmented products D. complementary goods
Me-too products
_____ is the process of dividing the market into smaller portions of people who have certain common characteristics. A. Target optimization B. Market penetration C. Segmentation D. Market recognition
Segmentation
_____ is the segment or segments a business owner selects to concentrate his or her marketing efforts. A. Target market B. Qualified market C. Customer vector D. Optimized market
Target
Which of the following is true of business locations? A. Target market customers are essential factors for selecting business locations. B. Most entrepreneurs prefer their business locations to be outside their hometown. C. The cost of moving a company across town or across the country is cheap. D. Proximity of competitors does not affect choice of business locations.
Target market customers are essential factors for selecting business locations.
Juan has an accounting philosophy according to which he keeps the loans borrowed from the business separate from the loans he takes from banks for his own purposes. Which of the following basic accounting concepts is reflected in Juan's accounting philosophy? A. The business entity idea B. The going concern expectation C. The accounting equation D. The revenue and expense premise
The business entity idea
Larry owns a successful business called Super Car-Hire. He plans to sell it to Bob. Bob assumes that he can keep up the high revenues if he can plan and execute the mission of the business well. Which of the following basic accounting concepts is reflected in Bob's assumption? A. The business entity idea B. The going concern expectation C. The accounting equation D. The revenue and expense premise
The going concern expectation
Harry Howard, a successful real estate broker, has established his own real estate company in western Pennsylvania. He has on-the-job experience working at a real estate company where he had a whole staff supporting brokers' work. Now on his own, with two secretaries, Harry is building his dream of owning and growing his own business. He wants to mainly focus on middle-to-upper-income homeowners and is exploring what type of promotional material he needs to have. Which of the following would be the fastest way for Harry to build his client base? A. Word-of-mouth B. Full-scale advertising C. Personal selling D. Sales promotion
Word-of-mouth
Diversification is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.
adding new products or services to the firm's existing collection of offerings.
The first time Jena visited Blue Corals Inn, a restaurant in her neighborhood, she was delighted with the food and service quality. However, the next time she dined at the same place, the restaurant's food and service seemed to have lost its quality. This scenario best illustrates the _____ characteristic of services. A. perishability B. tangibility C. heterogeneity D. absorptivity
heterogeneity
Product expansion is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.
selling existing customers a product or service they have never bought before.
Business owners can figure how to better target ads or promotions to particular types of customers if: A. they track sales of their competitors. B. they identify the defects in their products. C. they use the diversification strategy rather than the product expansion strategy. D. they link sales and purchase basis to the type of customer.
they link sales and purchase basis to the type of customer.
Neil places an advertisement for his pastry shop, Neil's Pastries, in the local newspaper. He includes his phone number, website, e-mail address, and postal address in the advertisement so that prospective customers have the option to contact him in the way they feel most comfortable. Neil is a _____. A. guerilla marketer B. multichannel marketer C. telemarketer D. direct seller
Multichannel marketer
_____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future. A. Liquidity B. Net present value C. Financial strength D. Budget
Net present value