Small bus mana exam 2

which of the following sections of marketing information is included in the stand alone marketing plan and not included in the marketing section of a business plan?

a marketing budget and projections

doubt that occurs after a purchase has been made is called ____

cognitive dissonance

___ refers to a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or email an order

direct mail

___ refers to the machinery, tools, or materials used in the performance of the work of a business

equipment

purchasing a car with a warranty is most likely to be an example of a

good-dominated product

___ uses agents, export management companies, or export trading companies as intermediaries to handle most of the exporting process

indirect exporting

wholesalers, retailers, distributors, agents are commonly referred to as

intermediares

to meet the high production demand, jack Wilson- the owner of jg sawmills- needs to invest in a frame saw. he has narrowed down to two choices; a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. the cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 and both will have a useful if of 4 years. which of the following is a disadvantage of renting capital assets?

it requires the business to make regular, timely payments

___ is probably the most widely used of many pricing methods available

markup pricing

a comprehensive budget is also referred to as the

master budget

profits are not ____. profits are important that is useful in predicting when an how much money you may collect.

money

which of the following is most likely to be an example of a good-dominated product

purchasing a sewing machine with a warranty

Susan, who is a florist, purchases her flowers on credit. Lucy, a customer, takes eight bouquets and promises to pay Susan within two weeks. the amount that Lucy owes Susan is termed ____.

receivables

T/F: radio advertisements provide both geographic and demographic segmentation of a product or service

true

the process of determining the effect of price and quantity changes on revenues and expenses refers to

variance analysis

to meet the high production demand, jack Wilson- the owner of jg sawmills- needs to invest in a frame saw. he has narrowed down to two choices; a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. the cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 and both will have a useful if of 4 years. assuming that the money is received evenly across the year, what will be the payback period if jack decides to invest in the CZ84 double cut frame saw?

2 years and 11 months

which one of the following government agencies was created to enforce safety in the workplace?

OSHA

which of the following statements is true regarding the OSHA act?

OSHA- defined "low-hazard" industries are exempt from the record keeping requirements of the regulations

____ is the series of steps and activities required to complete a process

a procedure

which of the following statements is true of non direct distribution?

a products final price is more than the manufacturing cost if intermediaries are involved

the total cost of obtaining an asset, including such costs as purchase price, transportation, installation, testing and calibrating in order to ready it for its first productive use is termed as _____

acquisition cost

when determining the cost of a capital asset, the ___ is the sum of everything that you spend to acquire and prepare the asset for its first productive use

acquisition cost

____ is an accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service

activity based cost estimates

an ___ refers to a middleman business which represents a manufactures products or services to other business-to-business middleman firms

agent

which of the following is a benefit of leasing?

an asset can be leased at a very low down payment

an __ typically means the core product plus features that tend to differentiate the product from competition

augmented product

commercial paper is issued to be paid to the ___ of the note, and thus is fully transferable

bearer

a ___ describes the difference between the original acquisition cost of capital assets and the amount of depreciation expense that has been recognized to date

book value

a clothing company that divides its market using characteristics of clothing such as practical, stylish, or for a particular sport, etc,. is segmenting the market ___.

by benefits sought

___ refers to the process of deciding amount various investment opportunities to create a specific spending plan

capital budgeting

regardless of your business's size, the one essential element of an accounting system is ____ that is accurate, easy to use, and tracks all checks written and all deposits made

cash accounting

cash that can be obtained from stocks, bonds, land, buildings, or equipment that a business has is called

cash flow from investing

which of the following statements is not true of a product in the decline stage of the product life cycle?

characteristics of the decline stage differ for each product

which of the following is an example of a cash equivalent?

commercial paper

from an entrepreneurs perspective, marketing is all about connecting your customer to your product or service. the first step in this process is

connecting the two through the value proposition

Tammy has just opened a donut shop called the rabbit hole. given that the rabbit hole is in its start-up phase, which of these would be Tammys immediate financial management need?

conserving what little money the business has

which of the following ratios is used to estimate the liquidity of a business?

current ratio

which of the following ratios is better when it is a lower number?

debt to assets ratio

a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained is the

decision maker

___ make up the most of the noncurrency cash which is available immediately

demand deposits

checking and savings accounts are the most common form of ___

demand deposits

regular and systematic reduction in income that transfers asset value to expense over time is called

depreciation

which of the following is true of follow-up?

electronic approaches to follow-up dramatically lower the cost of marketing efforts

there are three general types of events that cause business risk. which of the following is not one of those three general types of events?

events related to the competitors of the business

which of the following statement is true of documenting the operations of your business?

every business process does not have to be extensively documented

T/F: a direct mail approach needs major inventory investment

false

T/F: a legal obligation to pay money in the future is called equity capital

false

T/F: a procedure is specific guidance for completing steps in a process

false

T/F: assigning a high value to inventory results in increased sales margin and reported profit, but at the price of paying increased income taxes

false

T/F: during the introduction stage a products life cycle and from a marketing standpoint, the more innovative the product, the quicker the sales

false

T/F: expenses are the value given up to obtain something that the owner wants

false

T/F: factoring receivables to a commercial lender is usually less expensive than pledging receivables

false

T/F: for a small business, the amount and type of inventory held for resale is not important because the supply of inventory and demand of customers can be matched at all times

false

T/F: formal summaries of the content of an accounting systems records of transactions are called financial instruments

false

T/F: small businesses never experience any cash flow problems

false

T/F: the OSHA is a commission established to enforce the provisions of the equal employment opportunity act

false

T/F: traditionally, manufacturing processes are laid out in one of the two formats ; grid layout and free-form layout

false

T/F: using a single reputable source is adequate when performing secondary analysis

false

T/F: when the fear appeal used by a marketing message is a too strong, it always causes the audience to react positively

false

T/F: the purchasing process is the term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization.

false, budget cycle

the research and development tea of Leonide Inc. has generated five different product ideas. All five ideas are being rated against each other on their characteristics such as product uniqueness, idea probability, protectable intellectual property, and product team quality. Based on their ranking in this stage, only three ideas will make it to the immediate next step which will be the stage of

feasibility study

___ repay employers for losses caused by dishonest or negligent employees

fidelity bonds

___ is a measure of the amount of debt relative to total investment

financial leverage

___ refers to the contacts business owners periodically make with customers in order to remind them of their businesses, and their interest in customers business

follow-up

a ____ will warehouse products, pack and ship them, and send an automated email to customers to let them know that the product is on its way

fulfillment center

josh, the owner of a software company, is facing cash flow problems. to control the cash outflow, he avoids paying the bills to his vendors. after much delay, he sends a check in payment but intentionally forgets to sign the check. to prevent the cash from going out of his business, josh is applying the strategy of ____.

gaming the payment process

which of the following ratios measures the percentage of sales revenue available to pay operating costs and to provide profits after paying for inventory?

gross margin ratio

___ is the determination of the amount of assets held by the firm for sale or production

inventory valuation

which of the following is true of personal selling?

it allows a business owner to be flexible in his or her presentation

which of the following is an advantage of personal selling?

it allows the business owners to find out the buyers main concerns and address them

which of the following is a characteristic feature of a message for a target market?

it must contain the elements of a products value proposition

in the context of accounting functions, which of the following is true of accounts receivable?

it records provision of credit to customers

which of the following is true of co-insurance?

it requires that an owner carry insurance equal to a stated minimum percentage of the market value of property

which of the following statements is true regarding the balance sheet?

its values are considered as historical values

which of the following is an example of a high customer contact business?

legal offices

____ rates measure the relative risk that a business setback could cause bankruptcy

leverage

___ is the most common kind of coverage on key persons of a business

life insurance

according to the definition provided by the U.S Dallas Federal Reserve Bank, which of the following is one of the primary purposes of money?

making exchanges

an accounting method that is specifically intended to be used for planning, directing, and controlling a business is called

managerial accounting

a ____ is an example of a low customer contact business

manufacturing business

closing a sale refers to

obtaining a commitment from the customer

which of the following statements in not sure of surveying questions?

open-ended questions make it easier to compare groups and to statistically analyze

an ___ is the amount of inventory that results in the minimum cost, considering the cost of lost sales resulting from running out of stock, the number of units sold per day, and the number of days required to receive inventory

optimum stocking level

which of the following accounting functions ensures that the employment taxes are kept current?

payroll records

___ are the accounts of assets, liabilities, and owners equity, excluding accounts for revenues and expenses

permanent accounts

in personal selling, ___ means finding out about the clients before approaching them

preparation

which of the following terms refers to the activities used to establish and promote a favorable opinion by the media?

press relations

in a ___ layout, material flows in on one side of the operation and continues to the other end of the operation

production line

___ is the ratio measure of how well a firm does in using its inputs to create outputs

productivity

the amount that revenues exceed expenses is referred to as ____

profit

how much of each message conveyance a business owner uses to sell his or her product as well as his or her objective in using each one is known as

promotional mix

documenting the operations of your business, you must understand how three items relate to each other. which of the items below is not one of those three related items?

property

greg has a press release for his new product that he wants to broadcast on television. his press release has a good story and visuals. it also includes content that illustrates broad cultural themes. which of the following is greg most likely to generate through the press release?

public interest

which of the following is a disadvantage of leasing?

renovation options are limited in a leased property

which of the following provides potential customers an education in a firms product or service, including stories of customers whose problems were solved, an FAQ list, as well as a page on the products or services, and a page on the business owner and his or her firm?

sales packets

___ is a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.

sales promotion

Martin, an employee at a boutique store, is required to handle store displays and also ensure that all the sales records tally at the end of each business day. However, he committed fraud by recording fake sales and then keeping the products to himself. which of the following managerial concepts would have helped the store avoid this deception?

separation of duties

Julia recently set up a factory that manufactures shoes. To ensure that her business complies with the basic OSHA regulations, which of the following steps should she take?

she must provide medical examinations for all her employees

which of the following is not a characteristic of outstanding customer service?

show interest and concern for suppliers

which of the following is true of business locations?

target market customers are essential factors for selecting business locations

direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria are referred to as ____

tax credits

which of the following accounting concepts has roots in the Mesopotamians who lived and kept records 5,000 years ago?

the accounting equation

which of the following statements is true when setting up your accounting system?

the actual task of setting up an accounting system is quite easy if you understand accounting a bit

insurable value is defined as

the amount of an asset for which a company will write an insurance policy

the core product typically includes

the basic description of what a company or a product does

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 Juans accounting philosophy?

the business entity idea

which of the following statements concerning the income statement is true?

the characteristics that sometimes make the income statement hard to understand also provide temptation to "fudge" the numbers

which of the following is the key to customer relationship management (CRM)?

the data on current or prospective customers

In which stage of a product's life cycle do promotions, such as coupons, rebates and multipacks, flourish?

the maturity stage

an implication of the bounded rationally models of management is that

the more information available to be included into the decision process, the less efficient that process will be

which of the following is true of using internal audits to manage risk?

the owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals

which of the following is true of using internal audits to manage risk?

the owner should provide sufficient authority to the auditor to ensure that he or she can accomplish the goals of the audit

the steps in Blank and Dorf's "Get Customers" funnel are awareness, interest, consideration, and purchase. Here, consideration refers to

the process of getting into the prospective customers final list of brands of products or services they may purchase

Laura developed a handy kitchen tool. She replicated the tool several times over, providing gifts of the tool to all of her friends. They made great birthday or special occasion gifts. Eventually, Laura started her own successful company producing her kitchen tool idea. This is an example of

the product development process

to meet the high production demand, jack Wilson- the owner of jg sawmills- needs to invest in a frame saw. he has narrowed down to two choices; a double cut frame CZ84 saw with chipper and a HY-200 saw with double arbor bearings. the cost of CZ84 will be $91,000, whereas the cost of HY-200 will be $110,000. The salvage value of each type is $0 and both will have a useful if of 4 years. which of the following is one of the disadvantages of the return on investment (ROI) analysis?

the profits received are not the same as cash

when comparing a stand-alone marketing plan to the marketing section of the business plan, evaluation and control is included in

the stand alone plan

which of the following is true of insuring the property of a business?

the value of the historical significance of a building often cannot be insured

___ insurance is normally included in insurance on physical assets

theft

which of the following is true of financing small businesses?

there are several resources available for financing start-ups

T/F: access for employees and reasonable cot are critical for businesses with low customer contact

true

T/F: adverse possession occurs when an owner of real property does not enforce property rights and allows a non-owner to use the property as if it were his or her own

true

T/F: borrowing money for capital investment enhances the potential for higher rates of return for the owners?

true

T/F: identifying risks is the first task to be completed before a comprehensive insurance program can be developed for a business

true

T/F: it is good to opt for distributors when a whole line of products need to be bought or warehoused

true

T/F: risk from loss of key personnel and former employees setting up competition against your business can be managed by negotiating employment contracts with those key employees

true

T/F: skimming, odd-even pricing, and price lining are three possible pricing strategies available to small businesses

true

T/F: the first step in budgeting is to make a forecast of your future sales

true

T/F: the new product development process is likely to be easier for services than for innovative goods

true

T/F: the proof of a customer relationship management effort is seen higher levels of customer loyalty in existing customers

true

T/F: the total cost of keeping inventory is the sum of the cost to buy the inventory, the cost to store, protect, and maintain inventory, and the cost of making an order to purchase inventory

true

in managing risk from violation of tax regulations, small business owners should make paying taxes their first priority

true

____ is collected by the IRS and state agencies as a percentage of tax upon payroll

unemployment insurance

which of the following is true of payment procedures?

up-front cash payment is a risk to the customers

today the biggest risk to most businesses comes from ____

using computers

small business owners unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition is known as

value proposition

___ is an electronic equivalent of word-of-mouth advertising.

viral marketing

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?

word-of-mouth