B Found - Practice Final

What is a disadvantage inherent in equity financing?

Equity owners have residual claim on income.

Human resource management is the process of:

Hiring, developing, motivating, and evaluating employees to achieve organizational goals

In Capsim, when scheduling the # of products you want produced each year you will enter the data:

In the Production Schedule cell of the Production Spreadsheet.

The primary reason most owners invest in a business is in order to:

Receive a return on their investments from profits earned by the business.

In Capsim, MTBF measures:

Reliability

During the growth stage of the product life cycle:

Sales grow at an increasing rate, and profits are healthy

_______ refers to the customer's feeling that a product has met or exceeded expectations.

Customer satisfaction

Determine the net change in cash during the period. -$70,000 Retained Earning -$10,000 Accounts Payable -$15,000 Utilities Paid -$5,000 Loan Payments -$80,000 Cash Received from Customers -$3,000 Cash at Year End

+$63,000

Which are current assets? -A/P -Cash -Retained Earnings -Buildings -A/R -Inventory

-A/R -Cash -Inventory

In Capsim, what are some effects of an increase in automation? (2)

1. Decrease in labor hours 2. Longer repositioning period in R&D

In Capsim, the sales budget affects:

Accessibility

Elements of the promotional mix:

Advertising, Personal Selling, Public Relations, Sales promotion

In Capsim, before making decisions on the Finance Spreadsheet, you should make:

All R&D, Marketing, & production decisions first.

In Capsim, the promotion budget affects:

Awareness

_______ assets are cash or other resources expected to be converted to cash or consumed during the next fiscal year.

Current

Which is not a fringe benefit? -Insurance program -Pension plan -Vacation plan -Paid sick leave -Commission

Commission

What are the 2 main types of external equity financing for a typical corporation?

Common & Preferred stock

_______, also called paid-in capital, is the amount of cash and other assets that shareholders have given to the corporation in exchange for stock. In other words, this is the price that shareholders paid for their ownership stake in the company.

Contributed capital

Which is not a main activity for a human resource manager? -Recruiting & selecting employees -Training & developing employees -Coordinating marketing & production activities -Performance planning & evaluation -Organizational career mgmt.

Coordinating marketing & production activities

A potential drawback to using debt financing:

Debt financing increases the risk of not being able to make payments of principal and interests.

A _______ is a study of tasks required to do a particular job well.

Job analysis

When Stouffer's decided to sell its French Bread Pizza in convenience stores, supermarkets, and vending machines, it was involved with determining _______ strategy.

Place

A strategy of charging a high introductory price for a new product that invites eventual competition is called:

Price Skimming

In Capsim, the primary buying criteria for each segment is:

Price for Low Tech & Performance for High Tech

When Kellogg's designed a new package for its Special K Plus cereal, it decided to make it look like a milk carton to emphasize the product's calcium content. This type of decision was made as part of the _______ strategy.

Product

In Capsim, what trend can be explicitly observed in the industry your company is operating in?

Products become smaller and smaller.

In Capsim, the perceptual map shows:

The acceptable areas to the consumer concerning the size of the product and its performance

Which of the following will affect a company's contributed capital? -The issuance of stock -The earning of net income -The payment of dividends -The purchase of another company's stock

The issuance of stock

Normally, a decrease in the price of a product will cause:

an increase in the quantity demanded of the product

Short-term loans:

are shown as a liability on the balance sheet

A security that represents an ownership interest in a corporation is called _______

common stock

Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _______ strategy.

promotion

The terms "risk" and "return" are related in that:

when one goes up, the other goes up