BUS 1750 final

Which of the following shows a firm's spending plans on fixed assets such as large equipment?

Capital budget

Which of the following best describes the first step in the marketing research project?

Define the question and determine the present situation.

Which of the following best describes the role of financial managers?

Financial managers are proactive; they budget where funds are supposed to be ahead of time.

Which situation most likely requires short-term financing?

Madeleine's Fashions plans to add inventory in its retail store just before the holiday season.

The "IOU" that is issued by a corporation or government to raise needed funds, promising to repay the principal amount by a certain date along with a certain rate of interest, is called

a bond

Which of the following is considered an economic factor for a business?

a change in oil prices

The concept time value of money indicates:

a dollar received today is worth more than a dollar received a year from today

The discipline that is involved in the recording, classifying, summarizing, and interpreting of financial events and transactions in an organization in order to provide management and other interested parties with the information they need to make good decisions is referred to as

accounting.

An effective budget requires:

accurate forecasts

Analyzing a company's _______ ratio is one way in which an investor can tell if the company can pay off its short-term debts if there is a drop in sales revenue.

acid test

The four key types of ratios that investors monitor are liquidity ratios, leverage ratios, profitability ratios and _______ ratios.

activity

_____ refers to any paid, non personal communication through various media by organizations and individuals who are in some way identified in the message

advertising

The traditional promotion mix for a firm consists of the:

advertising, personal selling, public relations, and sales promotion used to reach a target market

The four elements of the promotion mix are:

advertising, personal selling, public relations, and sales promotion.

Any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message is called

advertising.

Accountant Alan Winger has just completed the balance sheet, income statement, and statement of cash flows for his company. The next step in the accounting cycle involves

analyzing the firm's financial statements to evaluate the financial condition of the firm

The balance sheet shows liabilities of $5,000,000 and owners' equity of $5,237,000. According to the fundamental accounting equation

assets equal $10,237,000.

Martin is a car salesperson at a Volvo dealership. His sales approach to families emphasizes Volvo's excellent safety record, whereas his approach to individuals emphasizes its powerful, sporty engine. This strategy of customizing his approach on how the Volvo's attributes serve the customer is an example of _______ segmentation.

benefit

The evidence supports the position that promotional efforts specifically designed for individual countries produce:

better results than a global promotional strategy

An online diary that looks like a webpage but is easier to create and update by posting text, photos, or links to other sites is called a

blog

Robertson Properties, a large commercial property management firm, orders cleaning supplies directly from the manufacturer of those products. This purchase is part of the _______ market.

business-to-business

A firm designing an advertising campaign to sell motor oil to the major automobile manufacturers is an example of ________ advertising.

business-to-business (B2B)

Despite the fact that 90% of the carpet produced today is made within a 65-mile radius of Dalton, Georgia, there are less than 100 manufacturers in this area. This demonstrates the fact that

business-to-business (B2B) customers are relatively few compared to the consumer market.

A firm's spending plans for major purchases, such as manufacturing equipment or buildings, is detailed in the _______ budget.

capital

A firm that purchases a long-term asset such as a manufacturing facility is making a(n)

capital expenditure.

Most of the customers in Maleki's printing business pay him at the end of the month. However, his paper supplier demands payment upon delivery. In order to make sure that he has funds available to pay his supplier, Maleki should develop a

cash budget.

A(n) _______ is an estimate of the timing and amounts of cash inflows and outflows over a period of time so that financial managers can determine if the firm needs to borrow funds, how much it needs to borrow, and when—and how—it can repay the loan.

cash flow forecast

Tristan is the financial manager of a small company. While sales are steady, customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company. Tristan's company is facing a(n)

cash flow problem

The psychological conflict that happens when you have doubts about a recent purchase (buyer's remorse) is also called

cognitive dissonance.

Unsecured promissory notes of $100,000 and up that mature in 270 days or less are called

commercial paper.

Environmental scanning identifies forces that affect marketing success, such as global, technological and _______ factors.

competitive

A firm's _______ is the rate of return it must earn in order to meet the demands of its lenders and expectations of its equity holders.

cost of capital

Leverage ratios are used to understand how much the company relies on _______ to fund its operations.

debt

Acquiring funds through borrowing represents:

debt financing

The two primary types of long-term financing are

debt financing and equity financing.

Two primary forms of financing are equity financing and

debt financing.

Agatha is starting a small jewelry design business called "Budget Beads and Baubles," and she plans to design jewelry that is aimed at teens and young adults. Agatha's target market is based on _______ factors.

demographic

Successful businesses perform marketing research in order to

detect trends and changes in consumer demand.

An accounting system would be used for all of the following EXCEPT

determining the most profitable target market segment for the company's new product line.

Firms that adopt a relationship marketing strategy attempt to:

develop products that meet the specific requirements of individual customers

An important tool for investors used in determining the value of a stock is the amount of net income that "belongs" to each share of common stock. This is called

earnings per share.

The purpose of a trial balance is to

ensure that the figures in the account ledgers are correct and balanced.

In deciding whether or not to expand operations to Singapore, Digital Control Enterprises performed a(n) _______, in which it identified and analyzed the economic, social and competitive factors that may affect its success.

environmental scan

Peter wants to open a new manufacturing facility in Western Canada. Instead of securing bank loans to finance this venture, he sells shares of stock in his company. This is known as

equity financing

Alonzo, the marketing director for a major retailer, prepared a unified message for the new promotional campaign. After several months, he noticed an increase in sales but realized he needed to compare the increase in sales against the cost of the campaign. Alonzo is

evaluating the effectiveness of the plan.

The most common financial problems faced by organizations include all of the following EXCEPT

excessive cash reserves.

Patrick's lawn care business needs quick cash to purchase a new commercial lawn mower. Instead of getting a loan, he sells his accounts receivable for cash. This type of financing is known as

factoring.

The business function that is responsible for acquiring funds for the firm and managing funds within the firm is called

finance

_______ accountants are involved in generating financial information and analysis for the company's creditors, lenders, customers, suppliers, government agencies, and the general public.

financial

The first step in the marketing process is

finding opportunities.

Ninety percent of the carpet produced in the world today is made within a 65-mile radius of Dalton, Georgia. This demonstrates the fact that business-to-business (B2B) markets are often

geographically concentrated

The first step in a promotional campaign is to

identify a target market.

An effective marketing research process can

identify alternative strategies and make recommendations about which strategy may be best and why.

The financial statement that summarizes the revenue and expenses and resulting net income (or loss) over a specified time period is called the

income statement.

The three key financial statements prepared by accountants are the balance sheet, the statement of cash flows, and the

income statement.

An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after a(n) ______ audit.

independent

One of the most promising Internet advertising tools is/are _______, which enables two-way communication between marketers and customers.

interactive promotion

An advantage of publicity is that

it reaches people who might not read ads.

Public relations revolves around

keeping a company's image positive with the public.

If a firm is financially sound and has a long-standing relationship with a bank, the bank may extend unsecured short-term loans to the firm. This type of arrangement is called a(n)

line of credit.

The measure of how quickly an asset can be converted to cash is referred to as its

liquidity

Used as a basis for a company's strategic plans, a(n) _______ allows top management to envision where income is coming from as well as its future profit potential.

long-term forecast

Collins Enterprises is building a new manufacturing facility and has taken out a 30-year mortgage with Frontier Financial in the amount of $350,000 to finance the project. This mortgage would be shown as a(n) _______ on the company's balance sheet.

long-term liability

The area of accounting that provides financial information and analysis to managers within the organization to assist them in decision making is called _______ accounting.

managerial

Anton works in the accounting department for a well-known textbook publishing firm. He assists managers with the preparation of budgets and estimation of production costs. Anton works as a(n)

managerial accountant.

Which of the following refers to the process of dividing the total market into several groups with similar characteristics?

market segmentation

The _____ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation

marketing concept

When financial managers refer to the "time value of money," they mean that

money invested today is worth less than money invested next year because of inflation.

The process of finding small but profitable market segments and designing or finding products for them is referred to as _______ marketing.

niche

Although Naomi's business is small, she knows that she still needs to develop an accurate estimate of the costs and expenses needed to run the business. In order to do this, Naomi develops a(n)

operating budget.

According to the fundamental accounting equation, the value of assets the firm owns equals the amount of money the firm owes to others plus

owners' equity

Venture capitalists provide financing to new or emerging companies with high profit potential, but in exchange for this financing, venture capitalists expect

partial ownership

____ refers to the face-to-face presentation and promotion of goods and services. This also includes searching for prospects and providing follow up services.

personal selling

Making a sales pitch to a potential customer is an important part of

personal selling.

One significant difference in terms of the marketing mix between the business-to-business (B2B) and business-to-consumer (B2C) markets is that B2B markets rely more on

personal selling.

Before John can begin selling his new line of book bags, he must determine whether to offer the book bags in the school bookstore, online, in department stores, or in office supply stores. This element of the marketing mix is

place

Tyler works as an accountant for a mid-sized retail store. He has just completed a successful trial balance. Tyler's next task is likely to be

preparing the store's balance sheet and other major financial statements.

One possible promotion strategy is to arrange with TV or movie producers to have a product appear favorably in a TV show or movie (such as a box of cereal prominently appearing in a television show). This type of promotion is called

product placement.

Fruit Juicy, a natural fruit juice company, relies heavily on consumer advertising, publicity and product sampling. These elements make up Fruit Juicy's

promotion mix

The four factors of the marketing mix are

promotion, product, place, and price.

The portion of the marketing mix that consists of methods such as advertising, public relations, and personal selling in order to inform and persuade customers to buy a product is

promotion.

Most of the financial information about an organization is based on information generated from accounting records. The reports and financial statements prepared by accountants

provide information that can be used by decision-makers both inside and outside the organization

Janice owns a firm that provides accounting services to a number of small businesses in the area. Her firm processes payroll, prepares quarterly payroll tax returns, and provides tax consulting services. Janice is a(n) _______ accountant.

public

ohnson & Johnson's Campaign for Nursing's Future has resulted in over 500,000 people entering the nursing field in the past five years. This is an example of a(n) ______ campaign.

public relations

When customers confronted Nike about a company that was using sweatshop workers to produce its products, Nike developed a program that required suppliers to meet minimum worker safety standards. Nike tries to inform its customers of these policies on its website. This is an example of

public relations.

_____ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor .

publicity

Examples of sales promotion techniques include all of the following EXCEPT

publicity.

One of the most successful promotional campaigns implemented by pharmaceutical companies began in 1996 and involved switching the focus of promotion from doctors and pharmacists to consumers. In this instance, the pharmaceutical industry used a ______ strategy to increase profits.

pull

The main objective of push strategies directed at wholesalers and retailers is to

push the products down the distribution channel toward the final consumer

The main objective of push strategies directed at wholesalers and retailers is to

push the products down the distribution channel toward the final consumer.

One of the main duties of bookkeepers is to

record business transactions in journals.

Even while the economy experienced a relatively harsh recession, TEVECOM reported $130 million in net income. At the company's board of directors meeting it was decided that TEVECOM would distribute $50 million in dividends to its stockholders. The remaining $80 million became

retained earnings.

For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth or expansion. These undistributed profits are referred to as

retained earnings.

Frequent shopper programs are intended to get customers to return to the store again and again. This is an example of

sales promotion.

The promotion mix consists of four tools: advertising, personal selling, public relations and

sales promotion.

When grocery stores have people in the aisles handing out small portions of food and beverage products, they are using the sales promotion tool known as

sampling.

When performing marketing research, the least expensive approach is to collect ______ data and then proceed with more in-depth analysis only if necessary.

secondary

A loan backed by collateral is called a(n)

secured loan.

The process of dividing the total market into several groups with similar characteristics is referred to as market

segmentation.

As a marketing manager for a retailer of lighting products, Lucinda will likely be involved in which of the following?

setting a price for the light fixtures her firm produces

One factor that Saruman Enterprises considered in deciding whether to market a line of weight-loss supplements was the increasing rate of obesity in the United States. This trend is considered a(n) _______ factor.

sociocultural

A firm's marketing mix refers to the combination of:

strategies regarding product, price, and promotion

Cole is an accountant with a large public company. As an accountant, his responsibilities include

summarizing and interpreting financial information needed by his firm's managers.

When promoting products, it is important to create excitement among salespeople, employees and customers. This explains why sales promotion

targets groups both internally and externally.

The process used to analyze customers' reactions to a new product is called

test marketing.

Mario owns a small retail business in the U.S. and wants to expand to new markets in the Far East. Which of the following is an example of useful secondary data that Mario can utilize in his marketing research?

the U.S. Department of Commerce's International Trade Administration website

An advantage of magazine advertising is that

the ads can target a specific market segment, making them more effective.

fter prospects have been identified and qualified, the next step in the selling process is to learn as much as possible about the potential customers' wants and needs. This step is called

the preapproach.

The goal of ______ is to build awareness and inform consumers about a company and its product offerings.

the promotion mix

When a company has a long-standing relationship with its suppliers and purchases large quantities, it usually has 30-45 days to pay for the purchase. This arrangement is called

trade credit.

The goal of ______ marketing is to create conversation and compel the user to spread awareness of the product with friends and family.

viral

Today, there are many websites dedicated to consumers who post reviews of products and services, as well as comments about firms. This is an example of

word-of-mouth promotion.