Ch.8-11 Business Study Guide
Which of the following marketing strategies can be best employed for attracting tourists?
Place marketing
____________ are ratios that measure the rate of return a firm is earning on various measures of investment.
Profitability ratios
In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to:
Pursue a full partnership with each of its key clients.
______________ is an asset management ratio that measures how quickly a firm sells its stock to generate revenue.
Return on equity
______________ demands that marketers actively contribute to the needs of the broader community.
Social responsibility
The overstating of needs or setting low budget goals by managers in a budgeting process can result in ____________.
a budgetary slack
Which of the following statements best describes a highly leveraged firm?
It is a firm that relies heavily on debt.
Which of the following statements is true of activity-based costing (ABC)?
It is more complex than the direct labor method.
Which of the following statements is true of financial leverage?
It is the use of debt in a firm's capital structure.
______________ is the ability of goods and services to satisfy consumer wants.
Utility
Costs are deducted from revenue in several stages to show how net income is determined. The first step in this process is to deduct:
costs of goods sold.
Demographic segmentation divides the market based on:
measurable characteristics about people.
Financial managers emphasize the goal of maximizing the market price of stock because:
they have a fiduciary duty.
If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presented, the report will offer a(n) _____ opinion.
unqualified
Which of the following is a drawback of primary data?
It tends to be expensive.
In the context of the marketing mix, which of the following statements is true of a distribution strategy?
Its key decisions including shipping, warehousing, and selling outlets.
Spalkyn, a footwear company, allows its customers to shop online on its website or mobile app or at its physical stores. At the company's physical stores, customers are given the option to pick up their products or have them delivered. In the context of marketing, which of the following utilities does Spalkyn most likely provide?
Ownership utility
The advertisements of bus tour operator companies in the city of Lubtilace increase the popularity of the city's tourist attractions. Bursilopp, a company that operates tourist buses across the city, shows the city's major tourist spots in its television advertisements. Which of the following marketing strategies does this scenario best illustrate?
Place marketing
Which of the following is a drawback of private placements?
They do not have the potential to raise as much money as public offerings.
Which of the following statements is true of loyal customers?
They forgive marketers mistakes.
Understanding the ______________ begins with analysis of market share.
competitive environment
Marketers who can not forge a close personal bond with every customer but actively gather data and pursue a connection with customers who initiate contact have a _____________ with the customers.
limited relationship
In the context of the income statement of an organization, accountants use accrual-basis accounting when recognizing ____________.
revenues
Which of the following statements is true of current ratio?
A current ratio that is below 1.0 signifies a company's inability to pay its short-term liabilities with its current ratios.
___________ are safe and highly liquid assets that many firms list with their cash holdings on their balance sheet.
Cash equivalent
Which one of the following is the most commonly used liquidity ratio?
Current ratio
Which of the following is a difference between demographic segmentation and geographic segmentation?
Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live.
The ____________ of 2010 expanded the Fed's regulatory authority over non-depository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.
Dodd-Frank Act
Which of the following is true of stock exchanges?
Each exchange establishes its own requirements for the securities it lists.
______________ is the process of continually collecting information from the external marketing surroundings.
Environmental scanning
In the context of budget preparation, which of the following is an advantage of using bottom-up budgeting?
Middle managers are likely to be highly motivated to achieve budgetary goals.
Walt owns an auto repair shop in Northern Rottasa. He goes an extra mile to please his customers by providing comfortable and attractive waiting rooms, friendly service, and long-term warranty on all repair work. Which of the following philosophies has Walt employed to make this customer highly satisfied?
The marketing concept.
In the context of owners equity, which of the following is true of retained earnings?
They are accumulated earnings reinvested in a company rather than being paid to the owners.
Which of the following statements is true of angel investors?
They typically provide funds to start-ups in exchange for a share of ownership.
A high inventory turnover ratio is good because it indicates that:
a firm can continue its daily operations with a small amount of inventory on hand.
A ____________ an help a firm evaluate how much internal financing (funds generated by earnings) will be available for a planning period.
budgeted income statement
Corporations that get into serious financial difficulties sometimes:
default on their bonds.
The rationale behind why the Glass-Steagall Act mandated the ban on commercial banks from dealing in securities markets and selling insurance was that such activities:
exposed banks and their depositors to higher levels of risk.
In the context of budget preparation, the master budget of a firm organizes the _____________ into a unified whole.
financial budget and the operating budget
Exchange-traded funds and mutual funds account for:
financial diversifications.
Financial capital refers to the:
funds a firm uses to acquire its assets and finance its operations.
In the context of business market segmentation, ___________ refers to dividing the market based on the concentration of customers.
geographical segmentation
One drawback of exchange-traded funds (ETFs) is that investors:
have to pay brokerage commissions every time they buy or sell shares.
An advantage of offering lenient credit terms is that it helps a firm:
increase its sales.
A(n) _____________ is the first time a company issues stock that may be bought by the general public.
initial public offering
In the context of balance sheets, patents, trademarks, and copyrights are example of ____________.
intangible assets
A(n) _____________ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.
investment bank
In the context of budgeting, a flexible budget:
is designed to show the appropriate budgeted level of costs for each different level of sales.
Paris Hilton declaring, "I am a marketing genius" is an example of _____________.
people marketing
In the context of an independent auditor's report, if the auditor's report, if the auditor identifies some minor concerns but believes that on balance the firm's statements that on balance the firm's statements remain a fair and accurate representation of the company's financial position, the report will offer a(n) ______________ opinion.
qualified
A project with a negative net present value should be:
rejected since the expected future cash flows from the project are less than the cost of the investment.
Since common stockholders are the true owners, preferred stockholders dividend are deducted from net income before computing _____________.
return on equity
To preserve independence and impartiality, the Financial Accounting Standards Board (FASB) members are required to:
sever all ties with any firms or institutions they are served prior to joining the board.
