Midterm Intro to Business

what is the marketing objective of a product in Stage 2?

Gain market share

What is not a way for a business to manage risks?

Get rid of all employees who knows about your potential product defects

Which of the following is not an example of a service company

Grocery store

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

Marketable securities

In selling telephone service, AT&T tries to gather as much information as possible about the consumer's income, buying habits, service preferences, and occupation. AT&T is utilizing:

Marketing Research

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:

Mass production

What is the management influence for equity financing?

May sit on the Board and influence how the company is run

Those people designated by demographics as _____ are defined as Americans born between about 1981 and 1997.

Millennials

What is the repayment loan obligation for debt financing?

Must pay back the loan

(Ebike external forces) Limited range

Technological

A person who works as a intermediary gets paid a commission on any sales is classified a(n):

broker/agent

Profitability ratios are used to:

determine how efficiently a company is being managed

In procurement process, a purchasing manager needs to consider all the factors except:

factory workers' preference

The primary goal of the financial manager is to:

maximize the value of the firm to its owners

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?

operating

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

create awareness

Net Income is often called the _____ (select all that are true)

1. Net profit 2. Bottom line

Term loans: (select all that are true)

1. are available from commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries 2. may be repaid on a quarterly, semiannual, or annual schedule 3. are capital expenditure loans with a maturity of more than one year 4. can be secured or unsecured

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible

A relatively inexpensive item that requires very little shopping effort is called a _____ product.

Convenience.

To get funding so he can develop a new video game for his gaming company, Joe decided to go to Wells Fargo Bank to get a loan for $20,000. Joe is pursuing what financing?

Debt

_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

Debt

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

Debt to Equity

A basic form of market segmentation that uses such variables as age, education, and income is called:

Demographic

As one of the factors of production, natural resources includes all of the following EXCEPT:

Machinery

(Ebike external forces) No special licensing needed compared to motorcycle

Political/Legal

Jack are planning to purchase a new refrigerator-freezer for their new home. They have compared the quality, style, and price of four models. For Jack, a refrigerator-freezer is a(n) _____ product.

Shopping

Integrated marketing communications (IMC): (select all that are true)

1. is typically overseen by a marketing communications director 2. produces a consistent and unified advertising message 3. is a careful coordination of all promotional activities

Which of the following businesses is most likely to consider proximity to customers when locating a new manufacturing plant?

A company that provides fresh baked goods for restaurants.

Total quality management focuses on:

Continuous improvement

The manufacturer Mike and Ike, the fruit-flavored chewy candies, has changed its packaging and developed contests all geared to 12- to 17-year-olds. What type of market segmentation identifies its market?

Demographic

What type of market segmentation strategy was Kimberly-Clark, the manufacturer of Huggies diapers, using when it introduced Poise and Depend brands for adults?

Demographic

_____ is the company's ability to expense fixed assets over their useful life.

Deprecation

Joes Car Wash purchased a new pressure washer for $18,000. Sullins Cleaning is allowed to charge a portion of the company's cost during its useful life against the profits it generates. This practice is called:

Depreciation

The Point Guy, a popular travel blog, posts daily deals from airlines trying to fill up their flights the last minutes. This is due to the airlines using _____ pricing.

Dynamic Pricing

_____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.

Supply chain management

To help them operate the business, _____ accounting provides information and analysis to decision makers inside the organization.

Managerial

Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.

Target

_____ involves creating a unique marketing mix for every consumer.

One to One marketing

A(n) _____ layout arranges work flow around the production process. All workers performing similar tasks are grouped together.

Process

The process that products go through as they pass through their introduction, growth, maturity, and decline stages is called the:

Product life cycle

To take a job as a CEO in a company, what business insurance the person should have to protect oneself from lawsuits from shareholders?

Professional liability insurance

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public Accountants

Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?

increase the amount and frequency of use

Jenny's tutoring center had profit of $300 last week. Employees were paid $500, rent was $200, and insurance were $100. Jenny's sales revenue last week was:

$1,100

Jason invested $130,000 to start a pet food supply business. What is the monthly sales revenue of the business with the costs of doing business $15,000 per month and monthly profits of $6,000?

$21,000

Rudy and Ritchie ran a camp this summer for children in their neighborhood. Rudy spent $135 on supplies and earned $250 before expenses. Ritchie spent $140 on supplies and made $210 before expenses. What is the combined revenue for the two brothers?

$460

Which of the following is an example of a demographic factor? Select those that are true.

1. A person age 2. A person ethnicity

A process layout is best for a company that has:

A wide variety of products

Which of the following statements about the accounting profession is true?

Accountants are typically classified as private or public accountants

Your balance sheet is based on the _____ equation: Assets = Liabilities + Owner's equity.

Accounting equation

The resources from which a company controls and expects to gain some future benefits is called:

Assets

Favorable consumer experience such as when customers enjoy seeing a Star Wars movie, the experience added value for the brand is called ______.

Brand equity

Rather than recordings sales and purchases made on credit, your statement of prepared by your accountant _____ tells you where your cash came from and where it went.

Cash Flows

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and:

Commercial paper

Many competitors from Asia and Europe where ebikes more prevalent

Competitive

Jenny goes to CVS, a national chain of drug stores, to get a bottle of aspirin with CVS brand, CVS is using _____ branding strategy.

private

Using _____ branding, a company makes a product and sells it to a retailer who resells it under its own name.

private

Many companies manage _____ in an effort to garner favorable publicity for themselves and their products.

public relation

When Nike donated $25,000 to a low-income area to provide job training, it received free and positive _____ in the news media.

publicity

Customer satisfaction:

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

What happens to the sales revenue for a product in Stage 1 of PLC?

rising

In seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the concept of _____ trade-off.

risk return

The first step in controlling production is

routing

Liquidity ratios measure:

short-term financial stability

Which of the following is false about the rationales for customer-relationship management:

the cost to sell an existing customer is about the same as the cost to attract and sell and new customer

Demography is the study of:

1. individual's ages 2. educational levels 3. household size 4. income levels

(Ebike external forces) Comparatively three times more expensive than casual use road bikes

Economic

(Ebike external forces) Low Carbon footprint

Environmental

In deciding to raise needed money for his company through the sale of stocks to several wealthy investors, Joe has opted for ________ financing.

Equity

The fifth factor of production represented by business managers, scientists, and academicians is:

Knowledge

Over time, your company hopes to develop brand ____ among customers who prefer or even insist upon its product.

Loyalty

Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers. On the cover of each individualized brochure was an image of the customer's vehicle, the customer's name, and vehicle model name. Inside was the vehicle's estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure. On the back of the brochure were four coupons directly related to the service recommendations. Jay Pontiac used:

One to one marketing

The management of the process that transforms resources into products is known as _____.

Operation management

Dividends are:

Payment to the shareholders from company earning

A _____ software system determines the steps needed to produce components and instructs the machines that do the work.

Computer aided manufacturing (CIM)

_____ is a strategy that focuses on forging long-term partnerships with customers.

Relationship marketing

A loan that requires the borrower to pledge specific assets as collateral is called a(n) _____ loan.

Secured

(Ebike external forces) Not widely accepted in most communities in U.S.

Sociocultural

Google self-driving car perhaps will be hitting the market (the first of its kind available to consumers). What pricing strategy should Google use when first introduce the product:

Skimming

In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe. The clerk is engaged in:

personal selling

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

wholesaler