Business 101 true/ false

An operating lease is a long-term contract that shows up on the balance sheet as an asset and liability

False

Eurodollar deposits can only be made at banks located in London

False

Marketing occurs only in large business organizations

False

The longer a project or asset is expected to last, the smaller is its potential risk

False

The principal is the amount of money a business pays to use a banks funds

False

A bond can be transferred from one owner to another

True

A marketable security is a temporary investment of cash

True

An individual retirement account (IRA) is a type of savings account

false

Bonds can only be issued by corporations

false

Common stock is safer than preferred

false

Distribution channels for consumer products and business products are the same

false

In organized exchanges, investors buy and sell only for their own accounts

false

Most business failures are the result of poor long-term financial planning

false

Most new product ideas are rejected during the business analysis phase

false

Negative cash flow always indicates that a company is in financial trouble

false

Pricing objectives are influenced solely by marketing mix decisions

false

The capital in excess of par account is usually significantly larger than the par value account on a balance sheet

false

The par value is the interest rate on a bond

false

as long as both the buyer and seller have something to exchange, the exchange will take place

false

exclusive distribution makes a product available in as many outlets as possible

false

of the thousands of products introduced every year, most succeed

false

profitability ratios measure how effectively a firm uses its assets to generate $1 of sales

false

promotion is used only to sell products

false

the use of a pull strategy means that marketers attempt to motivate middlemen to make a product available to their customers

false

A marketing strategy is a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers

true

Although customer satisfaction is the goal of the marketing concept, a business must also achieve its own objectives

true

An example of double taxation is when dividends per share payments are made from earnings after taxes by the corp but is still taxable income for the shareholder

true

Factors such as characteristics of the intended audience, the objective, and the platform used can all affect how an advertising campaign is conducted and its message

true

Interest is a percentage of the principal that the bank charges for use of its money

true

Maximizing profits and sales, boosting market share, maintaining the status quo, and survival are common pricing abjectives

true

One aspect of financial management involves managing cash flow for a business on a daily, weekly, monthly, and yearly basis

true

The best products in the world will not be successful unless companies make them available where and when customers want to buy them

true

The over-the-counter market is a network and does not have a central location for trading

true

a medium of exchange known as bartering is trading one good for or service for another of similar value

true

buying behavior refers to the decision process and actions of people who purchase and use products

true

customer satisfaction is a goal of the marketing concept

true

expenses are the costs incurred in the day to day operations of an organization

true

if an exchange is to occur, each participant must be willing to give up something of value to receive something the other has

true

marketers are blurring the lines between television ads an the internet by directing consumers to a website for more information

true

penetration pricng is less flexible than price skimming

true

products can be goods services and ideas

true

psychographic characteristics of segmentation include personality characteristics, motives and lifestyles

true

raw materials are natural products taken from the earth

true

securities markets provide liquidity

true

stimulating demand is especially important when a firm is using a pull strategy

true

the income statement, the balance sheet, and the statement of cash flows are all considered financial statements

true

the second major monetary policy tool is the reserve requirement

true