Business Acumen

In which three ways does business-buying behavior differ from consumer-buying behavior?

A group makes decisions, purchases often invited selected providers to bid on a purchase, buyers face organizational influences that affect their own preferences

Which two economic impacts should a manager anticipate when the U.S. government reduces the number of Treasury bills, Treasury notes, and Treasury bonds it sells?

A rise in the rates of securities and an increase in the overall cost of debt to private borrowers

Which type of information system should be accessed by the vice president of sales for a national department store chain who wants to see the previous day's sales receipts?

A transaction processing system

Which role does the underwriter play in financing business operations when using the capital market to sell securities to the public?

It assumes the risk of the assessed value of the security from the issuer.

Which calculation determines a firm's return on equity?

Net income divided by average equity

Which three characteristics are measured in demographic segmentation?

Race and ethnicity, income, and household size

What three factors should be addressed in a successful marketing plan?

Target market, sales revenue goals, and plan implementation timeline

Which financial statement should an investor examine to identify the liabilities of the firm?

The balance sheet

What is considered the heart of any information system?

The database

Which intent of spyware creates a company security issue?

The intent to report on a user's internet activity

In what ways do cloud computing services enhance company productivity?

Through more efficient application databases, through better resource utilization, and through greater application availability for remote workers

Why should a manager use financial controls in a firm's financial plan?

To determine the accuracy of forecasted revenues, costs, and expenses

For which two purposes will the U.S. Federal Reserve System follow an expansionary monetary policy?

To encourage bankers to make loans and to cut the cost of borrowing

When would a pull promotion strategy enhance a competitive advantage to market a product better than a push strategy?

When demand for the product is determined by the end user.

Which two key elements does an effective organization include?

Human interaction and Structure

What is the result of a company increasing the delegation of authority and the span of control?

Increased decision-making authority given to employees

What is one role of a financial manager?

Analyzing major investment decisions

In which type of security should a business invest its excess cash in anticipation of paying off the current year's tax liability?

Commercial paper

With which two types of products does a marketing strategy rely on advertising more than personal selling?

Accessories to primary products and consumable supplies

Which primary drives does management users for and organization's structure?

Achievement of company goals

After years of marketing body lotion, a cosmetics company begins promoting the lotion as an insect repellent as well. In which three product life cycle extension strategies did this company engage?

Adding new users, increasing frequency of use, finding new users for the product

Which marketing tool is often used to build effective relationship marketing campaigns?

Affinity programs

What are three qualities of strong brand equity?

Awareness, loyalty, and favorable images

A customer intends to purchase her favorite cereal. It is out of stock, so she purchases an alternative brand of cereal instead? Which stage of brand loyalty is this customer in?

Brand preference

Which activities are prohibited by insider trading laws and she be avoided by a firm's employees?

Buying stock in the public company for which the employee works based on a conversation the employee overheard at a cocktail party between two of the company's executives and selling company stock because a co-worker told the employee the company's new drug is failing in clinical trial

Which marketing strategy is devoted to maintaining continuous bottom line prices rather than relying on short-term price-cutting tactics.

Everyday low pricing

Which economic graph is used by organizations to regulate production by predicting the amount of product buyers will purchase at different rates?

Demand curve

How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price?

Demand increases

Which step in the organizing process results in management grouping work activities into units with the organization?

Deparmentalization

A company might dividing itself into smaller groups that best match the types of customers it serves is an example of what?

Departmentalization

Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global packaging delivery service?

Direct

Which regulatory relationship within the Securities and Exchange Commission historically has acted to prohibit the U.S. from adopting the International Financial Reporting Standards?

FASB requires companies to comply with GAAP that differ from IFRS

Which two impacts result from a nation's increase in productivity?

Economy expands and personal wealth increases

How does a virtual private network contribute to a firm's workforce productivity?

Employees are enabled to work remotely with secure connectivity to the corporate network via the internet

What should a firm do to manage the risk of using leverage when exploring long-term funding options?

Ensure that earnings remain larger than interest payments

Which aspect of operations management do the ISO 9000 standards address?

Establishment of effective quality systems

Which part of the organizing process aids in effective and efficient progress toward planned goals and often results in changes within an organization?

Evaluating Results

Which manufacturing model uses technology to produce small runs of customized products cost effectively?

Flexible

Which characteristics make commercial paper a low-risk, attractive sources of short-term funding for a business?

It can make large amounts of money available, it carries interest rates that are 1 to 2 percent less than bank loans, and it has a maturity that ranges between 1 and 270 days.

How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?

It capped the debit card swipe fee at 21 cents

Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds?

It converts easily to cash

Why does a line organizational structure function most effectively in a crisis situation?

It establishes a direct flow of authority.

A company wishes to determine if it should fund a project with bonds or equity. Which business concept would it most likely use to assist in the decision?

Leverage

Which two distribution channels would take title of the products they handle?

Limited-function merchant wholesaler and full-function merchant wholesaler

Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its equity?

Long-term commercial bank loan

Which two activities are finance activities rather than accounting activities?

Making capital market investments and creating a financial plan

Which users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions?

Owners and creditors

Which element of the promotional mix has the advantage of messaging that can be tailored for each customer, by the disadvantage of a high cost per contact?

Personal Selling

For which type of communication should employees have an ethical expectation of privacy from company monitoring?

Personal letters sent through the company mail room

Which three tasks are key responsibilities of operations manager?

Planning the overall production process, determining the best layout for the firm's facilities, implementing the production plan

Which factors drive demand in a microeconomic system?

Price of substitute goods and customer prefernce

Which three factors suggest a product should be marketed as a specialty product?

Priced high, purchased infrequently, available from a small number of retail outlets

A high-tech startup company is launching a marketing campaign for its new social media portal by highlighting how the portal exceeds the connectivity and collaboration capabilities of all other social media sites. Which type of competitive advantage is this company leveraging?

Product

Which two characteristics does a Just-in-Time system have?

Production using JIT reduces a firm's inventory costs and it seeks to eliminate anything that does not add value in operations activities

What does a CFO use in financial planning to determine the expected level of revenue for future periods?

Sales forecast plush non-sales revenue

Which activity raises ethical issues heightened by the capabilities of data mining?

Selling customer data for external marketing research

Which sources should a business consider when seeking a long-term funding source?

Venture capital, public sales of stocks, and hedge funds

Which risks does a firm face by funding the purchase of long-term assets with short-term funding sources?

Volatility of interest rates and frequent renewals