IBT Final Exam Spring 2022

Demographics

Market segmentation based on personal characteristics such as gender, age, and income level is known as...

Recommended methods to protect yourself from identity theft and fraud include_______.

Placing a credit freeze with the credit bureaus.

Marketing Mix

Product, price, place and promotion are collectively known as the:

Selling

Providing customers with goods and services they want to buy.

In addition to needs, what should you plan for fi rst when creating a budget?

Recurring expenses

Your business pays $125 cash to have the company truck repaired. You will debit __________ and credit the cash account.

Repair expense

A balance sheet does NOT consist of _____________.

Revenue

What is one of the best ways to get reliable information about a product?

Search online reviews

Could be taken from your paycheck.

State income tax

How is an advertisement different from a comment from a regular consumer?

The advertisement is likely one-sided.

What is net pay?

The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

Dimitri's counselor told him that post secondary education can be expensive but can pay off in the long run, what does that mean?

The salary you will earn with a degree will pay back the cost of college over your career.

Maturity

The stage when a product has many competing brands with very similar features is known as the _______ stage.

How does the government pay for roads, schools, and emergency services?

They are funded through taxes.

Interviews, surveys, focus groups, and observations

Ways to conduct marketing research?

A trademark provides legal protection for:

a business's name or symbol.

Textbooks, transportation and room and board are all...

additional costs for attending a college or university.

When looking for pre-approval on a car loan you should...

compare pre-approval offers and select the one that is best for you.

Making a good purchasing decision requires __________.

comparing the prices of similar items

When setting a budget, you should consider...

financial goals, current expenses, and income.

To maintain a good credit score you must ______.

manage your debt wisely.

The types of buyers a business wishes to attract and where those buyers are located is known as a __.

market

The product life cycle stage in which sales are highest

maturity

Pay minus deductions, also known as take-home pay.

net pay

Vision Statement

A ______________ identifies what a company would like to achieve or accomplish, what is their end result and future?

An example of a product in the decline stage of the life cycle is

phonograph records

These are steps in the accounting cycle

post, analyze, journalize

The advancement of an employee within a company to a position with more authority and responsibility.

promotion

Illness or death may close the business. This is a disadvantage of which type of ownership?

proprietorship

Why have health insurance?

protects you financially from medical emergencies.

Buying a home security system is an example of protecting your home against________.

risk

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies.

Unexpected expenses...

should be planned for.

A _______ is a share of ownership in a company.

stock

An insurance premium is...

the amount of money you pay for an insurance policy.

An insurance deductible is...

the amount you owe before insurance will cover the rest of the bill.

Which of the following financial institutions typically have the highest fees?

Check cashing and payday loan companies

What should you do before you approach an ATM?

Check for any suspicious people lurking nearby.

Which type of bank account typically offers the least (if any) interest?

Checking account

What is accounting?

Collecting, organizing, and interpreting financial data

What will collision insurance cover in the event of an accident?

Damage to your car

Process of planning, pricing, promoting, selling, and distributing ideas, goods, and services.

Describe what marketing is

Which of the following should NOT be considered when setting a current budget?

Future income

Which of the following is a benefit of using a budget?

Helps to prioritize your spending

What is a benefit of having a good credit score?

When you need a loan, you'll have more loan offers to pick from. Having a

Anything of value that is owned.

asset

Profits distributed to stockholders.

dividends

The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.

it requires collateral.

The ability to influence individuals and groups to achieve organizational goals.

leadership

Debt that is owed.

liability

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called...

liability insurance.

Going directly to a car dealer for a loan to keep things simple is a...

not great because they typically offer higher interest rates.

Allocating resources, assigning tasks, and establishing procedures for accomplishing the organization's goals falls under which managerial function?

organizing

Generally, _____________ you receive, the higher your lifetime earnings will be.

the more education

Product

A business wishes to meet the needs and wants of customers better by delivering a higher quality service. Which element of the marketing mix will the business focus on to achieve this?

Which financial statement lists all assets, liabilities, and owner's equity?

Balance Sheet

What is a possible red flags or signs of a scam when buying a car?

Charging of excessive fees

This helps you prepare for unexpected expenses.

Emergency fund

Where should you look to fi nd your current expenses when building your budget?

bank and credit statements

Financial compensation in addition to salaries and wages.

benefits

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.

benefits

A widely used financial planning tool is a

budget

Effective leaders

earn the respect and cooperation of employees.

A democratic leader:

encourages shared decision-making.

Mission Statement

A _____________ reflects the purpose, culture, values, ethics of a company, The statement reveals what the company does, how it does it, and why it does it.

What could be a good option available to you if you are behind on loan payments?

A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

Market

A group of potential customers—people or businesses—who are willing and able to purchase a particular product or service.

How does a consumer know whether a purchase may be a good deal?

A large percentage of positive customer ratings offer detailed explanations.

Cutting down on costs by earning an Associate's degree fi rst and then transferring to a four-year college or university can be done by going to what type of higher education institution?

A local community college.

Place

A local florist chooses to locate her new store in a mall instead of a small building across the street from a mall. This is an example of ____ in the marketing mix.

Demographics, psychographics, and geographics

A market segment is a grouping of consumers or businesses within a particular market that has one or more things in common. Which of the following are examples of market segments?

Target Market

A selected group of customers who are most likely to buy the product or service.

Your business purchases $75 of supplies on account. You will debit supplies and credit which of the following accounts?

Accounts Payable

Your business completes a job for a customer. The customer will pay you for the work next month. You will debit _____________ and credit service revenue.

Accounts Receivable

Accounts receivables appear on the balance sheet as:

An asset

What is the accounting equation?

Assets = Liabilities + Capital

The ruling body of a corporation.

Board of directors

Which item is important to consider when selecting a credit card?

Both APR and fees

Which payment option can offer additional security like fraud protection?

Credit Card

Which one of the following statements is true about entrepreneurs?

Entrepreneurs usually work hard and for long hours.

Financing

Getting the money needed to finance the operationof a business

Which is NOT a good way to track your spending?

In your head

Which financial statement tells whether a company made or lost money in a given time period?

Income Statement

What should you do before you withdraw money from the ATM?

Inspect the ATM to make sure it wasn't tampered with.

Why is figuring out the unit price of something useful when shopping?

It helps you determine the best deal.

Price

Many movie theaters charge a lower admission between 4:00 and 6:00 pm to encourage more people to come at that time. What element of the marketing mix is the focus of this strategy?

Geographics

Market segmentation based on where your target market lives or works is known as...

Psychographics

Market segmentation based on your target market's personality and life style is known as

Providing information to customers that will assist them in making a decision and persuade them to purchase a product or service.

Marketing

Transporting and Distributing

Moving products from where they were made to where consumers can purchase them is known as

Which example shows an advantage of owning a car over leasing one?

No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.

Benefits to paying the full balance of your credit card each month include:

Not having late fees

Which savings account will earn you the most money?

One that compounds interest daily.

Which is a positive reason for using a credit card to finance purchases?

Paying it off on time can help build your credit history

Which financial statement tells how much money came into a company and how much money went out of a company?

Statement of Cash Flows

Which financial statement tells how much of the money a company made was retained and reinvested into the company?

Statement of Retained Earnings

What do you know abut FAFSA?

States may have different deadlines for applying for state aid.

Market Research

Studying buyer interests and needs, testing the products and gathering facts needed to make good marketing decisions is known as

Promotion

The element of the marketing mix is concerned about how to communicate the product, place, and price.

Product Life Cycle

The four stages that shows the performance and the amount of time a product goes from being introduced into the market until it's taken off the shelves.

How is a post from a social media influencer different than a comment from a regular consumer?

The influencer is paid to post the product.

Decline

The stage when customers begin to switch from the old product to a new or more improved product. The old product is in the ______ stage.

Growth

The stage when several brands of the new product are available, sales increase, and profit increase are known as the ____________ stage.

Logo

This is the graphic symbol used by your company which allows it to be recognized by your audience. It is a visual representation of your brand's identity.

Competitive Advantage

This refers to the attributes that allows a company to operate better than other companies in the same industry.

Why is it important to reconcile your bank statements?

To avoid spending more than what is in your account.

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paychecks.

Your business pays employees $600 for work completed. You will debit ____________ and credit cash.

Wages Expense

Small Business Administration (SBA)

What agency of the federal government can assist small businesses obtain loans under special conditions? It can also help with creating your business plan.

pricing, selling, and product/service management

What are the functions of marketing?

the limited number of customers who are most likely to buy the product or service

What is a target market?

Introduction

When a brand-new product enters the market, it is known as the _____________ stage.

When are loans a good option to use?

When paying for higher education

This leadership style is the most efficient.

autocratic

The type of document which includes details, goals and objectives, including how they will be achieved describes which of the following documents?

business plan

The main goal of effective marketing is to ___

create and maintain satisfying exchange relationships.

The total amount of money earned for a specific period of time.

gross pay

Federally-funded grants require the student to...

have fi nancial need only.

The W-2 form is a form that tells you _______.

how much taxes you've paid in the last year based on how much you've earned.

This function of management involves carrying out plans and helping employees work effectively.

implementing

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

insurance.

A 529 plan can help you save more money than a traditional savings account because...

it is a tax free.

The owners of a corporation.

stockholders