Strategic MGMT Ch 8
Digital advertising spending on social media and mobile devices increased nearly ____ percent to $50 billion in the United States in 2014, comprising 28 percent of total ad spending in the nation.
17
About _____ percent of all traffic on the Internet is fake, the result of bogus computers programmed to visit websites to take advantage of marketers who typically pay for ads whenever they are loaded when a user visits a webpage, regardless of whether the user is an actual person.
36
More than 40 percent of businesses that send employees out on service calls today track the location and movement of those employees by their company-owned/-provided hand-held devices or vehicles.
40
Regarding corporate valuation, a conservative rule of thumb is to establish a business's worth as ____ times the firm's current annual profit.
5
In EPS/EBIT analysis, from where does the tax rate percentage come?
A. Use the company's prior year tax rate as revealed by dividing income before taxes by taxes paid off the firm's income statement.
In developing projected financial statements, how do you calculate retained earnings on the balance sheet?
Add the net income less dividends to the prior year's retained earnings.
Which statement below is false? A. FASB Rule 142 requires companies to admit once a year whether the premiums they paid for acquisitions, called goodwill, were a waste of money. B. Goodwill is not a good thing to have on a balance sheet. C. Because goodwill write-down accounting rules involve projections and judgments, companies have leeway for when to write down goodwill, and by how much. D. A and C E. All statements are true.
All statements are true.
Which statement below is false? A. "Going public" means selling off a percentage of a company to others to raise capital; consequently, it dilutes the owners' control of the firm. B. Increasingly, companies are issuing corporate bonds to buy back their own stock and to pay cash dividends to shareholders. This has become a concern. C. Many firms prefer to leave their cash outside the United States if it was earned outside the United States because to use those funds to pay dividends or purchase treasury stock, for example, would trigger a big U.S. corporate income tax payment. D. Going public is not recommended for companies with less than $10 million in sales because the initial costs can be too high for the firm to generate sufficient cash flow to make going public worthwhile. E. All statements are true.
All statements are true.
What is the only way(s) for retained earnings on the balance sheet to decrease from one year to the next?
B, C, and D
____________ can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.
B. Market segmentation
The corporate valuation formula for the net worth method is what?
B. Total shareholders' equity (SE) minus (goodwill + intangibles).
R&D spending in China increased to about $___ billion in 2014, up ___ percent from 2012. In contrast, R&D spending in the United States grew about ___ percent to $____ billion during the same period.
B. 285; 22; 4; 465
In the United States , only two states currently require businesses to tell employees if their electronic communicationslong dash—including e-mails, instant messages, texts, photos, and websites visitedlong dash—are being monitored; the two states are _____ and _____.
B. Delaware; Connecticut
Some hotel chains, such as ________, are holding off on using smartphones as keys until potential security issues can be resolved.
C. Marriott
The top 20 most valuable college football programs are listed in the chapter in terms of their monetary value. What team is most valuable?
C. Texas Longhorns
The common stock of a firm that is owned by the firm itself is called what?
C. Treasury stock
Three marketing activities are especially important in strategy implementation and thus are discussed as major sections in Chapter 8. Which activity is not one of the three?
D. Advertise products effectively.
What formula below is correct for valuing a company using the price/earnings ratio method?
Divide the market price of the firm's common stock by the annual earnings per share (EPS) and multiply this number by the firm's average net income for the past 5 years.
What two criteria does an excellent product positioning map meet?
E. A and C
When a firm buys more of its own common stock, what is the effect on the firm's earnings per share (EPS) value?
It goes up.
Which statement is false? A. Sometimes firms will thus increase their treasury stock near the end of the quarter, or near the end of the year, to "artificially" inflate their EPS. B. Normally, in developing projected financial statements, the cash account is used as the plug figure. C. Another name for the balance sheet accountlong dash—additional-paid-in-capitallong dash—is capital surplus. D. A and B E. None of the above
None of the above
Is the following statement true? No federal laws in the United States currently prevent businesses from using GPS devices to monitor employees, and federal law does not require businesses to disclose to employees whether they are using such techniques.
Yes
Another term for product positioning is _______________.
perceptual mapping
Limitations of EPS/EBIT analysis include:
A, B, and C
The marketing mix component variables, also called the 4 P's of marketing, are:
product, place, promotion, and price.