BUS 151: Final Exam

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

How does unsolicited and unwanted e-mail pose a security risk to companies?

viruses spread through e-mail attachments

_____ is the action that people take in buying and using goods and services.

Buyer behavior

A(n) _____ is a summary of what a company has earned and spent over a given period.

income statement

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

A(n) _____ is a retail store that sells at prices 25 percent or more below traditional department store prices in spartan environments.

off-price retailer

Which of the following is NOT one of the key characteristics required in order formoney to be an acceptable medium of exchange?

profitibility

Personal selling is an element of the product strategy.

False

The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate.

False

When a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system.

False

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

Product and promotion

Money is anything that is acceptable as payment for goods and services.

True

Production converts inputs into outputs by changing the inputs in some way

True

Revenues are the dollar amount of sales plus any other income received from sources like interest, dividends, and rent.

True

Service companies generally use a repetitive or intermittent production process rather than the continuous process

True

The categories of heavy, moderate, and light users have to do with which type of segmentation?

Volume

For most corporations, physical-distribution activities are usually the responsibility of the marketing department.

True

Financial management is the art and science of managing a firm's money so the firm can meet its goals.

True

A target market is a specific group of consumers toward whom a firm directs its marketing effort.

True

An alphabetic listing of the names and GPAs of everyone in your class is an example of data.

data

Gantt charts are most helpful when:

only a few tasks are involved

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. Its gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:

cost of goods sold

In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:

cost of goods sold

Crown Holdings Inc. manufactures a high-resolution, full color digital inkjet printed cans that allows smaller beverage producers to label the cans as they are needed to be filled rather than keeping a stock of preprinted cans. This is an example of how a beverage company could use:

just-in-time

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.

make-or-buy

Demography is the study of:

A. individual's ages B. educational levels C. household size D. income levels E. all of the above

An accounting system should generate both internal and external reports.

True

_____ is the number of times an individual is exposed to an ad.

Frequency

What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains, etc.) to be used in the production of Audi cars in Audi's Neckarsulmplant?

Purchasing

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

Wholesalers

A short-term loan from a bank, supplier, or others that must be repaid within a year is a(n):

account payable

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite ofits announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

availability of production inputs

Abercrombie & Fitch stores are aimed at college-aged consumers. The parent company also operates retail clothing stores under the name Hollister, which are targeted to 14- to 18-year-olds and under the name Abercrombie, which sell children's wear. Abercrombie & Fitch operate:

specialty stores

Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization.

True

In finance, the opportunity for a profit is called return.

True

Internet retailing is also called e - retailing

True

Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or services to create exchanges that satisfy individual and organizational objectives.

True

Supply chain management plays a dual role. Its first role is as a communicator of customer demand that extends from the point of sale all the way back to the supplier. The second role is as a physical flow process that engineers timely and effective movement of products.

True

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

True

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

True

A(n) _____ is the collective term that describes the methods and the equipment used to provide information about all aspects of a firm's operation.

management information system

A face-to-face sales presentation of a good or service to a prospective customer is called:

personal selling