Busi 1301 Exam 3
Q11.) In the context of the marketing mix, which of the following statements is true of a distribution strategy?
Its key decisions include shipping, warehousing, and selling outlets.
Q10.) Sapphinx Growth and Income, a mutual fund company, had a free hand in its operations before the year 2010. However, after an alteration in the government rules, the company faced a number of restrictions in selling its shares to investors. Which of the following acts is responsible for the alteration in the rules?
The Dodd-Frank Act
Q10.) Glen wants to find the stock prices of some of the large actively traded companies listed on the Tokyo Stock Exchange. Which of the following stock indices should Glen follow?
The Nikkei 225
Q9.) _____ forecasts the types and amounts of assets a firm will need to implement its future plans and help financial managers determine the amount of additional financing the firm must arrange in order to acquire those assets.
The budgeted balance sheet
Q12.) Rosy's Sweet Treats is a food truck that sells waffles. In this scenario, which of the following is true of Rosy's Sweet Treats?
The business is a mix of goods and services.
Q9.) __________is an asset management ratio that measures how quickly a firm sells its stock to generate revenue.
The inventory turnover ratio
Q12.) __________refers to how well a product performs its core function.
Quality level
Q10.) Oscilance Inc., a watch manufacturing company, issues new stocks. However, instead of floating its shares in public, it directly negotiates with a small number of accredited investors that meet specific financial requirements set by the Securities Exchange Commission (SEC). Which of the following methods of issuing securities is being used by Oscilance in the given scenario?
A private placement
Q9.) __________is a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement.
A revolving credit agreement
Q9.) Newot Texin, a pharmaceutical company, introduces a new pain relieving drug in the market. It borrows $1 million from Esterotia, a private bank, to market the drug. In return, Esterotia allows Newot Texin to return the full amount with interest in fixed amounts of $200,000 every six months. Which of the following sources of long-term funds is being used by Newot Texin in the given scenario?
A term loan
Q9.) Tusken Thaw, a shipping industry, plans to expand its customer base to other countries. To facilitate this process, Tusken Thaw seeks financial assistance from Jermino Bank. The bank agrees to lend a specified amount of money; however, it mandates Tusken Thaw to return the amount with interest in a regular schedule of fixed payments. Which of the following sources of long-term funds is being used by Tusken Thaw in the given scenario?
A term loan
Q11.) Which of the following can be achieved by marketers by acquiring customer loyalty?
Acquisition of new customers
Q9.) Tinix is a well-established petrochemical company that holds excellent credit ratings in the market. It provides short-term financial capital to other big firms by issuing promissory notes that are collateralized by physical assets. Which of the following short-term financing options is being offered by Tinix in the given scenario?
Asset-backed commercial paper
Q12.) Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which of the following concepts is being illustrated in this scenario?
Cannibalization
Q10.) Cartman owns convertible securities in OctoCore Corp. If the conversion ratio for the convertible securities is 37, it means that:
Cartman can exchange each convertible security that he owns for 37 shares of common stock.
Q11.) Who among the following individuals is practicing green marketing?
Claire, who sells solar-powered watches
Q9.) Juxipi Inc. is well known for having a stronger credit score than its competitors. that is why, buyers are more willing to buy promissory notes from Juxipi than its competitors. Which of the following short-term financing options is being offered by Juxipi Inc. in the given scenario?
Commercial paper
Q11.) Pagpartet is a supermarket that sells good quality products and renders excellent client service. Pagpartet's membership program for regular clients offers good discounts on perishable products. Its popularity and business generally increase through word-of-mouth. Consumers who shop at Pagpartet rarely switch to another supermarket for their monthly grocery shopping. In the context of marketing, which of the following concepts does this scenario best illustrate?
Customer loyalty
Q11.) Arnoury, a car service station, takes feedback from clients after servicing their cars, which gives the clients a sense of importance. Arnoury's management also ensures rectification and improvement of its services based on clients' feedback. Which of the following marketing strategies does this scenario best illustrate?
Customer relationship management
Q11.) Keitras is a women's apparel store that specializes in winter clothing. It targets university students aged 20-25 with its trendy collection of sweaters, sweatshirts, stockings, and stoles. In the context of consumer market segmentation, which of the following types of market segmentation does Keitras most likely follow?
Demographic segmentation
Q11.) Which of the following is a difference between demographic segmentation and geographic segmentation?
Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live.
Q11.) Which of the following elements is a personal influence on the consumer decision-making process?
Demographics
Q9.) Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold its newly issued stock and was able to amass a sizable amount of money to invest. Which of the following sources of long-term funds is being used by Merith Qin in the given scenario?
Direct investments from owners
Q9.) Miranti Nex, an automobile company, plans to invest in developing a hybrid car. It refrains from using loans from other firms and instead uses its own monetary resources to fund the project. Which of the following sources of long-term funds is being used by Miranti Nex in the given scenario?
Direct investments from owners
Q11.) Cadilengy, a nonprofit organization, is conducting a food fair in the month of October. The proceeds of this fair will go to charity. The restaurants and food product companies participating in the fair start distributing pamphlets about the fair in their outlets two months before the event. As a result, the fair gained popularity among the public. Which of the following marketing strategies does this scenario best illustrate?
Event marketing
Q11.) Katherop, a company that manufactures and supplies baby clothes, conducts a charity program every year to distribute free products to the underprivileged children in rural areas. The company advertises this program to gain attention of its customers. Which of the following marketing strategies does this scenario best illustrate?
Event marketing
Q12.) The two key aspects of product quality are level and longevity.
False
Q9.) A budgeted income statement is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash.
False
Q9.) Because it is normally unsecured, commercial paper is only offered by firms with no credit ratings.
False
Q9.) The current ratio is calculated by dividing a firm's current liabilities by its total assets.
False
Q10.) Grenville Osborn Corp., a commercial bank in the United States, faces legal action for its private dealings in the securities market and in selling insurance. The Grenville Osborn & Co. is in violation of the:
Glass-Steagall Act.
Q11.) Hartown Medicare, a private hospital advertises at bus stops for blood donation using the slogan: "Donate blood, save lives, stay healthy! You can donate blood at Hartown's 24/7." Which of the following marketing strategies does this scenario best illustrate?
Idea marketing
Q12.) _____ involves using all the media platforms to promote a product.
Integrated marketing communication
Q10.) Which of the following is true of financial diversification?
Investing in a large number of individual securities is time consuming than investing in exchange-traded funds.
Q9.) Which of the following statements is true of a socially responsible firm?
It has an obligation to respect the needs of all stakeholders.
Q11.) Which of the following statements is true of product-use-based market segmentation?
It helps small companies in narrowing the target markets for their products.
Q9.) _____ are ratios that measure the extent to which a firm relies on debt financing in its capital structure.
Leverage ratios
Q12.) _____ refers to promoting goodwill for a company by providing information and assistance to customers.
Missionary selling
Q11.) Flectamp, a new cell phone manufacturer, introduced a smart phone model, Linkul X3.4, which gets charged on solar power Television advertisements about this product show that the phone needs to be charged only once a week. Hence, several customers pre-booked this model before its launch. But after the launch of Linkul X3.4, 80 percent of its customer reviews on the Internet were bad. In the context of customer satisfaction, which of the following traps did Flectamp most likely fall into?
Overpromising
Q11.) Spalkyn, a footwear company, allows its customers to shop online on its website or mobile app or at its physical stores. At the company's physical stores, customers are given the option to pick up their products or have them delivered. In the context of marketing, which of following utilities does Spalkyn most likely provide?
Ownership utility
Q11.) Tyler Connor, a famous politician who supports the ruling party of the island country of Blavanka, endorses a publishing house named Cenzefor that he owns. Many Blavankan writers want to get their books published by Cenzefor because of Connor's connection with the brand. Which of the following marketing strategies does this scenario best illustrate?
People marketing
Q11.) Which of the following marketing strategies can be best employed for attracting tourists?
Place marketing
Q9.) Yennex Inc., a textile company, planned to sell its stock products in two months' time. The company was able to sell those products within a month's time. Therefore, it was able to sell double the estimated amount in a year. Given the scenario, which of the following ratio analyses is most likely to have been analyzed by Yennex Inc. to achieve this success?
Profitability ratios
Q11.) In the year 1906, Kendreed, a company that sold kitchen utensils, had only one model of each of its products. The company did not feel the need to differentiate its wares because it did not analyze its business from a customer's point of view. In the context of the evolution of marketing, which of the following eras does this scenario most likely refer to?
The production era
Q10.) Which of the following is true of securities brokers?
They act as agents for investors who want to buy or sell financial securities.
Q11.) Which of the following statements is true of loyal customers?
They forgive marketers' mistakes.
Q11.) Coastharp, a furniture e-commerce website, allows its customers to book one-hour slots during which they wish to get their furniture delivered. They can also book another one-hour slot to get the delivered furniture assembled at their convenience. The company holds back orders and delays deliveries when customers are not available to receive them. In the context of marketing, which of the following utilities does Coastharp most likely provide through its service?
Time utility
Q9.) Duk Yu, a beverage company, buys its raw materials from Nessange, a fruits and vegetables exporting company, without making any payment at the time of purchase. Instead, Nessange allows Duk Yu to pay the total purchase amount within a period of six months. Which of the following short-term financing options is being used by Duk Yu in the given scenario?
Trade credit
Q12.) Cannibalization occurs when a producer offers a new product that takes sales away from its existing products.
True
Q12.) Product diffusion happens at different speeds, depending on the individual consumer and on the product itself.
True
Q9.) The following questions must be answered when setting credit terms: How long should the firm extend credit? What type of cash discount should the firm offer to encourage early payments?
True
Q11.) __________is the ability of goods and services to satisfy consumer wants.
Utility
Q12.) An example of a pure service is:
an accountant providing financial consultation to a firm.
Q9.) Financial managers use__________to assess the financial strengths and weaknesses of their firm.
financial ratio analysis
Q12.) Blue Legion, a well-known jeans manufacturer, is the main sponsor for a rock concert. Although the tickets to the concert are exorbitantly priced, the public feels that since the concert is being sponsored by a company like Blue Legion, it must be worth it. The scenario illustrates that Blue Legion has a good _____.
brand equity
Q9.) A _____ can help a firm evaluate how much internal financing (funds generated by earnings) will be available for a planning period.
budgeted income statement
Q12.) In the introduction stage of the product life cycle, companies are primarily focused on:
building customer awareness of the product.
Q10.) Lydia sells her ancestral property for a handsome amount of money. She invests this money in various securities. She decides not to trade the securities for a while and lets her money increase with the growth of the overall market. However, after almost eight years, when she feels that the value of the securities has risen considerably, Lydia sells her stocks and receives high returns on her investment. In this scenario, Lydia has used the _____ investment strategy.
buy-and-hold
Q10.) A__________is the most common depository institution.
commercial bank
Q11.) Understanding the _____ begins with analysis of market share.
competitive environment
Q12.) Aubosh, a car manufacturing company, is in a contract with Bolivin Tires. Under this contract, Aubosh purchases tires from Bolivin Tires for all its mid-range cars. In this scenario, Aubosh buys _____ from Bolivin Tires.
component parts and processed materials
Q12.) Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her favorite kiwi-flavored candies on a stand and puts some into her shopping cart. In the context of product classifications, the candies purchased by Glinda are _____.
convenience products
Q10.) William holds shares of preferred stock in a telecommunications company. However, given the lucrative benefits that come with holding common stock, William exchanges his shares of preferred stock with shares of common stock at the conversion price. In this scenario, William was holding _____ in preferred stock.
convertible securities
Q10.) The government of Brunasia issues bonds with a guarantee to make periodic interest payments on the par value. The government offers a 6.5% interest on its bonds. In this case, the percentage of interest offered by the government of Brunasia is called the _____.
coupon rate
Q9.) The purpose of _____ is to protect creditors by preventing the borrower from pursuing policies that might undermine its ability to repay the loan.
covenants
Q10.) Lina, along with ten of her colleagues, starts a financial cooperative to financially assist each other. The members pool their savings in the cooperative, and they can also take loans from it on a low interest rate. Members of the cooperative benefit from higher returns on savings and lower rates on loans. In this scenario, the cooperative started by Lina and her colleagues exemplifies a(n) _____.
credit union
Q9.) In financial management, risk is referred to as the:
degree of uncertainty about the actual outcome of a decision.
Q10.) In the context of open-end mutual funds, the net asset value per share (NAVPS) is computed by:
dividing the total value of the fund's cash, securities, and other assets by the number of fund shares outstanding.
Q10.) Goodwin Ross MidCap Growth is a fund that lets its investors buy ownership in a market basket that contains different securities. The fund's market basket has a composition that is similar to the composition of the Dow Jones Industrial Average stock index. In this scenario, Goodwin Ross MidCap Growth is a(n) _____.
exchange-traded fund
Q11.) Renetoge is a company that manufactures wooden furniture and sells them to furniture retailers and e-commerce websites. The company gives discounts to its regular multinational clients when they buy in bulk. Relationship managers in Renetoge visit clients on a regular basis for discussions. In the context of customer relationship management, Renetoge most likely establishes _____ with its customers.
full partnerships
Q11.) Boncidio Inc., a cell phone manufacturer, introduced a new cell phone model. 85 percent of this phone is made from biodegradable materials. This product attracts customers who give importance to using environment-friendly products in their daily lives. In the context of social responsibility and technology, Boncidio best illustrates _____.
green marketing
Q12.) Lucy opens a restaurant that uses only organic ingredients in its dishes. The restaurant quickly gains popularity as its customers recommend it to their friends and family. In this scenario, Lucy's restaurant business is benefiting from _____.
guerrilla marketing
Q10.) According to critics, the Glass-Steagall Act:
impeded financial innovation.
Q12.) One of the benefits of licensing is:
instant name recognition.
Q12.) Longevo, a watch manufacturing company, offers watches in a wide range of designs to suit all age groups. To adequately cover its wide and diversified consumer base, the company makes use of all the traditional and new age media platforms for its promotions. The promotional strategy used by Longevo is _____.
integrated marketing communication
Q10.) Charles, a 62-year-old army veteran, buys preferred stocks in companies. Although the returns on these stocks are not high, he is more than happy with his investments as they bring a steady flow of money that helps him in his sustenance. Charles's investment approach is an example of the strategy of _____.
investing for income
Q10.) A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.
investment bank
Q12.) Team selling works best for:
large and complex accounts.
Q9.) Omnimenium, an automobile company, incurred a debt of $20 million for the fiscal year of 2016. The company used that money with an additional $20 million of its own to buy out a rival company. The ratio of the company's debt to its investment is 0.5. The given scenario illustrates the analysis of _____.
leverage ratios
Q12.) Kiddiecon, a company that manufactures stationery products for children, signs a contract with an animation studio to use one of its popular cartoon characters as a design on its school bags. Kiddiecon's contract with the animation studio is an example of _____.
licensing
Q12.) Zollien, a manufacturer of men's shirts and jackets, has reached an agreement with Arbrada Inc. According to the agreement, Zollien will pay Arbrada a substantial fee for the right to use Arbrada's name and logo on some of its clothing lines. This type of arrangement is known as:
licensing.
Q10.) Garret wants to buy shares of an iron manufacturing company, but he does not want to pay a high price for them. He asks his securities broker to only buy shares that come within the price of $300 and $400. In this scenario, Garret places a _____ with his broker.
limit order
Q11.) Marketers who cannot forge a close personal bond with every customer but actively gather data and pursue a connection with customers who initiate contact have a _____ with the customers.
limited relationship
Q9.) Maurio Pena, a petroleum company, needs to pay $2 million to Zaiten Inc. Maurio Pena sells its old assets to another company and obtains enough money to pay its debt. In this scenario, Maurio Pena's ability to sell its old assets to another company in order to pay its debt to Zaiten is measured by analyzing _____.
liquidity ratios
Q9.) Mort Zuba, an automobile company, needs to pay off its loans to banks the following year. The company plans to sell its factories in Astonsia in order to pay its debts. In this scenario, Mort Zuba's ability to sell its factories in Astonsia to pay its debts is measured by calculating _____.
liquidity ratios
Q10.) A__________issued by an investor instructs a broker to buy or sell a security at its reigning price at that particular time.
market order
Q12.) Clembor AgroSciences, an agrochemical company, mainly focuses on selling its products in rural markets. The company promotes goodwill by sending teams of salespeople to instruct farmers on the right usage of the products and responding to their agriculture-related queries. In this scenario, Clembor AgroSciences is engaged in _____.
missionary selling
Q10.) Paula wants to buy stocks in a publicly traded company that deals in networking equipment. However, the company is not listed on any of the major stock exchanges. Paula should, therefore, purchase the stocks of the company in the _____.
over-the-counter market
Q10.) The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.
over-the-counter market
Q10.) Jason and Edward held stocks in a cell phone manufacturing company. However, when the company went out of business in a few years and liquidated its assets, Edward rightfully received his share in the company proceeds before Jason. Based on the given information, it can be concluded that Edward was a _____.
preferred stockholder and Jason was a common stockholder
Q12.) A home décor company manufactures a range of bedding products such as bedspreads, pillows, and mattresses. The range of bedding products represents the _____ of the company.
product line
Q12.) Streetlore, a footwear manufacturing company, makes business and casual shoes for both men and women. The company also makes school bags for children between the ages of five to ten years. The entire line of goods made by Streetlore represents the _____ of the company.
product mix
Q12.) Vermontz, an automobile company, pays a film studio to include its new sports car in two scenes of its latest action movie. The company feels this would help them gain maximum visibility, and the fans would also develop a positive association with the brand when they will see their favorite actor using the car in the film. Vermontz's business deal with the film studio exemplifies _____.
product placement
Q10.) An online food delivery service goes out of business owing to stiff competition. The company has long overdue taxes because of which its stockholders do not receive the proceeds of the company after its dissolution. In this case, the company is not able to fulfill the _____ of its stockholders.
right to a residual claim on assets
Q12.) Austere Realty, a real estate company, ensures that its web page always shows up high among the list of results whenever a user looks for information related to property and housing on the Internet. In this scenario, Austere Realty is actively engaged in _____.
search engine optimization
Q12.) Joel wants to buy his best friend a home audio system for his birthday. He visits a few electronic stores and looks at different brands of audio systems and compares their prices. He finally purchases a wireless Bluetooth home audio system from a store that offers good quality within a reasonable price. In the context of product classifications, Joel's purchase falls under the category of _____.
shopping products
Q10.) If Carl is a preferred stockholder at Cedia Inc., and Cedia goes out of business, Carl's claim on the firm's assets:
takes precedence over common stockholders.
Q11.) Neone is an energy drink manufacturer. The marketing strategies of Neone are focused on males who are in the age group of 16 to 25 years and who enjoy sports and other outdoor activities. The company advertises its products at skateboard parks, basketball venues, and ski resorts. The customer group that Neone focuses on is called its _____.
target market
Q10.) Aaron buys 300 shares in a tobacco company. Within a year, he receives a capital gain on his stocks. This means that:
the price of the shares soared in the market.
Q9.) Grisham is the financial manager of Plink Inc., an electronics company. He invests a major portion of the company's profit in his business. He believes that money has the potential to grow in value over a certain period, which is why he prefers to receive and invest an amount of money today rather than in the future. In this scenario, Grisham is most likely to be influenced by _____ while utilizing the finances of the company.
time value of money