Business Acumen C201
departmentalization.
A company might divide itself into smaller groups that best match the types of customers it service. this is an example of
leverage
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?
Brand preference
A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty is this customer in?
Customer loyalty
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 sits. Which type of competitive advantage is this company leveraging?
1) Define job requirements, 2) Contact and visit colleges for applicants/interns, 3) Conduct employment tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up interviews, 7) Hiring determination
Number the seven steps in the recruiting and interviewing process from first to last.
output (goods or services) / input (human, natural resources, capital)
Total productivity
When demand for the product is driven by the end user
When would a pull promotional strategy enhance a competitive advantage to market a product better than a push strategy?
Selling customer data for external marketing research
Which activity raises ethical issues heightened by the capabilities of data mining?
Establishment of effective quality systems?
Which aspect of operations management do the ISO 9000 Standards address?
net income divided by average equity
Which calculation determines a firm's return on equity?
Demand curve
Which economic graph is used by organizations to regulate production by predicting the amount of product buyers will purchase at different prices?
Personal Selling
Which element of the promotional mix has the advantage of messaging that can be tailored for each customer, but the disadvantage of a high cost per contact?
The balance sheet
Which financial statement should an investor examine to identify the liabilities of a firm?
private equity fund
Which funding source should a firm use if it wishes to secure long-term financing while retaining all of its equity?
The intent to report on a user's internet activity
Which intent of spyware creates a company security issue?
retail
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a global package delivery service?
Flexible
Which manufacturing model uses technology to produce small runs of customized products cost effectively?
Everyday low pricing
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short term price cutting tactics such as cents off coupons, rebates, and special sales?
An affinity program
Which marketing tool is essential to building an effective relationship marketing campaign?
Evaluating results
Which part of the organizing process aids in effective and efficient progress toward planned goals and often results in changes within the organization?
Achievement of company goals
Which primary driver does management use for an organization's structure?
FASB requires companies to comply with GAAP that differ from IFRS
Which regulatory relationship with the Securities and Exchange Commission (SEC) historically has acted to prohibit the U.S. from adopting the International Financial Reporting Standards (IFRS)?
It insures the value of the security to the investor
Which role does the underwriter play in financing business operations when using the capital market to sell securities to the public?
Departmentalization
Which step in the organizing process results in management group work activities into units within the organization?
Race and ethnicity, Income, Household size
Which three characteristics are measured in demographic segmentation? Choose 3 answers
pushing strategy
companies promote the product to members of the marketing channel, not to end users
comparative advertising
compares products directly with their competitors ether by name or by inference
competitive pricing
concentrating marketing efforts on the product (features, quality, value), distribution, and promotional elements of the marketing mix.
brand association
connect the brand to the a positive image (GE to eco friendly)
total liabilities / total assets
debt ratio
gross profit / sales
gross profit margin
operational support systems
information systems for activities fall under which support system
cost of goods sold / average inventory (average of 2013 + 2014)
inventory turnover
no
is ethical and legal the same thing
long-term debt / owner's equity
long-term debt to equity
net income / sales
net profit margin
pulling strategy
potential buyers will request that their suppliers-retailers or local distributors - carry the products thereby pulling it through the distribution channel
credit sales / average account receivables (average of 2013 + 2014)
receivables turnover
net income / average equity
return on equity
integrated marketing communications
the coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer-focused message.
imsistence
the highest form of brand loyalty is
specialty, shopping, convenience
three different product types
sales / average total assets
total assets turnover
persuasive advertising
used in the growth and maturity stage of the product life cycle to improve competitive status of a product.
wholesaler
using what can make a price cheaper to a consumer
marketing intermediaries
what adds value to a product
mobility, expansion of LAN
what are advantages to WiFi
measure the extent to which a firm relies on debt financing and includes debt ratio and long-term debt to equity
what are leverage ratios
retailer and broker
what are marketing intermediaries
introductory, growth, maturity, decline
what are the four stages of the product life cycle
decisions
what do management use support systems for
measue managements use of the firms resources and include all turn over ratios
what ratios are considered activity ratios
the firms abilities to meet its short term obligations and include the liquidity ratio and acid test
what ratios are considered liquidity ratios
gross profit, net profit, and return on equity
what ratios are considered profitability ratios
local area network (LAN
when two or more users connect using Ethernet or WiFi to the same server to share printers or other information
competitive advantage
which advantage does brand loyalty provide
specialty
which of the product types is purchased most infrequently
process control system, transaction process system
which of the two information systems are operational support systems
maturity
which stage of the product life cycle requires focusing on attracting the competitors customers
capped the debit card fee at 21 cents
How did the Dodd-Frank Wall Street Reform and Consumer Protection Act impact retailers?
There is no immediate effect on demand
How does a sudden shortage of a commodity product affect the immediate demand for the product at its current price?
employers are enabled to work remotely with secure connectivity to the corporate network via the internet
How does a virtual private network contribute to a firm's workforce productivity?
Buyers face organizational influences in addition to their own preferences, purchasers often invite selected providers to bid on a purchase, a group or committee often makes decisions
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3 answers
Commercial paper
In which type of security should a business invest its excess cash in anticipation of paying off the current year's tax liability?
true
brand preference is a higher form or loyalty than brand recognition
Adding new users, finding new uses for the product, increasing frequency of use.
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the lotion as an insect repellent as well. In which three product life cycle extension strategies did this company engage? Choose 3 answers
To encourage bankers to make loans, to cut the cost of borrowing
For which two purposes will the U.S Federal Reserve System follow an expansionary monetary policy? Choose 2 answers
Personal letters sent through the company mail room
For which type of communication should employees have an ethical expectation of privacy from company monitoring?
current assets / current liabilities
Liquidity ratio
Through better resource utilization, through elimination of application downtime, through dedication of resources to each user
What are three ways cloud computing services enhance company productivity? Choose 3 answers
It conveys an image, it depicts trademark protection, it reflects brand equity.
What are three ways that an effective brand name can influence consumer product recognition? Choose 3 answers
Sales forecast plus non-sales revenue
What does a CFO use in financial planning to determine the expected level of revenue for future periods?
The Database
What is considered the heart of any information system?
Analyzing major investment decisoins
What is one role of a financial manage?
Increased number of direct reports per manager
What is the result of a company increasing the delegation of authority and the span of control?
Ensure that earnings remain larger than interests payments
What should a firm do to manage the risk of using leverage when exploring long-term funding options?
Target Market, Sales revenue goals, Plan implementation timeline (not on list, marketing budget)
What three factors should be addressed in a successful marketing plan? Choose 3 answers.
It has a maturity that ranges between 1 and 270 days, it carries interest rates that are 1 to 2 percent less than bank loans, it can make large amounts of money available
Which three characteristics make commercial paper a low-risk, attractive source of short-term funding for a business?
cultural homogeneity, mobility of labor, local labor costs
Which three conditions, in a global selling environment, should a small company leverage to create a competitive advantage? Choose 3 answers
Hedge funds, Venture capital, public sale of stocks
Which three sources should a business consider when seeking a long-term source? Choose 3 answers
Planning the overall production process, implementing the production plan, determine the best layout for the firm's facilities.
Which three tasks are key responsibilities of operations managers? Choose 3 answers
Making capital market investments, creating a financial plan
Which two activities are finance activities rather than accounting activities? Choose 2 answers
Selling company stock because a co-worker told the employee the company's new drug is failing in clinical trial, 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.
Which two activities are prohibited by insider trading laws and should be avoided by a firm's employees? Choose 2 answers
A JIT system seeks to eliminate anything that does not add value in operations activities, production using JIT reduces a firm's inventory costs.
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
An increase in overall cost of debt to private borrowers, an increase of funds for public services
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? Choose 2 answers
Customer preference, price of substitute goods
Which two factors drive demand in a microeconomics system? Choose 2 answers
Economy expands, Personal wealth increases
Which two impacts result from a nation's increase in productivity? Choose 2 answers
Human interaction, structure
Which two key elements does an effective organization include?
Limited function merchant wholesaler, full function merchant wholesaler
Which two of the following distribution channels would take title of the products they handle? Choose 2 answers
Volatility of interest rates, frequent renewals
Which two risks does a firm face by funding the purchase of long-term assets with short-term funding sources? Choose 2 ansers
A transaction processing system
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?
owners and creditors
Which users of financial statements use the financial statements to evaluate operations of the firm and to make investment decisions?
It established a direct flow of authority
Why does a line organizational structure function most effectively in a crisis situation?
to determine the accuracy of forecasted revenues, costs, and expenses
Why should a manager use financial controls in a firm's financial plan?
it converts easily to cash
Why should companies that are conservative investors with liquidity concerns invest their excess cash in money market funds?
Consumable supplies, accessories to primary products
With which two types of products does a marketing strategy rely on advertising more than personal selling? Choose 2 answers.
brand awareness
a brand is recognized by potential customers, and is correctly associated with a particular product
management
a decision support system (DSS) belongs to which support system
current assets - inventory / current liabilities
acid test
reminder-oriented
advertising to maintain awareness of the importance and usefulness of a product
