Business Dynamics Final

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A finance manager has asked his assistant, Viktor, to prepare the __________ budget. Viktor will gather as much information as possible by utilizing the firm's other budgets and any documents that summarize proposed financial activities. A. master B. cash C. capital D. line item

A firm that wants to use social media to partner with its customers should A. take customers' comments seriously and establish two-way communication. B. mostly serve as an outlet for sales promotion, for example, the distribution of coupons and deals. C. refrain from asking customers common questions and let the customers drive the conversation. D. set up a network immediately even if the firm has not established a comprehensive social media strategy.

A firm's statement of cash flows showed the following activities for the year ended December 31, 2021: Cash from operating activities:$30,000 Cash from investing activities: -15,000Cash from financing activities: -8,000 The year-end cash balance for this firm is: A. $7,000.00 B. $53,000.00 C. $23,000.00 D. $30,000.00

A key step in the accounting cycle is to A. record information into journals. B. collect data from customers. C. forecast expenses and revenues. D. prepare the advertising message.

A plumbing supply company does not offer customers a cash discount for early payment of their accounts receivable. As a result, most customers wait to pay their bill on the last day before late penalties are charged. These customers apparently understand the A. time value of money. B. benefits of tax-deductible expenses. C. financial community's perception of equity financing. D. government's regulations of the plumbing industry.

A review of the personal selling process indicates that selling is A. a matter of establishing relationships. B. getting a name on a sales contract. C. about 90 percent luck and 10 percent skill. D. giving way to computers in responding to consumer needs.

According to the "Spotlight on Small Business" box, investors that want to pool their money together with other investors in order to help entrepreneurs finance their businesses would be part of a(n) A. factoring agreement. B. mutual fund. C. over-the-counter stock exchange. D. investment syndicate.

According to the "Spotlight on Small Business" box, many investors are turning to independent advisors rather than large Wall Street firms because A. investors view the independent advisors as being less biased and more concerned about the investor. B. investors think that independent advisors are more knowledgeable. C. independent advisors cannot hold dual registrations as brokers and advisors. D. independent advisors operate on a commission-free basis.

According to the box "Adapting to Change," the Intelligent Retail Lab developed by Walmart allows the company to A. easily monitor what items are purchased so they can be quickly replenished. B. gather demographic data about its shoppers. C. ship products directly to consumer's homes when not available in store. D. reduce employee theft by tracking the location of high-cost merchandise.

According to the box "Spotlight on Small Business," __________ has/have made it easier for doctors and patients to connect outside of the traditional doctor's office. A. technology B. logistics C. demographics D. kiosks

Although you were not fortunate enough to get Luxury Links Golf Resort stock as an IPO, you are still thinking about trying to add some to your portfolio. Last week when you mentioned it to your broker, he said that there are plenty of shares trading on __________, but he wanted to send you the company's financial disclosures provided in the __________ before you finalize your decision. A. the secondary market; prospectus B. the NASDAQ; regulatory agreement C. the OTC; regulatory agreement D. the primary market; prospectus

An example of the mobile web using location-based services to send a message to a consumer would be A. Kohl's sending you a 20 percent off coupon to your phone when you enter the store. B. Starbucks sending you an email telling you of a new store opening in your city. C. Walgreens sending you a text that your prescription is ready for pick-up. D. Jimmy John's posting a coupon on its Facebook page.

An important advantage of knowledge technology is that it A. delivers timely and relevant information directly to the people who need it. B. is much cheaper to incorporate into most business operations. C. allows businesses to locate anywhere and still reach their customers. D. eliminates the need for businesses to store information electronically.

Applying what you have learned about investments as introduced to you in Chapter 19, which list begins with the least risky investment and ends with the most risky? Least risky = 1; most risky = 5. A. 1) Bonds; 2) Mutual Funds; 3) ETFs; 4) Preferred Stock; 5) Common Stock B. 1) Preferred Stock; 2) Common Stock; 3) Mutual Funds; 4) ETFs; 5) Bonds C. 1) Common Stock; 2) Bonds; 3) Mutual Funds; 4) ETFs; 5) Preferred Stock D. 1) Bonds; 2) Common Stock 3) Mutual Funds 4) ETFs 5) Preferred Stock

As the chief financial officer, you identify that your firm needs to raise additional funds by selling new shares of stock. What specialist would be able to assist your firm in the issue and sale of new securities? A. an investment banker B. a commodities broker C. an officer of the Securities and Exchange Commission (SEC) D. an institutional investor advisor

Baker Investing wants to build strong relationships with its customers and is looking to create a more interactive approach to advertising. Which advertising medium should the company use to achieve their goal? A. online B. radio C. television D. newspapers

By purchasing stock in Care Pharmaceuticals, Madison has become a(n) __________ the company. A. creditor of B. owner of C. general partner in D. venture capitalist in

Charlie and Molly plan to invest in corporate securities. While Charlie plans to retire next year on his 65th birthday, Molly is celebrating her first job after college and her 22nd birthday. Which of the two investors would be well advised to choose a more conservative investment strategy? A. Charlie B. Molly C. A conservative investment strategy is always the best strategy for both of them. D. It depends on whether they want to invest in stocks or bonds.

Charlotte, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its A. outbound logistics. B. administered support system. C. materials handling. D. coordination of its freight forwarders.

Coleman's Mattress Distributors does not manufacture mattresses itself, nor does it even store or handle any mattresses. Instead, Coleman's solicits orders for mattresses from other firms, then purchases the required amount from suppliers and directs them to ship the mattresses to its customers. What is Coleman's? A. drop shipper B. rack jobber C. cash-and-carry wholesaler D. limited distribution broker

Compared to railroads and trucks, the biggest advantage offered by air transport is that it is A. faster. B. more dependable. C. lower in cost. D. able to reach more destinations.

During a period of rising prices, using FIFO (first-in, first-out) inventory valuation method will result in __________ net income figures than would LIFO (last-in, first-out). A. higher B. lower C. the same D. less accurate

Epic Financial Services is contemplating purchasing and installing a new, expensive computer network. This is the type of expenditure that would be included in a(n) __________ budget. A. capital B. cash C. operating D. asset

Financial ratios that reflect the degree to which a firm relies on borrowed funds are called __________ ratios. A. leverage B. liquidity C. activity D. profitability

Generally, the higher the risk of failure or loss in an industry, means that investors will expect a __________ rate of return on the investment. A. higher B. lower C. more stable D. fluctuating

If an airport that previously relied on metal detectors decides to invest in full body screening ports that scan the entire body to detect weapons or explosive devices that someone may want to take on board a plane, these expensive devices represent __________ assets. A. long-term B. short-term C. intangible D. interest-bearing

If an investor's strategy is: "buy low, and sell high," we could conclude that his optimism regarding future stock price increases indicates that he is A. bullish. B. bearish. C. only marginally confident about the stock market. D. lionish.

In the past, __________ was an important advertising strategy used in movies. Now it is also used with video games. It can be easily altered to reflect another advertiser, depending upon which advertiser has purchased ad time. A. product placement B. direct mail C. sampling D. a commercial

Interactive promotion is used to A. create a dialogue between buyers and sellers. B. transform the approach from "working with" to "promoting to" customers. C. combine multiple advertising approaches into one larger media. D. adjust global messages for each cultural audience.

Ivan, a sales manager, just finished reading some sales statistics comparing his company's performance to that of competitors. The statistics summarize a mass of raw figures into a few meaningful measures that Ivan will use to determine whether he needs to change his sales strategy. The statistics in the printout are A. information, while the raw figures used to compute the statistics are data. B. data, while the raw figures used to compute the statistics are information. C. less useful to Ivan than the raw figures would have been, since summarizing the figures necessarily reduces their accuracy. D. an example of how managers have a tendency to oversimplify by reducing complex issues into a few simple numbers.

Leeland Metalworks, known for its very generous dividend policy, easily attracts investors. These dividend payments basically represent A. a part of the firm's profit distributed to stockholders. B. the increase in market share the company has earned. C. current value of the firm's stock holdings. D. income that is sheltered from taxes.

Maggie faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very limited budget, Maggie confronts a creditability problem. She realizes that the promotional messages of an unknown firm may be met with skepticism. What should Maggie consider? A. publicity to help create a positive image for her firm and its products B. extensive use of persuasive advertising C. emphasizing personal selling rather than public relations D. changing jobs because this situation is hopeless

Many business decisions are made in hopes of improving a firm's bottom line. Which of the following financial statements will reveal a firm's bottom line? A. income statement B. balance sheet C. statement of cash flows D. trial balance

Nellie sews custom tote bags and other novelty items which she sells at craft fairs. An accountant would consider her sewing machine, fabric, and other supplies she uses for her craft as A. assets. B. liabilities. C. owners' equity. D. intangibles.

New Age Books partnered with Amazon to offer a unique __________. If you purchase 1 of 12 paperback books published by New Age, you can choose 1 of 12 Kindle versions for $3 (a much lower price than a regular Kindle version). A. sales promotion B. publicity stunt C. direct marketing opportunity D. advertisement

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) __________ distribution strategy for their products. A. intensive B. exclusive C. selective D. restrictive

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to A. carry a large inventory of their product. B. provide limited service and delivery for their product. C. sell their products at substantially discounted prices. D. sell their products in a vending machine.

Qingyi just earned a bachelor's degree in accounting. He plans to go to work for the Salvation Army as an accountant. What job will Qingyi hold? A. private accountant B. public accountant C. forensic accountant D. independent accountant

Retailers attempt to sell older merchandise before more recently acquired merchandise is sold. The assumptions made by the __________ method of inventory valuation are most consistent with this approach. A. FIFO (first-in, first-out) B. LIFO (last-in, first-out) C. average costing D. accelerated costing

Rhea read about Clear Pharmaceuticals and wants to buy 100 common shares at $40 per share. Unfortunately, she only has $3,000 available to invest. One risky strategy Rhea could consider is A. buying on margin. B. buying from the dealer's account. C. arranging for security funding. D. leveraging her future professional earnings.

Sandeep works in the accounting department for a manufacturing firm preparing budgets and reporting production costs. What job does Sandeep hold? A. managerial accountant B. financial accountant C. tax accountant D. auditor

Students who access their class syllabus, course information, and grade reports through an online account like "Blackboard" are doing so through A. a virtual private network. B. the immersive Internet. C. an intranet. D. a mainframe network.

Tangy Taco Restaurants announced it plans to issue $300 million in debenture bonds to fund the expansion of its fast-food chain of restaurants. In financial terms, this means the corporation will A. borrow $300 million worth of long-term financing; the bond issue will not carry any collateral. B. issue $300 million worth of equity financing; the bond issue will be backed by the property and buildings purchased with the funds. C. borrow $300 million worth of long-term financing; the issue will be backed by the property and buildings purchased with the funds. D. issue $300 million worth of interest-free bonds; financiers will be paid from the revenues created by the individual franchises.

The "Making Ethical Decisions" box "Patient Ordering or Sacrificing Patients" has an important message for managers who make financial decisions. Which statement summarizes this message? A. A carefully planned and managed inventory control system helps with a firm's efficient management of cash flow. B. A just-in-time inventory control system increases the costs of managing inventory. C. Because inventory can be counted as a depreciation expense, keeping a large amount of inventory on hand actually reduces the firm's costs. D. The cash that a firm has tied up in inventory does not affect its day-to-day operations since inventory must be paid for before it is delivered.

The Wisconsin Department of Travel and Tourism promotes the state by sending travel agents and tour bus companies information about the state's many attractions. The hope is that by stimulating interest in tour and travel agents, they will in turn encourage their customers to visit Wisconsin. This example represents a __________ promotional strategy. A. push B. pull C. sampling D. product placement

The box "More Than Milk's Favorite Cookie" addresses the role __________ plays in global advertising efforts. A. culture B. distribution C. price D. quality control

The effective management of accounts receivable requires financial managers to A. review the credit history of new customers. B. provide prompt cash payments to suppliers. C. allow customers more time in paying their past due accounts. D. refuse bank-issued credit cards.

The interest paid on __________ represents a tax-deductible business expense. A. bonds B. stock C. retained earnings D. depreciated assets

The main reason a firm would establish a firewall for its intranet is that it wants to A. prevent outsiders from being able to access information on its network. B. protect itself against loss of data in the event of a fire, flood, or other catastrophe. C. create an interface to hook into Internet2 using firewire connections. D. prevent employees from gaining access to the Internet for personal use.

To maximize the benefits of using financial leverage, a firm should A. strive to minimize their cost of capital. B. avoid securing funds through long-term debt financing. C. limit their investments to projects with minimum risk levels. D. incorporate in states with relatively low tax rates.

Web 2.0 allows people to build their own connections and share information that they generate themselves. What is an example of Web 2.0? A. a video you post on YouTube showing how to change a tire B. comments you add to a Word document that your boss asks you to review C. a company email letting you know that your order has shipped D. getting bonus miles when you join Southwest Airlines' frequent flyer program

What represents the primary purpose of a firm using institutional advertising? A. creates a positive image for the firm B. full coverage of local markets C. high visibility of a specifically targeted message D. reduces cost

When ransomware holds your data hostage, what is most likely to happen? A. Hackers will demand you pay them to get your files back. B. Hackers permanently delete specific files. C. Hackers publicly share your personal information on social media. D. Hackers wipe your computer clean and leave it useless.

When reviewing the balance sheet for a pet grooming business, Randy noted the following information: Company assets totaling $3.5 million, and liabilities totaling $1.3 million. On paper, the net worth (owners' equity) for this business equals A. $2.2 million. B. $4.8 million. C. $3.5 million. D. $0.2 million.

Which statement is an accurate depiction of cloud computing? A. It offers flexible capacity. B. It is expensive to implement. C. It is not very secure. D. It is difficult to access.

Which statement is the most accurate depiction of advertising? A. Advertising helps pay for production costs of newspapers and magazines. B. Word of mouth is the most effective form of advertising. C. Advertising does not really provide information to consumers; it merely persuades consumers to buy advertised products. D. Consumers don't remember good advertisements.

Which would be classified as an institutional investor? A. pension funds B. the Federal Reserve C. stock exchanges D. commodity brokers

__________ measures the amount of profit earned by a company for each share of outstanding common stock. A. Basic earnings per share (basic EPS) B. Diluted earnings per share (diluted EPS) C. Simple earnings per share (simple EPS) D. Return on shares outstanding (RSO)

If a firm wants to improve its cash flow, what strategy would most likely achieve this objective? A. relaxing its credit policy for new customers B. offering cash discounts to buyers who pay their accounts promptly C. accepting IOUs from customers who buy in large quantities D. offering extended payment plans to qualified buyers

A convertible bond allows the bondholder to exchange the bond for A. preferred stock. B. common stock. C. collateral. D. debt holder privileges.

A firm would consider establishing a virtual private network if it wanted to A. prevent people who are not employees from being able to access its network. B. set up a secure network connection with another firm for a short period of time. C. obtain a broadband connection to the Internet. D. simulate a network before it became operational in order to identify any security leaks.

A key element of Internet2 is A. the requirement that all users log on to each site with a unique password. B. that the users who are willing to pay more can use more bandwidth. C. a new security system that eliminates the risk that unauthorized users will be able to access private information. D. its ability to build social and business connections though user-generated content.

Gemini Manufacturing has recently revamped its promotional strategy. Gemini now utilizes a system that combines all the elements of their promotion mix to create a more responsive organization providing a consistent message. Gemini Manufacturing has adopted a(n) A. internal marketing program. B. integrated marketing communication system. C. personal selling plan. D. corporate distribution system.

Heads Up Cola advertises their soft drinks during television shows that their target market typically watches. Heads Up believes the best way of reaching its customers is through a __________ strategy. A. push B. pull C. product placement D. word-of-mouth

A company makes regular monetary deposits that will accumulate and provide for an orderly retirement of their bonds when they come due in 2030. This company appears to be utilizing a A. call provision. B. sinking fund. C. compensating balance system. D. retirement escrow account.

A comparison of bookkeeping and accounting indicates that A. the two are virtually the same in practice. B. bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information. C. bookkeeping is more useful for small businesses while accounting is more useful for large businesses. D. accounting is a subsystem of the process of bookkeeping.

A local university, connected to Internet2, employs several professors in its school of engineering that are part of a research project that makes extremely heavy use of the bandwidth this connection provides. In fact, the engineering professors would like to get even more bandwidth. Given the way its designers set up Internet2, the researchers at the university A. are out of luck. One drawback of Internet2 is that, unlike the regular Internet, the technology of Internet2 can allocate only a fixed amount of bandwidth to each user. B. may be able to obtain more bandwidth, but only if the university is willing to pay for it. C. must petition the Internet2 Usage Committee and obtain approval. D. can install a simple bandwidth amplification card in each computer that compresses data, thus allowing it to flow more rapidly.

A major impact of information technology has been to A. encourage the growth of giant corporations. B. create organizations that are independent of location. C. reduce the demand for skilled labor. D. increase overall costs of production.

A successful social media promotional campaign includes A. monthly photo postings. B. daily postings of images your customers want to see. C. hashtags for everything you post. D. strictly factual information for customers to read without distractions from other promotional efforts.

According to the "Adapting to Change" box, a green bond is a fixed-income investment that A.is earmarked to raise money for climate and environmental objectives. B. is highly speculative and carries with it a high default risk. C. is backed by collateral in land that is protected by the Environmental Protection Agency. D. does not carry any special features such as being "callable" or "convertible."

According to the box "Adapting to Change," advertisers are rethinking some traditional television ad strategies. What additional benefit is provided to advertisers by streaming services such as Roku, Hulu, and Sling? A. very low cost B. expanded audience data C. free product placement D. interactivity

After developing a new running shoe, Geoff and Carli were fortunate to get the attention of a large online retailer. The retailer was willing to fund the production of the running shoes abroad, as long as the designers agreed to sell their shoes through its outlets. The retailer was asking Geoff and Carli to agree to A. intensive distribution. B. exclusive distribution. C. multilevel distribution. D. selective distribution.

After earning $50 million in net income, Monroe Millwork distributed $15 million in dividends to its stockholders. Monroe's board of directors decided to invest the remaining $35 million back into the business. This $35 million reinvestment of profits represents A. a trust fund. B. retained earnings. C. preferred capital. D. mutual funds.

As a finance manager for a sporting goods store, Ritesh worries about the firm's borrowing requirements for the upcoming year. He knows the benefit of estimating the company's cash disbursements and short-term investment expectations. Facing these concerns, a(n) __________ would provide Ritesh with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. A. operating budget B. cash budget C. capital budget D. line item budget

As a new father, Dele plans to accumulate funds over the next 18 years to help pay for his son's college education. Security markets provide Dele with A. financing opportunities. B. investing opportunities. C. opportunities to reduce his taxes. D. borrowing opportunities.

At Winkelman's Wharf, the butchers hand cut fish to the thickness their customers specify and remove any bones. This extra service provides __________ utility. A. possession B. form C. secondary D. time

Avery is a manager who wants to be well informed. Like many managers, however, she is often overwhelmed by information overload. What would probably be the most useful first step for her to take in order to deal with this problem? A. Hire an assistant to summarize all of the information for him. B. Identify four or five key goals and eliminate information that is not relevant to those goals. C. Purchase hardware and software that will process the information more efficiently. D. Establish a "time budget" with a specified time period set aside each day for reading reports, studies and other sources of information.

By selling shares of ownership in their company, Langford Labs acquires the funds needed to finance their research and development projects. Langford Labs provides for their long-term funding needs through __________ financing. A. debt B. equity C. retained D. asset

Crafty Brewers, Inc. recently offered bonds for sale to the public. The unsecured corporate bond paid interest of 8 percent to investors for the 20-year life of the bonds. Crafty Brewers is obligated to A. represent each bondholder as an owner in the company. B. pay interest semi-annually. C. pay stockholders their dividends, before paying bondholders their interest. D. pay each owner their principal if and when they want to cash in their investment.

Danielle is a full-time employee of Cloverleaf Financial Group, but she seldom sees the inside of the offices. Instead, she does most of her work in a home office she put together in a spare bedroom. Her computer is linked to Cloverleaf's office, so her work is distributed as quickly and efficiently as if she were at the office. Danielle is one of the increasing number of workers who A. have become independent contractors. B. telecommute. C. practice job sharing. D. are phishing.

Dividends are paid out of a corporation's A. profit, before taxes. B. profit, after taxes. C. sales revenue. D. capital contributed by bondholders.

Figaro Manufacturing wants to ship a large quantity of its music industry goods across the country. They have contacted On Its Way Shipping Inc., to find out what the shipment would cost. On Its Way has shown Figaro how it can arrange to use a combination of barges, trains, and trucks to complete the shipment at a low cost. On Its Way's strategy is an example of A. online shipping. B. intermodal shipping. C. franchise distribution. D. multilevel distribution.

Gamers, Inc., needs several million dollars to expand and follow its strategic plan. In negotiations with the investment banker, the company agree to issue 50 million shares of common stock, at $25/share. If the investment banker's fee for underwriting the total sale is 5.82 percent, what is the discounted price that the investment bank is willing to pay Gamers, Inc. for the shares? A. around $120,000,000 B. around $1,200,000,000 C. around $140,000,000 D. around $14,000

In March, Amy's company told all the employees that the company was closing the office location and all employees had to work from home. Amy will need a(n) __________ to make sure her laptop, tablet, and smartphone will connect to the Internet and she will access the company's files remotely through __________. A. WAN; the ethernet. B. LAN; the cloud C. blockchain; firewall D. IoT; AI.

In administered distribution systems, retailers typically A. are reluctant to cooperate because they must perform many marketing functions for an uncertain payment. B. receive a great deal of marketing help from producers. C. are really subsidiaries of a manufacturer. D. sign a contract agreeing to cooperate with wholesalers in the channel of distribution.

In order to calculate the current ratio for your firm, you divide the total value of current assets by A. earnings per share. B. the total value of current liabilities. C. the total owners' equity. D. the total cost of goods sold.

Investors buying bonds and corporations issuing bonds (both) accept investment risk. Which statement is most correct when it comes to the investment risks that one or the other party accepts? A. If investor Jim is holding a bond that pays 5 percent and market interest rates on similar bonds go down, Jim must hold the bond until maturity because if he were to sell it today, he would have to sell it at a discount. B. If investor Jim is holding a bond that pays 5 percent and market interest rates on similar bonds go down, Jim's bond is now worth more than its face value, and if he needed to sell it on the secondary market, he could probably sell it at a premium. C. If investor Jim is holding a bond that pays 5 percent and interest rates on similar bonds go up, Jim stands to gain more than the face value of the bond if he were to sell it on the secondary market today. D. If a corporation wants to issue bonds to pay for an expansion project, and analysts predict that interest rates are projected to climb over the next few years, it is to the corporation's advantage to wait until next year to issue the bonds.

Javier works in his company's accounting department where it is his job to record all transactions into journals. After completing this task, the next step in the accounting process is to A. prepare the firm's financial statements. B. post the information to the ledger. C. determine the tax liability of the firm. D. balance the difference between assets and liabilities.

Joseph, a sales rep with a large technology company, is celebrating today because he just closed a large deal, which means a sizeable commission. Even the finance department is thrilled because Joseph used __________ to review the credit history of this customer to be sure the deal would be a profitable one for the company. A. virtual intelligence B. business intelligence C. software engineering D. artificial intelligence

Kid-Time Movies markets its DVDs and Blu-rays online. Recently, Kid-Time adopted a new program that offers their current customers free rentals if they encourage their friends to visit Kid-Time's website. What does this promotional program represent? A. personal selling B. viral marketing C. public relations D. blogging

Mario brings together buyers and sellers of used farm implement equipment and helps them negotiate the terms of the sale. However, he never takes title to any of the equipment himself, nor does he provide any financing for the buyer. Mario is acting as a A. channel captain. B. broker. C. wholesaler. D. logistics specialist.

Martin Mechanical installs HVAC systems in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installation team works every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as __________ on Martin Mechanical's balance sheet. A. capital cash flows B. current liabilities C. retained earnings D. long-term liabilities

Maya owns stock in Echo Technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her __________ stock ownership does not offer her voting rights. A. common B. preferred C. superior D. callable

NASDAQ is an example of how information technology can A. help engineers design products that exactly meet the needs of a specific target market. B. be used to create organizations and provide services that are independent of location. C. provide small firms with new opportunities to grow by forming alliances with larger companies. D. help the government measure the environmental impact of business activities.

New Day Vitamin Company's __________ relies heavily on advertising, personal selling, and a limited use of product sampling. A. marketing mix B. promotion mix C. communication network D. transfer marketing

Recently, an electronics manufacturer borrowed $600,000 from a bank to secure financing for a planned expansion. The __________ loan agreement requires that the electronics manufacturer provide the title to their factory as collateral. A. recapitalization B. secured C. pledged D. minority

Roadway Motorcycle is looking to change up its promotional strategy and focus on its relationships with customers. What is required for Roadway to build meaningful relationships with its customers? A. giving consumers access to limited information B. tracking customer purchases C. promoting to rather than working with customers D. offering full-service purchases over their cell phones

Saws and More promotes its services through Northwest Woods Today, a trade magazine that charges Saws and More and other companies $5,000 per page for __________ to help offset the magazine's publishing costs. A. publicity B. advertising C. public relations D. trade shows

Simon wants to supplement his current investments with a high-risk, low-priced security. Which of these best fits his strategy of high risk, low price, and a potentially high rate of return? A. time deposits B. penny stocks C. blue-chip stocks D. split stocks

Stockholders of Bradford Manufacturing are concerned about irregularities in the firm's accounting system. One approach to identify problems in the records of the company would be to have a(n) __________ performed. A. internal audit B. independent audit C. unofficial audit D. GAAP analysis

Talia owns and operates a In the House home supply store. Although her store is independently owned and operated, she has signed an agreement with over seventy stores in the Midwest to use a common name, participate in chain promotions, and cooperate with other stores in the chain. What is Talia's store a part of? A. administered chain B. wholesaler-sponsored chain C. corporate distribution system D. horizontal distribution chain

The CFO of a satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to invest in his company in order to prevent bankruptcy. Having refinanced the company less than a year ago, the satellite radio finance manager had a $75 million note coming due today. The current financing arrangement represents A. a long-term sale of stock to private investors. B. short-term debt financing. C. the issuance of long-term bonds. D. a leveraged buyout.

The __________ sets accounting standards used in government accounting. A. Federal Accounting Review Board B. Governmental Accounting Standards Board C. Securities and Exchange Commission D. Federal Reserve Board

The __________ shows how the capital is structured in the business, including the value of assets and the amount the firm owes at a specific point in time. A. income statement B. balance sheet C. statement of cash flows D. trial balance

The best way for a company to connect its various sites and many remote employees would be through a(n) A. IoT. B. WAN. C. LAN. D. VPN.

The primary purpose of a pull strategy is to A. offer rebates and discounts to retailers and wholesalers. B. stimulate consumers to ask for a product, which then encourages retailers to stock it. C. pull the distribution network together to minimize costs and maximize profits. D. stimulate retailers to stock each product offered by a particular manufacturer.

The purpose of the SEC's circuit breakers rule is to A. prevent market disruption caused by a communication malfunction. B. halt trading for a short time following a dramatic drop in stock prices. C. allow floor traders to specialize in trading the securities of specific industries. D. prevent individuals from profiting from information not available to the general public.

The stock of well-known, high-quality firms, such as Coca-Cola, General Electric, and Procter & Gamble, fit the characteristics of __________ stocks, because investors can almost always be assured a dividend and consistent stock price appreciation. A. growth B. blue-chip C. income D. callable

Though Mateo relies on his stockbroker to execute his buy and sell orders for shares of stock, he has found that the process of buying or selling a share of stock on a major stock exchange normally takes A. weeks. B. seconds. C. days. D. months.

Trusted Toys hopes to raise long-term capital by promising in writing to repay the principal provided by potential creditors in ten years. Additionally, the certificate issued by Trusted Toys promises to pay 5 percent interest annually for the ten-year life of the security. Trusted Toys intends to issue A. stocks. B. bonds. C. mutual funds. D. commodities.

Tyler's client expressed concerns and questioned some of the details of the sales proposal once he completed his sales presentation. An effective salesperson would A. downplay these objections and push to close the sale as quickly as possible to avoid the endless questions that some customers ask. B. address the concerns and develop a better relationship. C. consider revising the presentation so that next time customer concerns and objections can be avoided. D. bring in the top executives of the company to close the sale.

Walt has convinced top management at his company that they can use data-mining techniques to develop new marketing strategies. One of the keys to the success of his suggestion is A. obtaining a powerful mainframe computer that can perform sophisticated statistical analysis on huge amounts of data. B. converting all data into a quantitative format so that it can be easily manipulated. C. outsourcing all IT functions to an outside expert that can look at the data with "fresh eyes." D. making sure that the applications they use to analyze data are not flawed.

When Salem Industries renegotiated its loan agreement, the company borrowed an additional $2 million. The new loan requires Salem Industries to repay the new amount in nine months. Salem's activity represents __________ financing. A. equity B. debt C. factored D. secured

Which activity would drop shippers be most likely to perform? A. provide delivery services from a wholesaler's warehouse to a retailer's store B. solicit orders from a retailer and arrange for the producer to make the deliveries C. manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck D. provide brokerage services by helping other wholesalers negotiate deals

Which characteristic helps explain the popularity of infomercials? A. interactive nature of the presentation B. ability to clearly demonstrate the product's benefits C. use of an inexperienced salesperson who is believable D. impact of favorable government testimonials on potential buyers

Which company is undercapitalized? A. A large corporation that has been hit with a major lawsuit because one of its products has a design flaw that has led to serious injuries. B. A new company struggling because it has insufficient start-up funds. C. A medium-sized company that has decided to buy out a smaller competitor. D. An electric utility that has recently experienced a significant increase in the cost of coal and labor.

Which firm would be most likely to use a selective distribution strategy for its products? A. newspaper publisher B. maker of kitchen appliances C. luxury RV manufacturer D. maker of snack foods such as potato chips and pretzels

Which observation would be the strongest evidence that Duke Manufacturing has adopted knowledge technology? A. Duke's customers can place orders for its products directly from the company's Internet website. B. Duke has installed software that searches a variety of databases online for information relevant to each employee's current assignment, and sends the information to the appropriate employee's e-mail address. C. Duke has provided all of its employees with a personal computer. D. Duke has initiated a program that allows each employee to sign up for advanced training in the use of spreadsheets, word processors, graphics programs, and other types of software.

Which situation represents a successful use of financial leverage? A. A firm issues new shares of stock and uses the proceeds from the sale to retire its outstanding debt. B. A firm borrows money at 8 percent and earns an 11 percent return on its investment of these funds. C. A firm attracts the interest of two venture capitalists and plays one against the other to gain the best deal. D. A retail firm purchases merchandise at $10 and sells it for $15.

Which statement about kiosks and carts is the most accurate? A. Kiosks and carts are popular with mall owners because their sales are exempt from sales taxes. B. Carts and kiosks have lower overhead costs than stores do, so they can offer lower prices. C. Kiosks and carts have struggled in recent years because of their high overhead costs. D. Most mall owners would like to eliminate kiosks and carts from their walkways but are barred by law from doing so.

Which type of forecast would be most helpful for a company looking to know the income potential during the next five years? A. cash flow forecast B. long-term forecast C. short-term forecast D. capital budget forecast

__________ represent the best way for investors to have their investments managed by a trained specialist for a fee. A. Individual stocks B. Mutual funds C. Corporate bonds D. Government bonds

he part of logistics that is most concerned with the flow of goods as well as work in process within the manufacturing firm is A. inbound logistics. B. materials handling. C. reverse logistics. D. nonstore retailing.

Stock certificates represent evidence of ownership in an organization. A stock certificate indicates A. the current market value of the stock. B. a listing of the firm's corporate officers. C. the type of stock the investor is buying. D. the stock symbol and trading exchange of the company.

A company's income statement is important to accountants and other stakeholders. It reveals a company's A. sources of funding. B. ability to distribute goods or services in a timely manner. C. ability to earn a profit over time. D. capitalized value.

A disadvantage of issuing bonds is that A. bonds are permanent debt on the firm's balance sheet. B. dividends are legally required. C. bonds increase the firm's debt. D. bondholders receive voting rights.

A(n) __________ job includes forecasting, budgeting, cash flow analysis, cost control, taxes, and credit management. A. CPA's B. investment banker's C. financial manager's D. portfolio manager's

According to the "Adapting to Change" box, which professional is best able to detect the financial irregularities that often accompany fraud in an organization? A. an internal auditor B. a certified public accountant C. a forensic accountant D. the firm's chief financial officer

After buying 200 shares of common stock in Echo Electronics for $20 per share, Shafeek later sold the same shares for $25 per share. Shafeek's capital gain on the total transaction is A. $10. B. $110. C. $1,000. D. $1,500.

Ark Electronics plans to pursue a global advertising strategy. This means that A. it must avoid advertising in foreign markets and rely instead on other elements of its promotion mix, such as personal selling and public relations. B. it will use television for promoting its products in every country. C. it will develop a single promotional strategy that can be implemented worldwide. D. it must charge the same price in every market.

Bill is reviewing the firms whose stocks have comprised the Dow Jones Industrial Average over the years. He discovers A. the same 30 stocks have been used since the inception of the indicator. B. different companies must be used each year. C. these stocks change periodically as deemed appropriate. D. there is an even mix between big and small companies.

Brad and Lacey are on the way to the airport to catch a flight for their weekend getaway. When they arrive at the airport, Lacey remembers that she forgot to turn down the heat in their house. She uses an app on her phone to turn down the thermostat. This is an example of A. the immersive Internet. B. a virtual private network. C. the Internet of Things. D. blockchain technology.

Businesses are using __________ and other ways to track goods and control the flow of goods from point of origin to point of consumption. "Tracking" is an important part of the process of managing the flow of goods, an activity that marketers call __________. A. tag team identification (TTI); factory processing B. radio frequency identification (RFID); intermediation C. radio frequency identification (RFID); logistics D. Reverse logistics; materials handling

Caroline ships chocolate covered strawberries from her farm near Nashville to hotels and restaurants that are often thousands of miles away in cities such as New York, Seattle, and San Franciso. Since the strawberries must reach the hotels and restaurants as quickly as possible, the best mode of transportation for Caroline to use would be A. railroads. B. trucks. C. air. D. ships.

Cliff claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you will pay a higher price. After all, every intermediary involved in the marketing process must charge enough to earn a profit." What do you make of Cliff's claim? A. It is entirely correct. Intermediaries must charge a high enough price for the activities they perform to earn a profit, so using intermediaries must result in a higher price. B. It is impractical, because in most markets the distribution process is so complex that it is impossible to determine who the actual producer really is. C. It is not valid in many cases. Intermediaries do add costs to products, but they also create value by performing marketing functions efficiently. In many cases the value they create more than offsets the costs they add. D. It is never true. Markets that make use of intermediaries can always provide goods at lower cost than those that rely on direct distribution.

Compared to rail transportation, one of the advantages of shipping by truck is that trucks A. are more energy efficient. B. can carry a greater volume. C. can reach more destinations. D. are less expensive.

Compared to the Internet, a major advantage of Internet2 is that it A. can be accessed even by people without computers; all that is needed is a simple, inexpensive receiver, a television set, and a standard telephone line. B. is owned and operated by the United Nations, and is accessible to people in every nation. C. can move information much faster than the Internet and has the capacity to handle heavy-duty applications. D. allows firms to set up their own protocols for transferring and processing information.

Crunchy Chip is a new, low-fat snack cracker created by the Good Health Company. To create interest for the Crunchy Chip, the company sent a free package of the snack crackers to selected homes along with a coupon. Good Health's activities represent A. trade advertising. B. consumer publicity. C. sales promotion. D. public relations.

Eduardo is the manager of Hometown Hardware. During the past six months, his cash expenditures have exceeded his cash receipts. Hometown Hardware is suffering from a(n) __________ problem. A. accounting B. undercapitalization C. cash flow D. exchange rate

Endurance Sporting Goods has just applied for a bank loan in order to expand the business. Using the most recent balance sheet data provided by the company owner, you calculate that the company's current ratio is 2.5. In your presentation to the company boss, you remark that Endurance Sporting Goods A. is currently having trouble meeting its short-term obligations. B. has $2.50 that it owes each month, for every $1.00 of cash that it is generating. C. has $2.50 of current assets for each $1.00 of current liabilities. D. doesn't need to worry about whether it will be able to make loan payments since its current assets are tied up in inventory.

Esther has been helping Andre in preparing his personal income tax forms for a couple of years. Andre's boss recommended Esther because she had done a good job setting up the company's new accounting system. Andre is very satisfied with Esther's work and feels that the fees she charges are quite reasonable. Esther would be classified as a(n) A. independent auditor. B. private accountant. C. public accountant. D. accounting broker.

First Start uses its website to target auto parts stores and car owners and tell them of the benefits of using their long-lasting spark plugs. What strategy/strategies is First Start using? A. demographic strategy B. word-of-mouth strategy C. push and pull strategies D. product placement strategy

Home e-Source, a chain of stores that specializes in top-of-the-line personal computers and electronics, has over 150 stores in large cities throughout the Southeast and Midwest. Home e-Source picked the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to a location in under 15 minutes. Home e-Source is providing its customers with A. form utility. B. time utility. C. place utility. D. information utility.

Ian is going to major in business. However, he has never had much interest in subjects with numbers. He would like to avoid taking any finance courses if possible. What should Ian do? A. Avoid finance courses and focus on subjects that he enjoys. B. Take a finance course to satisfy graduation requirements. C. Realize that his success in business requires an understanding of financial issues. D. Not bother taking finance courses; they are only helpful if you plan to get a job with a bank.

If a company wants to predict how much money it can make this coming year, it will benefit from developing a A. master budget. B. consolidated income statement. C. short-term forecast. D. statement of cash flows.

If a firm has a debt to owners' equity ratio of 0.75 (or 75 percent) we can conclude that A. it has relied more on debt than equity to finance its operations. B. the firm is likely to have trouble paying its short-term debts when they come due. C. its total liabilities are less than its owners' equity. D. the firm has expenses that are exactly 75 percent of its gross profit.

Jacquard Jewelers obtains needed short-term funds by selling its accounts receivable to Speedy Financial. Speedy Financial usually pays Jacquard about 80 percent of the value of the receivables. Jacquard Jewelers utilizes __________ as a means of raising short-term funds. A. trade credit B. revolving credit agreements C. factoring D. receivable draft agreements

Kendra realizes the importance of developing a __________ for her interior design business. Kendra understands the importance of appropriately allocating resources in order to achieve the goals of her firm. A. market prediction B. financial forecast C. budget D. cash flow analysis

Mahie is a bookkeeper for the Randall Corporation. She takes the firm's transactions and records them in a record book or computer program referred to as A. a credit account. B. an asset database. C. a journal. D. a debit program.

Swim 'n Sun Inc. sells swimsuits and accessories by sending customers a catalog nine times a year. The company has no retail stores or website but offers a toll-free order number that operates 24 hours a day, 365 days a year. Swim 'n Sun Inc. sells using a technique known as A. wholesaling. B. indirect marketing. C. telemarketing. D. multilevel marketing.

Marketing managers at Fast Track Motor Sports are looking for ways to cut costs as the company is facing intense competitive pressure. They are considering a plan to cut distribution costs by eliminating marketing intermediaries from the channel of distribution. If Fast Track does this, it is likely to find that A. most of the marketing functions performed by marketing intermediaries are helpful, but they aren't really necessary. B. as the producer of the products, it will be able to perform the same functions more efficiently. C. it will be unable to perform the functions as efficiently as they were performed by the marketing intermediaries. D. telemarketing will become the only viable means of distributing its products.

Noel works as an accountant for a mid-sized retail store. He has just completed a trial balance that resulted in no unexpected problems. Noel's next task is likely to be A. conducting the full audit. B. preparing a tax return for the company. C. preparing the store's balance sheet and other major financial statements. D. presenting the trial balance to the company owners.

Office World Inc. operates a chain of very large stores that offer an incredible selection of office supplies at very competitive prices. When Office World opens its first store in a new region, smaller office supply stores almost always experience a noticeable drop in sales. Office World stores can be classified as A. warehouse clubs. B. department stores. C. category killers. D. full-service wholesalers.

Oliver is an accountant employed by DLH Enterprises. Recently, he has spent much of his time working on defining measures of costs for the production department and checking to ensure that various departments are staying within their budgets. Oliver is a A. public accountant whose work is mainly concerned with auditing. B. public accountant whose work is mainly concerned with financial accounting. C. private accountant whose work is mainly concerned with managerial accounting. D. private accountant whose work is mainly concerned with financial accounting.

One criticism of the Dow Jones Industrial Average suggests that it A. magnifies the fluctuations in the stock market. B. does not indicate the cause of changes in stock prices. C. is too small (too few companies) to get a good statistical representation. D. is biased causing an overstatement of bond price increases and an understatement of stock price decreases.

One of the distinct differences between __________ and other forms of advertising is the fact that the medium used allows for a dialogue exchange of information between buyers and sellers, instead of a monologue-type approach. A. product placement B. direct mail C. interactive promotion D. infomercials

One way traditional retailers have maintained customers in the face of increasing competition from online sellers and other direct markers is to place more emphasis on providing __________ utility. A. time B. place C. service D. form

Phoebe invests $5,000 in five Echo Electronics bonds that mature in 10 years. Unexpectedly just the week after she invests, she has the opportunity to work abroad, which she has always wanted to do, but she needs cash. Which statement most likely applies to Phoebe? A. She can immediately sell the bonds for $5,000 plus interest for the week. B. She is out of luck. She must keep the bonds for the full 10 years. C. She may immediately sell the bonds but it is unclear how much money they will sell for. D. She will be able to sell the bonds immediately on the primary market.

Public relations has more power to influence consumers than other forms of corporate communication because A. it is an unpaid form of communication. B. only reputable firms use public relations to communicate with customers. C. the message comes via the media, which consumers consider trustworthy. D. there are no government regulations concerning public relations activities.

Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit, and then sell the goods to their customers on credit. These companies sometimes have difficulty repaying their suppliers when customers who buy on credit don't pay on time. Firms that experience this difficulty need to do a better job of A. generating revenue. B. controlling inventory. C. managing cash flows. D. balancing assets with liabilities.

Raynah, a new employee at Forward Motion Electronics, is required to perform a variety of bookkeeping and clerical tasks at a workstation. Forward Motion has training software on its workstations that can answer many of the questions she has about what to do on her new job, and how to do it. The software is so good that she rarely asks her supervisor for help. It even tracks the way Raynah performs certain tasks, and offers suggestions to improve her productivity. This software is an example of A. the use of a technique called computer aided production (CAP) that is becoming increasingly important in high-tech industries. B. the trend toward telecommuting. C. the way businesses are using knowledge technology to move relevant information to the people who need it. D. why mainframe computer systems are more efficient than network computer systems.

Raynah, a new graduate with a finance degree, was recently hired by a large corporation to work in tax management. Raynah's job is to A. prepare the company's financial statements. B. develop ways to increase taxes in order to enhance the bottom line. C. minimize the firm's tax consequences. D. be the firm's tax collector.

Riley and Gretchen run a shuttle service from Times Square to New York's JFK airport. Last month, they recorded the following: Revenues [25 trips @80 per trip]$2000 Fuel Charge [25 trips @$30 per trip] 750 Banking Expenses 20 Insurance Expense 70 Van Depreciation 250 taxes (@25%) 228 Riley and Gretchen's gross profit for the past month was A. $682.00 B. Riley: $341.00; Gretchen: $341.00 C. $1250.00 D. $2750.00

Save More Bank has always tried to make use of the newest technologies to expand the services it offers to its customers. For example, depositors can obtain updated financial information about their accounts and handle certain types of transactions whenever they wish simply by using the bank's mobile app with fingerprint login. The type of technology Save More Bank uses to provide these services is known as A. data processing. B. systems processing. C. information technology. D. knowledge processing.

Security markets assist businesses in performing their __________ function. A. long-term investing B. long-term planning C. long-term financing D. concurrent controlling

The HR department at Bookworm Booksellers wants to reduce the cost of benefits it offers its employees. A department specialist suggested that the company consider __________ its HR system. By sorting and analyzing the demographics and lifestyle characteristics of its employees, Bookworm hopes to determine which benefits are most important, and possibly which can be eliminated. Marketers utilize the same technology to keep pace with sales trends. A. pre-programming B. post-programming C. data mining D. data storing

The ability of the Critical Infrastructure Protection Board to achieve its mission depends crucially on A. convincing corporations to adopt the more secure Internet2 technology. B. finding ways to create artificially intelligent monitors of electronic communications. C. convincing information managers in the private sector to report problems such as hacker attacks and viruses to the government. D. developing a new wireless technology that provides better data encryption.

The characteristic that all forms of direct marketing have in common is that they A. are carried out by agents or brokers. B. involve face-to-face or teleconferencing sessions with the customer. C. include some type of activity that directly links manufacturers to the ultimate consumer. D. make use of exclusive distribution systems with a network of traditional "brick and mortar" stores.

The first step a manager should take to cope with information overload is to A. obtain a good database management system and use it to organize information more efficiently. B. hire a qualified information systems analyst. C. identify four or five key goals, and eliminate information that is not related to those goals. D. purchase more sophisticated hardware that can process and store information more efficiently.

The management at Avenue Apparel Inc. designed a strategy that unifies advertising, personal selling, public relations, and sales promotion activities creating a consistent message. This effort to promote a positive brand image represents a(n) __________ program. A. global marketing B. interactive promotion C. integrated marketing communication D. supply chain

The most likely reason a firm would decide to establish an extranet would be the desire to A. speed the flow of information on its private network by increasing the bandwidth. B. make the information on its network widely available to the general public. C. share information and collaborate with a select group of outside organizations or individuals. D. overcome the speed and capacity limitations of its external connection to the Internet by gaining access to the very-high-speed Backbone Network Service.

The new issue $1,000 face value bonds due in 2030 issued by Rocky Mountain Brewing Company are seen by investors as less attractive than other bonds offered by other businesses at the same time. The interest rate attached to these bonds will need to be __________ than other corporate bond issues in order to attract investors. A. the same B. lower C. higher D. not important because it is a new issue

The owners of Kurt's Kayak Shop worry that cash flow this winter may be insufficient to meet the current operating expenses. While they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. The owners can best resolve cash flow concerns by obtaining __________ financing. A. intermediate B. contingency C. short-term D. long-term

The primary purpose of a push strategy is to A. push products on consumers and convince them that they need the products. B. rush the production schedule for products and beat competitors to the market. C. push the product down the distribution channel to retail stores. D. push products away from traditional channels of distribution to save costs.

Tremont Industries has discovered a defect in one of its products that may result in injury to users. The company believes it must quickly develop and implement a recall program. It is likely that Tremont soon will be placing a great deal of emphasis on A. inbound logistics. B. materials handling. C. reverse logistics. D. third-party logistics.

Venture capital firms look to invest their funds in firms that A. operate in established, mature industries. B. present financial statements indicating stronger than average cash flows. C. are new with great profit potential. D. require extra funding to avoid financial difficulties.

What is an advantage of magazine advertising? A. short exposure time B. ability to quickly change message C. can target specific audience D. relatively short life

What is the best assessment of the impact extranets have had on the way small businesses operate? A. As yet, extranet technology has had little impact on small businesses, because the technology is too new and expensive. B. The development of extranets has put small firms at a serious competitive disadvantage, because suppliers and customers are more willing to participate in extranets set up by larger organizations. C. The use of extranets enables small firms to share and process data in ways that had been available in the past only to large firms that could afford electronic data interchange technology. D. The extranet has made it easier for small firms to offer their goods and services to the general public because of the increased bandwidth this technology provides.

What would be classified as a general expense on an income statement? A. salaries paid to salespeople B. dividends paid to stockholders C. payments made for insurance D. costs associated with an advertising campaign

When managing the promotion mix, marketers are utilizing technology to deliver important information directly to the customer. For example, during the spring planting season, Greenville Farms added QR codes to plants. When scanned with a mobile app, customers could make better buying decisions. The code offered information on planting time, watering schedule, and other pertinent tips on each plant. The company even ran a commercial to let its customers know how it was using technology to assist them with their spring planting decisions. Whether using new promotional methods or traditional promotional methods, Greenville Farms A. utilized pull strategy because it directed its campaign to the stores where the products are sold. B. utilized push strategy because it directed its messages to consumers, permitting them to subscribe to the pick economy. C. utilized pull strategy because it directed its messages to consumers. D. utilized push strategy because it directed its messages to its stores that were already equipped with bar code technology.

Which activity is most likely to be performed by someone responsible for supply chain management? A. developing an effective advertising campaign for a line of products B. establishing a budget for the firm's next fiscal year C. finding ways to handle the return of goods and recycled materials D. holding focus groups to learn what consumers want in new products

Which media enables firms to quickly change their advertising message? A. directories B. magazines C. newspapers D. television

Which of these is a common source of long-term financing for a corporation? A. a revolving credit agreement B. commercial paper C. a bond issue D. trade credit

Which situation would normally involve long-term financing? A. paying workers' salaries B. funding unanticipated emergencies C. purchasing production equipment D. expanding current inventory

Which statement about marketing intermediaries is accurate? A. All channels of distribution must contain at least one marketing intermediary. B. Marketing intermediaries and their functions can be eliminated. C. Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers. D. The costs added to products by marketing intermediaries usually exceed the value they add to products.

Which statement about the closing step in the selling process is the most accurate? A. Closing is the final and most important step in the selling process. B. Once a sales presentation is completed, the salesperson should attempt to close as quickly as possible before the customer expresses any doubts or concerns. C. Closing may involve getting the customer to agree to a trial close. D. If the salesperson has done a good job of qualifying prospects and has developed a strong presentation, then closing is the easiest step in the selling process.

Which statement identifies a key advantage of direct marketing? A. Direct marketing enables salespeople to close a non-refundable sale in the customer's home or place of work. B. Direct marketing allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries. C. Direct marketing is popular with consumers because it is so convenient to shop from home or work. D. Direct marketing creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

Zola is an online company that helps people with the complex task of planning a wedding. Multiple vendors are recommended for things like flowers, caterers, wedding gowns, and more. Through Zola, a couple can establish a website that acts as a registry. Once the couple is married, the website directs them to another site having to do with beginning married life. What type of utilities is this site providing to its users? A. form and service B. service and time C. service and information D. form and information

A chain of retail clothing stores, wants to assure investors and other outsiders that its financial statements are accurate. One way to do so would be to hire a public accounting firm to A. produce an internal audit. B. take overall stock of its accounting functions. C. provide a "generally accepted practices" endorsement. D. perform an independent audit.

A company offers its customers trade credit with terms 2/15 net 30. This implies that A. customers must pay half of the invoice in 15 days and the remainder within 30 days. B. paying within 30 days will let a customer deduct 15 percent off the invoice price. C. most customers will pay their bill within 2 days in order to take the maximum discount. D. customers who pay within 15 days can take a 2 percent discount.

After enjoying increased sales of and profits from several popular products, Slone & Sidon plans to expand its production facilities. The firm prefers financing this project with a funding source that avoids interest and dividend payments as well as underwriting costs. What type of financing will best meet the needs of Slone & Sidon? A. venture capital B. debenture bonds C. common stock D. retained earnings

After owning a company bond for five years, Mouna exercised an option that allowed her to exchange her bond for 20 shares of the company's stock. Mouna owned a A. callable bond. B. revenue bond. C. junk bond. D. convertible bond.

Andy has never worried about computer viruses. However, a friend who works in IT recently told him about a new wave of viruses. Andy is wondering whether he should pay more attention to this threat, and if so, what he can do to protect his computer. What advice would you give Andy? A. Trying to prevent viruses is likely to be more costly and troublesome than just dealing with the virus if your computer becomes infected. Moreover, the chance of actually getting a virus is very small, and even if you get one, most viruses do very little real damage. Thus, the best course of action is to simply continue to ignore the problem. B. Although viruses are potentially harmful, there is no effective way to prevent their spread. The best approach is to back up important files on a regular basis and reformat the hard drive any time a virus appears. C. The Internet has automatic safeguards that prevent viruses from being transmitted when files are downloaded. Thus, the best way for Andy to avoid harmful viruses is to use the Internet to send any files he wants to share rather than swapping easily infected devices. D. There is no absolute foolproof way to avoid viruses, but one reasonably effective safeguard is to install antivirus software and use it to scan files before downloading them, particularly from unknown sources. It is important to make sure that the software is updated on a regular basis to remain effective.

As a bank loan officer, you are considering a loan application by Endurance Sporting Goods. The company has provided you with the following information from its balance sheet: Cash$25,000 Account Receivable 45,000 Inventory 140,000 Fixed Assets 190,000 Current Liabilities 70,000 Long-Term Liabilities 90,000 Endurance Sporting Goods has a current ratio of: A. 1.0. B. 1.5. C. 2.5. D. 3.0.

At a recent soccer tournament, a local beer distributor gave free coolers to all adults with a paid admission. What is this an example of? A. market segmentation B. sampling C. publicity D. sales promotion

Blake impresses his friends by stating that he just cast four votes in the election of the board of directors of Energy Electronics, indicating that Blake owns __________ stock in Energy Electronics. A. preferred B. cumulative preferred C. registered D. common

Corporations that want to attract more investors by lowering the selling price of their common stock might consider declaring a A. bankruptcy filing. B. cash dividend. C. margin call. D. stock split.

Creating a positive brand image by using all the promotional tools in a comprehensive, unified promotional strategy is achieved through A. brand awareness. B. the marketing mix. C. demographic analysis. D. integrated marketing communication.

Crystal Clear Communications is considering the purchase of a new satellite. The firm believes the satellite will help generate future earnings. In addition, the firm recognizes the tax benefits of a lower net income provided by the annual __________ of the asset. A. inventory valuation B. declining balance C. appreciation D. depreciation

Data mining would be most helpful to a manager that wants to A. find the most efficient way to reduce the amount of data collected. B. restrict access to the company's data to a few key analysts. C. store data in a more secure location. D. discover unexpected relationships among the data stored by his or her organization.

Diversification means A. allocating all your investment funds into one type of investment. B. buying investments on margin. C. being knowledgeable about the various types of investment opportunities. D. allocating your investment funds to several types of investments.

Dustin, a recent college graduate with a degree in accounting, is helping a newly formed construction company set up its accounting system. Although the company had purchased accounting software, Dustin wants to make certain that future reports will distinguish between current liabilities and long-term liabilities. In the future, he will need to know the amount of total current liabilities in order to A. know when it is time to make a long-term mortgage payment. B. calculate if the company has purchased too much inventory for home building. C. analyze whether the company can afford to make capital purchases such as additional land acquisition. D. analyze whether the company has enough funds to pay the near-term bills.

Firestone owns its manufacturing sites as well as retail stores that sell its tires. Firestone exemplifies a(n) A. selective distribution system. B. contractual distribution system. C. administered distribution system. D. corporate distribution system.

Firms with a very limited advertising budget would be very unlikely to use __________ advertising. A. Internet B. radio C. outdoor D. television

Gro-More Industries invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company needs serious funding. The handful of seed scientists that own the company are seeking __________ but understand that they will relinquish a sizeable share of ownership in order to obtain the funds. A. debenture capital B. international line of credit C. leverage D. venture capital

Gro-More Industries invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs a large amount of funding—fast! The handful of seed scientists that own the company decide to offer shares of stock to general investors. This first-time offering is a(n) A. Stock Equity Commission (SEC). B. Stock Fund Offering (SFO). C. Broad-Based Offering (BBO). D. Initial Public Offering (IPO).

Having just finalized its new computer monitor design, This Way Computing's marketing team plans to begin a limited-time rollout with __________ to only one traditional retailer in the tri-state area. This strategy will give consumers the perception of the product's stand-out personality and increase demand. This Way will continue with __________ for the next four months, where it plans to distribute to three other retailers as well. For the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. The marketing team is confident that the monitor will cycle through the first three stages of its product life cycle quickly. As the computer monitor reaches maturity during the second half of its first year in the market, it is good strategy to proceed with __________, as described here. A. mono-level distribution; secondary level distribution; tertiary level distribution B. intensive distribution; selective distribution; exclusive distribution C. tertiary level distribution; secondary level distribution; mono-level distribution D. exclusive distribution; selective distribution; intensive distribution

Items such as snow skis, lawnmowers, and other highly seasonal items are often held in __________ warehouses during the months they are not in demand A. seasonal B. distribution C. set aside D. storage

Kira is running an income statement on her computer accounting program. Which accounts will be used to calculate gross profit? A. revenues, net sales, depreciation, and operating expenses B. revenues, general expenses C. revenues, cost of goods sold, tax expenses, net income before taxes D. revenues, cost of goods sold

Lacey's Department Stores has fallen behind in payments to suppliers due to cash flow shortages. Some suppliers are withholding shipments to Lacey's until they receive payments on overdue accounts. To meet their immediate needs, Lacey's Department Stores should utilize A. vulture capital. B. long-term financing. C. contingency capital. D. short-term financing.

Lo-Cal Yogurt was unable to get retailers to agree to a contractual arrangement to cooperate in the distribution process, so it took over all the marketing functions for its products at grocery stores. The grocers like this arrangement because Lo-Cal Yogurt provides outstanding marketing support for its products. Lo-Cal Yogurt is using a(n) __________ system to distribute its products. A. corporate distribution B. franchise C. retail cooperative distribution D. administered distribution

Marlo recently received poor service at a local restaurant. After dinner, Marlo made her complaints public by placing them online. What is this a form of? A. trade advertising B. institutional sales promotion C. public relations D. word of mouth

Platinum Automobiles produces some of the most luxurious and expensive cars in the world. Typically, only a single dealership is authorized to sell its cars in certain major cities. In less populous areas, Platinum authorizes a single dealer for an entire state or region. The manufacturer of Platinum Automobiles is using a(n) __________ distribution strategy for its product. A. intensive B. primary C. extrinsic D. exclusive

When marketing to consumers in the global population, it's important for companies to remember that promoting products A. is easy and profitable if they are well-known brands. B. can be accomplished using a global approach since consumers are more alike than most people think. C. is best done by using personal selling and product sampling. D. calls for attention to cultural differences and possible translation problems.

Rather than take an accounting class, Isaac enrolled in a marketing class at the local community college before starting his landscape business. He decided that his time would be better utilized in this class because if he could learn to sell his services well and the revenues and profits would follow. What would be your assessment of his plan? A. Isaac understands that marketing is the lifeblood of the company, and he is right on track with his approach. B. Isaac has elected to operate like a virtual company and leave various parts of the business including accounting, environmental trends scanning, and management to outsourcers. C. Isaac knows that increasing revenues will always keep the business profitable and in a positive cash position. D. Isaac needs to realize that the ability to understand and interpret financial statements provided by accounting might enhance his profits.

Scientists and engineers at Dayton Pharmaceutical rely on the Internet to keep in touch with their peers at various universities and research organizations. In recent years, these researchers have become frustrated because the increasing congestion on the Internet has disrupted their attempts to communicate and collaborate with colleagues at other institutions. Which of the following developments would be most likely to help Dayton Pharmaceutical researchers overcome this problem? A. set up an intranet B. allow its scientists and engineers to telecommute C. assign each employee a second e-mail address D. gain access to Internet2

Simone is a new salesperson for a medical supply company. She is compiling a list of pharmacies and independent stores that make medical supply buying decisions and plans to contact these businesses to determine what supplies they are currently using, and if they plan to purchase any additional supplies in the future. Identifying those decision makers who are willing to consider her products is called A. the supply chain. B. sales identification. C. a trial close. D. prospecting and qualifying.

Standard & Poor's currently rates Harland Corporation bonds as a D grade. This indicates that these bonds are A. of the highest quality with lowest default risk. B. moderately speculative. C. corporate bonds with variable interest rates. D. the lowest quality and the highest risk.

Tahlia is shopping online for jeans and she clicks on a style she likes. The site quickly presents her with a close-up view and additional information that will help her make a decision. When she adds the jeans to her shopping bag, the website quickly shows her that other customers that purchased the same pair of jeans also purchased a particular shirt and boots. As the retailer's website learns more about Tahlia and her purchase preferences, it is able to push other ideas toward her, and potentially increase the online retailer's units per transaction. The technology that generates this type of intelligence and personalization is called A. social media. B. the immersive internet. C. blockchain personalization. D. machine learning.

The balance sheet for Hammill Contracting shows assets totaling $207,000 and liabilities totaling $95,000. Which statement is correct? A. Owners' equity equals $182,000. B. Current assets are worth $92,000. C. Net income for the period is $112,000. D. Owners' equity equals $112,000.

The box "The Rise and Fall of Insta-influencers" refers to what type of promotional effort taking place when celebrities are paid to discuss and endorse products on Instagram or Facebook? A. viral marketing B. publicity C. blogging D. word-of-mouth

The key distinction between data and information is that data A. are facts and figures that have been stored in databases so that they can be accessed and manipulated by a computer while information has not been. B. is less reliable than information because its accuracy has not been verified. C. is mathematical in nature while information is verbal in nature. D. are raw, unanalyzed facts and figures while information is data that has been processed and summarized so that is can be used by decision makers.

The technology that improves security, lowers equipment costs, and provides easier access for users is A. immersive Internet. B. virtual reality. C. blockchain technology. D. cloud computing.

The three types of cloud computing are A. public, private, and personal clouds. B. application, analytic, and informative clouds. C. power, private, and virtual clouds. D. public, private, and hybrid clouds.

The traditional promotion mix for a firm consists of the A. strategic mix of price, product, place, and advertising. B. various types of advertising media the firm selects to reach each specific target market. C. marketing intermediaries employed by the firm to create a supply value chain. D. advertising, personal selling, public relations, and sales promotion used to reach a target market.

Tunde's bank recently contacted him to tell him someone illegally accessed the bank's computer system and gained access to information about customer account numbers and PIN numbers. The bank is recommending Jeff and other customers change their account numbers and access numbers for security reasons. The bank and Tunde are victims of a A. net crasher. B. software pirate. C. slammer. D. hacker.

Using computers to post information from journals to the ledger instantaneously has the benefit of A. reducing the number of accountants required by the firm. B. less scrutiny from agencies such as the Internal Revenue Service. C. shifting financial decision-making from people to programmed technology. D. having access to readily available financial information.

Victor works in the marketing department at Brimford Manufacturing. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Victor's job responsibilities focus on A. merchant wholesaling. B. multilevel marketing. C. utility processing. D. supply chain management.

What is an advantage of telecommuting? A. Workers are not included in the office loop. B. People who work at home have less trouble letting go of work and relaxing when the workday is over. C. Telecommuting increases travel time and costs. D. Firms may be able to retain workers who would otherwise leave or retire by allowing them to work at home.

What represents a capital expenditure? A. issuing paychecks to workers B. paying for advertising on a local radio station C. purchasing raw materials to be used in the production of a firm's product D. purchasing a building to be used for office space

Which activity is most likely to be performed by a financial manager? A. design of a marketable product that satisfies an unmet need B. identification of specific target markets for a firm's goods C. preparation of the balance sheet and income statement for the firm D. analysis of the tax implications of various managerial decisions

Which activity would be most closely associated with inbound logistics? A. Arranging equipment on the factory floor so that materials move smoothly and efficiently from one workstation to the next B. Evaluating various shipping methods to find the most efficient way to transport goods to the final customer C. Establishing a program to encourage customers to return used products to the manufacturer so materials can be recycled D. Working with suppliers to establish a more frequent delivery system that will enable the manufacturing firm to hold smaller inventories of parts and materials

Which assessment of online retailing is most accurate? A. Online retailing has two major advantages over traditional businesses: simplicity and very low start-up costs. B. One of the reasons online retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms. C. Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses. D. The line between online retailing and traditional retailing is blurring as traditional retailers go online.

Which person is engaged in inside trading? A. Josh, a stockbroker for a large investment firm, buys and sells securities for his friends on the side rather than have his friends use his firm. B. Dustin helps his friends set up an online trading account with the company he works for. C. Juanita buys and sells stocks even though she works for the Securities and Exchange Commission. D. Although it is not public knowledge, Nelson knows the firm he works for is going to merge with another company so Nelson buys shares of the other company's stock.

Which scenario is an example of a consumer making a purchase through a direct marketing arrangement? A. Marissa purchased a box of macaroni at a local grocery store with a coupon on the box. B. Brett purchased a laptop at a big-box retailer's special tech department. C. Alecia purchased a set of glasses featured in a department store's lower level. D. Tyrone purchased a map of the galaxy by sending in an order form he received in the mail.

Which statement about channels of distribution is most accurate? A. Channels of distribution always begin with a manufacturer and end with consumers, and always have one or more marketing intermediaries in between. B. Channels of distribution always include retailers, but they may or may not also include wholesalers. C. The fewer the marketing intermediaries in a channel of distribution, the more efficient the channel is likely to be. D. Some channels of distribution include marketing intermediaries, while in others a manufacturer sells directly to the final consumer.

Which statement about computer viruses is most accurate? A. Viruses could be completely eliminated if people would quit sharing infected files. B. Wild rumors and sloppy reporting have exaggerated the threat computer viruses pose to typical computer users; almost all real-world computer viruses turn out to be harmless practical jokes. C. The Internet contains built-in safeguards that prevent programs with viruses from being downloaded. D. Although antivirus software can help identify and eliminate known viruses, the software must be updated frequently to remain effective.

Which statement about service utility is most accurate? Service utility is A. becoming less important to retailers in this age of self-service marketing. B. the one type of utility that online firms provide more efficiently than traditional retailers. C. more likely to be provided by wholesalers than by retailers. D. becoming crucial to traditional retailers as they try to prevent their customers from defecting to firms using direct marketing.

Which statement represents good advice prior to making capital expenditures? A. Capital expenditures represent borrowed funds that must be repaid in one year or less. It is important to seek the advice of your accountant prior to committing. B. Capital expenditures represent investment in inventories and expendable assets that the firm will use in one year or less. It is important to maintain the appropriate level of monthly cash flow to pay for these expenditures. C. Most firms do not value capital expenditures on their balance sheets, so it is important to stay abreast of the market value of these assets at all times, in case you want to sell them. D. Capital expenditures are major investments, meaning they require large sums of funds. Companies should weigh all possible options before committing available resources to projects that take significant amounts of funds and extended time.

Which type of wholesale organization would be most useful to a small manufacturer that has shipments that are too small to fill a truck or railcar? A. rack jobbers B. cash-and-carry wholesalers C. piggy-backers D. freight forwarders

While reviewing the books at his firm, Uri noticed discrepancies between how the firm recorded revenues last year and how it elected to record revenues during the recent quarter of the current year. As a recent business graduate, Uri felt confident that the changes needed clarification. To get another opinion, Uri suggested to the company's controller that the firm solicit A. the assistance of the Government Accounting Standards Board. B. the services of a certified internal auditor. C. the services of a senior executive at the IRS. D. the services of an independent auditor.

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