Business Foundations Ch 10-16 prac probs
If a business firm has assets worth $170,000 and liabilities that total $40,000, what is the value of the owners' equity?
$130,000
If a retailer has revenues of $800,000, cost of goods sold that total $370,000, and operating expenses that total $300,000, what is its net income before taxes?
$130,000
Which of the following determines the ending cash balance using the statement of cash flows?
(Cash flows from operating activities + Cash flows from investing activities + Cash flows from financing activities) + Beginning cash balance
Which item below best represents a product line?
Coca Cola offering Cherry Coke and Diet Coke
Which of the following types of short-term financing is usually only available to large firms with high credit ratings?
Commercial paper
How has social media changed the environment for business firms?
Companies no longer have much control over what is said about their products or services.
What are three kinds of pricing methods?
Competition-based pricing, cost-based pricing, and demand-based pricing
____________ often differs based on the product being purchased. For instances, low-cost items are purchased with routine response behavior and very little search or decision-making, but expensive, seldom-purchased items call for extended research and decision making.
Consumer buying behaviors
Which of the following is an advantage of issuing corporate bonds over obtaining a long-term loan?
Corporations can borrow a lot of money from a lot of different bondholders and raise larger amounts of money than could be borrowed from one lender.
How are current assets distinguished from fixed assets?
Current assets are assets that can be converted quickly into cash or that will be used in one year or less; fixed assets are assets that will be held or used for a period longer than one year.
______focuses on using information about the customer to create marketing strategies that develop and sustain desirable customer relationships.
Customer relationship management
What are the three levels of brand loyalty (listed from the weakest to strongest form of brand loyalty)?
Brand recognition, brand preference, and brand insistence
Which of the following is an incorrect statement about the Internet?
The basic ways the Internet is used are not likely to expand; however, the variety within each type of use will grow.
Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do not carry products in spring colors in the fall and winter when the focus is on browns and greens. Which of the following utilities explains the reason for spring-colored product availability?
Time utility
What are the five types of discounts for business products?
Trade discounts, quantity discounts, cash discounts, seasonal discounts, and allowance
Which of the following is not a type of sales promotion?
a customer blogging about a product
The risk-return ratio is based on the principle that:
a high-risk decision should generate higher financial returns for a business
When developing an advertising campaign, an organization generally decides which media (TV, radio, Internet, social media, etc.) will be used during which step?
Develop the media plan (step 5)
What is the difference between equity capital and debt capital?
Equity capital is provided by the owners or owner of a business, while debt capital is borrowed money.
What is financial leverage?
Financial leverage is the use of borrowed funds to increase the return on owner's equity.
Which of the following is best described as an accepted set of guidelines and practices for U.S. companies reporting financial information and for the accounting profession?
GAAPs
What are the seven stages of new-product development in order from start to finish?
Idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization
Which statement best describes what might happen if a business has a management information system (MIS) that is not the right size for the firm?
If an MIS is too large or too complex for the organization, then unused capacity and complexity do nothing but increase the cost of owning and operating the system
e-Business has been determined to be a way to increase profitability. Businesses may sell merchandise on the Internet to increase sales, gather information about customer's purchases and customers' buying preferences, and use this information to assist the customer the next time he or she visits the website, link other products to their website, and earn commissions from the link, they may also charge subscription fees, or provide online access to information customers want, thereby eliminating many of the personal customer contacts and consequently the number of physical business locations required. Online information provided to customers may include information about the products and services, provide "chat" opportunities for answering customer questions, and the ability for customers to post suggestions. Which of the following would most likely lead to a reduction of expenses for an e-business and possibly result in increased profits for the business as a result?
Increase the interactive contact points for customers
What best describes an online information service?
It offers subscribers access to email, websites, downloadable files, news, databases, and research materials.
What are the various needs from Maslow's Hierarchy of Needs listed in the order from most basic to most complex?
Physiological, safety, social, esteem, self-actualization
Which of the following is a method a financial manager may use to monitor and evaluate a firm's financing?
Preparing interim budgets
Which of the following is not a way in which price functions as an allocator?
Price allocates product quality equally among consumers.
What are the five categories of pricing strategies?
Product-line pricing, promotional pricing, differential pricing, new-product pricing, and psychological pricing
What are the five stages of the consumer buying decision process (in chronological order), when deciding what to purchase?
Recognize the problem, search for information, evaluate alternatives, purchase, and evaluate after purchase
What function is an employee of a firm conducting when he or she systematically collects, analyzes, and reports the financial information to the company in the form required to make decisions about a firm's financing, investing, marketing, and operating activities?
accounting
Which of the following described a part of the promotion mix that is a paid nonpersonal message communicated to a select audience through a mass medium?
advertising
Which of the following modes of transportation is most likely to be used for high-value, perishable goods that are needed immediately?
airplanes
Large corporations normally distribute a(n)_______to stockholders and other interested parties that describes a firm's operating activities and its financial condition.
annual report
Today, most corporations include in their_______comparisons of the important elements of their financial statements for recent years.
annual report
When a business purchases goods and pays for them with a written order for a bank to pay the seller a stated amount of money on a specific date, what has it provided for payment?
banker acceptances
______ is a systematic program of encouraging desirable behavior involving rewards to encourage desirable actions and punishments to discourage undesirable actions.
behavior modicfication
The idea that managers can change employee behavior by administering consequences related to the employee's actions is called:
behavior modification
Business should measure social media activities against ___ to determine their effectiveness and then make changes and update the media plan if necessary to increase effectiveness.
benchmarks
Many businesses are now using a wide variety of social media to reach targeted audiences. Which of the following forms of social media is a website that allows a company to share information by posting information on the site in order to increase customers' knowledge about its products and services, as well as to build trust and makes it possible for customers to provide feedback through comments on the site?`
blogs
_______ are effective at developing better relationships with customers, attracting new customers, telling stories about the company's products or services, and providing an active forum for testing new ideas.
blogs
Which of the following is not a major factor that contributes to brand equity?
brand extension
When a customer is searching for their preferred or familiar product brand in a store and cannot find it, they will often purchase an alternate brand that they are aware of due to ______.
brand recognition
What has a company accomplished when it creates a financial statement that projects income and expenditures over a specified future period?
budgeting for financial needs
A ____ represents a group of common characteristics and methods of doing business to generate sales revenues and reduce expenses.
business model
Which of the following business models is most concerned with the buyer using websites to simplify and speed up comparison shopping, buyers' purchase of services and products online vs. at a traditional vendor's location, the type of products and services best suited for online shopping, and the lag between orders and delivery?
business to consumer
A business model used by firms that focus on conducting business with individual consumers is known as a _______; while, a business model used by firms that conduct business with other businesses is known as a _______.
business-to-consumer model; business-to-business model
_____ behavior is the decision process and actions of people who purchase and use products.
buying
Which of the following is not a major component of the marketing plan?
buying behavior analysis
must combine human, material, informational, and financial resources but may use more specialized resources in each of these categories.
ecommerce
Shoppers who download store apps may be tracked within the store using a technology within the app that is triggered when they enter the store. The app may send the shopper discounts and product information as they progress through the store. What is the name given to this type of online tracking system?
electronic beacons
Making employees more involved in their jobs by increasing their participation in decision making is known as:
employee empowerment
All of the following are methods used by businesses to forecast sales, except:
environmental anaylsis
When a corporation needs money for long-term financing, where could it obtain these funds without the requirement of repayment?
equity capital
The _____ maintains that people are motivated to obtain and preserve fair treatment for themselves.
equity theory
Which of the following is not a step in the marketing research process?
estimate sales
When a company pays for all or part of a special occasion such as a concert, sports competition, festival, or play the company is using which type of public-relations tool?
event sponsorship
A modern motivational theory based on the assumption that motivation depends on how much an employee wants something and on how likely the employee thinks he or she will receive it, requires employees to balance the value they place on different aspects of their life against the goal they seek. Balancing is required because of the possibility of any action leading to varied outcomes. What theory is this?
expectancy theory
All of the following are traits and skills an employee in the financial industry needs, except:
extensive knowledge of human resources law.
Businesses use a wide variety of social media to reach customers. Which of the following social networking sites is the most popular for business use?
Which of the following is not normally included in the external marketing environment?
finances
consists of all the activities concerned with obtaining money and using it effectively.
financial management
When a lender seeks collateral for a loan it can use almost any asset as security, but prefers ____ when seeking tangible security and may insist that it be stored in a public warehouse with the lender keeping the warehouse receipt.
finished goods
Utility created by converting production inputs into finished products is known as:
for utility
What are the five stages of team development, in order as a team matures?
forming, storming, norming, performing, and adjourning
When a person goes to a grocery store to purchase toilet paper and buys the package that is labeled "Toilet Tissue" with no other designations, what brand of toilet tissue did the person purchase?
generic brand
What type of pricing strategy is used when a company includes the cost of delivery in the pricing strategy?
geographic pricing
What are three types of pricing associated with business products?
geographic pricing, transfer pricing, and discounting
Which modern theory of motivation states that employees are motivated to achieve goals that they and their managers establish together as long as the goals are specific and attainable and rewards are tied to the goal achievement?
goal setting theory
Which researcher studied motivation specifically related to the workplace and determined that a variety of hygiene and motivational factors impact worker motivation?
herzberg
Which of the following is an organizational outcome of high morale?
high employee loyalty
When the amount of available information is _______, managers tend to make better decisions; while, when the amount of information is _______, there is a high risk of making poor decisions.
high; low
Financial reform after the recent economic crisis has been most concerned with which of the following:
holding Wall Street firms accountable for their actions
Marketers seek to balance _______ costs and _______ costs so that the company always has sufficient inventory to satisfy customer demand, but with little surplus because storing unsold products can be very expensive.
holding; stock-out
When considering the specific info needed to make decisions, _ managers consider current wage levels and benefits, legislation, and court decisions regarding employment
human resources
Which of the following theories or studies maintained that, as pertaining to employees, a state of no dissatisfaction cannot exist because people will always be dissatisfied with something?
hygiene theory
Companies use social media in different ways: some companies use it for periodic short-term promotions and others use it in a type of ongoing conversation with customers. At what point in building the social media plan does the company begin using the selected social media in the planned manner?
implement and integrate the plan
Which part of the marketing concept is concerned with using information about present and potential customers to provide a product that will satisfy them at a price that is acceptable to them, that will yield a profit, that will promote the product, and ensure that the product is distributed so that it is available to customers where and when it is needed?
implementing
_______ is a marketing term that describes new ways of gaining attention and, ultimately, customers by creating content on a website that pulls customers in.
inbound marketing
When determining if a company has a cash surplus or cash deficit at the end of a specific period of time, one would typically subtract the expenses from the income. This can also be done as the first step in creating a budget. What is the specific name given to the financial document created for a business that would state its profit or loss?
income statement
Which financial summary reports the firm's profitability over a particular period of time?
income statement
Short-term financing is often sought by businesses for a variety of purposes. Which of the following is not usually one of the reasons businesses obtain short-term financing?
increase cash in accounts for financial purposes
According to material in this textbook, what is the number one reason a business chooses to use social media?
increase exposure for the business
All of the following are ways in which supply-chain management encourages cooperation between buyers and sellers, except:
increases profits for the top channel members
Which of the following is NOT normally thought of as an objective of a sales promotion?
increasing international sales
The presentation of raw numerical or verbal descriptions in a form that is useful for a specific purpose
information
Which of the following best describes a consistent pattern of cause and effect that can be used in an industry for creating a competitive edge over competitors and improving the firm's profits?
information rule
Snap, a long time privately held corporation, raised $3.4 billion when it sold stock on the New York Stock Exchange for the first time in 2017. Snap is the parent company of Snapchat and sold the stock with the goal of using the funds raised for further development of Snapchat and growing the company into a major player in the social media industry. What kind of sale was this?
initial public offering
A(n) ______ is used to measure an employee's contribution to the organization.
input-output ratio
When an individual invents a new product and patents it, a writer copyrights and publishes a book, or a company develops a symbol that represents it and has it registered as their own, they have created assets. What type of assets have they created?
intangible assets
When a manufacturer saturates the market by selling to any intermediary of good financial standing that is willing to stock and sell the product, the manufacturer is engaged in
intensive distribution
Consumer buying behavior is affected by the individual's buying power. Which of the following is not included in an individual's buying power?
interest and dividend income
Data from a marketing information system are collected from _______ sources, such as sales figures and marketing costs, and _______ sources, such as data from an organization's supplier or data from customers.
internal, external
Typical _______ forces include a firm's planning activities, organizational structure, human resources, and management decisions. In contrast, _______ forces affect a company's use of technology and are unlikely to be controllable by a company.
internal; external
Which of the following is NOT a function performed by a management information system (MIS)?
interprets the data with artificial intelligence
What stage of the product life-cycle is the product in when customers' acceptance and awareness of a product are low but sales rise gradually as a result of promotion and distribution?
introduction
The stages of the product life-cycle (in order) are:
introduction, growth, maturity, and decline
Which of the following is not part of the external marketing environment that marketing managers attempt to understand and/or control?
inventory control forces
When a business engages in _____, it is managing the products it sells in such a way as to minimize costs including both the holding costs and potential stock-out costs.
inventory management
A corporation may either _______ or _______ to ensure that it has sufficient funds available to redeem a bond issue.
issue bonds as serial bonds; establish a sinking fund
all of the following are true about a marketing plan, except:
it is static and does not need to be updated
Which job design specifically incorporates motivational factors such as opportunity for achievement, recognition, responsibility, and advancement into a job?`
job enrichment
A motivational method in which the work is restructured to better match the worker could accomplish its goal by using work teams or establishing closer customer relationships. What is the name of this motivational method?
job redesign
Employers may work with employees' schedules to accommodate the employees' lifestyles. What is the name given to the working arrangement in which the employer permits two employees to work less than a full-time schedule but work at the same tasks?
job sharing
Jack has elderly parents he needs to care for and he would like to cut his hours down to half-time. Which flexible scheduling strategy might work for Jack?
job sharing
_______ is an important step of the marketing process because it involves the process of systematically collecting, recording, and analyzing data on what consumers want and need, their consumption habits, trends, and changes in the marketing environment.
marketing research
______________ is an important step of the marketing process because it involves collecting and analyzing data on what consumers want and need, their consumption habits, trends, and changes in the marketing environment.
marketing research
Recognizing what stage of its life cycle a product is in has a direct impact on marketers' decisions about:
marketing strategy
Which of the following is NOT a current goal of integrated marketing communications?
mass media advertising
Through each stage of the distribution process, products are normally moved from one point to another. Which of the following is concerned with reducing the number of times a product is handled?
material handling
During the _____ stage of a product's life, sales increase but the rate of increase slows and eventually declines.
maturity
Pricing strategies are flexible and may include markdowns and price incentives during which stage of a product life-cycle?
maturity stage
All quality social media creation for a business has some cost attached to it, therefore business managers have many factors they should take into consideration before adopting a particular form of social media. Before participating in ____ a business should consider who will create the photo and video content, how the content will be distributed, and how much it will cost to create and distribute.
media - share sites
When establishing a ____ for social media, the objectives should state what they intend to accomplish. Objectives should be specific, measurable, realistic, oriented toward the future, and linked to a specific action to accomplish each of them.
media plan
What is the goal of materials handling?
minimize the number of times a product is handled
_______ is an employee's attitude or feeling about the job.
morale
_____________________ is the process of finding outside vendors and suppliers that provide professional help, parts, or materials at a lower cost.
outsourcing
When individuals use their home computers to buy and sell stock that is not listed on a securities exchange, they are participating in the ____ , which has existed since long before home computers were invented.
over the counter market
If a firm sold all of its assets and paid all of its bills, what would remain?
owners' equity
The "Retained Earnings" account is one of the _____ accounts.
owners' equity
provides a safe place to store money but normally generates the lowest interest income of any account.
passport savings account
Which element(s) in the work environment was(were) found to dissatisfy workers when not present, but when present did not serve as a motivator for workers?
pay and job security
What pricing strategy has a low initial entry price (often lower than the eventual market price) to attract many customers, discourage competition, and build market share quickly?
penetration pricing
When a company introduces a new product to the market, it will often use ________ to build the market share quickly. In doing this, the seller sets the price low to stimulate sales and discourage competitors from entering the market.
penetration pricing
According to the authors, what is the primary focus of social media?
people
When determining the ______ a company considers cost, then number of units per package, consistency, promotional value, the needs of intermediaries (such as shippers), and environmental concerns.
package design
A company that uses _____ normally has a large sales force that provides one-on-one communication with the targeted buyer and provides immediate feedback regarding the preferences of the targeted purchaser.
personal selling
Integrated marketing communications coordinates the promotional efforts of an organization to ensure maximum informational and _____ impact on customers is achieved.
persuassive
Which of the following is not considered an element of the promotion mix?
physical distribution
A compensation system under which employees are paid a certain amount for each unit of output they produce is known as:
piece rate system
A pair of shoes is given ________________ when it is shipped from a factory to a department store.
place utility
When an individual purchases merchandise in a retail store using a credit or debit card which they insert into or swipe through a magnetic card reader, what type of electronic banking service are they using?
point of sale termial
There are many kinds of chain retail stores, which of the following is NOT usually considered a chain retailer?
pop up stores
Typical job titles in finance include chief financial officer, vice-president of finance, bank officer, consumer credit officer, financial analyst, financial planner, loan officer, insurance analyst, and investment account executive. Which of the following is not one of the qualifications to have a career in finance?
post graduate degree
When a producer offers a gift to a customer in return for buying its product, it is offering a _____ for that product. The goal of this sales promotional method is to attract the competitors' customers.
premium
What function is being served by employees who take data from a management information system and compile it into a report that includes graphs, charts, and a PowerPoint presentation?
present the information to users
_____ is the amount of money a seller is willing to accept in exchange for the product at a given time and under given circumstances.
price
To use _______ most effectively, a seller must have the flexibility to change prices often, rapidly, and aggressively in response to competitors' price changes. _______ is most effectively used when the seller can make its product stand out through distinctive product quality, customer service, promotion, packaging or other features.
price competition, non-price competition
When buyers equate the status, quality, and value of an item with its cost, what part of the pricing strategy is involved with setting prices of luxury items?
price perception
When a company wants to obtain the highest possible profits while its product is new and novel, it will often maximize the price of the product. What type of pricing strategy is this company using?
price skimming
If the goal is to increase the demand for all brands of a product within a specific industry then what type of advertising should be used?
primary-demand advertising
The _______ market is a market in which an investor purchases financial securities (via an investment bank) directly from the issuer of those securities; while, the _______ market is a market for existing financial securities that are traded between investors.
primary; secondary
The interest rate commercial banks charge their best customers, usually large corporations, for short-term loans is the:
prime interest rate
This occurs when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors.
private placement
Employees from different departments within the company may be brought together temporarily in a _____ to tackle a specific problem.
problem solving team
Fred Smith, CEO and founder of FedEx, once described the early days of the company, the issues they had to resolve, and the drive and determination that pushed them through the obstacles. He said there were times that the entire board of directors, which was made up of individuals with varying specialties, expertise, and skills, would come together to resolve an issue—in his case this usually meant finding a way to get shipments from one point to another by the deadline with very few resources. What kind of team did he form?
problem solving team
By Abram's Company buying products to use in the manufacture of other products, it has demonstrated that it is part of the ______________.
producer market
A market is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.
producer markets
Which of the following best describes a distribution channel in which a manufacturer sells heavy machinery to a company and provides the company with additional services such as installation and repair?
producer to organizational buyer
Which of the six distribution channels is commonly known as the traditional channel because it is used for many consumer goods (especially convenience goods)?
producer to wholesaler to retailer to consumer
A(n) _______ is a group of similar products that differ only in relatively minor characteristics.
product line
When business people discuss all of the products a firm has to offer for sale, what are they referring to?
product mix
When Apple changed the iPhone from an iPhone 5c, to iPhone 5s, to iPhone 6, and iPhone 7 what was it doing to extend the life of the iPhone?
product modification
_______ refers to changing one or more of a product's characteristics; while, a _______ is the development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs.
product modification; line extension
Which of the following is not an obtainable goal for a pricing strategy?
profit maximization
Which of the following pricing objective goals is impossible to define and thus impossible to achieve?
profit maximization
Questions like "which customers have the financial resources, willingness, and authority to buy the product?" and "who are the most likely customers for this product?" are addressed during the ______ phase of personal selling.
prospecting
European Union
provides individuals the legal right to be forgotten online, under certain circumstances.
The purpose of _____ is to focus on enhancing the reputation of the total organization by increasing public awareness of a company's products, brands, or activities and by fostering desirable company images.
public relations
Because of several accounting scandals that led to the financial disintegration of large companies and the accounting firms that perpetrated the scandals, congress enacted the _
sarbanes oxley act
The largest number of product ideas are rejected during which stage of new-product development?
screening
Which of the following is NOT a common activity of warehousing?
shipment of goods to customers
Specifically, what kind of product is a buyer considering purchasing when the item is expensive and for personal use, and the buyer reviews brochures for the product, searches information about the product on-line, compares products, and reviews warranties between different stores and brands?
shopping product
Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are goods or services called:
shopping products
A multiplayer, competitive, goal-oriented activity with defined rules of engagement and online connectivity among a community of players is known as a:
social game
Which term identifies a popular medium for encouraging two-way communication, allowing for people to develop profiles, and identifying other people with common interests to connect with by using technology and the Internet?
social media community
A(n) _______________ is described as carrying a select group of products within a single line.
specialty line wholesaler
refers to the time lag between the actual production of goods and when the goods are sold.
speculative production
All of the following are marketing activities that are part of the marketing mix, except:
sponsorship
When a company wants to determine how its operating, investing, and financial activities affect cash during an accounting period, it will have a_______prepared.
statement of cash flow
Which of the following provides a summary of money coming into and going out of the firm that tracks a company's cash receipts and payments?
statement of cash flows
When setting the price of a product, a company has several pricing objectives it can make the focus of its organizational and marketing objectives. When the company is seeking _________, it is setting the product price at a level to continue industry stability.
status quo pricing
Which type of specialized e-business model generates revenue by providing content that is available only to users who pay a fee to gain access to a website?
subscription e business model
A _____ is a large self-service store that caters to households and is known for selling a variety of items including fresh, frozen, and processed foods, paper products, cleaning supplies, housewares, toiletries, stationery, books and magazines, plants and flowers, and other items in a one-stop shopping for household needs format.
supermarket
Motivation affects an individual's internal process. Which of the following is not something that we would consider motivational for an individual?
support
Which pricing objective cannot be pursued on a long-term basis?
survival
A group of high school soccer girls with the need, desire, ability, and authority to purchase soccer gear can best be referred to as a:t
target market
Businesses need to direct their product marketing strategies to the individuals most likely to purchase it. Often marketing managers examine potential markets for their possible effects on the firm's sales, costs, and profits. Which of the following is the designation given for the group to which marketing managers direct the focus of their marketing efforts for a product?
target market
The major activities of a firm, as shown on the statement of cash flows, include all of the following, except:
taxes
Which of the following is least likely to influence the consumer buying decision-making process?
technological environment
If a business needs a short-term loan it could seek ____ from its suppliers, which is usually available to all businesses with good credit and extended to the buyer without a finance charge.
trade credit
When one unit within an organization sells a product to another unit and bases the price charged on the cost of the product plus other costs, what type of pricing is the seller using?
transfer pricing
Which of the following is not an advantage of self-managed teams?
unclear leadership role
The _______ assumes that individual customers have similar needs and that most customers can be satisfied with a single marketing mix. When customers' needs vary, the _______ should be used.
undifferentiated approach; market segmentation
Publicity differs from advertising in that it is _____.
unpaid
Supply chain management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies, while creating a competitive advantage and satisfying customers. Which of the following is NOT a focus of supply chains?
users
Employees who work together in different locations who rely on email, audio conferencing, fax, Internet, video conferencing, or other technological tools to accomplish their goals are known as:
virtual team
What is the best definition of a management information system?
. A management information system is a system that provides managers and employees with the information they need to perform their jobs as effectively as possible.
A document stating that the bank will pay the depositor a guaranteed interest rate on money left on deposit for a specific period of time is known as a:
. certificate of deposit (CD).
Which of the following is a primary disadvantage of using magazine advertising?
30- to 90 day average lead time
Which of the following is NOT a component of a typical business report?
A SWOT analysis
What is the difference between preferred stock and common stock?
A corporation may issue many types of preferred stock, with varying dividend rates.
What do trade credit terms of "2/15, net 30" mean to a buyer?
A discount of 2 percent is offered if the bill is paid within 15 days; otherwise, the entire amount is due within 30 days.
What is a market?
A market is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.
Which is the best definition of a middleman (or marketing intermediary)?
A marketing organization that links a producer and user within a marketing channel.
What is a promissory note?
A promissory note is a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date.
is standardized equipment used in a firm's production or office activities and is usually purchased routinely with less negotiation.
Accessory equiptment
All of the following are key components of the Sarbanes-Oxley Act, except:
Accounting firms can provide many types of nonaudit and consulting services to the companies that they audit.
Which of the following statements best explains an expert system?
An expert system is a type of computer program that uses artificial intelligence to imitate a human's ability to think.
What is the difference between data and information?
Data are numerical or verbal descriptions that usually result from some sort of measurement. Information is data presented in a form that is useful for a specific purpose.
In what order should you complete the six steps of the marketing research process?
Define the problem, make a preliminary investigation, plan the research, gather factual information, interpret the information, and reach a conclusion
Elton Mayo conducted the _______ at the Western Electric Company in Chicago, to determine the effects of the work environment on employee productivity.
Hawthorne Studies
Which statement best describes Elton Mayo's conclusions from the Hawthorne Studies?
Human factors such as sense of involvement and social acceptance are at least as important to motivation as pay rates for employees.
Which of the following is not a reason it is usually easier to obtain short-term debt financing than long-term debt financing?
Lenders of short-term loans do not require collateral.
A balance sheet has all of the following characteristics, except
Liabilities must equal assets plus owners' equity
What are the steps to build a social media plan (in order) from start to finish?
Listen to determine opportunities; establish social media objectives; segment and target the social customer; select social media tools; and implement and integrate the plan
Which type of accounting provides managers and employees with the information needed to make decisions about a firm's financing, investing, marketing, and operating activities?
Managerial accounting
Marketing is based on many different relationships between customers, wholesalers and producers, buyers, and sellers. What does the term relationship marketing refer to?
Marketing decisions and activities focused on achieving long-term, satisfying relationships with customers
What is a major advantage and major disadvantage of personal selling?
Most adaptable of promotional methods; most expensive of promotional methods
Which of the following is NOT a commonly used form of an electronic funds transfer (EFT) system?
Revolving credit agreement
What is the time lag between the actual production of goods and when the goods are sold known as?
Speculative production
Which of the following is not a benefit to a company issuing convertible bonds?
The exchange of convertible bonds is at the owner's option rather than the issuing company's option
What does a firm do if it adopts a customer orientation?
The firm has to first determine what customers need and then develop goods and services to fill those particular needs.
Which of the following statements does not accurately describe profit margin (return on sales) for a business?
The lower the profit margin, the better the cost controls within the business.
Douglas McGregor observed management's view of workers from two perspectives. In one perspective, he said managers view workers as slothful, lazy, and have no desire to work. In the other view, he said managers view workers as individuals who like to work, will work toward goals to which they are committed, and seek out and willingly accept responsibility.
Theory X and Theory Y
_______ assumes that people dislike work and need to be led since they lack ambition; while, _______ assumes that people work towards goals and seek out responsibility.
Theory X, Theory Y
Which of the following is a benefit of retaining customers?
They can refer new customers of similar value.
All of the following are major factors or questions to be considered prior to participating in media sharing, except:
What social games should the company sponsor?
The purpose of a _________________ is to establish a unified vision for an organization and to communicate this vision among the firm's employees.
marketing plans
Which of the following is not a primary source of funds for a business?
Zero-based capital
Which would be the best way to illustrate the number of salespeople in each region of the country, sales for different types of products, and total sales for all products?
a table
Equity theory is:
a theory of motivation based on the premise that people are motivated to obtain and preserve equitable treatment for themselves
A company will request an _ when it wants to determine if it's financial statements have been prepared in accordance with generally accepted accounting principles
audit
Which of the following is considered a shopping product that consumers buy only after comparing price, quality, and style and thus would utilize selective distribution?
automobiles
A _______ estimates cash receipts and cash expenditures over a specified period; a(n) _______ estimates a firm's expenditures for major assets, including new product development, expansion of facilities, replacement of obsolete equipment, and mergers and acquisitions.
cash budget; capital budget
Which of the following best describes the information provided by a statement of cash flows?
cash on hand
Nonstore retailing occurs in all of the following ways, except:
category killer
Through _____, retailers ask a supplier of a particular type of product how to stock the shelves.
category management
A _____ is an individual who has met state requirements for accounting education and experience and has passed a rigorous accounting examination.
certified public accountant
In the future, ______ companies may be capable of providing greener energy solutions through making their facilities and equipment as efficient as possible.
cloud computing
If Boeing needed a short-term loan of over $100,000 to finance its accounts receivable, which of the following would most likely be the least expensive option and involves the least risk for Boeing?
commercial paper
When starting a new business, an entrepreneur frequently determines the cost to produce its products, but bases the price it will charge for the product on the competitors' prices. What pricing strategy does this entrepreneur use?
competition based pricing
Which pricing method should a firm use if management's pricing objective is to increase sales or market share?
competition based pricing
What marketing environment forces are most likely to affect a marketer's choice of sales promotion method?
competitive and regulartory
When considering the external marketing environment, organizations must consider _________________, which is the actions of competitors who are in the process of implementing their own marketing plans.
competitive forces
Centrum Silver is a multiple vitamin marketed to individuals over fifty years old. The company divides its market into Centrum Silver for women 50+ and Centrum Silver for Men 50+. The organization is using a ________________ approach to market these products.
concentrated market segmentation
The creation of a new product goes through several stages. At the _____ phase, a product idea is presented to a sample of potential buyers through a written or oral description to determine their attitudes and initial buying intentions.
concept testing
How can conflict be beneficial to a team's development?
conflict allows members to spend more time analyzing the situation to determine the best decisions
Buying behavior may be defined as the decisions and actions of people involved in buying and using products. Which of the following is normally included as a major focus in the study of buying behavior?
consumer buying behavior
Which of the following statements is true with regards to buyer's sensitivity to price?
consumer price sensitivity can vary between products
Products created for household or family use and intended for daily living are called:
consumer products
Which of the following is not normally included as a central component of a marketing plan?
consumer protection laws
A(n) _______ can track where the user goes on the Internet and measure how long the user stays at any particular website. This type of software can be viewed as an invasion of privacy; especially, since users may not even be aware that their movements are being monitored.
cookie
When a corporation needs a larger amount of money than is possible by borrowing from one lender, or it does not want to borrow it all from one lender, which of the following might it use?
corporate bond
As part of the accounting process, employees provide managers and employees within the organization with information needed to determine the cost of producing specific products or services. This information is used to evaluate current expenses and to compare them to historic data, international data, and data from suppliers, subcontractors (if any), and other processers (if any) to determine if a less expensive alternative is available that will generate the same product quality. What specific type of accounting is being performed in the beginning of this process?
cost accounting
When engaging in _______ a company may consider the total revenue and costs and the breakeven quantity.
cost based pricing
A company selling goods subtracts______from sales to determine gross profit.
cost of goods sold
The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies is:
costs of goods sold
In the sales process, sales support personnel aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up services. Which of the following is not normally considered a common category of support personnel?
creative salesperson
Businesses should train employees in social media etiquette and monitor social media sites to see what is said about the company and its products. It is also advised that they answer questions with carefully worded posts, reassure the public, and present positive information about the company. What is the underlying reason for implementing these recommendations?
crisis and management reputation
A _____ team consists of employees from different departments and different specialties that are brought together to complete a project that requires a diversity of skills. It is frequently managed from within the team itself.
cross functional team
What is a team called that consists of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task?
cross functional team
Research shows that products developed using ____ sell better because the people who will use the product are involved in the development of the product or service.
crowdsourcing
What is it called when a company outsources tasks to a group of people in order to tap into the ideas of the crowd?
crowdsourcing
The current ratio is calculated by dividing _____ by _____.
current assets; current liabilities
Which of the following should be used to evaluate a firm's ability to pay its current liabilities?
current ratio
Which of the following uses information about customers to create marketing strategies that develop and sustain desirable customer relationships?
customer relationship management (CRM)
The quickest way to improve inventory turnover is to:
order merchandise in smaller quantities at more frequent intervals.
If a nonprofit organization needs to raise funds for a building project, it could issue _____ , which are backed only by the organization's reputation.
debenture bonds
When developing an advertising campaign, the company first identifies and analyzes the target audience then _____.
defines the advertising objectives
Managers of companies may rely on sales forecast figures for all the following, except to:
determine a target market
A marketing strategy has two major components: selecting a target market, and:
developing an appropriate marketing mix.
Which of the following is not normally considered a type of advertising?
direct advertising
In business, producers and sellers often engage in ______ to provide benefits to the specific type of business buyer. Benefits may include a lower cost for large purchases, a lower cost for prompt payment, and lower prices for seasonal purchases.
discounting
Which type of income do marketers have a particular interest in monitoring?
discretionary
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs through the facilities available on the Internet is known as:
e business
Most websites and social media sites post a count of the number of visitors, the number of followers, and the number of individuals who have posted "likes" or made comments on the site, all of which provide the business user with valuable information about how successful the social media plan is working. Many companies, however, set other goals to determine how social media activities lead to sales contacts and then purchases. Which of the following best defines the measurements that define and measure the progress of an organization toward achieving its objectives?
key performers indicators
Financial management involves all of the following activities, except:
knowing detailed information about a firm's products and services and those offered by competitors.
The collection of information about customers, such as their preferences, locations, demographics, and mobility is important for business success. Organizing and using this information is imperative to a business' survival. Which of the following describes a procedure for generating, using, and sharing important data and information?
knowlege management
For international businesses, banking services are extremely important. Both a _______ and a _______ are popular methods of paying for import and export transactions.
letter of credit; banker's acceptance
What are the four most common types of shopping centers?
lifestyle, neighborhood, community, and regional
Frank's Furniture Imports, Inc. imports children's bedroom furniture from China and sells it wholesale to furniture retailers. What kind of wholesaler is this business?
limited line wholesaler
Which of the following is NOT classified as a category of business products?
line extension
When a business needs additional money to continue operations it has several options available to it. One option, ____ , is an arrangement with the lender in which a loan is approved before the money is actually needed
line of credit
While, historically, employers have relied on references from current employees when recruiting new employees, many companies are now using ____ effectively for new employee recruitment.
Out of the various ways a company has to use social media to effectively achieve business objectives, according to the text, often the first step when developing a social media strategy is:
listening to stakeholders
Which of the following is NOT a benefit of a team?
little to no chance of conflict
What does integrated marketing communications foster?
long-term customer relationships and efficient use of promotional resources
What is a general term that describes software designed to infiltrate a computer system without the user's consent?
malware
What motivational technique is a multistep process with the primary purpose of clarifying the roles employees are expected to play in reaching the organization's goals?
management by objectives
is a motivation technique in which managers and employees collaborate in setting goals for the purpose of clarifying the roles employees are expected to play in reaching the organization's goals.
management by objectives
Brands that are initiated and owned by the producer, such as Xerox or SONY, are called:
manufacturer brands
A business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives is most often called the _____________
marketing concept
The business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives is commonly known as:
marketing concept
External forces, which are generally uncontrollable, that can have a significant impact on a firm's marketing activities are known as:
marketing environment
Managers in each of the five areas of management need specific information in order to make decisions. Which manager needs to have detailed information about a firm's products and services and those offered by competitors?
marketing managers
____ is the individual internal process that energizes, directs, and sustains behavior; the personal "force" that causes you or me to behave in a particular way.
motivation
Vroom's expectancy theory states that:
motivation depends not only on how much a person wants something, but also on the person's perception of how likely he or she is to get it.
The underlying cause for a person to act in a particular manner may be referred to as a
motive
The morale of an individual on the job is closely tied to job satisfaction and having needs met. Which of the following is a need that, according to the authors, would be satisfied by employment?
need for financial security
Public relations is a broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external to the company. Which of the following is the most used public relations tool?
new release
Which of the following types of publicity is provided by an organization to the media and is usually one typed page (about 300 words)?
news release
_______ occurs when a company promotes its product by accentuating the differences between its product and similar products.
non price competition
What is the first step in implementing the marketing concept?
obtain information about its presents and potential customers
Firms require information on a variety of subjects so they can plan for the future, implement the plans, and evaluate the results against historical data. Which of the following managers needs information regarding future sales levels, current inventory levels, and the availability and cost of resources required to produce goods and services?
operations manager
Sales persons can be categorized in many ways, a(n) _____ is a person who is creative at selling the firm's products to new customers and increasing sales to current customers.
order getter
When a salesperson participates in creative selling (selling a firm's products to new customers and increasing sales to current customers) they are acting as a(n):
order getter
_______ social media measurement consists of using numerical measurements, such as counting the number of website visitors, number of fans and followers, number of leads generated, and the number of new customers; while, _______ social media measurement is the process of accessing the opinions and beliefs about a brand and primarily uses sentiment analysis to categorize what is being said about a company.
quantitative, qualitative
According to equity theory, if workers perceive an inequity in the workplace they may ______ in order to reset the balance.
reduce effort on a task
This is a type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price.
reference pricing
When managers are selecting a management info system, they must tailor it to the needs of the organization it serves. The information technology officer must make sure that the system provides _ at a reasonable cost
relevant information
A market is a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them. Which of the following is the name given to the market for intermediaries who buy finished products and sell them for a profit?
reseller market
Wholesalers help _____ by stocking in one place the variety of goods that this buyer would otherwise have to buy from many producers.
retailers
Business-to-consumer e-firms provide ____ global access to products and services and try to build long-term relationships with their customers
round the clock
Managers rely on __________________ to purchase raw materials, schedule production, secure financial resources, consider plant or equipment purchases, plan inventory levels, and hire personnel, therefore they must be accurate.
sales forecast
To determine the potential of a specific market segment an organization makes predictions based on a specific relevant time frame, geographic boundaries, and an estimate for the specific product item, product line, or an entire product category. What is the name given to the estimate of the amount of a product that an organization expects to sell during the specific period based on a specified level of marketing effort?
sales forecast
Which element of the promotion mix uses activities or materials as direct inducements to customers?
sales promotion
Businesses have four primary sources of funds. _____ generally provides the greatest part of a firm's financing.
sales revenue
Generally, when marketers focus on customers chosen for their lifetime value,
the company earns higher profits in future periods than when they focus on customers selected for other reasons
Setting prices for business products is different from setting prices for consumer products due to all of the following factors, except:
the credit worthiness of businesses
Frederick W. Taylor used scientific management as a means to improve
the efficiency of individual workers
Benefits for factoring accounts receivable include all of the following, except:
the firm selling its accounts receivable gets more than face value.
Technology has enhanced the implementation of supply-chain management in all of the following ways, except:
through computerized integrated information sharing, channel members can completely eliminate the need for wholesalers
Physical distribution creates ______ and ______ utility by making products available when and where they are wanted, with adequate service and at minimum cost.
time ;place
What is the aim of test marketing?
to determine buyers' probable reactions
Which of the following is not a major reason why marketers would use sales promotion activities and materials?
to invigorate the sales of a product in the growth stage
Which of the following is a major function of packaging?
to promote a product by communicating its features
What is the major goal of integrated marketing communication?
to send a consistent message to customers
HCL Technologies is a multi-national corporation providing a wide variety of technological services to business clients worldwide. In order to keep the company operating as a single entity, the CEO has created an intra-company information exchange similar to Facebook, he has a weekly newsletter posted on-line for employees, and takes input for improvements or problem solutions from any employee wherever they are located and whatever their position is. Often, when a new client needs a technological solution that cannot be solved in any one location, individuals who would like to work on the project, volunteer and communicate via a company video conferencing and information exchange site. In light of the methods used to communicate within these volunteer teams, what would the most likely designation be for these teams?
virtual team
Which of the following types of retail stores is best described as a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing?
warehouse club
Although it is true that _____ can be eliminated, their functions must be passed on to some other entity, such as the producer, another intermediary, or even the customer.
wholesalers
The _______ of the product mix is the number of product lines it contains; while, the _______ of the mix is the average number of individual products with each line
width, depth
In the traditional approach, each new budget is based on the dollar amounts contained in the budget for the preceding year; however, in a(n) ____ every expense in every budget must be justified.
zero based budget