GBS151 Test#2

Using borrowed money to increase profits (e.g. what the banks used in excess during the Great Recession) is called:

Financial Leverage

Financial institutions act as intermediaries between suppliers and demanders of funds. They accept savers' deposits and invest them in such things as business loans or mortgages. This process is called:

Financial intermediation

Which of the following is NOT one of the 3 tools used by the Federal Reserve System in managing the money supply?

Fiscal policy

Which of the following would be associated with "equity" capital?

Initial Public Offering (IPO)

A creditor, such as a bank, would review a company's cash and other assets (that can easily be converted into cash) in order to determine its:

Liquidity

Short-term investments that are easily converted into cash:

Marketable securities

Which of the following is NOT a balance sheet category?

Revenues

A basic principle in finance which holds that the higher the risk, the greater the return that is required:

Risk-return trade-off

Campus Coffee needs to attract new customers to its business. Which of the following is probably NOT in its Integrated Marketing Communication (IMC) plan?

Sales forecast

The purpose of this law is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. It is the:

Sarbanes-Oxley Act (SOX)

Which of the following would be the best market coverage strategy for distributing designer jeans?

Selective

Which of the following statements summarizes all the money flowing into and out of a firm?

Statement of cash flows

Wholesalers typically perform which of the following functions?

They may (or may not) take title to the goods they sell -Sell finished products to retailers and to other institutions -They may help with other services such as advertising

Which of the following statements is NOT true about money and financial institutions?

U.S. banks have few advantages in overseas markets

Adventure Sports, Inc. is calculating its Income Statement for the past year. They've made $100,000 in sales revenue, paid $30,000 in cost of goods sold, and had $50,000 in expenses. What is their net income before taxes?

$20,000

Bonds are:

-A way to raise capital through borrowing (used by corporations and governments) - debt -A formal contract to repay borrowed money with interest at fixed intervals

Your startup company has just created a new Marketing Department; which of the following functions should it accomplish?

-Choose appropriate promotion mix -Choose best marketing channels -Customer service

Which of the following methods are used to finance a new business?

-FFF -Crowdfunding -Angel investors

Which of the following are the realm of financial managers?

-Financing (raising money) -Investment (spending money) -Financial planning

The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)?

-Full employment -Sustainable economic growth -Price stability

The Federal Deposit Insurance Corporation (FDIC):

-Is an independent, quasi-public corporation -Is backed by the full faith and credit of the United States government -Insures deposits in commercial banks and thrift institutions up to a ceiling of $250,000 per account

How does effective branding typically benefit businesses?

-It builds customer loyalty -It improves product recognition -It can command premium pricing

How does effective branding typically benefit businesses?

-It can command premium pricing -It builds customer loyalty -It improves product recognition

What makes social media fundamentally different from traditional media?

-It is relatively inexpensive to implement -It is easier to track how people view and use social media, as compared to traditional media -Social media are designed for interaction, while traditional media are designed for one-way communication

Although money has no intrinsic value, it is demanded throughout society. Among the reasons that money is demanded are:

-It stores value -It can be used as a medium of exchange -It can be used as a measurement of value of goods and/or services

Accounting is more than simply calculating the net profit or loss from business operations. Accounting is actually a process that involves:

-Measuring the financial health of companies -Preventing unethical behavior and fraud -Following GAAP guidelines

Which of the following are components of the external marketing environment?

-Political and regulatory environment -Economic environment -Technological environment

Which of the following statements is TRUE about money and financial institutions?

-There are now more U.S. dollars used outside the country -One of the Fed's important functions is making check cashing easier -One of the Fed's important functions is distributing currency

You are helping Susie with her pizza business. Which of the following techniques could she use for her Customer Relationship Management (CRM) strategy?

-Try using frequent shopper cards -Send text updates to her list of customers -Use social media to gather feedback

Which factor(s) should marketers consider as they identify the optimal distribution channel?

-Who are your target consumers and where do they like to shop? -How long will it take to get the product into the customer's hands? -Will this channel reach enough consumers?

The net worth of the Horsepants company (showcased on Jimmy Kimmel's version of Shark Tank) would be calculated in the:

Balance Sheet

What is the system used to record a firm's financial transactions (a routine and clerical process)?

Bookkeeping

Which of the following is considered a nondepository financial institution (that may offer some banking services - but does not accept deposits)?

Brokerage firms

In which of the following product development phases would ROI be calculated?

Business Analysis

Which of the following items might be requested by a local bank to help guarantee payments on your small business loan?

Collateral

Which of the following is NOT considered a form of U.S. currency?

Credit Cards

Which of the following is NOT part of the Product Life Cycle?

Development

Junia grows organic strawberries on her family-owned farm and sells them throughout spring and summer at her family's roadside fruit stand. What type of distribution channel does she use?

Direct

How do businesses raise financial capital?

Equity financing -Retained earnings -Debt financing

Which of the following would HP use for the "sales promotion" part of its IMC promotion strategy?

trade shows

The primary goal(s) of consumer marketing research include:

-serving as the voice of the consumer -collecting and evaluating data on consumer preferences -helping a company understand their target market customers

Guellermo is trying to calculate the Breakeven Point of his hot new Horsepants T-shirts. His equipment cost him $300, he buys plain T-shirts from his supplier for $5 each, and he charges his customers $25 for each shirt. How many T-shirts will he need to sell before he will finally be able to start making a profit? Formula = FC/(P-VC)

15

The Dow Jones Industrial Average is an index of _________ stocks of major industrial corporations.

30

The goals of investing your money are:

Using your money to make more money

The Income Statement reports:

Your company's net income for the year

For marketing to be successful, companies need to understand ___________, the decision process individuals go through when they are selecting, purchasing and using a product.

consumer (buying) behavior

The ________ concept focuses on identifying and understanding consumer needs - then, creating, delivering, and communicating value to target customers.

marketing

Samsung entered the smartphone market after Apple's success with the iPhone. Samsung priced its phones substantially lower than the iPhone, hoping to win customers who wanted to pay less for a latest-generation smartphone. This is an example of:

penetration pricing

In general, the most expensive but most adaptable method of the following promotion mix is:

personal selling

Besides people, the "5 Ps" in your textbook also includes which of the following parts of the marketing mix?

product, promotion, place/distribution, price