1. _____ is the functional area of business that is responsible for finding, among many alternatives, the best sources
of funds and the best ways to use them.
2. Historically, the most widely accepted goal of financial management is to:
a. be socially responsible.
b. maximize the value of the firm to its owners.
c. avoid worrying about the risk associated with investments.
d. avoid investing in anything risky.
3. Financial managers use _____ to assess the financial strengths and weaknesses of their firm.
b. value stream mapping
d. ratio analysis
4. Key numbers that financial managers use to calculate ratios usually come from the firm’s:
a. prospectus and operating budget.
b. statement of cash flows.
c. balance sheet and income statement.
d. cost budget statements.
5. Harry Haddock is the Chief Financial Officer of a small construction company and has just been presented information from the sales budget and various other cost budgets. He is using this information to develop a forecast of the firm’s net income for the next year. Harry is reviewing the company’s:
a. cash budget.
b. budgeted income statement.
c. cash flow budget.
d. budgeted balance sheet.
6. As part of the financial planning process, planners create budgeted income statements and budgeted balance sheets which are also known as _____ statements.
a. pro forma
b. per capita
7. When a firm reinvests some of its net income rather than distributing it to owners, the result is an increase in the firm’s:
c. net liabilities.
d. retained earnings.
8. Tulips Inc. saw an increase in profits last year, following which the management decided to reinvest earnings. These retained earnings are used to:
a. meet the company’s longterm
b. meet the company’s shortterm
c. to pay the owners a dividend.
d. determine the amount of cash the firm owns.
9. An advantage of offering more lenient credit terms is that it helps a firm:
a. decrease debt.
b. increase sales.
c. reduce risk.
d. speed up the receipt of cash.
10. One drawback of offering credit customers more time to pay is that it can:
a. cause sales revenue to be incorrectly measured under the accrual method.
b. increase the cost of credit to customers.
c. delay the receipt of cash that the firm needs to meet its financial obligations.
d. increase the firm’s taxable income.
11. The _____ dealt mainly with the regulation of previously issued securities and created the _____.
a. Securities Act of 1933; Internal Revenue Service
b. Securities Exchange Act of 1934; Securities and Exchange Commission
c. Uniform Securities Act; Department of Treasury
d. Uniform Services Act; Federal Trade Commission
12. A _____ is a formal IOU issued by a corporation or government entity.
c. stock certificate
13. Which of the following is a benefit of investing in mutual funds?
a. Mutual funds are managed by a professional fund manager.
b. Mutual funds are sold exactly like stocks.
c. Investments in mutual funds are guaranteed by the government.
d. Investors can buy or sell shares any time of the day.
14. _____ is an organizational function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
15. _____ utility satisfies wants by converting inputs into a finished product.
16. The successful marketing campaign “What happens in Vegas stays in Vegas” is an example of _____ marketing.
17. While driving to work you turn on your radio and hear an advertisement from the American Red Cross on the importance of donating blood. This is an example of _____ marketing.
18. _____ is the customer’s perception that a product has a better relationship between the cost and the benefits of that particular product than the products of the competitors.
19. The relevant concept of value in marketing is based on the:
a. objective measure of quality exclusively.
b. customer’s belief that a product has a better relationship than its competitors between the cost and the benefits.
c. ability to buy the product at the lowest possible cost irrespective of the decrease in quality.
d. form utility of the product.
20. A common error marketers commit when trying to generate customer satisfaction is:
a. focusing on value rather than price.
b. developing relationships with individual customers rather than focusing on the market as a whole.
c. placing too much emphasis on the marketing concept.
d. underpromising, thus setting consumer expectations too low.
21. A well-chosen target market embodies the following characteristics:
a. size, profitability, accessibility, and limited competition.
b. size, limited profitability, accessibility, and competition.
c. limited size, profitability, accessibility, and intense competition.
d. size, profitability, limited accessibility, and intense competition.
22. Which of the following are B2C marketing segmentations?
c. Product-use based
23. When firms in B2C markets divide up the potential market according to values, attitudes, and lifestyles, they are making use of _____ segmentation.
24. Which of the following sets of terms describe approaches used by B2C marketers to segment their markets?
a. Reactive, adaptive, and resistant responders
b. Opportunistic, altruistic, and grassroots buyers
c. Bleeding-edge, leading-edge, and seeding-edge products
d. Demographic, psychographic, and behavioral factors
25. Decisions about advertising, publicity, and product placement are all part of a firm’s:
a. product strategy in its marketing matrix.
b. promotion strategy in its marketing mix.
c. demographic strategy in its marketing matrix.
d. distribution strategy in its marketing mix.
26. Premier Events is an event-planning company located in Lexington, Kentucky. This small company has been in business for two years but is still struggling for success. After reviewing competitors’ successes and failures, the marketing manager decides to alter Premier’s marketing mix. Which of the following elements is NOT a part of this process?
a. Product strategy
b. Economic strategy
c. Distribution strategy
d. Promotion strategy
27. Marketing in foreign countries requires altering the goods or services offered to meet the taste of local customers. Therefore, business leaders must develop a _____ to meet customer needs in each key market.
a. red oceans
b. global database
c. global marketing mix
d. grey market
28. _____ is the process of continually collecting information from the external marketing environment.
a. Globalized marketing
b. Environmental governance
c. Environmental scanning
d. Business market segmentation
29. _____ refers specifically to how people act when buying goods and services for personal consumption.
c. Consumer behavior
d. Utility maximization
30. The consumer decision-making process involves need recognition, followed by:
a. information search, alternative evaluation, purchase decision, and post-purchase behavior.
b. information search, information learning, purchase evaluation, and post-purchase behavior.
c. product search, benefit analysis, price analysis, and value analysis.
d. cognitive dissonance, alternative evaluation, and post-purchase learning.
31. After the purchase of a new car, Johanna Morales had the feeling that she made an awful mistake in terms of paying too much for the car. Johanna is suffering from:
a. conspicuous consumption.
b. cognitive dissonance.
d. social loafing.
32. In order to help customers feel comfortable with their decision after the purchase of a new car, manufacturers are offering extended warranties, free oil changes, and maintenance checks. This is an effort to offset:
b. cognitive dissonance.
c. demand elasticity.
d. consumer proactivity.
33. _____ buyer behavior describes how people act when buying products to use directly or indirectly to produce other products.
b. Reference group
34. Which of the following statements is true of marketing research?
a. It involves analyzing, interpreting, and disseminating information about the political environment to market leaders.
b. It aims at increasing the profits and lessening expenses for a business.
c. It lacks the ability to improve areas of the marketing mix.
d. It involves gathering, interpreting, and applying information to uncover opportunities and challenges.
35. Primary data is _____ to gather than secondary data.
a. costlier and more difficult
b. less costly and less difficult
c. costlier and less difficult
d. less costly and more difficult
36. A company could obtain primary data through:
a. articles in newspapers, magazines, and professional journals.
b. focus groups, interviews, and online surveys.
c. editorials in newspapers and rankings by consumer magazines.
d. surveys published by charitable organizations and research papers written by university professors.
37. A company can acquire secondary data by:
a. organizing focus groups.
b. conducting online surveys.
c. conducting interviews.
d. researching newspaper articles.
38. Using scanner data from retail sales is an example of _____ research.
39. Focus groups and mail-in questionnaires are examples of:
a. survey research used to obtain primary data.
b. unobtrusive research used to obtain secondary data.
c. organizational research used to obtain institutional data.
d. observation research used to obtain secondary data.
40. When Suzanne was shopping for school supplies in the mall, she was approached by a woman with a clipboard asking questions about her preference for jeans. Therefore, Suzanne is part of _____ research.
|Due By (Pacific Time)||04/13/2015 11:00 pm|
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