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171 Cards in this Set
- Front
- Back
True or False.
An example of a warehouse club store is Wal-Mart Supercenter. |
False
|
|
True or False.
A slotting allowance is a payment to a retailer in exchange for carrying a producer's products for an agreed-upon length of time. |
True
|
|
Marketing intermediaries perform all of the following distribution functions EXCEPT
a. transportation and storage of products b. providing promotional and sales support c. sorting, standardizing, and dividing bulk quantities into smaller shipments d. assuming risks associated w/ damage theft, etc. e. purchasing needed raw materials for production |
e. purchasing needed raw materials for production
|
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When the role of an intermediary is taken over by manufacturers upstream or customers downstream, _______ occurs.
a. industry consolidation b. disintermediation c. drop shipping d. intermediary disintegration e. third party integration |
b. disintermediation
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Amazon.com has no physical retail stores. Instead, all of its merchandise is sold online only. Amazon.com would be categorized as a/an ________.
a. Internet-only retailer b. online retail extension c. integrated online retailer d. online factory outlet e. web-based specialty store |
a. Internet-only retailer
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|
True or False.
Organizations that channel goods from producers to consumers are intermediaries. |
True
|
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True or False.
Distribution channels and marketing channels are interchangeable terms. |
True
|
|
Jana started a small beauty supply store and offered very low prices on a limited line of cosmetics and skin care products. As her customer base grew, she began offering a wider array of products and held events where aestheticians and make-up artists came in to show customers how to use the products she sold. As her product line and the services she offered increased, so did her prices. This is known as the ______ hypothesis.
a. wheel of retailing b. retail life cycle c. wheel of supply d. upscaling chain d. hyper-retailing |
a. wheel of retailing
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Producers and intermediaries coordinate their activities of moving product from the producer to the consumer through _________, in which they agree to operate as a cohesive system under the leadership of one of the partners.
a. channel systems b. logistics strategies c. physical distribution strategies d. marketing systems e. marketing strategies |
d. marketing systems
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|
True or False.
Bulk-breaking involves sorting, standardizing and dividing bulk quantities into smaller packages. |
True
|
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__________ combine different types of retailers or different retail companies in the same facilities.
a. Pop-up stores b. Interactive kiosks c. Off-price stores d. Factory outlets e. Hybrid stores |
e. Hybrid stores
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|
True or False.
The local office supply store went out of business after Office Depot moved in to the area. In this case Office Depot is a category killer. |
True
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Marshall's ads claim that it's not a discount store, it's a/an ________ b/c "our buyers are in the market every week searching out special opportunities to bring you brand name merchandise at great prices."
a. high-end retailer b. factory outlet c. warehouse club d. off-price retailer e. online retailer |
d. off-price retailer
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At most gas stations, you can purchase cigarettes, coffee, snacks, soft drinks, packaged sandwiches and even some non-food items like soap or diapers. This is an example of _____.
a. department stores b. supermarkets c. convenience stores d. category killers e. specialty stores |
c. convenience stores
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True or False.
A wholesaler is not an intermediary. |
False
|
|
True or False.
One of the biggest disadvantages to advertising in newspapers is declining readership in many cities. |
True
|
|
Decisions involving the unique combination of print, broadcast, online and other avenues used for an advertising campaign are known as the company's _______.
a. advertising media b. distribution mix c. media mix d. marketing mix e. product placement |
c. media mix
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One of the most widely used sales promotion tactics is the use of ______, an in-store presentation that is used to stimulate immediate and/or impulse sales.
a. coupons b. point-of-purchase displays c. rebates d. sweepstakes e. samples |
b. point-of-purchase displays
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The govt. agency that has the authority to impose penalties against advertisers who violate federal standards for truthful advertising is the _______.
a. Federal Communications Commission b. Consumer Product Safety Commission c. Federal Trade Commission d. Federal Advertising Admin. e. Federal Regulatory Commission |
c. Federal Trade Commission
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|
True or False.
You walk into the grocery store and you're offered a sample of a new flavor potato chip. You try it, like it, and buy a bag. This is a sales promotion tactic. |
True
|
|
True or False.
If a television commercial encourages you to "ask your doctor" about a new prescription drug, the company is using a push strategy. |
False
|
|
______ marketing tactics try to generate excitement among consumers so that they will be motivated to learn more about a particular product.
a. stealth b. buzz c. institutional d. prospecting e. mass |
b. buzz
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______ involve(s) short-term incentives to build the reputation of a brand and stimulate interest in a product.
a. direct selling b. sales promotions c. institutional advertising d. public relations e. brand communities |
b. sales promotions
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True or False.
Direct response television includes not only infomercials but also shopping channels such as QVC and HSN. |
True
|
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All of the following would be types of direct marketing EXCEPT _______.
a. mail order b. search engine marketing c. premiums d. telemarketing e. email |
a. mail order
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All of the following are goals of customer communication EXCEPT ______.
a. generating awareness of your company's products or services b. creating positive emotional connections to your company and its products c. reminding past customers that your product is still available d. augmenting your product w/ features such as installation and after-sale support e. encouraging customers to prefer your brand over those of your competitors |
d. augmenting your product w/ features such as installation and after-sale support
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True or False.
Sales calls can take place in person, over the phone or online via videoconferencing or other methods. |
True
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Which of the following sales promotions would NEVER be offered to a final customer?
a. trade allowances b. rebates c. contests and sweepstakes d. samples e. premiums |
a. trade allowances
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The direct marketing medium known as _______ includes infomercials and home shopping networks such as QVC and HSN.
a. direct response television b. advertising exchange c. direct response online d. direct mail e. channel retailing |
a. direct response television
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True or False.
If a company uses a push strategy, it focuses on its intermediaries. |
True
|
|
True or False.
The first step in the personal-selling process is uncovering needs and presenting solutions. |
False
|
|
A property management company that pays a discounted price when it ordered 25 cases of light bulbs from the distributor is receiving a/an _____.
a. bonus pack b. trade allowance c. rebate d. coupon e. premium |
b. trade allowance
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The chief downside of trade allowances is that they can create ________, in which the retailer buys a large quantity of a product when the price is low, thus reducing the producer's profit in the long run.
a. push marketing b. forward buying c. slotting allowances d. viral marketing e. pull strategies |
b. forward buying
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True or False.
Companies rely on public relations to build a favorable corporate image and foster positive relations with its stakeholders. |
True
|
|
True or False.
An advertiser's core message is the single most important idea it hopes to convey to the target audience about its product. |
True
|
|
True or False.
The blend of communication vehicles a company uses to reach its current and potential customers is its marketing mix. |
False
|
|
True or False.
In prospect selling, the salesperson acts as an advisor to help customers find the best solutions to their personal or business needs. |
False
|
|
A form of customer communication that is paid for by the company and carried by another party's medium is known as ________.
a. sales promotion b. public relations c. viral marketing d. social media e. advertising |
e. advertising
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Dan Marino appears in commercials advertising NutriSystem for men. This is an example of advertising based on _____ appeal.
a. logical b. emotional c. scarcity d. celebrity e. comparative |
d. celebrity
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True or False.
the social communication model is an approach to communication based on interactive social media and consumerism. |
False
|
|
On American Idol, the judges sit behind a table with large cups bearing the Coca-Cola logo. Coke uses which type of promotion in this situation?
a. integrated advertising b. product placement c. direct response advertising d. stealth marketing e. advertising exchange |
b. product placement
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Cash, marketable securities and accounts receivable would be classified as ____ on the company's balance statement.
a. fixed assets b. long-term liabilities c. shareholders' equity d. current assets e. current liabilities |
d. current assets
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The costs of producing or acquiring a company's products for sale during a given period are known as its ______.
a. costs of goods sold b. costs of good produced c. production expenses d. gross margin e. operating expenses |
a. costs of goods sold
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|
True or False.
When the cost of goods sold by a company is deducted from its net sales, the result is the company's gross profit. |
True
|
|
The financial statement that provides an accounting "snapshot" of a company's financial position on a particular date is the _____.
a. statement of cash flows b. trial balance c. balance statement d. fiscal analysis e. statement of income and expense |
c. balance statement
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The informal name of the legislation enacted by Congress in order to address accounting fraud is ______.
a. Wagner-Waldrum b. Sarbanes-Oxley c. Landrum-Wagner d. Norris-Oxley e. Sarbanes-Hartley |
b. Sarbanes-Oxley
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The three primary financial statements are the balance sheet, the income statement and the ________.
a. profitability ratio b. statement of operating expense c. trial balance d. statement of net revenue e. statement of cash flows |
e. statement of cash flows
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True or False.
In a corporation, the shareholders' total investment = total value of all shares held + retained earnings. |
True
|
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Neimann Manufacturing bought and received $2,000 of cleaning compounds for its factory but the supplier has not yet sent the bill. This amount would be considered an accrued expense.
|
True
|
|
Accountants who have fulfilled the requirements for certification as specialists in management accounting are called _____.
a. CPAs b. CFOs c. CMAs d. CAPs e. CSMs |
c. CMAs
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How well a firm manages and makes use of its assets is measured by its _____.
a. return on sales b. current ratio c. activity ratio d. return on equity e. earnings per share |
c. activity ratio
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The balance sheet is also known as the ______.
a. statement of net revenue b. statement of cash flows c. statement of operating expense d. statement of financial position e. statement of owners' equity |
d. statement of financial position
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Accounting standards and practices that are used in many countries outside the US are known by the acronym ______.
a. GAP b. CPA c. GAAP d. FASB e. IFRS |
e. IFRS
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The _________ illustrates a firm's receipts and payments over an accounting period.
a. statement of cash flows b. balance sheet c. liquidity or cash analysis d. cash management statement e. net income statement |
a. statement of cash flows
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True or False.
Anything of value owned or leased by a business is an asset. |
True
|
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The 2 facets of the accounting profession are _____ and _____.
a. private and corporate b. management and financial c. financial and credit d. cost and financial e. bookkeeping and management |
b. management and financial
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True or False.
The balance sheet is also known as the profit and loss statement. |
False
|
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________ accountants perform functions such as preparing cost analyses, budgets and other information for those w/in the organization.
a. tax b. management c. cost d. financial e. public |
b. management
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The fundamental accounting equation is __________.
a. assets = liabilities - revenues b. assets + liabilities = owners' equity c. liabilities + earnings = owners' equity d. assets - liabilities = owners' equity e. owners' equity = revenues - earnings |
d. assets - liabilities = owners' equity
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True or False.
a. A statement of cash flows displays a firm's cash receipts and disbursements from three primary activities - operations, investments, and financing. |
True
|
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______ includes debts that a company owes its suppliers and vendors that will be paid w/in one year or less.
a. Accounts receivable b. Long-term liabilities c. Accounts payable d. Fixed liabilities e. Accrued inventory |
c. Accounts payable
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A/an ________ is an examination of a company's financial statements and accounting processes to ensure their reliability.
a. trial balance b. balance statement c. asset analysis d. audit e. GAAP analysis |
d. audit
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A company's intangible assets would include all of the following EXCEPT _____.
a. brand awareness b. customer relationships c. goodwill d. trademarks and patents e. merchandise inventory |
e. merchandise inventory
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|
True or False.
From an investor's perspective, a high level of debt relative to its assets could be either positive or negative. |
True
|
|
True or False.
An internal auditor reviews a client's financial records to determine whether the statements have been prepared in accordance with GAAP. |
False
|
|
Financial ratios can be categorized as: profitability, liquidity, activity, and _______.
a. trend b. inventory c. return on sales d. earnings per share e. leverage (or debt) |
e. leverage (or debt)
|
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The _____ ratio is also called the acid-test ratio.
a. liquidity b. current c. quick d. debt e. activity |
c. quick
|
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True or False.
The accepted guidelines and practices for reporting financial information are called Governmentally Accepted Accounting Practices (GAAP). |
False
|
|
When a company issues a bond payable by a/an ________, it must set aside a certain amount of money each year to pay the debt.
a. debenture b. line of credit c. open account d. sinking fund e. IPO |
d. sinking fund
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|
True or False.
Companies that carry a lot of debt are highly leveraged. |
True
|
|
At Griffin Electronic Controls, its executive management team has determined how much money each functional area of the company will have available to it during the next budget year. This would be an example of ________ budgeting.
a. managerial b. bottom-up c. capital structure d. top-down e. equity |
d. top-down
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|
True or False.
In addition to serving as a key source of equity financing, venture capitalists provide managerial expertise and industry connections for new companies. |
True
|
|
True or False.
Open-account purchasing and trade credit are synonymous terms. |
True
|
|
Once a budget is developed, the organization's financial manager compares actual results with the budgetary projections to discover variances and to recommend corrective action, a process called ______.
a. budgetary analysis b. capital structure control c. budget planning d. financial control e. risk-reward analysis |
d. financial control
|
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The Five C's that a lender looks at when considering a business's application for a loan are: character, conditions, capital, collateral, and _____.
a. consideration b. capacity c. capability d. commercialization e. competition |
b. capacity
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Blackstone Properties has negotiated a 3-year, fixed-price contract w/ the landscaper contractor for the office parks it manages. Blackstone is protecting itself against future price increases by ______.
a. factoring b. hedging c. leveraging d. zero-based budgeting e. open-account purchasing |
b. hedging
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Raising funds through borrowing in order to increase the company's rate of return on an investment is known as _______.
a. collateralizing b. leveraging c. a sinking fund d. hedging e. financial optimization |
b. leveraging
|
|
True or False.
A company must usually pay interest only on the untapped amount of its line of credit. |
False
|
|
True or False.
If a company uses equity financing, it borrows money; if it uses debt financing, it sells ownership shares in the company. |
False
|
|
The total mix of debt and equity financing that a company uses in order to meet both its short-term and long-term financial needs is known as its _________.
a. trade credit b. collateralization c. venture financing d. line of credit e. capital structure |
e. capital structure
|
|
2 types of risk that are considered by lenders loaning money to business are: the financial stability of the borrower and the ______ of the loan.
a. opportunity cost b. duration c. compensating balance d. hedging e. commercialization |
b. duration
|
|
True or False.
The prime rate is the rate of interest that the Federal Reserve charges on loans to commercial banks. |
False
|
|
True or False.
A company's debt structure is the unique combination of debt and equity financing that it uses in order to meet its short- and long-term needs. |
False
|
|
You have purchased your first home for $100,000, and the mortgage lender tells you that you will need a down payment of $15,000, because it will only lend you 85% of the purchase price. This percentage is known as the _______.
a. mortgage-ownership ratio b. loan-to-value ratio c. prime mortgage amount d. ownership criterion e. mortgage-to-price |
b. loan-to-value ratio
|
|
The Federal Reserve System is comprised of a network of ___ regional banks and a board of governors.
a. 8 b. 12 c. 15 d. 18 e. 20 |
b. 12
|
|
Moody's and Fitch are the major agencies that rate consumer credit-worthiness.
|
False
|
|
Both Fannie Mae and Freddie Mac are agencies of the FDIC.
|
False
|
|
When companies cannot obtain enough cash in order to meet their operating needs, a/an ____ exists.
a. asset crisis b. payment shock c. debt freeze d. liquidity crisis e. credit crunch |
d. liquidity crisis
|
|
True or False.
The FDIC was established as part of the Glass-Steagall Act of 1933. |
True
|
|
True or False.
The reserve requirement is the percentage of the purchase price that an investor must pay in case when purchasing stocks. |
False
|
|
True or False.
Investment banks assist high net-worth individuals in managing real estate, establishing trust funds, and planning philanthropic giving. |
False
|
|
True or False.
A situation in which credit has become so scarce that it is virtually unavailable, at any cost, to potential borrowers is known as a liquidity crisis. |
False
|
|
The M2 money supply consists of all of the following EXCEPT _____.
a. currency b. checking accounts c. savings accounts d. revenue bonds e. time deposits |
d. revenue bonds
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|
True or False.
If you purchase a house, do some repairs and renovations and then resell it for a significant profit, you are flipping the house. |
True
|
|
True or False.
Credit derivatives based on home mortgages are known as asset-backed securities (ABSs). |
False
|
|
What is the likely effect of the Federal Reserve buying Treasury bonds or bills in open-market operations?
a. The federal funds rate will increase. b. The discount rate will increase c. The money supply will increase. d. The reserve requirement will decrease. e. The money supply will decrease. |
c. The money supply will increase.
|
|
True or False.
Negative amortization occurs when the balance on your mortgage decreases over time. |
False
|
|
All of the following would be functions of the Federal Reserve System EXCEPT _______.
a. implementing monetary policy b. establishing the discount rate c. facilitating payments between banks d. regulating financial institutions e. establishing tax rates |
e. establishing tax rates
|
|
True or False.
Marketing channels are organized networks of systems and firms that work together to get goods and services from producer to customer. |
True
|
|
True or False.
Frequent shopper cards are used by retailers to help them provide valuable market information to other channel members. |
True
|
|
True or False.
Wholesalers known as drop shippers take physical possession of goods but not ownership. |
False
|
|
True or False.
Most of this nation's wholesalers are huge, multi-divisional conglomerates. |
False
|
|
True or False.
Strategic sourcing refers to a growing trend in which manufacturers forge closer relationships w/ a smaller number of strategic distribution partners. |
True
|
|
True or False.
The wheel of retailing describes a retailer's attempts to draw in more shoppers and increase the average revenue per customer by adding products unrelated to its original product mix. |
False
|
|
True or False.
Online stores now account for almost 50% of retail sales in the US. |
False
|
|
True or False.
In addition to shopping, offering entertainment and educational opportunities such as cooking and home improvement classes within the retail environment is referred to as multichannel marketing. |
False
|
|
True or False.
Distributors are common participants in the distribution channel of organizational marketers, but not in consumer marketing organizations. |
True
|
|
True or False.
Companies marketing specialty or technical products often prefer an intensive distribution strategy, while marketers of convenience items typically use an exclusive distribution strategy. |
False
|
|
True or False.
Without channel organization and control, members often pursue their own economic interests, to the detriment of the channel as a whole. |
True
|
|
True or False.
Physical distribution and logistics tasks are divided into 2 categories: in-house operations and outbound transportation. |
False
|
|
True or False.
The cheapest form of shipment is via ships and barges. |
True
|
|
Retailing can take place in each of the following environments except:
a. virtual store b. rack jobber's office c. vending machine d. outdoor market |
b. rack jobber's office
|
|
Which of the following best describes a manufacturer's representative?
a. They arrange sales opportunities for representatives of various industry agents. b. They sell a variety of noncompeting product lines w/in a specific region. c. They act as a liaison between full-service and limited-service wholesalers. d. They sell primarily to other intermediaries. |
b. They sell a variety of noncompeting product lines w/in a specific region.
|
|
Trends shaping the future of retailing include each of the following except:
a. industry fragmentation b. unbundling of services c. disintermediation d. third-party logistics firms taking over tasks w/in the supply chain |
a. industry fragmentation
|
|
Forces shaping the retailing industry's future include:
a. the growth of online retailing b. the growth of multichannel retailing c. the growth of retail theater d. the growth of online retailing and the growth of multichannel retailing only |
c. the growth of retail theater
|
|
Grocery retailers charge slotting fees as a way to:
a. help offset financial risk of bringing new products in to the store b. help increase revenue during periods of economic recession c. give entrepreneurs an opportunity to save money while gaining exposure d. provide established brands w/ an additional way to promote themselves |
a. help offset financial risk of bringing new products in to the store
|
|
One way to resolve channel conflict is to:
a. host events that allow channel members to interact b. put legal contracts between channel members in place c. equalize the amount of economic power among channel members d. ensure that each channel member remains an independent, strong organization |
b. put legal contracts between channel members in place
|
|
The in-house operations component of the physical distribution and logistics task includes:
a. inventory control b. order processing c. materials handling d. all of the above |
d. all of the above
|
|
Merchant wholesalers that sell products to organizational customers for internal operations or the production of other goods, rather than to retailers for resale
|
distributors
|
|
the replacement of intermediaries by producers, customers, or other intermediaries when they can perform channel functions more effectively or efficiently
|
disintermediation
|
|
the combination of intermediaries and channels a producer uses to reach target customers
|
distribution mix
|
|
market coverage strategy that uses a limited number of carefully chosen outlets to distribute products
|
selective distribution
|
|
market coverage strategy that gives intermediaries exclusive rights to sell in a specific geographic area
|
exclusive distribution
|
|
True or False.
Communication goals should be determined by where the consumer is in the purchasing cycle. |
True
|
|
True or False.
Email marketing remains the fastest growing direct marketing medium. |
True
|
|
True or False.
Consumers only redeem 10% of all coupons distributed every year. |
True
|
|
True or False.
When using social media as a promotional tool, marketers should focus on value-added information. |
True
|
|
The most common type of advertising is:
a. institutional advertising b. advocacy advertising c. product advertising d. local advertising |
c. product advertising
|
|
The benefits of radio advertising include:
a. high demographic selectivity b. high level of consumer engagement c. increasing audience share d. very little commercial clutter |
a. high demographic selectivity
|
|
Direct marketing differs from advertising in that:
a. advertising relies heavily upon the use of databases, but direct marketing does not b. direct marketing always has a direct response component, whereas advertising typically does not c. direct marketing involves the purchase of significantly more media time and space, as compared to advertising d. is it much easier to measure the impact of traditional advertising, as compared to direct marketing |
b. direct marketing always has a direct response component, whereas advertising typically does not
|
|
Direct marketing media may include:
a. e-mail b. search engine advertising c. telephone d. all of the above |
d. all of the above
|
|
Trade promotions include:
a. trade allowances b. dealer contests c. coupons d. trade allowances and dealer contests only |
d. trade allowances and dealer contests only
|
|
blend of communication vehicles that a company uses to reach current and potential customers
|
communication mix
|
|
promotional strategy that stimulates consumer demand via advertising and other communication efforts
|
pull strategy
|
|
promotional strategy that focuses on intermediaries
|
push strategy
|
|
advertising technique in which 2 or more products are explicitly compared
|
comparative advertising
|
|
advertising that seeks to create goodwill and to build a desired image for a company, rather than to promote specific products
|
institutional advertising
|
|
advertising that presents a company's opinions on public issues such as education or health care
|
advocacy advertising
|
|
creative tactic designed to capture the audience's attention and promote preference for the product or company being advertised
|
advertising appeal
|
|
process of finding and qualifying potential customers
|
prospecting
|
|
free or bargain-priced items offered to encourage consumers to buy a product
|
premiums
|
|
True or False.
Private accountants are independent of the business, organizations, and individuals they serve. |
False
|
|
True or False.
Public accountants typically work together as a team under the supervision of the company's controller. |
False
|
|
True or False.
The Public Company Accounting Reform and Investor Protection Act of 2002 is commonly referred to as Sarbanes-Oxley. |
True
|
|
True or False.
The company's liabilities are placed before owner's equity in the accounting equation because creditors get paid first. |
True
|
|
True or False.
Net income is informally known as "the bottom line." |
True
|
|
True or False.
Some investors view EBITDA as the more pure measure of profitability b/c it ignores accounting moves that can affect net income. |
True
|
|
Major provisions of Sarbanes-Oxley include each of the following except:
a. corporations can not make loans to their own directors b. companies must document and test their financial controls c. corporations are required to report evidence of corporate wrongdoing d. all of the above |
d. all of the above
|
|
Depreciation of a long term asset is used to:
a. allocate its cost over the asset's useful life b. ensure that the company's final performance would not look artificially better in the year of purchase c. ensure that the company's financial performance would not look artificially worse in all future years when these assets continue to generate revenue d. all of the above |
d. all of the above
|
|
From a balance sheet, you should be able to determine:
a. the size of company b. amount of major assets owned c. how its assets are financed d. all of the above |
d. all of the above
|
|
Which contributes to owner's equity?
a. total value of all shares b. retained earnings c. total value of all loans, leases, and bonds held by company d. both a and b |
d. both a and b
|
|
A company's income statement will summarize all but:
a. expenses b. net income c. revenues d. liabilities |
c. revenues
|
|
Each is a purpose of financial ratio analysis except:
a. provides a tool used to make year-to-year comparisons of financial performance b. tool used to compare performance of 2 or more companies c. important questions regarding size of inventory or speed of revenue collection can be answered d. each is a purpose of ratio analysis |
d. each is a purpose of ratio analysis
|
|
Which is not a standard category of financial ratios?
a. sales b. profitability c. liquidity d. leverage |
a. sales
|
|
Which is a type of liquidity ratio?
a. earnings per share b. inventory turnover ratio c. current ratio d. debt-to-equity ratio |
c. current ratio
|
|
Which is a type of profitability ratio?
a. debt-to-equity ratio b. return on equity ratio c. quick ratio d. inventory turnover ratio |
b. return on equity ratio
|
|
in-house accountants employed by organizations other than public accounting firms; also called corporate accountants
|
private accountants
|
|
act of transferring net revenue and expense account balances to retained earnings for the period
|
close the books
|
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cash and items that can be turned into cash w/in one year
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quick ratio
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portion of shareholder's equity earned by company but not distributed to its owners in the form of dividends
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retained earnings
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cost of producing or acquiring a company's products for sale during a given period
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cost of goods sold
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The most common long-term debt alternatives include long-term loans, corporate bonds, and _______.
a. mortgages b. unsecured loans c. commercial paper d. leases e. trade credit |
d. leases
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Before a company can sell shares to the public, it must submit a/an _________ to the SEC that discloses information about the company, its finances, and its plan for using the money it hopes to raise.
a. IPO b. public offering c. prospectus d. promissory statement e. equity analysis |
c. prospectus
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True or False.
The Fed requires that all financial institutions adhere to a reserve requirement, which it can change in its effort to influence the money supply. |
True
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True or False.
Fannie Mae's mandate is to help low to middle income home buyers by guaranteeing and/or buying their mortgages, which were originated by banks and other lenders. |
True
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True or False.
Thrift and credit unions are not considered banks, although they offer many of the same services as banks. |
True
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True or False.
Although the reduction of the loan-to-value ratio by mortgage lenders was a major contributor to the housing bubble, its positive consequence was increased access to home ownership by a broader component of consumers. |
True
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Each of the following is a tool the Fed can use to manage the money supply except:
a. Changing the federal funds rate b. placing restrictions upon govt. spending c. changing the discount rate d. changing the reserve requirement |
b. placing restrictions upon govt. spending
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The term "commercial bank" can be applied to each of the following organizations except:
a. private bank b. retail bank c. investment bank d. merchant bank |
c. investment bank
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A retail bank does which of the following?
a. offers checking and savings accounts, debit and credit cards, and loans for major purchases to individual consumers b. manages private equity investments to business organizations c. offers deposit accounts and focuses primarily on mortgage lending d. offers banking services to high net worth individuals only |
a. offers checking and savings accounts, debit and credit cards, and loans for major purchases to individual consumers
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banks that offer a variety of services related to initial public stock offerings, mergers and acquisitions, and other investment matters (do NOT fall under category of commercial banks)
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investment banks
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