The federal funds rate is also known as the overnight rate.
Reminder advertising tells past customers that a product is still available or a company
is ready to serve their needs.
Reinforcement needs to involve explicit monetary incentives to distort behavior.
In the business plan, the exit strategy explains how and when the owner will close her
business.
Conflicts of interest involve business decisions that might be influenced by the potential
for personal gain.
Finance companies are non-bank institutions that lend money to consumers and
businesses for a wide variety of purposes.
Facilities that house small businesses and provide support services during the
company’s early growth phases are called angel investors.
A master limited partnership cannot raise money by selling units of ownership to the
general public.
Dependability includes meeting your commitments, such as staying on schedule and
within budgets.
Cross-training involves expanding the scope of an individual job.
True professionals avoid committing ethical lapses.
Shareholders of a firm have prior claims on the firm’s assets.
Paper couponing is an efficient technique.
A central element in the marketing concept is involving the customer as a partner in a
mutually beneficial relationship rather than treating the customer as a passive recipient
of products and promotional messages.
Unions seek the legal authority to represent a group of workers through a process
known as ________.
A) a showing of cards
B) a location-specific referendum
C) a certification ballot
D) an up-or-down vote
E) an organizing drive
Which of the following is an advantage of product placement?
A) It is predictable.
B) Its effectiveness is independent of the popularity of the programming.
C) It provides extensive choice of vehicles.
D) It offers a way to get around viewers’ advertising filters.
E) It has low visibility.
________ involve(s) short-term incentives to build the reputation of a brand and
stimulate interest in a product.
A) Direct selling
B) Sales promotion
C) Institutional advertising
D) Public relations
E) Brand communities
The number of layers between producers and their target customers is known as
________.
A) market coverage
B) channel length
C) logistics
D) wheel of retailing
E) multichannel retailing
Amgen Laboratories Ltd., a pharmaceutical company, runs advertisements and
commercials promoting child health and stressing healthy eating habits in children.
These advertisements also provide health tips to parents. In this example, Amgen
Laboratories Ltd. uses ________ advertising.
A) product
B) comparative
C) advocacy
D) cooperative
E) consultative
________ is the process of gathering information about the demands, responsibilities
and worker requirements of each position in the organization.
A) Employee orientation
B) Performance monitoring
C) Compensation analysis
D) Competency analysis
E) Job analysis
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 ratio
D) tangible-asset ratio
E) mortgage-to-price ratio
Legal systems in Great Britain and the U.S. are based on ________ law.
A) bifurcated
B) theocratic
C) common
D) civil
E) civilian
Which of the following is TRUE about the Landrum-Griffin Act?
A) It requires employers to fund programs that provide income for qualified
unemployed persons.
B) It requires employers to let employees or their beneficiaries buy continued health
insurance coverage after employment ends.
C) It establishes the right of employees to form, join, and assist unions and the right to
strike.
D) It combats financial fraud within unions.
E) It governs the establishment and operation of private pension programs.
Karen works at Pinnacle Industries, a manufacturer of snowmobiles, ATVs, and
neighborhood electric vehicles based in Minnesota. She was a victim of domestic
violence, and suffered from severe depression. The firm offered her
company-sponsored private psychotherapy sessions with a certified therapist. In this
example, Pinnacle Industries offers Karen which of the following employee benefit
plans?
A) 401(k) plan
B) sliding-scale plans
C) employee assistance program
D) health savings accounts
E) health insurance buying groups
________ is a tool used by manufacturing facilities to coordinate production of all the
goods the company makes.
A) JIT system
B) Value web
C) Six Sigma
D) Inventory list
E) Master production schedule
In the commercial for their new asthma drug, CHL Pharmaceuticals suggests that
viewers should consult with their doctors for more information about the medication. In
this example, CHL Pharmaceuticals uses which of the following strategies?
A) push strategy
B) bait and switch
C) behavioral targeting
D) pull strategy
E) remarketing
KM Group, a home products manufacturer, owns a brand of paper towels called
EasyWipes. The firm creates a commercial showing how an EasyWipes paper towel
absorbs a spill faster than the competitor’s paper towel. In this example, the commercial
used by KM Group can be classified as a(n) ________ advertising.
A) institutional
B) guerrilla
C) comparative
D) stealth
E) cooperative
The ________ is a metaphor for discriminatory practices that have prevented women
and minorities from advancing to executive level jobs.
A) high hurtle
B) glass ceiling
C) transparent entryway
D) wall of denial
E) line of demarcation
Charles is the purchase agent for a consulting firm. He places orders for office
stationeries and consumables once in two weeks. The purchases are made in large
quantities and are billed in the firm’s name. The items that Charles buys are examples of
________.
A) specialty products
B) expense items
C) capital items
D) shopping products
E) convenience products
The legal and regulatory environment would include ________.
A) demographic factors
B) technological innovations
C) the number of competitors in the market
D) preferences of the consumers
E) the speed of obtaining licenses
________ is a globally recognized family of standards for quality management systems.
A) Statistical process control
B) Six Sigma
C) Kaizen
D) ISO 9000
E) Total quality management
Charles Associates is a U.S. company and has a central production plant in the U.S.
(Currency: U.S. dollar). It imports capital equipment and raw materials from Italy and
Germany (Currency: Euro). The company exports its products to China (Currency:
Renminbi), Japan (Currency: Yen), and India (Currency: Rupee). Which of the
following changes in the exchange market is disadvantageous to Charles Associates?
A) The U.S. dollar has weakened against the Renminbi.
B) The U.S. dollar has strengthened against the Rupee.
C) The U.S. dollar has strengthened against the Euro.
D) The Yen has become strong against U.S. dollars.
E) The Euro became weaker against most major currencies.
Ronda Scooters is a leading Asian manufacturer of electric scooters. The company
procures raw materials from a firm based in China. The Chinese supplier delivers
materials in about three weeks after receiving a confirmed order. This period is referred
to as the materials’ ________.
A) procurement delay
B) lead time
C) lag time
D) run time
E) process forecast
The members of local unions are informally known as the ________.
A) internal-card
B) advocate
C) lobbyist
D) activist
E) rank-and-file
Discuss marketing systems.
What is disintermediation? What are the similarities and differences between
disintermediation and unbundling of services?
Discuss how securitization, mortgage-backed securities, credit-rating agencies, and
credit default swaps contributed to the financial meltdown of 2008.
Compare and contrast between trade-offs and opportunity costs.
What is the wheel of retailing?
Explain the importance of considering interest fluctuations in financial planning.