Archives: Quiz

Which of the following companies has a product-oriented business definition? A) A luxury hotel, whose business definition is: “We sell out-of-the-world experiences to our guests.” B) A real estate company, whose business definition is: “We sell dreams.” C) A cosmetic […]

Which of the following questions would help a marketer evaluate the return on a sales promotion investment? A) Was the sales force successful in filtering out the good prospects from the poor ones? B) Did customers enjoy the events associated […]

List two benefits of using secondary data. A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer’s unit cost be in order to break […]

Which of the following is true of using trucks as a transportation mode? A) Transportation via trucks is costlier than by rail or air. B) Trucks are a specialized means of shipping petroleum, natural gas, and chemicals from sources to […]

Which of the following is NOT a reason that companies use social media? A) cost effectiveness B) engagement and social sharing capabilities C) ease of creating content D) immediacy and timeliness E) interactiveness In recent years, service differentiation among retailers […]

Facebook and Second Life are both examples of ________. A) brand alliances B) opinion leaders C) social networks D) early adopters E) market mavens Communication through a telephone call is considered a part of a(n) ________ communication channel. A) online […]

Which of the following groups influences the company’s ability to obtain funds? A) financial publics B) local publics C) general publics D) citizen-action publics E) internal publics ________ refers to the unique psychological characteristics that distinguish an individual or group. […]

The market subsegment that a company exclusively caters to may dry up, or it might grow to the point that it attracts larger competitors. This is why such companies practice ________. A) multiple niching B) mass marketing C) overall cost […]

Which of the following statements is most likely true regarding the objective-and-task method of budget setting? A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results. B) It is the simplest […]

Which of the following is an advantage of using digital catalogs? A) lists the phone numbers of interested prospects B) coordinates with direct-response television ads C) points customers to the nearest kiosk D) eliminates printing and mailing costs E) creates […]

Although more price-conscious than other population segments, ________ consumers tend to be strongly motivated by quality and selection, and give importance to brands. A) lower upper B) African American C) Asian American D) Filipino E) working class Which of the […]

Sparks Inc. has a growing ________ market in the U.S. consisting of individuals and households that buy Sparks’ products for personal use. A) consumer B) government C) business D) international E) financial Elmo Inc., a global conglomerate, designed the ElBrush, […]

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________. A) niche marketing B) local marketing C) diversification D) product adaptation E) downsizing A pharmaceutical company in Utah […]

An increasing number of American workers currently work from their homes or remote offices and conduct their business by phone or the Internet. This trend has created a ________. A) booming real estate market in the big cities B) booming […]

An integrated social marketing campaign likely could include all of the following except ________. A) Facebook pages B) Twitter postings C) Instagram photos D) iTunes podcasts E) YouTube videos Refer to the scenario below to answer the following question. Carol […]

At the beginning of each year, the management of Dee Decor states the exact amount a salesperson should sell. This specific sales target is also known as a ________. A) sales lead B) prospect C) bill of sale D) channel […]

Which of the following is true about the demand curve? A) A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. B) A demand curve indicates the cost per unit of output […]

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. A) product line B) product delivery network C) marketing channel D) consumer base E) […]

Advertising involves a personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. The percentage-of-sales budget is based on the availability of funds rather than on opportunities. Answer: TRUE Abel is considering whether […]

Firms that practice product differentiation gain competitive advantage through the way they design their channel’s coverage, expertise, and performance. Most companies use direct marketing as a supplementary channel or medium. Answer: TRUE As baby boomers reach their peak earning and […]

The difference between human needs and wants is that needs are not created by marketers. In the territorial sales force structure, each salesperson is responsible for selling a single, exclusive product across different geographical regions. Answer: FALSE Derived demand refers […]

According to Maslow’s hierarchy of needs theory, when the most important need is satisfied, it will cease to be a motivator, and the person will then try to satisfy the next most important need. A company cannot stretch its product […]

Disintermediation occurs when radically new types of channel intermediaries displace traditional ones. Consumers welcome e-mail marketing messages; opportunities to control the messages they receive are frequently ignored. Answer: FALSE In a direct marketing channel, the producer sells directly to the […]

The SEC regulates U.S. companies that issue securities to the public and requires the issuance of a prospectus for any new security offering. Information that is significant enough to make a difference in a decision is considered to be immaterial. […]

When will a firm regard goodwill on its books? a. When one company acquires another company for a price in excess of the fair market value of the net identifiable assets acquired. b. When the firm donates property to charities. […]

How should companies with more than one revenue source report revenue and cost of goods sold? a. Each revenue source should be reported separately, but all cost of goods sold should be added together and reported as a single amount. […]

Wilcox’s debt ratio is: a. 40.11% b. 43.02% c. 55.80% d. 56.32% Which of the following is not a condition that must be met for an item to be recorded as revenue? a. Revenues must be earned. b. The amount […]

What is an unqualified audit report? a. A report stating that the auditors are not qualified to report on a firm. b. A report that states the financial statements are in violation of GAAP. c. A report that states that […]

A classified balance sheet means that the asset and liability sections are categorized into key areas. The FASB has congressional authority to set accounting policies. Answer: F Congress passed the Sarbanes-Oxley Act of 2002 in hopes of ending future accounting […]

Using the following information for Tiger Inc. calculate earnings per share, the price-to earnings ratio, dividend payout and dividend yield for the firm. Analyze these market ratios. Explain the differences between long-term notes payable, mortgages, debentures, bonds payable, and convertible […]

Financial ratio data is listed below for Gallery of Dreams. Construct a list of strengths and weaknesses for the firm after analyzing the ratios. Answer: Strengths: •Current and quick ratios are above industry average and increasing •Accounts payable are paid […]

Cash outflows result from increases in asset accounts and decreases in liability and equity accounts. Additional information helpful to the analysis of accounts receivable and the allowance account is provided in the schedule of . Answer: valuation and qualifying accounts […]

Discuss the impact that the Sarbanes-Oxley Act of 2002 had on internal auditing. List and discuss the ratios that make up the calculation of the cash conversion cycle. Answer: The average collection period of accounts receivable is the average number […]

Discuss the following statement: ‘Gross profit margin should be stable for all firms.’ A creditor is ultimately concerned with the ability of a firm to generate profits. Answer: F Explain the key items of interest to the following groups of […]

Users of financial statements need to distinguish between earnings increasing due to core operations versus items such as tax rate deductions. The three cost flow assumptions most frequently used in the U.S. are , , and . Answer: FIFO, LIFO, […]

Jesse Corporation reported the following information for the current year: (1) Net income is $205 million. (2) Acquisitions were $32 million. (3) Customer accounts receivable increased by $12 million. (4) Dividends paid to common shareholders were $8 million. (5) Depreciation […]

The following information is available for Escalante Computer Company. Analyze the gross profit margin making any calculations deemed necessary. In volatile industries, such as high technology, gross profit margin may increase or Answer: The gross profit margin of Escalante Computer […]

The following ratios have been calculated for Hi-Tech Toys. Analyze the capital structure, long-term solvency, and profitability of Hi-Tech Toys. </P> Answer: Hi-Tech Toys’ capital structure is more risky in 2015 compared to 2014. The firm has increased debt from […]

Management exercises control over the budget level and timing of expenditures. Financial ratios are powerful tools due to the fact that standard definitions exist and there is a set standard that should be met for each ratio. Answer: F are […]

and represent the cost of assets other than land that will benefit a business enterprise for more than a year. Insert the word ‘added’ or ‘subtracted’ in the blank. Depreciation and amortization should be to convert net income to cash […]

What questions should the analyst try to answer when analyzing the trend of a firm’s sales number? income is the change in equity of a company during a period from transactions, other events, and circumstances relating to nonowner sources. Answer: […]

Pricing decisions of specialty stores are typically based on low markups on a high volume of products. A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers. Answer: FALSE Most firms […]

Sales managers use sales reports, personal observations, and customer surveys to assess the performance of sales force members. A company that has no intermediary levels sells its products directly to its customers. Answer: TRUE Intensive distribution occurs when only one […]

Of the three levels of products and services, the most basic level is the “actual product.” In the four Ps of the marketing mix, promotion refers solely to advertising. Answer: FALSE Line extensions occur when a company extends existing brand […]

For inbound telephone marketing, the company provides a toll-free phone number so it can receive orders solicited by television and print ads, direct mail, and catalogs. Deceptive packaging includes exaggerating package contents through subtle design and misleading labels. Answer: TRUE […]

Product line stretching involves adding more items within the present range of the line. When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries. Answer: […]

Public relations can have a strong impact on public awareness at a much lower cost than advertising can. Sales promotions constitute the interpersonal arm of the promotional mix. Answer: FALSE From a producer’s point of view, a greater number of […]

Acquisition is one of the ways through which a company obtains new products. When a consumer learns about a new product for the first time and makes a decision to try it, the consumer is engaged in the alternative evaluation […]

Voluntary chains are normally based on one unique product or a specific trade name. Life insurance is an example of a convenience product. Answer: FALSE Customer-centered logistics starts with the marketplace and works backward to the factory. Answer: TRUE When […]

Direct marketing is characterized by narrowly defined segments or individual buyers. Companies that export goods to one country cannot have a subsidiary in another country because of international trade agreements. Answer: FALSE Brokers and agents usually take title to goods […]