coordinate use of inter functional resources| Marketing
____ Market-driven firms demonstrate:
a.
the coordinated use of inter functional resources (for example, research and development, manufacturing).
b.
a set of values and beliefs among employees that places the customer’s interests first.
c.
the ability to generate, disseminate, and productively use superior information about customers and competitors.
d.
all of the above.
e.
(b) and (c) only.
2. ________Market-driven firms spot market changes and react well in advance of their competitors. This illustrates:
a.
the customer-linking capability of market-driven firms.
b.
the value proposition of market-driven firms.
c.
the market-sensing capability of market-driven firms.
d.
the value of using direct channels of distribution in the business market.
e.
both (b) and (c)
3.________Identifying and analyzing a target market and creating a marketing mix are essentials of which part of marketing
a. Establishing marketing goals and objectives
b. Coordinating marketing activities
c. Organizing marketing function
d. Planning marketing actions
e. Developing a marketing strategy
4_______Riki’s company is involved in identifying and analyzing a target market and developing a marketing mix to gain long-term competitive advantage . Based on this example Riki is creating a
a. Corporate strategy
b. Target design
c. Marketing Tactics
d. Business Strategy
e. Marketing strategy
5._________ A long-term view of what the organization wants to become is called a
A. Mission statement
B. Purpose statemente
C. Vision statement
D. Marketing plan
E. An operational plan
6____ A company’s mission statement typically addresses which of the following questions?
a “Who are we and what do we do?”
b “What objectives and level of performance do we want to achieve?”
c “Where are we going and what should our strategy be?”
d “What approach should we take to achieve sustainable competitive advantage?”
e A dream of the CEO’s of the company
7._________Sharon majored in entrepreneurship and computer science in college. After graduation, she decided to start her own business as an e-business entrepreneur, founding an online B2B reverse auction company called CompuSave. After hiring several employees, Sharon requires that each person in this company be involved in studying trends involving new technology, competitors, and customers. These employees are involved in
a. external analysis
b. internal environment
c. strategic management
d. strategic flexibility
e SWOT analysis
8._______ Because his customers are demanding price concessions and enhanced service levels in return for their continued business, Anthony decides that he wants to compete by offering unique products that are widely valued by customers.. What strategy is Anthony following?
a. focus
b. cost leadership
c. differentiation
d. stability
e- quality
9 ______which of the following is not one of the four strategic management model?
forming strategic vision
describing mission
setting goals and objectives
scanning external and internal environment
developing a profitable business model
all of the above belong to strategic management model
10.____________A company’s mission statement should be sufficiently descriptive and includes which of the following:
a. What the company does
b. identifying the company’s services and products
c. relate to the buyers’ needs that the company seek to satisfy
d. identifying the customer or the market that the company wants to serve
e. all of the above
11.________. A company’s strategic vision concerns
a. “who we are and what we do.”
b. why the company does certain things in trying to please its customers.
c. management’s storyline of how it intends to make a profit with the chosen strategy.
d. a company’s directional path and future product-market-customer-technology focus.
e. a company’s unrealistic dream.
12_____An example of a core competency of a firm is ___________.
a. the corporate reputation
b. communicating with customers in their own languages worldwide
c. developing least-squared exemptions within its accounting system
d. evaluating tangible and intangible assets
e evaluating intangible assets only
13____________The competitive moves and business approaches a company’s management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its
a. strategy.
b. mission statement.
c. strategic intent.
d. business model.
e.. none of the above
14__________ Which of the following is the best example of a well-stated financial objective?
a. Increase earnings per share by 15% annually.
b. Gradually boost market share from 10% to 15% over the next several years.
c. Achieve lower costs than any other industry competitor.
d. Boost revenues by a percentage greater than the industry average.
e. None of the above
15._______ The median of a frequency distribution is found graphically with the help of:
a. Histogram
b. Frequency curve
c. Frequency polygon
d. Ogive
e. Relative frequency
16.___________ The mode of a frequency distribution can be determined graphically by:
a. Histogram
b. Frequency curve
c. Frequency polygon
d. Ogive
e. Cumulative frequency
17__________ A professional basketball players’ union negotiates a contract that dramatically increases all players’ salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
a. it would not affect the opportunity cost of playing basketball or of broadcasting
b. it would increase the opportunity cost of continuing to play professional basketball
c. it would cause the production possibilities frontier to become convex
d. it would increase the opportunity cost of becoming a broadcaster
e. it should have no bearing on the player’s decision from an economic standpoint
18 _______________ Sara is considering attending a concert with a ticket price of $35. She estimates that the cost of driving to the concert and parking there will total an additional $20. In order to attend the concert,
Sara will have to take time off from her job. She estimates that he will lose 5 hours at work, at a wage of $40 per hour. Her opportunity cost of attending the concert equals
a. $35
b. $55
c. $30
d. $65
e. $255
19.___________ This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.
a. investment
b. financial asset
c. real asset
d. financial markets
e. output market.
20._______________________ Which of the following is a primary market transaction?
a.
You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker.
b.
Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.
c.
You buy 200 shares of Johnson & Johnson stock from your younger brother. You just give him cash and he gives you the stockthe trade is not made through a broker.
d.
One financial institution buys 200,000 shares of Johnson & Johnson stock from another institution. An investment banker arranges the transaction.
e.
You invest $10,000 in a mutual fund, which then uses the money to buy $10,000 of Johnson & Johnson shares on the NYSE.
21_______________. Which of the following statements is CORRECT?
a.
If Apple issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
b.
If you purchased 100 shares of Apple stock from your sister-in-law, this would be an example of a primary market transaction.
c.
The IPO market is a subset of the secondary market.
d.
Only institutions, and not individuals, can participate in derivatives market transactions.
e.
As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
22.__________________You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:
a.
A futures market transaction.
b.
A primary market transaction.
c.
A secondary market transaction.
d.
A money market transaction.
e.
An over-the-counter market transaction.
23________________Which of the following statements is CORRECT?
a.
The New York Stock Exchange is an auction market with a physical location.
b.
Capital market transactions involve only the purchase and sale of equity securities, i.e., common stocks.
c.
If an investor sells shares of stock through a broker, then this would be a primary market transaction.
d.
Consumer automobile loans are evidenced by legal documents called “promissory notes,” and these individual notes are traded in the money market.
e.
While the distinctions are blurring as investment banks are today buying commercial banks, and vice versa, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties.
24_______ On July 10th, Owen’s Bicycle Shop paid a water bill for the month of June. Which of the following is true regarding this payment according to the matching principle?
a. This payment should be recorded as an expense in the month of July.
b. This payment should be recorded as a reduction in a liability; the expense was recorded in June.
c. This payment should not be recorded; the expense was recorded in June.
d. This payment should be recorded as an asset.
e. This payment should be recorded as a liability.
25__________Montel’s Movie Theater offers gift certificates which can be purchased by its customers. When should these gift certificates be reported as revenue?
a. When the gift certificates are sold to customers.
b. At the end of the year in which the gift certificate is purchased.
c. When the gift certificate is used by a customer.
d. When the gift certificate is paid for by the customer.
e. All of the above
26. _______________ is the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets.
a. budgeting
b. business career
c. finance
d. investments
e. economics
27._________ Typically, successful businesses move through a series of five life-style stages. These stages include:
a. final stage, startup stage, survival stage, rapid-growth stage, and maturity
b. first stage, top-down stage, survival stage, rapid-growth stage, and failure
c. development stage, startup stage, survival stage, rapid growth stage, and maturity
d. initiation stage, maintenance stage, middle stage, complete stage, and maturity
e. none of the above
28____________. What does the time value of money principle help individuals to understand?
a. the social impact of monetary policy
b. the economic behavior of individuals and the businesses they run
c. the political oversight that exists in businesses today.
d. the economic development policies in the United States.
e. the cost of capital
29______________. How can you bring a manager’s objectives in line with the owner’s objective at a firm?
a. The objectives are always equal.
b. Tie the manager’s compensation to performance measures that are beneficial to the owner.
c. Tie the owner’s compensation to performance measures that are beneficial to the manager.
d. You never tie the manager’s objectives in line with the owner’s objective at a firm.
e. all of the above are true.
30._______________ The fundamental economic problem faced by all societies is:
a. unemployment
b. inequality
c. poverty
d. scarcity
e. economic opportunity
31_____________. “Capitalism” refers to:
a. the use of markets
b. government ownership of capital goods
c. private ownership of capital goods
d. private ownership of homes & cars
e. Private ownership of governments
32._____ There are three fundamental questions every society must answer. Which of the following is/are one of these questions?
a. What goods and services are to be produced?
b. How are the goods and services to be produced?
c. Who will get the goods and services that are produced?
d. All of the above
e. none of the above
33.______ If you were working full-time now, you could earn $20,000 per year. Instead, you are working part-time while going to school. In your current part-time job, you earn $5,000 per year. At your school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of completing your education is:
a. 2,000
b. $5,000
c. $17,000
d. $20,000
e. $22,000
34________The bowed shape of the production possibilities curve illustrates:
a. the law of increasing marginal cost
b. that production is inefficient
c. that production is unattainable
d. the demand is relatively inelastic
35._________ You have taken this quiz and received a grade of 3 out of a possible 10 points (F). You are allowed to take a second version of this quiz. If you score 7 or more, you can raise your score to a 7 (C). You will need to study for the second version. In making a rational decision as to whether or not to retake the test, you should
a. always retake the quiz
b. consider only the marginal benefits from of retaking the quiz (four extra points)
c. consider only the marginal opportunity costs from taking the quiz (the time spent
studying and taking the quiz)
d. consider both the marginal benefits and the marginal opportunity costs of retaking the quiz
e. drop the course
36.____ The law of demand states that:
a. as the quantity demanded rises, the price rises
b. as the price rises, the quantity demanded rises
c. as the price rises, the quantity demanded falls
d. as supply rises, the demand rises
e. as the supply rises, the demand falls
37___________When a payment is recorded as an asset rather than an expense this means that:
a. the expense has already been incurred
b. the expense has not yet been incurred
c. the expense relates to prior month
d. the expense id for last year
e. all of the above
38._____ On March 1st, Andersen, Inc. purchased a 6-month insurance policy for $1,000. When should Andersen record the cost of this insurance policy?
A. When the insurance policy is signed by Andersen.
B. When the insurance policy is paid for by Andersen.
C. When Andersen receives the benefits from the policy over the next 6 months.
D. When Andersen receives payments from the insurance company for its insurance claim
E. When Andersen does not receive the benefits over any perid of time
39. The standard deviation for 15, 22, 27, 11, 9, 21, 14, 9 is:
a. 6.22
b. 6.12
c. 6.04
d.6.32
e. 10.12
40. _______ The mean deviation from the data: 340, 150, 210, 240, 300, 310, 320 is:
a) 51.6
b) 51.8
c) 52
d) 52.
e) 0
41 . A company pays $3,400 for the current month utilities. What is the effect on the accounting equation?
A. Assets increase $3,400; no effect on liabilities; equity increases $3,400.
B. Assets decrease $3,400; liabilities decrease $3,400; no effect on equity.
C. Assets decrease $3,400; no effect on liabilities; equity decreases $3,400.
D. Assets increase $3,400; liabilities increase $3,400; no effect on equity.
E, All of the above
42. If a company purchases supplies on account for $5,000, what is the effect on the accounting equation?
A. Assets increase $5,000; no effect on liabilities; equity increases $5,000.
B. Assets decrease $5,000; liabilities decrease $5,000; no effect on equity.
C. Assets decrease $5,000; no effect on liabilities; equity increases $5,000.
D. Assets increase $5,000; liabilities increase $5,000; no effect on equity.
F. None of the above
43. A _________ is a list of individual accounts, usually in financial statement order, prepared as a check on the accounting system.
A. Trial balance
B. General ledger
C. Balance sheet
D. Financial statement
E. Income Statement
44. During the month of July the following transaction occurred for Pete’s Lawn Services:
Assume that Pete uses cash basis accounting. What is the total revenue Pete should recognize in July?
A. $8,000
B. $4,500
C. $7,500
D. $8,500
E; 81,000
45. Put the following steps, necessary to perform transaction analysis, in the correct order.
I. Verify the accounting equation
II. Identify the accounts affected by name
III. Determine the direction of the effect (+ or -) on each account
IV. Classify the accounts by type of account (A, L, or OE)
A. II, I, IV, and III
B. I, II, III, and IV
C. IV, III, I, and II
D. II, IV, III, and I
E. All of the above
46. “Dual Effects” refers to:
A. Debits must equal credits.
B. Every transaction affects at least two accounts.
C. All transactions affect at least two financial statements.
D. Each side of the accounting equation is affected by every transaction.
E. Every transaction can have more than 2 parties.
47. If a company receives an initial investment from an owner to start a business then which of the following correctly describes the affect on the accounting equation?
A. Cash increases; owner’s equity decreases
B. Cash decreases; owner’s equity decreases
C. Cash decreases; owner’s equity increases
D. Cash increases; owner’s equity increases
E. None of the above
48. Sue’s Bookstore paid $2,200 in advance to cover rent for the next two months. Which of the following will occur?
A. Liabilities increase by $2,200.
B. Expenses increase by $2,200.
C. Assets increase by $2,200.
D. No effect on the accounting equation.
