Business 210 Exam 3

question

A marketing strategy consists of the selection and analysis of a target market and
answer

the creation and maintenance of an appropriate marketing mix.
question

A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ___________ to purchase such products.
answer

authority
question

The utility created by converting production inputs into finished products is called __________ utility.
answer

form
question

The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem is called
answer

marketing research.
question

A computer-based system for continually gathering internal and external information is called
answer

a marketing information system
question

The amount of a product an organization expects to sell during a certain period of time, based on a specified level of marketing effort, is called a
answer

sales forecast.
question

The effects of economic conditions on consumers’ ability and willingness to buy would best be called _________ forces.
answer

economic
question

The organizational function and 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 is
answer

marketing.
question

To implement the marketing concept, a firm must first
answer

obtain information about its customers’ needs.
question

Marketing managers are better able to predict consumer responses to marketing strategies and to develop a satisfying marketing mix if they are aware of the factors that
answer

affect buying behavior.
question

The first stage of the product life-cycle is the _______ stage.
answer

introduction
question

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the
answer

price
question

Multiple-unit packaging does not work well for
answer

infrequently used products.
question

Price competition occurs when a seller emphasizes the
answer

low price of a product.
question

A discount from the list, or retail, price offered to intermediaries is a(n) _______discount.
answer

trade
question

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as
answer

price skimming.
question

The number of units that must be sold for the total revenue to equal the total cost is called the ________ quantity.
answer

breakeven
question

Bread, gasoline, and ___________ are examples of convenience products
answer

newspapers
question

In cost-based pricing, a producer adds an amount to the total production cost to provide a profit. The amount added to the production cost is called a
answer

markup.
question

When a company changes one or more of a product’s characteristics to manage its product mix, it is engaging in _____________ modification.
answer

product
question

Selective-demand advertising aimed at persuading consumers to make purchases within a short time is called advertising.
answer

immediate-response
question

The most expensive but most adaptable method of the promotion mix is ________ .
answer

personal selling
question

Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. She is obviously concerned about _______ costs
answer

holding
question

Information about a company, its employees, or its products that is published or broadcast in the mass media free of charge is called _________ .
answer

publicity
question

As John walked down the aisle of a supermarket one Saturday, he encountered a lady at the end handing out bite- sized portions of a new brand of sausage. This lady is trying to accomplish what?
answer

Encourage trial purchases of the product.
question

Products such as very expensive wristwatches are distributed using ________ distribution.
answer

exclusive
question

A middleman that purchases goods in large quantities and then sells them to retailers is called a ______ .
answer

merchant wholesaler
question

T J Maxx, Burlington Coat Factory, and Marshalls are examples of
answer

off-prices stores.
question

The use of only a portion or percentage of the available outlets in each geographic area for market exposure is called ________ distribution.
answer

selective
question

A sales agent provides all of the following advantages except immediate entry into a territory selling experience a predetermined selling expense warehouse regular calls on customers
answer

a warehouse
question

Which of the following statements is true? The more information a manager has, the more risk there is when making a decision. The more information a manager has, the less risk there is when making a decision. Risk improves decision making. Most managers make decisions without any information. When the amount of information is low, there is less risk.
answer

The more information a manager has, the less risk there is when making a decision.
question

A public corporation must change its lead auditing firm
answer

every five years.
question

A(n)_______ is a summary of a firm’s revenues and expenses during a specified accounting period, such as a year.
answer

income statement
question

An airplane that FedEx owns and uses to deliver packages is a(n) ______of FedEx.
answer

asset
question

The purpose of ___________ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.
answer

a management information system
question

Commonly used in accounting analysis, a _______ shows a relationship between two elements of a firm’s financial statements.
answer

financial ratio
question

Revenues − cost of goods sold − expenses = net income characterizes which financial statement?
answer

Income statement
question

All of the following are acceptable ways of stating the accounting equation except owners’ equity = assets − liabilities. assets = liabilities + owners’ equity. owners’ equity − liabilities = assets. assets − liabilities = owners’ equity. assets = shareholders’ equity + liabilities.
answer

owners’ equity − liabilities = assets.
question

A prepaid expense would be classified as
answer

an asset.
question

The financial statement that provides information about a firm’s operating, investing, and financing activities during an accounting period is the
answer

cash flows statement.
question

An approach to collecting marketing information for specific marketing projects is called
answer

marketing research
question

The ingredient of the marketing mix concerned with providing product information to the target market is
answer

promotion.
question

__ markets consist of churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, and charitable organizations and foundations
answer

Institutional
question

Which of the following is not one of the steps in implementing the marketing concept? Obtaining information about existing and potential customers Pinpointing needs and potential needs of customers for further marketing activities Mobilizing marketing resources to provide, promote, and distribute products Obtaining new information about effectiveness of efforts
answer

All are steps of the marketing concept.
question

A group of similar products that differ only in relatively minor characteristics is called a
answer

product line.
question

Which one of the following is NOT a product life cycle?
answer

Design thinking
question

All of the following are services that wholesalers offer to manufacturers except providing an instant sales force. assuming credit risks. furnishing market information. reducing inventory costs. providing loans.
answer

providing loans.
question

The use of only a single retail outlet in each geographic are for distribution purposes is called ___ distribution.
answer

exclusive
question

The four major ingredients in the promotion mix are advertising, personal selling, public relations, and a
answer

sales promotion.
question

Revenues – cost of goods sold – expenses =
answer

net income before taxes.
question

Beginning Inventory + net purchases -ending inventory =
answer

cost of goods sold.
question

Cash, Inventory, and equipment are listed as on a firm’s balance sheet.
answer

assets
question

How does a larger amount of information tend to affect decision risk?
answer

Lower Risk
question

Financial managers should
answer

establish a means of monitoring financial performance on an interim basis
question

Borrowed money that will be used for more than one year is called
answer

long-term financing.
question

Which of the following statements is true? Financial leverage should not be considered when a firm borrows money. Under the right circumstances, the use of borrowed money can improve a firm’s return on owners’ equity. There is no good reason for a firm to borrow money when it has cash to finance expansion. The use of borrowed money always reduces a firm’s return on owners’ equity. Return on owners’ equity is not an important financial calculation.
answer

Under the right circumstances, the use of borrowed money can improve a firm’s return on owners’ equity.
question

Retained earnings are
answer

a form of equity financing.
question

All of the activities concerned with obtaining money and using it effectively are called
answer

financial management
question

The assets most commonly used as collateral for short-term financing include
answer

accounts receivable and inventory.
question

For a corporation, equity capital is obtained from
answer

stockholders.
question

The most popular form of short-term financing is
answer

trade credit.
question

A statement that projects income and/or expenditures over a specified future period is called a
answer

budget.
question

The primary sources of funds available to a business include all of the following except debt capital. sales of assets. government grants. sales revenue. equity capital.
answer

government grants
question

The most popular and inexpensive form of short-term financing is
answer

trade credit

Get instant access to
all materials

Become a Member