question

E-business differs from traditional business in that:

answer

the former carries out the goals of business through the use of the internet.

question

Which of the following scenarios makes a reference to e-business?

answer

Alexis purchases a tablet PC through an online retail store.

question

Which of the following characteristics distinguishes digital marketing from traditional marketing?

answer

Addressability

question

Google can use web searches done through its search engine to learn about customer interests. This underlies the ___ aspect of digital communication.

answer

Accessibility

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In the context of digital communication,___ refers to consumers' ability to get in touch with marketers along with other consumers.

answer

connectivity

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In the context of digital communication,___ refers to the customers' ability to regulate the information they view as well as the rate and exposure to that information.

answer

control

question

Which of the following media is used by digital marketing?

answer

Social Networks

question

Which of the following statements is true of the internet?

answer

It has made it possible for businesses to reach previously inaccessible markets.

question

A successful digital marketing strategy focuses:

answer

on creating products that customers need.

question

One challenge that digital media has created for businesses is:

answer

employees wasting time surfing the internet

question

Which aspect of marketing has not changes with digital media?

answer

The importance of achieving the right marketing mix

question

Supernova Inc, is a gadgets and accessories retailer that has recently introduced a new concept. A customer can order products not usually available in its stores from their website; the products are then shipped to the Supernova store nearest to the customer. The customer can pick up the products from the store at his or her conveinece without having to pay any shipping charges. This concept is called___.

answer

"site to store" system

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____ is the most flexible element of the marketing mix.

answer

Price

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A___ is a web-based meeting place for friends, family, coworkers, and peers that lets users create a profile and connect with other users for a wide range of purposes.

answer

Social network

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Many social networking sites today provide users with the ability to:

answer

download applications

question

Which service allows users to "like" a company's profile and thereby interact and build a relationship with the firm?

answer

Facebook

question

Which of the following factors has sparked the rise of consumer-generated information??

answer

The tendency of consumers to publish their opinions through digital media

question

Which of the following statements is true of Facebook?

answer

It appeals to a wide demographic that includes parents and grandparents

question

Which of the following statements is true of blogs?

answer

They allow users to post whatever they like about a company or its products

question

Which of the following is a drawback associated with blogs?

answer

Consumers can write bad reviews of products in their blogs, which leads to negative

question

___ is a tool that uses the internet, particularly social networking and video sharing sites, to spread a message and create brand awareness.

answer

Viral marketing

question

___ is the most popular photo sharing application which allows users to make their photos look dreamy or retrospective with different tints and then share them with their friends

answer

Instagram

question

___ are audio or video files that can be downloaded from the internet via a subscription that automatically delivers new content to listening devices or personal computers.

answer

Podcasts

question

The little black and white squares that sometimes appear in magazines, posters, and store displays which let a consumer with a smart device view a website, video, or image with additional marketing information is known as a

answer

QR code

question

___ are an innovative digital marketing tool to personalize web pages, alert users to the latest company information, and spread awareness of the company's products

answer

Widgets

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Why should critics be a primary component in a company's digital marketing strategy?

answer

Because many online shoppers read reviews to aid their purchasing decisions

question

_____ describes how marketers use digital media to find out the opinions or needs of potential markets.

answer

Crowdsourcing

question

____ permit website operators to track how often a user visits the site, what he or she looks at while there, and in what sequence and also allow web users to customize services and content.

answer

Cookies

question

Due to consumers over privacy, the ____ is considering developing regulations that would better protect consumers privacy by limiting the amount of consumer information that businesses can gather online.

answer

Federal Trade Commission

question

What is the best way to be safe form online fraud or identity theft?

answer

Refraining from divulging personal information

question

Accounting refers to the process of:

answer

recording, measuring, and interpreting financial information

question

A certified Public Accountant has the right to:

answer

express, officially, an unbiased opinion regarding the accuracy of a client's financial status

question

The___ required firms to be more rigorous in their accounting and reporting practices

answer

Sarbanes-Oxley Act

question

A forensic accountant:

answer

analyzes financial documents in search of fraudulent entries or financial misconduct.

question

Vikram is an accountant employed by a large corporation. He works for the billing and taxation department. He is most likely to be a:

answer

Private accountant

question

____ is the movement of money through an organization over a daily, weekly, monthly, or yearly basis.

answer

Cash flow

question

Potential investors typically study the ___ in a firm's annual report to determine whether the company meets their investment requirements.

answer

financial statements

question

Thomson is a manager at a bank. He has to decide whether to lend an amount of $10,000 to Safe Toy. He should:

answer

review the company's financial statements

question

What are the fundamentals of the accounting process?

answer

The accounting equation and the double-entry bookkeeping system

question

Clara's label owes certain debts to the Small Business Administration and her suppliers. In accounting, these debts are known as___.

answer

liabilities

question

Which of the following equations is equivalent to the accounting equation?

answer

Owner's equity= assets- liabilities

question

Evelyn is a self-employed, state-certified accountant who provides the following accounting service-filing tax returns, preparing financial records, auditing corporate financial records. She is known as a:

answer

certified public accountant

question

An income statement shows:

answer

an organization's profitability over a periof of time

question

An equivalent term for net income in accounting terms is:

answer

profit after taxes

question

___ is the total amount of money received from the sale of goods or service, as well as from other business activities such as the rental of property and investments.

answer

Revenue

question

Do-It-Yourself Home Repair Shop started the accounting period with $10,000 worth of shovels in inventory. During the accounting period, it purchased $5,00 worth shovels and sold $7,500 worth In this scenario, what is the cost of goods sold?

answer

$7,500

question

In the context of expense accounts, salaries of executives and their staff are included under the category of:

answer

general and administrative expenses

question

The process of spreading the costs of long-lived assets such as building and equipment over the total number of accounting periods in which they are expected to be used is called____.

answer

Depreciation

question

Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of:

answer

Depreciation

question

Net income is:

answer

earnings after all expenses have been deducted

question

Which of the following equations describes the information presented in an income statement?

answer

Revenues-expenses= net income

question

The ____ presents a snapshot of an organization's financial position at a give moment.

answer

balance sheet

question

___ refers to money owed a company by its clients or customers who have promised to pay for the products at a later date

answer

accounts receivable

question

A company's assets that are used or converted into cash within the course of a calendar year are called:

answer

current assets.

question

Which of the following is a liability in a balance sheet?

answer

Accounts payable

question

___ includes the owners' contributions to a company along with income earned by the company and retained to finance continued growth and product development

answer

Owner's equity

question

___refers to calculations that measure an organization's financial health.

answer

Ratio analysis

question

One of the ways to analyze a company's financial performance is to compare its performance with those of:

answer

the companies in the same industry.

question

A company with a low return on assets

answer

is not using its assets very productively

question

Maurice was asked to extend trade credit to a restaurant she hadn't serviced before. She asked to see its balance sheet to determine if it could pay its bills. She divided its current assets by current liabilities to get its:

answer

current ratio

question

Which of the following statements is true of money?

answer

it is anything accepted in exchange for goods and services

question

A person swaps a bag of fruits for some meat. In this case, money functions as a:

answer

medium of exchange

question

As a measure of value money primarily serves as a:

answer

common standard of yardstick of the worth of goods and service.

question

When money serves as a way to accumulate wealth, money primarily functions as a:

answer

store value

question

To be used as a medium of exchange, money must be:

answer

durable

question

Ryan traded his tablet PC for a cellphone. since both were of the same value, there was no exchange of money. Which of the following concepts does this scenario illustrate?

answer

Bartering

question

To be effective, money must be readily receive for the purchases of goods and services and for the settlement of debts. Which of the following characteristics of money does this statement reflect?

answer

Acceptability

question

For money to function as a medium of exchanged, it must be easily moved form one location to the next. Which of the following characteristics of money does this statement reflect?

answer

Portability

question

Which of the following characteristics of money allows people to postpone purchases and save their money to do so?

answer

Stability

question

The life expectancy of a $20 bill is estimated to be 7.7 years. Which of the following characteristics of money does this statements illustrate?

answer

Durability

question

In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it form losing any more of its value. Under these conditions, money is said to lack:

answer

stability

question

Why is the life span of a $1 note likely to be lesser than that of $100 note?

answer

a $100 note is less frequently passed between users

question

A check:

answer

can be rendered worthless in case of suspected forgery

question

____ or time deposits are accounts with funds that can be withdrawn only with advance notice.

answer

Savings accounts

question

____ are saving accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely

answer

certificates of deposits

question

In general, the longer the term of a certificate of deposit, the:

answer

higher is its interest rate

question

Credit Cards:

answer

allow cardholders to pay for transactions at a later date

question

If consumers do not pay off their entire credit card balance, they:

answer

have to pay interest on the unpaid amount

question

Why are credit cards a popular substitute for cash payments?

answer

they are accepted by merchants around the world

question

The Federal Reserve Board was established by Congress in 1913 to:

answer

regulate the banking industry

question

The Federal Reserve Board controls the amount of money available in the economy:

answer

Through monetary policy

question

Which of the following effects is seen on the money supply and the economy when the federal Reserve Board raises the discount rate?

answer

Interest rates increase; the money supply decrease;economic activity slows down.

question

When the Federal Reserve Board increases the reserve requirements, the :

answer

money supply declines

question

The oldest and largest of all financial institutions are:

answer

commercial banks

question

The Federal Reserve Board is primarily responsible for:

answer

creating a stable environment for economic growth.

question

Commercial banks:

answer

rely on checking and savings accounts for funds

question

The major difference between banks and credit unions is that:

answer

credit unions are owned and controlled by their depositors.

question

A checking account at a credit union is commonly referred to as a :

answer

Share draft account

question

The ___ insures individual bank accounts.

answer

Federal Deposit Insurance Corporation

question

Insurance companies protect their clients against financial losses from certain specified risks in exchange for a fee, called a:

answer

premium

question

Cash, investments, accounts receivable, and inventory are:

answer

current assets

question

Working capital management refers to___.

answer

managing short-term assets and liabilities

question

Astute money managers try to keep just enough cash on hand to pay employee wages and utility bills. this cash is referred to as:

answer

Transaction balances

question

As idle cash does not make money, a manager may choose to invest this extra cash in temporary investments called:

answer

marketable securities

question

Which of the following is true of a lockbox?

answer

It is simply an address for receiving payments

question

More and more companies are now using electronic funds transfer systems to pay and collect bills online because:

answer

it helps them increase the speed of collections and disbursements to one day

question

U.S. Treasury bill, certificates of deposits, commercial paper, and eurodollar deposits are examples of:

answer

marketable securities

question

___ are issued by commercial banks and brokerage companies, are available in minimum amounts of $100,000, and may be traded prior to maturity.

answer

Commercial certificates of deposit

question

___ is a written promise from one company to another to pay a certain amount of money.

answer

Commercial paper

question

Which of the following is true of commercial paper?

answer

It is backed only by the name and reputation of the issuing company

question

Which of the following is money owed to a business by credit customers?

answer

Accounts receivable

question

Which of the following is money that an organization owes to suppliers for goods and services?

answer

Accounts payable

question

___ is the credit extended by suppliers for the purchases of their goods and services.

answer

trade credit

question

Dan bought three new trucks with a loan obtained from the First National Bank. If he fails to repay to the loan, the bank will repossess the trucks. The trucks typically represent:

answer

collateral

question

Which of the following is an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request?

answer

A line of credit

question

If Linda Wilson borrow $20,000 to buy a car and ends up paying the lender a total of $24,000, the $20,000 represents the:

answer

principal

question

The ___ is the interest rate commercial banks charge their best customers for short-term loans.

answer

prime rate

question

AMZ Inc., a company that deals with bikes, has its own manufacturing unit. The equipment used in the manufacturing unit of the company is an example of a:

answer

Fixed asset

question

Which of the following involves paying a fee for usage rather than owning a particular asset?

answer

Leasing

question

The amount of money budgeted for the purchase of long-term assets is called the:

answer

capital budget

question

The board of directors of a leading automobile company wants to opt for an investment project that has the least risk. Which of the following projects is the board most likely to undertake?

answer

Repairing the old manufacturing equipment

question

Long-term liabilities are:

answer

debts that will be repaid over a number of years

question

Which of the following statements is true of bonds?

answer

They must be repaid according to the terms set in the indenture.

question

Which of the following statements is true of floating-rate bonds?

answer

They do not have fixed interest payments

question

Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?

answer

Junk Bonds

question

___ is the single most important source of capital for most new companies.

answer

Common stock

question

___ is the price at which a particular common stock is currently trading.

answer

Market value

question

Stockholders who are prioritized in the distribution of a firm's dividends but cannot vote are called:

answer

Preferred stockholders

question

___ are reinvested in the assets of the firm and belong to the owners in the form of equity.

answer

Retained earnings

question

___ make it possible for owner to sell their stocks and bonds to other investors

answer

Securities markets

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