question

True or False: E-business means carrying out the goals of business exclusively through the use of physical retail stores.

answer

False; E-business means carrying out the goals of business through the use of the Internet.

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True or False: Digital media refers to media available via computers alone; not mobile or smart phones.

answer

False; Digital media refers to media available via computers alone; not mobile or smart phones.

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True or False: The Internet often impedes business transactions, making them slower and less efficient.

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False; The Internet facilitates business transactions, allowing companies to network with manufacturers, wholesalers, retailers, suppliers, and outsource firms to serve customers more quickly and efficiently.

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True or False: The Internet has helped marketers to reach target markets that were previously inaccessible to many businesses.

answer

True.

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True or False: The phenomenal growth of digital media has provided new ways of conducting business.

answer

True.

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True or False: Internet markets are more different from traditional markets than they are similar

answer

False; Internet markets are more similar to traditional markets than they are different. Thus, successful e-business strategies, like traditional business strategies, focus on creating products that customers need or want, not merely developing a brand name or reducing the costs associated with online transactions.

question

True or False: Digital technology has had much more impact in certain industries where the cost of business and customer transactions has been very high.

answer

True.

question

True or False: One of the greatest drawbacks of digital marketing is the inability of marketers and customers to share information with ease.

answer

False; One of the most important benefits of digital marketing is the ability of marketers and customers to easily share information.

question

True or False: With digital media, it is no longer important for marketers to achieve the right marketing mix.

answer

False; One aspect of marketing that has not changed with digital media is the importance of achieving the right marketing mix. Product, distribution, promotion, and pricing are as important as ever for successful online marketing strategies.

question

True or False: Digital media make it easy for companies to add benefits and services to enhance products.

answer

True.

question

True or false: The internet is not considered a distribution channel.

answer

False; The Internet is a new distribution channel for making products available at the right time, at the right place, and in the right quantities.

question

True or False: The most flexible element of the marketing mix is price.

answer

True.

question

True or False. Consumer consumption patterns have not changed very much over time.

answer

False; Consumer consumption patterns are radically changing and marketers must adapt their efforts accordingly.

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True or False: Digital marketing can enhance the value of products.

answer

True.

question

True or False: Consumers' tendency to trust other consumers over corporations is one factor behind the rise of consumer-generated information.

answer

True.

question

True or False: Online social networks are a valuable part of marketing because they change the way consumers communicate with each other and with firms.

answer

True.

question

True or False: Digital media are more consumer-driven than traditional media.

answer

True.

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True or False: With customer-generated video content increasingly available, some companies are using it instead of professional advertising firms.

answer

True.

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True or False: Companies sometimes utilize Facebook and similar sites to help generate interest about new products.

answer

True.

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True or False: The surest way to ensure that you do not fall prey to scams or identity theft online is never to divulge important personal information online.

answer

True.

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True or False: Intellectual property is technically protected by laws and regulations, but companies still suffer billions of dollars in losses related to intellectual property theft each year.

answer

True.

question

True or False: The correct blend of traditional and new digital media marketing will vary depending on the business, its size, and its target market.

answer

True.

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True or False: Crowdsourcing is a scam in which con artists counterfeit a well-known website and send out e-mails directing victims to it.

answer

False; Phishing is a growing scam whereby con artists counterfeit a well-known website and send out e-mails directing victims to it. Once there, visitors find instructions to reveal sensitive information such as their credit card numbers.

question

True or False: Illegal sharing of Internet content is not considered an intellectual property problem.

answer

False; Illegal sharing of Internet content is a large intellectual property concern.

question

True or False: Shopping in a store raises more privacy concerns than shopping online

answer

False; Shopping online raises more privacy concerns than shopping in a store.

question

Accounting refers to a process of:

answer

Recording, measuring, and interpreting financial data.

question

CPA stands for:

answer

Certified Public Accountant.

question

A forensic accountant:

answer

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

question

All of the following are outsiders who rely on information from an organization's financial statements EXCEPT:

answer

Managers.

question

Billy Banker has to decide whether to lend the Safe Toy Company $10,000 to pay suppliers. He will:

answer

Review the company's financial statements.

question

What is meant by the term owners' equity?

answer

All the money that the firm has that does not need to be paid back

question

All of the following represent assets EXCEPT:

answer

A bank loan.

question

According to the scenario presented in the text, the debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent _____.

answer

Liabilities.

question

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

answer

Owners' equity = assets - liabilities.

question

Which of the following is the first step in the accounting cycle?

answer

Examine source documents.

question

What is the last step that must be done before a firm's books can be closed for an accounting cycle?

answer

A CPA must attest that good principles were used in the preparation of the document.

question

The accounting cycle includes all of the following, EXCEPT:

answer

Generating annual reports.

question

An income statement shows:

answer

Revenues, expenses, and net income over a period of time.

question

An accounting term that is synonymous with revenue is:

answer

Sales.

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 $5,000 worth of shovels and sold $7,500 worth. What is its cost of goods sold in this scenario?

answer

$7,500

question

The process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to use is called _____.

answer

Depreciation.

question

Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. According to this information, it can be concluded that Derek is implementing

answer

Depreciation.

question

Net income is:

answer

Earnings after all taxes and other expenses are paid.

question

The net income of a company is equal to the total revenue minus:

answer

Expenses and taxes.

question

The information presented in an income statement could be described using the following equations:

answer

Revenues - expenses = net income

question

_____ is an account showing money owed to a company by its clients or customers.

answer

Accounts receivable.

question

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n):

answer

Balance sheet.

question

Unlike an income statement, the _____ represents an accumulation of all of a company's transactions.

answer

Balance sheet.

question

A company's assets that can be easily converted into cash are called:

answer

Current assets.

question

Which of the following is an asset in the balance sheet?

answer

Accounts receivable.

question

A company's short-term financial obligations are called its:

answer

Current liabilities.

question

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

answer

Accounts payable.

question

All of a firm's unpaid financial obligations are occasionally consolidated into an account called:

answer

Accrued expenses.

question

The owners' contributions to a company and all earnings retained to finance continued growth and product development are

answer

Owners' equity.

question

Which of the following is considered as an owners' equity account?

answer

Preferred stock.

question

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the:

answer

Statement of cash flows.

question

Information found on the company's income statement and balance sheet is extracted from these documents and examined more closely through the use of:

answer

Ratio analysis.

question

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

answer

The companies in the same industry.

question

Profitability ratios are used to measure:

answer

How much income (net or operating) a firm generates relative to its assets, equity, and sales.

question

Which of the following equations is correct?

answer

Profit margin = net income/sales.

question

Return on assets and return on equity are examples of _____ ratio.

answer

Profitability.

question

Asset utilization ratios are used to measure:

answer

How efficiently the firm uses its assets to generate $1 in sales.

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

The ratio that reflects a company's liquidity after excluding inventory is _____ ratio.

answer

Quick.

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