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Over the past 38 years your parents saved money each month for their retirement. They retired this week and expect to live another 34 years. Their investment account is currently valued at $286,800 and is expected to return 6.5 percent annually in the future. How much money can they withdraw annually if they wish to spend all of their money during their lifetime? a. $18,642 b. $20,516 c. $21,125 d. $23,507 Common-size balance sheets express each account value as a percentage of which one of the following? total equity net income total sales total assets

The Sarbanes-Oxley Act requires that all U.S. corporations under the juris-diction of the Securities and Exchange Commission maintain accounting records of foreign branches and subsidiaries in the local foreign currency. have at least one foreign subsidiary. maintain an adequate system of internal control. must file reports with the National Commission on Fraudulent Financial Reporting. The control principle related to not having the same person authorize and pay for goods is known as establishment of responsibility. rotation of duties. segregation of duties. independent internal verification. Maximum benefit from independent internal verification is obtained when it is made on a pre-announced basis. discrepancies are reported to management. it is done by the employee possessing custody of the asset. it is done at the time of the audit.

Allowing only designated personnel to handle cash receipts is an example of establishment of responsibility. segregation of duties. documentation procedures. independent internal verification. You would like to buy a boat and know you can afford boat payments of $225 a month for 5 years. The interest rate is 7.65 percent, compounded monthly. How much money can you afford to borrow? a. $11,189 b. $12,407 c. $9,067 d. $10,508 You just found your dream car. The car will cost you $36,800. The dealer will lend you the entire amount at 3.9 percent interest, compounded monthly, for 48 months. What is the amount of the monthly payment? a. $767.02 b. $785.00 c. $829.26 d. $847.63 Storing cash in a company safe is an application of which internal control principle? Segregation of duties Documentation procedures Physical controls Establishment of responsibility Reconciling the bank statement monthly is an example of independent internal verification. establishment of responsibility. documentation procedures. segregation of duties. A voucher system is a series of prescribed control procedures specifically designed for small firms who may not have checking accounts. which eliminates the need for a sales journal. to check the credit worthiness of customers. designed to assure that disbursements by check are proper. The size of the petty cash fund is dependent on anticipated disbursements for the year. the wishes of the custodian of the fund. the size of the regular cash account. anticipated disbursements for a three- to four-week period. A $100 petty cash fund has cash of $18 and receipts of $86. The journal entry to replenish the account would include a

credit to Cash Over and Short for $4. credit to Cash for $86. debit to Cash for $86. credit to Petty Cash for $86. A check returned by the bank marked "NSF" means no signature found. no service fee. not satisfactorily filled-out. not sufficient funds. A bank reconciliation should be prepared when an employee is suspected of fraud. to explain any difference between the depositor's balance per books and the balance per bank. by the person who is authorized to sign checks. whenever the bank refuses to lend the company money. Deposits in transit have been recorded on the company's books but not yet by the bank. have been recorded by the bank but not yet by the company. have not been recorded by the bank or the company. are checks from customers which have not yet been received by the company. When making a payment from the petty cash fund for postage stamps, the following journal entry is made. a. Office Supplies XXXX Petty Cash XXXX b. Postage Expense XXXX Petty Cash XXXX c. Miscellaneous Expense XXXX Petty Cash XXXX d. No entry is made. b. c. d. a. A generous benefactor invested money in a scholarship fund 18 years ago at an interest rate of 7 percent. Every year, the fund awards $35,000 in scholarships to worthy college students. How much did this benefactor deposit into the account initially? Assume all

interest is paid out annually but the principal amount remains untouched.

a. $400,000 b. $462,963 c. $500,000 d. $625,000

Even though you have no idea who you will marry, you are planning to have an elaborate wedding 4 years from now. The estimated cost of the wedding is $52,000 and you expect to earn 3.5 percent on your savings. How much do you need to save each month for this purpose assuming that you have no money saved as of today?

a. $1,010.85 b. $1,211.16 c. $1,557.50 d. $1,646.93 In a purely competitive market, a company selling in the market views its demand curve as: completely price insensitive. horizontal (flat). vertical. convex. Using cost plus pricing, what is the price if ATC = $14.50 and the target rate of return is 4 percent? $15.10

$49.34 $14.5 $22.10 If Tiger Toys faces a demand curve of P = 85 - .25Q and a MC = ATC = 20, then the economic profits would be: $130.00. $6,825.00. $2,600.00. $4,225.00. Using the linear approximation system to estimate the profit maximizing price requires that the managers know the costs of production and: the production function. one price and quantity of demand. two prices and quantities of demand. decision-making process of the marketplace The key to the importance of the marginal cost curve of a company is that it is a company's: supply curve of product to the marketplace. demand curve for its product to the marketplace. average cost of product in both the short and long run. fixed cost. If Tiger Toys faces a demand curve of P = 85 - .25Q and a MC = ATC = 20, then the markup would be:

$52.50. $20.00. $32.50. $65.00. A necessary condition for market power to exist for a particular company in a market is that: information must be understood by both buyers and sellers. effective barriers to entry must exist. the number of firms is over 150. consumers perceive all products as homogeneous.

Black Stone Industries has a return on equity of 13.20 percent and a debt-equity ratio of 0.44. What is the firm's return on assets? 9.17 percent 5.81 percent 11.14 percent 10.37 percent Westover Mills has a return on equity of 13.50 percent, an equity multiplier of 1.70, and a payout ratio of 45 percent. What is the firm's sustainable rate of growth? 6.47 percent 5.74 percent 8.02 percent 8.64 percent Chubb's Market has a return on equity of 11.82 percent, an equity multiplier of 1.20, and a payout ratio of 20 percent. What is the firm's internal rate of growth? 10.44 percent 8.55 percent 16.34 percent 8.69 percent SIC codes classify firms based on which one of the following? total sales

business operations geographic location number of employees Which of the following create problems when conducting financial statement analysis? variation in accounting methods inability of a firm to fit neatly into a specific industrial category different fiscal years All of the above are common problems.

Which of the following is NOT a step that might be used to improve the quality of a firms marketing intelligence? A. Watching how the stock market reacts to interest rate changes B. Motivating distributors to pass along important intelligence from the marketplace. C. Collecting competitive intelligence by buying a competitors products D. Setting up a consumer panel When Mollys parents retired, they decided they wanted to travel. They found an ideal job that allows them to travel for free, but the only catch is they have to stay at Holiday Inns. During each stay, they test all the amenities offered by the motel and evaluate each. The evaluation forms are sent to the motel headquarters where it becomes part of the motels___________systems. A. Accountability information system (AIS) B. Marketing intelligence C. Experiential research data D. Marketing research Which of the following is an example of primary data that would be used by Topps card company to determine popularity of its new hologram baseball card series? A. Sales records for baseball cards gathered by the industrys trade council. B. Data from sales records kept by exclusive dealers of Topps hologram series C. An article about the hologram cards in a recent issue of Sports Illustrated D. Input from focus groups that was put together specifically to discuss their perception of popularity of the hologram card series. A marketing information system (MIS) consists of________ A. A set of procedures and sources used by managers to obtain everyday information and relevant developments in the marketing environment. B. An organized collection of comprehensive data about individual customers, prospects, or suspects that is currently accessible for marketing purposes. C. The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation.

D. The people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers Which of the following best describes the expected level of company sales based on a chosen marketing plan and an assumed marketing environment? A. Company sales forecast B. Sales quota C. Market potential D. Company demand During 2007, Dole Company sold equipment with a book value of $90,000 for proceeds of $104,000. The company purchased new equipment for $240,000 by signing a longterm note payable. No other transactions impacted long-term asset accounts during 2007. The investing section of the statement of cash flows will report: net cash outflows of $226,000 net cash outflows of $136,000 net cash inflows of $104,000 net cash inflows of $14,000 Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is: $240,000 $250,000 $310,000 $230,000 Morris Company issued 10,000 shares of $1 par common stock for $25 per share during 2007. The company paid dividends of $24,000 and issued long-term notes payable of $220,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows? $6,000 net cash inflow $226,000 net cash inflow $470,000 net cash outflow $446,000 net cash inflow A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities? $214,000 $207,000 $274,000 $295,000

Harbor Company reported net income of $60,000 for the year ended December 31, 2007. During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2007 using the indirect method was: $119,000 $65,000 $77,000 $55.000 Wilton Company reported net income of $40,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is: $30,000 $45,000 $39,000 $35,000 A company has Net Income of 130,000 for the year ended 12/31/2009. The company\'s 12/31/2008 Balance Sheet shows 40,000 shares of common stock outstanding, and the company\'s 12/31/2009 Balance Sheet shows 60,000 shares of common stock outstanding. For 2009, the company paid out 10,000 in cash dividends on to its preferred stock holders. The EPS for this company for 2009 was: $2.4 per share $3.0 per share $2.0 per share $1.5 per share Loster Company reported a net loss of $10,000 for the year ended December 31, 2007. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2007, operating activities: used net cash of $2,000 used net cash of $8,000 provided net cash of $2,000 provided net cash of $8,000 The net income reported on the income statement for the current year was $220,000. Depreciation was $50,000. Accounts receivable and inventories decreased by $10,000 and $30,000, respectively. Prepaid expenses and accounts payable increased, respectively, by $1,000 and $8,000. How much cash was provided by operating activities? $281,000 $317,000 $301,000

$239,000 Allis Bank is offering you a credit card with an APR of 14.7 percent. The bank compounds interest monthly. What is the effective annual rate? a. 15.27 percent b. 15.42 percent c. 15.54 percent d. 15.73 percent A preferred stock is currently valued at $49 a share and pays an annual dividend of $4. The par value is $100 per share. What is the rate of return on this security? a. 8.16 percent b. 8.49 percent c. 9.67 percent d. 10.22 percent A bank may issue a credit memorandum for a bank service charge. the collection of a note receivable for the depositor by the bank. the cost of printing checks. an NSF (not sufficient funds) check from a customer. Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of 6 months or less when purchased. 1 year or less when purchased. 3 months or less when purchased. 1 month or less when purchased. Interest is usually associated with bad debts. doubtful accounts. accounts receivable. notes receivable. Which of the following would require a compound journal entry? To record the purchase of merchandise on account. To record sales on account.

To record purchases of inventory when a discount is offered for prompt payment. To record collection of accounts receivable when a cash discount is taken. If a company fails to record estimated bad debts expense, expenses are understated. cash realizable value is understated. receivables are understated. revenues are understated. Travis United has net income of $13,380 for 2010. On the firm's common-size income statement for 2010, the net income is shown as 15.3 percent. What is the amount of the firm's sales for 2010? $89,178 $2,047 $2,122 $87,451

A firm has a profit margin of 5.70 percent, a return on assets of 11.10 percent, and total sales of $403,000. What is the capital intensity ratio? 0.43 0.51 1.95 2.76 Kato's Corner has an average inventory balance of $41,400, total sales of $364,400, and cost of goods sold of $289,100. How long on average does it take the firm to sell its

inventory? 65.44 days 41.47 days 52.27 days 66.93 days Browning's, Inc. has a capital intensity ratio of 0.58, a profit margin of 5.80 percent, and a debt-equity ratio of 0.64. What is the firm's return on equity? 6.40 percent 16.40 percent 15.69 percent 7.61 percent The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the percentage of receivables and percentage of sales basis. direct write-off method. percentage of sales basis. percentage of receivables basis.

An aging of a company's accounts receivable indicates that $9,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a debit to Bad Debts Expense for $7,900. debit to Allowance for Doubtful Accounts for $7,900. credit to Allowance for Doubtful Accounts for $9,000. debit to Bad Debts Expense for $9,000.

7. Which one of the following is the correct definition of a coupon rate? (Points : 1) semi-annual interest payment/par value annual interest/par value annual interest/market value semi-annual coupon/bond price annual coupon/bond price 8. The rate of return an investor actually earns from owning a bond is called which one of the following? (Points : 1) market return realized yield annualized coupon yield maturity yield call yield 9. You are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.5 percent. Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds? (Points : 1) $10.51 $11.33 $11.52 $12.67 $12.88 10. A bond has a par value of $1,000, a market price of $1,012, and a coupon rate of 5.75 percent. What is the current yield? (Points : 1) 5.68 percent 5.71 percent 5.75 percent 5.78 percent 5.80 percent You are 22 years old today. You want to retire at age 55 and have $3 million at that time. Assume you can earn an average annual rate of return of 8.8 percent. Your hope is that you will win the lottery today and be able to fund your retirement dream with one lump sum deposit today. How much would you have to win, after taxes, to make an investment today sufficient to fund your dream? a. $175,000 b. $185,510 c. $190,267

You purchased a new sports car 38 years ago at a cost of $3,100. Today, you sold that car for $67,000. What annual rate of return did you earn on this vehicle? Question 17 answers a. 7.75 percent b. 8.05 percent c. 8.36 percent d. 8.42 percent Which one of the following statements is correct, all else held constant? a. There is an inverse relationship between the present value and the future value. b. The future value decreases as the time period increases. c. The interest rate is directly related to the present value. d. The present value increases as the time period decreases. Mark invested $5,000 this morning with City Bank at 4.2 percent interest, compounded annually. This afternoon, he discovered that he could have invested his money with Country Bank and earned 4.8 percent interest, compounded annually. How much additional interest could he have earned over the next 10 years if he had invested with Country Bank instead of City Bank? a. $361.92 b. $382.20 c. $428.69 d. $445.87 Your goal is to earn an annual salary of $75,000 three years from now. You expect to increase your salary by 3.5 percent annually. How much do you need to earn this year if you are going to reach your goal? a. $65,887 b. $67,646 c. $68,420 d. $70,311 Jones Hardware had common stock of $9,500 and retained earnings of $3,800 at the beginning of the year. At the end of the year, the common stock balance is $9,600 and the retained earnings account balance is $4,200. The net income for the year is $840. What is the retention ratio? Question 1 answers a. 40.48 percent b. 47.62 percent c. 59.52 percent d. 52.38percent

A firm has a debt-equity ratio of 0.60. What is the equity multiplier if total equity is $5,700? a. 0.40 b. 0.48 c. 1.40 d. 1.60 Which one of the following relationships is correct? Question 3 answers a. Equity multiplier = 1 Debt-equity ratio b. Total asset turnover = 1 + Capital intensity ratio c. Inventory turnover = Sales / Average inventory d. Return on equity = Return on assets Equity multiplier The Lighting Store has sales of $364,000, depreciation of $28,000, and taxable income of $58,000. The capital intensity ratio is 1.2, the debt-equity ratio is 0.45, and the tax rate is 34 percent. What is the return on assets? Question 4 answers a. 6.53 percent b. 7.21 percent c. 7.79 percent d. 8.76 percent Puzzles Galore has net income of $400, total assets of $2,600, total equity of $1,600, and dividends paid of $35. What is the sustainable rate of growth? Question 5 answers a. 29.55 percent b. 18.63 percent c. 11.98 percent d. 24.06 percent A __________ pricing objective is suitable for a company that has overcapacity, intense competition, and changing customer needs. A. maximum current profit B. survival C. maximum current revenue D. maximum sales growth Scotty is in the process of opening Suburban Legends SK8S to sell boards, wheels, trucks, clothing, videos, and skateboarding related collectibles. The first thing Scotty

should do when setting the stores prices is to ____________. A. estimate costs B. determine the target market C. select a pricing method D. select a pricing objective 22) A common mistake in pricing is ____________________. A. revising prices too often B. considering price and price competition as a key problem in marketing C. ignoring costs when setting prices D. setting prices independently of the rest of the market mix When customers buy on the basis of a reference price or because the price conveys a particular quality image to them, they are being influenced by ____________. A. value pricing B. the psychology of pricing C. the going rates of competitors D. value augmented by perception 24) Which of the following areas will a marketing manager standardize or adapt when taking a new product global? A. Marketing concept B. Marketing mix C. Product strategy D. Promotion strategy Which of the following best describes integrated marketing communication (IMC)? A. Organizations present a consistent message. B. Organizations present an effective communication plan. C. Organizations present a plan that focuses on the customer. D. Organizations present an effective advertising message. Which of the following best describes the role of social responsibility in marketing? A. Standards that guide marketing decisions and actions B. Improving environment and products C. Obligation to improve positive effects on society D. Obligation to improve positive effects and reduce negative effects on society Public policy makers have developed a substantial body of laws and regulations to govern advertising. For these reasons, an important step in developing an advertising

campaign is _____________. A. asking network censors what to cut out of the communication B. the creative development of the message C. the social responsibility review D. preparing a copy strategy statement Within the last couple years several cosmetics manufacturers have introduced nonclumping mascara. Revlon was one of these manufacturers. Revlon should use ________ advertising to increase selective demand for its non-clumping mascara. A. descriptive B. persuasive C. reminder D. informative Hospitals are engaged in intense competition to fill maternity beds. What type of advertising would hospitals most likely use to advertise their new amenities like hot tubs in every room, filet mignon or lobster on the menu, and afternoon teas for the new mothers and their families? A. descriptive B. persuasive C. reminder D. informative _____________ is the key ingredient in marketing campaigns and consists of a diverse collection of short-term incentive tools designed to influence trial, purchase, and interests of consumers and wholesalers. A. Advertising B. Public relations C. Sales promotion D. Personal selling Dell Computer attempts to collect information about customers before purchase and assemble customized product for the customer. This process tries to: reduce transactions costs for both Dell and the customer. reduce transactions costs for the customer only. increase transactions costs for Dell so that it can reduce taxable profits. increase transactions costs for customers so that IBM can sell send PCs also.

The learning effect is one form of: diversification. creating value through increasing transactions costs. creating value through stabilizing transactions costs. creating value through decreasing transactions costs.

An informal understanding about the quality of product components is a key to the relationship between most companies and their suppliers. This a good example of: an implicit contract. an explicit contract. a principal/agent conflict resolution. an adverse selection problem. If consumers find that there are substantial transactions costs to purchasing a product, then: overall consumer demand is greater at each price. overall consumer demand is the same at each price. overall consumer demand is less at each price. equilibrium price and quantity both fall. Game theory between two firms with two outcomes tends to emphasize: noncooperative games. cooperative games. intra-firms decision-making.

purely competitive outcomes In a small numbers environment, __________ is a useful managerial tool for considering rivals (competitors) responses to decision-making. game theory competitive market theory risk sharing theory intra-firm strategy While CEO of General Electric, Jack Welch, was a very successful corporate manager. He also loaded up his retirement program with numerous unusual benefits such as rented apartments, free airplanes, and numerous club memberships. The owners (stockholders) were generally unaware of these benefits. This conflict between owners and managers involved: choice of effort of Mr. Welch while he was CEO. perquisite taking on the part of Mr. Welch. differential risk exposure between Mr. Welch and the typical stockholder. overinvestment in company offices by Mr. Welch. The fast food industry from Back Yard Burgers to KFC promises good food delivered quickly. The value of the consumer's time: is less important than productions costs. Is a key component in creating value for the firm and the consumer. is usually so low that fast food is unimportant in the marketplace. must be discounted to make sure it is negative. For decision making for the firm with market power, fixed costs are: a key element in the markup. irrelevant.

the same as marginal costs. opportunity costs of production. Sealed bid construction contracts are examples of market games that are: simultaneous and non-repeated. simultaneous and repeated. sequential and non-repeated. sequential and repeated.

Adverse selection in bargaining comes from: lying to one party or another. principals in the bargaining process. agents in the bargaining process. asymmetric information held by the principal or agent

While very few markets are 'purely competitive' according to the strict economics definition, market analysts often use competition as the: benchmark from which to judge other market settings. standard of an inefficient market structure. market with poor entry and exit conditions. one market with typical asymmetry in information.

The market for micro-computers (PCs) is fairly competitive, the products are somewhat homogeneous, and over time firms have entered looking to make profits on new configurations of the micro-computer. Over time, profits:

have risen dramatically. have stayed about the same for most firms. have become razor thin for many producers. are not important since this industry is in the nonprofit sector.

The systematic collection, analysis, and reporting of data and findings relevant to specific marketing situations is called marketing research. A. True B. False Data published by the government and data purchased from outside suppliers can improve the quality of a company's marketing intelligence efforts A. True B. False _________is the difference between a prospective customer's evaluation of all the benefits and costs of an offering and the perceived alternatives. A. Total customer cost B. Customer perceived value C. Customer relationship management D. Customer delivered value Lowe's home improvement stores strive to have nicer, more knowledgeable salespeople, a better product selection, and to maintain an impeccable image. These are all part of improving the offer via___________ A. Reducing the buyer's nonmonetary costs B. Reducing the product's monetary costs to the buyers. C. Increasing total customer value D. Increasing the service value __________is likely to offer informal advice and information about a product or product category A. Primary reference group B. Aspirational reference group C. Diversity marketing program D. Opinion leader

Which factors have the broadest and deepest influence on consumer behavior? A. Personal B. Social C. Psychological D. Cultural Business buying behavior differs from consumer buying behavior in that___________ A. The buyers for the business market are typically more geographically dispersed than those for the consumer market and the demand for products and services in the consumer market is unaffected by price fluctuations. B. The demand for business goods and services is derived from consumer's final demand. C. Businesses buy products to accomplish a single goal, which varies by industry and business. D. Fewer people typically participate in or influence business buying decisions than in the consumer market. Toyota, the maker of the Scion brand, using what kind of brand strategy with Scion products? A. Separate family names B. Corporate names C. Individual names D. Blanket family name __________are formal statements of expected product performance by the manufacturer. A. Open pricing statements B. General guarantees C. Warranties D. Promotional statements When SAP software added a Windows-style "back" button to its industrial invoice management software, the new product_____________ A. Used a marketing diversification strategy B. Added to an existing product line C. Improved upon an existing product D. Used a new product line Which of the following best describes the category in which the offering's service mix is distinguished? A. Pure service B. Tangible good with accompanying services C. Hybrid D. Pure tangible good

Mr. Tse and his family took a vacation to Washington, D.C. While there, they bought souvenirs; t-shirts and hats to take home to family and friends who didn't have the opportunity to go. The experience of the Tse's is an example of which offering? A. A major service with accompanying minor goods and services B. A hybrid C. A pure service D. A tangible good with accompanying services The introduction of a new product to the market using market-penetration pricing is most likely to be successful when__________ A. The high price communicates nothing to potential buyers B. There must be no existing demand for the product C. The market is highly price sensitive D. The unit costs of producing a small volume of the product are high When Cyler goes to do his grocery shopping for the week he also likes to drop off his finished rolls of film and visit the bank at the same time. He would also like the idea of having a package mailing service to use while he is shopping. Cyler would enjoy doing his grocery shopping at a__________ A. Hypermarket B. Combination store C. Superstore D. Category killer Ayal and Zif argue that going into fewer countries is advisable when__________ A. Population and income size are high, and population growth is low in the initial countries chosen. B. Population, income size, and growth are high in the initial countries chosen. C. Population is low, and income size and growth are high in the initial countries chosen. D. Population, income size and growth are low in the initial countries chosen McDonald's franchisees get a small discount when they pay their bills for supplies within the first seven days (when the due date is 30 days after delivery). This is an example of____________ within channel relations. A. Territorial rights B. Price policies C. Sharing the risks D. Conditions of sale Which is the last major decision in international marketing? A. Deciding which markets to enter B. Deciding how to enter the market C. Deciding on the marketing program

D. Deciding on the marketing organization Assume you are advertising very expensive authentic Turkish carpets to upscale investors in Germany. Credibility and prestige are important. The best medium for your advertising message is___________ A. Direct mail B. Television C. Magazine D. Newspapers Which of the following is NOT a major mode of communications in the marketing communications mix? A. Events and experiences B. Advertising C. Sales promotion D. Satellite radio Bradford Soap, the second largest soap maker in the world, occasionally arranges tours of their plant in Warwick, Rhode Island. This is part of what kind of communications platform? A. Sales promotion B. Personal selling C. Public Relations D. Experiences Which of the following would NOT be considered part of a marketing communications program? A. Personal selling B. An event sponsorship C. Brand contact D. A sales promotion The last step in marketing research is developing the research plan A. True B. False Typically, companies budget about 11-12 percent of company sales for marketing research A. True B. False

Marketing information systems are developed from internal company records, marketing intelligence, and marketing research A. True B. False ___________is the difference between a prospective customers evaluation of all the benefits and costs of an offering and the perceived alternatives A. Customer delivered value B. Customer relationship management C. Customer perceived value D. Total customer cost Lowes home improvement stores strive to have nicer, more knowledgeable salespeople, a better product selection, and to maintain an impeccable image. These are all part of improving the offer via________ A. Increasing the service value B. Increasing total customer value C. Reducing the products monetary costs to the buyers. D. Reducing the buyers nonmonetary costs Lee is constantly begging his mother to buy him an iPod because the most popular kids at his school all have one. His mother contends that hell just break it or lose the music player if she buys it for him. For Lee, the most popular kids in his school are examples of a_______ A. Social class B. Demographic group C. Reference group D. Subculture Which factors have the broadest and deepest influence on consumer behavior? A. Cultural B. Personal C. Psychological D. Social Organizational buying is___________ A. The decision-making process by which organizations establish and satisfy their needs for goods and services. B. A process by which organizations recognize their needs for goods and services C. The practice of establishing strategic partnerships between manufacturers and their suppliers. D. A way a company can produce a greater variety of high-quality products at lower cost,

in less time, with less labor. __________consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to other customers A. Consumer market B. Business market C. Government market D. Institutional market Which of the following is NOT an advantage of co-branding? A. Generates additional sales from the existing target market B. Might contribute to overexposure of the brand C. Provides more opportunities with new customers D. Helps position new products __________is when a parent brand is used on a new product targeting a new market segment within a category currently served by the parent A. Category extension B. Joint-venture co-brand C. Line extension D. Same company co-brand In 2003, Toyota introduced its Scion brand with the aim of bringing younger buyers into the family. This was a classic example of _____________ A. Line padding B. Line featuring C. Line stretching D. Line cannibalization Mazdas Miata convertible originally drew the most interest from women between the ages of 35-55. In order to interest more potential customers in the roadster, Mazda beefed up the model with heavier shocks and a faster engine, and then emphasized performance in its advertising. This is an example of creating a new product by___________ A. Market diversification strategy B. Repositioning C. Product development strategy D. The development of a new product line Marketers plan their market offerings at five levels. What is the correct order of the levels, going from most fundamental to the level with the most benefits? A. Core-basic-expected-augmented-potential B. Basic-expected-augmented-core-potential C. Potential-augmented-expected-core-basic

D. Expected-potential-basic-augmented-core Characteristics a buyer can evaluate before purchase are called __________ A. Credence qualities B. Search qualities C. Differentiation qualities D. Experience qualities For $15 a day, Chlena will go to your home and feed, water, and play with your pet while you are on vacation. The service Chlena provides is an example of a____________ A. Pure service B. Tangible good with accompanying service C. Major service with accompanying minor goods and services D. Hybrid A common mistake in pricing is A. Ignoring costs when setting prices B. Revising prices too often C. Setting prices independently of the rest of the market mix D. Considering price and price competition as a key problem in marketing When introduced in the late 1970s, personal computers had large initial demand. People were interested in buying them to make writing and editing easier. The earliest simple PCs were initially priced around $2,500. The manufacturers of the first PCs were probably using a _________ pricing strategy A. Value-oriented B. Cost-oriented C. Market-penetration D. Market-skimming A __________ pricing objective is suitable for a company that has overcapacity, intense competition, and changing customer needs A. Maximum current revenue B. Survival C. Maximum sales growth D. Maximum current profit Convenience goods such as snack foods are sold through________________ A. Full-service B. Limited service C. Self-service D. Self-selection Because of Coca-Colas size and power in the marketplace, they tend to dominate some members in the channel. This allows them to require strong cooperation from resellers who carry Coke products. This is an example of a_______________

A. Corporate vertical marketing system B. Horizontal marketing system C. Contractual vertical marketing system D. Administered vertical marketing system Advertising for Advil pain reliever shows Advil is superior to Tylenol. This is an example of_____________ A. Reminder B. Persuasive C. Informative D. Descriptive The number of different persons exposed to a particular media schedule at least once during some specified time is the______________ of an advertisement. A. Reach B. Frequency C. Impact D. Iteration Abercrombie & Fitch could use __________ advertising to reduce the cognitive dissonance experienced by someone who recently purchased its brand of high-fashion, high-priced clothing and wonders if they got the value for their money A. Reinforcement B. Comparative C. Informative D. Persuasive _____________are the means by which firms attempt to inform, persuade, and remind customers about the products and brands they sell. A. Marketing communications B. Sales promotions C. Mass communications D. Brand images This is the use of mail, telephone, fax, email, or the Internet to communicate directly with or solicit a response or dialogue from specific customers or prospects A. Brand building B. Viral marketing C. Direct marketing D. Personal selling ___________marketing aims to build long-term, mutually satisfying relationships with key partiescustomers, suppliers, distributorsin order to earn and retain their longterm preference and business.

A. Behavioral response B. Transaction-oriented C. Relationship D. Business-to-business The first computers originated for home use were only sold in kit form to technical enthusiasts who did their own assembly. Demand was high and so were prices. At the time, the firm offering these kits would likely have been using the __________ concept A. Technological B. Market C. Production D. Product The computer _______________ consists of the manufacturers of computer memory chips, monitors, keyboards, coaxial cables, modems, software, storage systems (disks, hard drives, portable USB media), and those who install, repair, and maintain systems and software A. Macromarket B. Marketspace C. Marketplace D. Metamarket Which of the following is most closely associated with a proactive marketing orientation? A. Macromarket B. Marketspace C. Marketplace D. Metamarket _________is the key ingredient in many marketing campaigns and consists of a diverse collection of incentive tools, mostly short term, designed to stimulate trial, or quicker or greater purchase, or particular products or services by consumers or trade A. Sales promotion B. Personal selling C. Advertising D. Public relations Hospitals are engaged in intense competition to fill maternity beds. What type of advertising would hospitals most likely use to advertise their new amenities like Jacuzzis in every room, filet mignon or lobster on the menu, and afternoon teas for the new mothers and their families? A. Reminder B. Informative C. Descriptive D. Persuasive

Small companies can engage is marketing research in a number of creative and inexpensive ways, including _______________. A. Using an online information service such as the internet B. Using its own internal marketing research department C. Buying information from database companies like A.C. Nielsen D. Setting up their own web site Companies commonly use a three-stage procedure for preparing a sales forecast. This first step is to _______________. project the ability of supply to meet demand predict consumer spending trends prepare a macroeconomic forecast prepare an industry forecast prepare a microeconomic forecast Spotting trends is an important task for companies that wish to sell in the future. Which of the following is not a part of the approach used by experts at trend-spotting? searching through the trash of competitors seeing the future as an extension of the past analyzing the actions of customers and other stakeholders searching for cycles and patterns monitoring technological and social events as they unfold The major macroenvironmental forces include all of the following except _______________. socio-cultural demographic natural technological managerial Concern with the population age mix, ethnic markets, and household patterns fall within which of the following macroenvironments? demographic socio-cultural competitive technological natural Nations vary greatly in level and distribution of income and industrial structure. Which of the following is not a type of industrial structure referred to in the book? subsistence economies raw-material importing economies raw-material-exporting economies

industrializing economies industrial economies Which of the following is true regarding savings, debt, and credit availability around the world? U.S. consumers tend to save more of their income than do Japanese consumers. Lower-income borrowers tend to pay lower interest rates. U.S. consumers have a high debt-to-income ratio. U.S. consumers save more than 10 percent of their income. Credit is not very available in the United States. The U.S. Federal Food and Drug Administration must approve all drugs before they can be sold. This reflects the importance to marketers of which macroeconomic environment(s)? demographic and socio-cultural competitive natural technological and political-legal competitive and internal Which of the following is not one of the purposes for business legislation? to protect society from unbridled business practices to protect firms from unfair competition to protect consumers from unfair business practices to protect some competitors from being unfairly overrun by other competitors to protect against too much competition _______________ lobby government officials and pressure business executives to pay more attention to consumer rights, womens rights, senior citizen rights, minority rights, and gay rights. Political-action committees Cultural-action committees Environmental-action committees Green marketing committees Enterprising committees Marketing __________ is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. a. internally b. management c. segmentation d. training e. integration

2. The computer __________ consists of the manufacturers of computer memory chips, monitors, keyboards, coaxial cables, modems, software, storage systems (disks, hard drives, portable USB media), and those who install, repair, and maintain systems and software. a. marketplace b. macromarket c. metamarket d. marketspace e. micromarket Which is true? a. Marketers create needs. b. A persons need for food or shelter is a creation of marketers. c. Wants become needs when they are directed at specific objects that might satisfy the want. d. Needs pre-exist marketers. e. Demand strictly means desire for some object. __________ is a combination of quality, service, and price. a. The customer value triad b. The consumer cost-benefit ratio c. A customer satisfaction level d. Price-setting e. Benefit evaluation Which of the following is a part of the distribution channel for a producer of bottled water? a. The toll-free number it uses for customer orders. b. The print media that runs its advertisements. c. The retail store where bottled water is sold. d. The bank where it borrowed the money to purchase its filtration system. e. The insurance company that insures the company in the event of litigation. Intel, one of the largest producers of integrated circuit chips, puts a great deal of effort into expanding production of chips to drive down the cost and thus expand the market. This is most indicative of the __________ concept. a. production b. product c. customer d. marketing

e. societal Which of the following represents the product concept? a. Selling more products will allow for lower production costs and higher profits. b. It is both a proactive and a reactive form of marketing. c. It is a customer-centered, sense and respond philosophy. d. Consumers, if left alone, will not buy enough of the organizations product. e. A better mousetrap will lead people to beat a path to the marketers door. The holistic marketing concept rests on which four sets of forces? a. product, price, promotion, and place b. products, integrated marketing, sales volume, and competition c. customer needs, competition, sales volume, and profit d. internal marketing, socially responsible marketing, integrated marketing, and relationship marketing e. customer needs, target market, integrated marketing, and profitability When Caitlin Peterson began OldeTowne Spice Company, she had one product, an allpurpose seasoning mix called OldeTowne Special Blend for adding flavor to bland casseroles. She sold 5.5-ounce bottles of her seasoning mix for $6.95. Her only outlets were booths at craft fairs throughout the Northeast. She relied on word-of-mouth advertising and a few feature articles in regional newspapers to tell people about her product. The above describes OldeTowne Spice Companys __________. a. method of exchange b. transaction marketing c. marketing tactics d. marketing mix e. transfer marketing A complement to the 4 Ps has been proposed that centers on four customer dimensions. It is known as SIVA which stands for __________. a. standards, innovation, value, access b. status, innovation, volume, access c. solution, information, value, access d. status, information, volume, accepting e. solution, innovation, value, accepting The __________ holds that the organizations task is to determine the needs, wants, and interests of target markets so it

can satisfy customers more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys long-term well-being. a. customer is king concept b. societal marketing concept c. holistic marketing concept d. comparative advantage concept e. SWOT concept

You currently have $13,820 in your investment account. How long will you have to wait until your account is worth $24,000 if you can earn an annual return of 7.5 percent? Question 11 answers a. 7.63 years b. 7.78 years c. 8.04 years d. 8.28 years Your savings account is currently worth $4,600. The account pays 2.6 percent interest compounded annually. How much will your account be worth 3 years from now? Question 12 answers a. $4,922.56 b. $4,968.21 c. $4,978.91 d. $4,998.22 Alex wants to have $48,000 five years from now to buy a new car. He wants to make one deposit today to fund this expenditure. How much does he have to deposit if he can 4.8 percent per year on his savings? Question 13 answers a. $24,908.16 b. $35,255.20 c. $37,969.50 d. $38,211.40 Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They never added any additional money to this account. Today, the account is worth $25,814.66. What average annual rate of return did they earn on their investment? Question 14 answers a. 8.90 percent b. 8.96 percent c. 9.00 percent

d. 9.12 percent Suzie invested $700 with the Simpleton Bank 4 years ago. The bank pays 3 percent simple interest on its savings accounts. What is the total amount of interest she has earned on her account over the past 4 years? Question 15 answers a. $80.00 b. $82.19 c. $84.00 d. $87.86

You currently have $13,820 in your investment account. How long will you have to wait until your account is worth $24,000 if you can earn an annual return of 7.5 percent? Question 11 answers a. 7.63 years b. 7.78 years c. 8.04 years d. 8.28 years Your savings account is currently worth $4,600. The account pays 2.6 percent interest compounded annually. How much will your account be worth 3 years from now? Question 12 answers a. $4,922.56 b. $4,968.21 c. $4,978.91 d. $4,998.22 Alex wants to have $48,000 five years from now to buy a new car. He wants to make one deposit today to fund this expenditure. How much does he have to deposit if he can 4.8 percent per year on his savings? Question 13 answers a. $24,908.16 b. $35,255.20 c. $37,969.50 d. $38,211.40 Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They never added any additional money to this account. Today, the account is worth $25,814.66. What average annual rate of return did they earn on their investment? Question 14 answers

a. 8.90 percent b. 8.96 percent c. 9.00 percent d. 9.12 percent Suzie invested $700 with the Simpleton Bank 4 years ago. The bank pays 3 percent simple interest on its savings accounts. What is the total amount of interest she has earned on her account over the past 4 years? Question 15 answers a. $80.00 b. $82.19 c. $84.00 d. $87.86 A reasonable amount of uncollectible accounts is evidence that the credit policy is too lenient. of poor judgments on the part of the credit manager. that the credit policy is too strict. of a sound credit policy. Bad Debts Expense is reported on the income statement as a contra-revenue account. an operating expense. part of cost of goods sold. reducing gross profit. Which of the following statements is CORRECT? For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR. To find the MIRR, we first compound cash flows at the regular IRR to find the TV, and then we discount the TV at the WACC to find the PV. The NPV and IRR methods both assume that cash flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the MIRR itself. If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the higher IRR probably has more of its cash flows coming in the later years.

If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the lower IRR probably has more of its cash flows coming in the later years. Which of the following statements is CORRECT? Answer If a project with normal cash flows has an IRR greater than the WACC, the project must also have a positive NPV. If Project As IRR exceeds Project Bs, then A must have the higher NPV. A projects MIRR can never exceed its IRR. If a project with normal cash flows has an IRR less than the WACC, the project must have a positive NPV. If the NPV is negative, the IRR must also be negative.

Which of the following statements is CORRECT? The regular payback method recognizes all cash flows over a projects life. The discounted payback method recognizes all cash flows over a projects life, and it also adjusts these cash flows to account for the time value of money. The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today. The regular payback is useful as an indicator of a projects liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project. The regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect. Projects S and L both have an initial cost of $10,000, followed by a series of positive cash inflows. Project Ss undiscounted net cash flows total $20,000, while Ls total undiscounted flows are $30,000. At a WACC of 10%, the two projects have identical NPVs. Which projects NPV is more sensitive to changes in the WACC? Project S. Project L. Both projects are equally sensitive to changes in the WACC since their NPVs are equal at all costs of capital. Neither project is sensitive to changes in the discount rate, since both have NPV profiles that are horizontal. The solution cannot be determined because the problem gives us no information that can be used to determine the projects relative IRRs.

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A projects NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC. The lower the WACC used to calculate a projects NPV, the lower the calculated NPV will be. If a projects NPV is less than zero, then its IRR must be less than the WACC. If a projects NPV is greater than zero, then its IRR must be less than zero. The NPV of a relatively low-risk project should be found using a relatively high WACC. A Treasury bill matures in 81 days and has a bond equivalent yield of 2.79 percent. What is the effective annual rate? (Points : 1) 2.79 percent 2.82 percent 2.85 percent 2.88 percent 2.91 percent 2. Which one of the following is the interest rate that the largest commercial banks charge their most creditworthy corporate customers for short-term loans? (Points : 1) discount Federal funds prime bid call money 3. The approximate nominal interest rate is computed as the real rate: (Points : 1) minus the risk-free rate. minus the inflation rate. plus the risk-free rate. plus the inflation rate. divided by the inflation rate. 4. A Treasury bill matures in 73 days and has a bond equivalent yield of 4.18 percent. What is the effective annual rate? (Points : 1) 4.25 percent 4.47 percent 4.50 percent 4.54 percent 4.57 percent 5. A bond has a face value of $1,000 and a coupon rate of 5.5 percent. What is your annual interest payment if you own 8 of these bonds? (Points : 1)

$110 $220 $330 $440 $880 6. A 6.5 percent coupon bond has a face value of $1,000 and a current yield of 6.61 percent. What is the current market price? (Points : 1) $983.36 $989.18 $1,011.82 $3,933.43 $4,067.47 Two bases for estimating uncollectible accounts are: percentage of current assets and percentage of sales. percentage of receivables and percentage of sales. percentage of assets and percentage of sales. percentage of receivables and percentage of total revenue. Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $25,000. If the balance of the Allowance for Doubtful Accounts is $8,000 debit before adjustment, what is the amount of bad debts expense for that period? $33,000 $17,000 $25,000 $8,000 The sale of receivables by a business is an indication that the business is owned by a factor. is generally the major revenue item on its income statement. can be a quick way to generate cash for operating needs.

indicates that the business is in financial difficulty. A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables? The other expense section of the income statement will increase each time accounts are sold. The credit to Accounts Receivable is less than the debit to Cash when the accounts are sold. Selling expenses will increase each time accounts are sold. The loss section of the income statement will increase each time receivables are sold. The interest on a $2,000, 6%, 90-day note receivable is $60. $30. $90. $120. A note receivable is a negotiable instrument which takes the place of checks in a business firm. eliminates the need for a bad debts allowance. can be transferred to another party by endorsement. can only be collected by a bank. When a note is accepted to settle an open account, Notes Receivable is debited for the note's net realizable value. face value plus interest.

maturity value. face value. Which of the following are also called trade receivables? Other receivables Advances to employees Income taxes refundable Accounts receivable A company purchases a remote site building for computer operations. The building will be suitable for operations after some expenditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and recarpeted and there will also be some plumbing work done. Which of the following statements is true? The cost of the building will not include the repainting and recarpeting costs. The cost of the building will include the cost of replacing the roof. The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements. The wiring is part of the computer costs, not the building cost. All of the following factors in computing depreciation are estimates except useful life. cost. residual value. salvage value. Accountants do not attempt to measure the change in a plant asset's market value during ownership because the assets are not held for resale. plant assets cannot be sold. losses would have to be recognized. it is management's responsibility to determine fair values. In computing depreciation, salvage value is subtracted from accumulated depreciation to determine the plant asset's depreciable cost.

ignored in all the depreciation methods. the fair market value of a plant asset on the date of acquisition. an estimate of a plant asset's value at the end of its useful life. Useful life is expressed in terms of use expected from the asset under the declining-balance method. straight-line method. units-of-activity method. none of these. Management should select the depreciation method that has been used most often in the past by the company. is easiest to apply. best measures the plant asset's market value over its useful life. best measures the plant asset's contribution to revenue over its useful life. A change in the estimated useful life of equipment requires that income for the current year be increased. a retroactive change in the amount of periodic depreciation recognized in previous years. that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset. that the amount of periodic depreciation be changed in the current year and in future years. Additions and improvements typically only benefit the current accounting period. occur frequently during the ownership of a plant asset. increase the book value of plant assets when incurred. normally involve immaterial expenditures. If a plant asset is retired before it is fully depreciated, and no salvage or scrap value is received, a gain on disposal will be recorded. a loss on disposal will be recorded. phantom depreciation must be taken as though the asset were still on the books. no gain or loss on disposal will be recorded. On a balance sheet, natural resources may be described more specifically as all of the following except oil reserves. land improvements.

mineral deposits. timberlands. A patent should be amortized over its useful life or 20 years, whichever is longer. not be amortized if it has an indefinite life. be amortized over a period of 20 years. be amortized over its useful life or 20 years, whichever is shorter. Multiple Choice, Question 195 The balance in accumulated depreciation is deducted from plant and equipment on the balance sheet. generally not reported in the financial statements. deducted from intangible assets on the balance sheet. deducted from retained earnings in the stockholders' equity section of the balance sheet. Multiple Choice, Question 205 A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the book value of the asset sold. market value of the asset sold. salvage value of the asset sold. accumulated depreciation on the asset sold. Multiple Choice, Question 208 A purchased patent has a legal life of 20 years. It should be amortized over 20 years regardless of its useful life. amortized over its useful life if less than 20 years. expensed in the year of acquisition. not amortized. A truck was purchased for $120,000 and it was estimated to have a $24,000 salvage value at the end of its useful life. Monthly depreciation expense of $2,000 was recorded using the straight-line method. The annual depreciation rate is 8%. 2%. 25%. 20%.

Brown Stone Mills has total assets of $44,300, total equity of $26,700, net fixed assets of $31,810, and long-term debt of $12,490. What is the net working capital? $8,380 $7,180

$5,110 $7,380 The Night Raider purchased $119,000 worth of equipment when it started into business two years ago. Today, that equipment has been depreciated down to $87,200 but it could be sold for $95,800. The firm's balance sheet has total assets of $107,700. The net working capital is $4,390. The firm could liquidate its current assets today for $20,900. The book value of the firm's assets is _____ while the market value of those assets is _____. $103,310; $116,700 $107,700; $112,490 $107,700; $116,700 $103,310; $112,490 Last year, Denver Mountain Gear had net income of $139,800. The firm had 66,100 shares of stock outstanding and added $57,100 to its retained earnings. What was the dividend per share? $1.25 $1.68 $0.86 $2.11 Benson's Trucking has sales for the year of $427,400 and costs of $262,200. The tax rate is 34 percent. For the year, the firm paid $28,100 in dividends and added $32,700 to retained earnings. What is the amount of the depreciation expense? (Round your taxable income and final answer to the nearest whole number.) $73,079 $68,214 $77,606 $65,998 Which one of the following is NOT included in the term structure of interest rates? a. default premium b. inflation premium c. real rate What is the equivalent taxable yield if an investors taxable income is in the 28 percent marginal tax bracket and a municipal bond yields 4.5 percent? a. 3.24 percent b. 5.76 percent c. 6.25 percent d. 6.34 percent

Market interest rates and bond prices are: a. unrelated. b. inversely related. c. directly related. Waffles and More wants to raise $6.5 million by issuing 12-year, zero coupon bonds. The market requires a 9.3 percent return on similar bonds. The face value per bond will be $1,000. How many bonds must the firm issue? Ignore all issue and transaction costs. a. 17,680 bonds b. 19,349 bonds c. 21,333 bonds d. 24,867 bonds Last year, you earned 11.82 percent on your investments. During that time period, inflation averaged 4.8 percent. What was your real rate of return based on the Fisher formula? Question 20 answers a. 5.89 percent b. 6.23 percent c. 6.56 percent d. 6.70 percent Intel, one of the largest producers of integrated circuit chips, puts a great deal of effort into expanding production of chips to drive down cost and thus expand the market. This is most indicative of the__________concept A. Marketing B. Customer C. Production D. Product Which of the following is NOT true about the selling concept? A. The selling concept is practiced most aggressively with unsought goods. B. Firms tend to practice this selling concept when they have overcapacity C. It assumes that consumers must be coaxed into buying. D. It always takes into account the greater societal good. Rita Jenkins, president of the local Chamber of Commerce, had difficulty getting members to assist in running the organization. She felt it was because of lack of commitment to the Chamber. Her vice-president felt it was due to having too many meetings. The organizations secretary felt it was because there were several other

professional organizations to which the members also belonged. If Rita wants to do research to determine the real reason why members do not want to run for office, she should begin by__________ A. Developing the marketing research plan that she would employ B. Holding focus groups of members of other similar organizations to determine whether the problems the Chamber is facing are universal or local. C. Defining the problem D. Evaluating the advantages the Chamber officers over other similar organization. The step in the marketing research process that includes determining who will be sampled is to__________ A. Collect the information B. Make the decision based on the project outcomes C. Develop the research plan D. Define the problem and research objectives The second step in the marketing research process is_______________ A. Decision regarding the research tools and target group B. Collection of the available sources for information needed C. Define the problem and research objectives D. Development of the research plan Kristi has $23,000 in her investment account today. She saves $1,200 every year and earns 9 percent interest, compounded annually. How much money will she have in her account 6 years from now?

a. $38,217 b. $45,191 c. $47,601 d. $41,583

Jesse invested $200 at the beginning of each month for the last 22 years and earned 7 percent interest, compounded monthly. Carla invested $200 at the end of each month for the past 22 years and earned 7 percent interest, compounded monthly. Today, Jesse has

______ than Carla.

a. $728.75 less b. $813.02 less c. $728.75 more d. $813.02 more

You just won a prize and will receive $1,000 today plus $1,000 one year from now. What is this prize worth to you today if you can earn 6.5 percent annually on your investments?

a. $1,921.14 b. $1,938.97 c. $1,947.29 d. $1,193.50

Buster Company reported a net loss of $3,000 for the year ended December 31, 2007. During the year, accounts receivable decreased $7,000, merchandise inventory increased $5,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2007, operating activities: used net cash of $1,000 used net cash of $14,000 provided net cash of $14,000 provided net cash of $9,000 Stockholders are most interested in evaluating: liquidity solvency profitability marketability

Which of the following is most closely associated with a proactive marketing orientation? A. It involves delivering superior value. B. It is about understanding and meeting customers expressed needs. C. It represents the make and sell" philosophy. D. The marketer focuses on the customers latent or hidden needs. Marketing __________ is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A. internally B. management C. segmentation D. integration Business buyers ______________. A. are geographically as diverse as consumers B. tend to be geographically concentrated with over half of them in seven states C. are largely concentrated in the southwestern United States D. use geographical dispersion to keep shipping costs low Toyota, the maker of the Scion brand, is using what kind of brand strategy with Scion products? A. Separate family names B. Blanket family names C. Individual names D. Corporate names BMW, the maker of the Mini Cooper brand, is using what kind of brand strategy with its Mini products? A. Individual names B. Blanket family names C. Separate family names D. Corporate names Brands can play a number of specific roles within a companys brand portfolio. For example, a __________ is positioned with respect to competitors brands so that more important and profitable brands retain their desired positioning. A. cash cow B. low-end, entry level brand

C. high-end, prestige brand D. flanker When Apple introduced its popular iPod Nano model, it dropped its Mini iPod at the same time. The Mini was, at the time, the most popular MP3 player in the marketplace. This is an example of __________. A. brand extension B. preemptive cannibalization C. a brand shake-out D. product maturity A ___________ is when a parent brand is used on a new product targeting a new market segment within a category currently served by the parent. A. joint-venture co-brand B. same company co-brand C. category extension D. line extension 9) ___________ are formal statements of expected product performance by the manufacturer. A. Open pricing statements B. Promotional statements C. Warranties D. General guarantees Mazdas Miata convertible originally drew the most interest from women between the ages of 35 and 55. In order to interest more potential customers in the roadster, Mazda beefed up the model with heavier shocks and a faster engine, and then emphasized performance in its advertising. This is an example of creating a new product by ____________. A. repositioning B. the development of a new product line C. market diversification strategy D. product development strategy When SAP software added a Windows-style back button to its industrial invoice management software, the new product ___________. A. used a new product line B. added to an existing product line C. improved upon an existing product D. used a marketing diversification strategy

In 2003, Toyota introduced its Scion brand with the aim of bringing younger buyers into the family. This was a classic example of _________________. A. line featuring B. line cannibalization C. line padding D. line stretching Painting and consulting are considered industrial goods because ______________. A. they are specialty goods B. they are considered component materials" C. most firms do not seek them directly D. they facilitate developing and managing the finished product 14) Marketers plan their market offerings at five levels. What is the correct order of the levels, going from most fundamental to the level with the most benefits? A. Basic-expected-augmented-core-potential B. Expected-potential-basic-augmented-core C. Core-basic-expected-augmented-potential D. Potential-augmented-expected-core-basic Characteristics a buyer can evaluate before purchase are called _______________. A. search qualities B. experience qualities C. credence qualities D. differentiation qualities 16) For $15 a day, Chlena will go to your home and feed, water, and play with your pet while you are on vacation. The service Chlena provides is an example of a _____________. A. tangible good with accompanying service B. hybrid C. pure service D. major service with accompanying minor goods and services 17) Mr. Tse and his family took a vacation to Washington, D.C. While there, they bought souvenirs; t-shirts and hats to take home to family and friends who didnt have the opportunity to go. The experience of the Tse family is an example of which offering? A. A tangible good with accompanying services B. A hybrid

C. A pure service D. A major service with accompanying minor goods and services 18) Best Buy will often try to sell the buyer of a high-end television monitor an extended warranty. This is an example of _______________. A. pure tangible good B. tangible good with accompanying services C. hybrid D. pure service The introduction of a new product to the market using market-penetration pricing is most likely to be successful when _____________. A. the unit costs of producing a small volume of the product are high B. there must be no existing demand for the product C. the market is highly price sensitive D. the high price communicates nothing to potential buyers