Professional Documents
Culture Documents
should never be run since they crowd out investment in the short run.
are better than budget deficits over the long run because unlike budget deficits, they
increase saving and investment.
should be run on a permanent basis since they boost saving and investment and
stimulate economic growth.
Which of the following will decrease the nominal deficit?
An increase in taxes
it must be buying more assets from foreigners.
the median age of Asian, African, and Hispanic Americans is much higher than that of
White Americans.
the number of ethnic consumers is growing at a much faster rate than the overall society
they make a clear segment with similar backgrounds and common language, religion,
and culture.
7
Segmenting, in contrast to combining,
tries to identify homogeneous submarkets and develop different marketing mixes for
each submarket.
relies more on promotion appeals and minor product differences to create general
customer appeal among several submarkets.
8
Cargill, Inc. is finally earning a profit on the unique product it introduced 6 months
ago. Cargills advertising is both informative and persuasive. Much money is being
spent on place development. There is little price competition, although several
competitors have come out with reasonable imitations. Total industry sales and profits
are both rising. In which stage of the product life cycle is Cargill operating?
Market growth
Market introduction
Sales decline
Market maturity
al Printing Equipment (NPE) produces equipment that helps to print newspapers and
magazines. The company sells directly to printers and through wholesalers. Its
salespeople negotiate prices with individual customers and often have to match
competitors prices. NPE has a new product, the Gutenberg NP201, with some
competitive advantages now, but competitors are expected to follow quickly with similar
products. The new product is being introduced into a market with elastic demand. In
regard to freight charges for its equipment, NPEs invoice reads, Seller pays the cost of
loading equipment onto a common carrier. At the point of loading, title to such products
passes to the buyer, who assumes responsibility for damage in transit, except as covered
by the transportation agency.
National Printing Equipments new Gutenberg NP201 should probably use
________________.
price fixing
skimming pricing
introductory pricing
penetration pricing
The main reason that vertical marketing systems are becoming more common is that
firms realize that working independently has advantages for channel members.
it is easy for multiple firms to coordinate a single marketing mix for a common target
market.
firms recognize that coordination among channel members can increase sales for each
channel member.
11
__________ is the intentional coordination of every communication from a firm to a
target customer to convey a consistent and complete message.
Online marketing
Digital marketing
Product positioning
12
Which of the following statements about ethical behavior in business is true?
Bonds
Common stock
Preferred stock
The Oviedo Thespians are planning to present performances of their Florida Revue on
two consecutive nights in January. It will cost them $5,000 per night for theater rental,
event insurance, and professional musicians. The theater will also take 10% of gross
ticket sales. How many tickets must they sell at $10.00 per ticket to break even?
1000 tickets
1,112 tickets
1,223 tickets
$5,790
$11,574
$9,210
$17,010
P. Noels Inc.s current ratio is 2. Current liabilities are $500,000. P. Noels current
assets equal __________ and net working capital is __________.
$890,177
$1,351,351
$1,500,000
$2,527,587
18
Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of
common equity. Metals Corp.s after-tax cost of debt is 5.25%, preferred stock has a
cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metals
Corp.s weighted average cost of capital?
12.78%
10.84%
8.32%
6.56%
19
Which of the following is the most important factor that affects a firms financing mix?
the economies of many countries are growing faster than that of the U.S.
raw materials are typically cheaper in other countries than in the U.S.
21
H&R Block wants to analyze its clients tax returns over the past 10 years for each of
the clients tax filings. The type of data generated will be ______________.
cross-sectional data
observation data
meta data
22
Suppose Stock A has had a mean price of $6.58 per share with a standard deviation of
$1.88, while Stock B has had a mean price of $10.57 per share with a standard deviation
of $3.02. Which stock shows a higher coefficient of variation or volatility?
Stock A
Stock B
6 and 7
Ho: > 185 lbs.
0.481
0.333
0.387
0.269
26
A correlation value of r = 0.5 between the x-variable and y-variable means
24.63
3.17
2.99
25
28
A distribution center for a chain of electronics supply stores fills and ships orders to
retail outlets. A random sample of orders is selected as they are received and the dollar
amount of the order (in thousands of dollars) is recorded, and then the time (in hours)
required to fill the order and have it ready for shipping is determined. A scatterplot
showing the times as the response variable and the dollar amounts (in thousands of
dollars) as the predictor shows a linear trend. The least squares regression line is
determined to be: y= 0.76 +1.8x. A plot of the residuals versus the dollar amounts
showed no pattern, and the following values were reported: Correlationr + 0.90; R 2 =
0.81; standard deviation of the residuals is 0.48. What percentage of the variation in the
times required to prepare an order for shipping is accounted for by the fitted line?
76%
48%
81%
90%
29
Which of the four basic financial statements adds net income and subtracts dividends to
arrive at its key data element at the end of each period?
Balance Statement
Income Statement
30
What principle dictates that efforts (expenses) be recorded with results (revenues)?
Cost principle
Periodicity principle
Service Revenue
Supplies
Prepaid Insurance
Accumulated Depreciation
If XYZ Co. had 100 units of beginning inventory valued at $15 per unit in January,
purchased an additional 100 units of inventory in February at $16 per unit, and
additional 100 units of inventory in May at $19 per unit, what would the unit cost of
ending inventory be under each of the three inventory methods (assuming that XYZ
only sold 79 units during this time frame)?
$19 under FIFO, $15 under LIFO, $17 under average cost
$15 under FIFO, $19 under LIFO, $17 under average cost
$19 under FIFO, $15 under LIFO, $16.6 under average cost
$15 under FIFO, $19 under LIFO, $16.6 under average cost
34
Mitch Companys ending inventory is understated by $4,000. The effects of this error on
the current years cost of goods sold and net income, respectively, are
Make an adjusting entry by subtracting the debit balance from the required balance.
Make an adjusting entry by adding the debit balance to the required balance.
Create a second allowance for doubtful accounts balance with a credit balance.
37
Penn Corp. acquired a truck to haul widgets between its manufacturing facility and its
sales offices. Penn acquired the truck for $55,000. Penn sold the truck years later for
$15,000. Before the year of the sale, Penn had depreciated the asset by $32,000. Penn
depreciated the truck by another $2,000 during the year it was sold. Does Penn record
gain or loss on the sale and how much?
Loss of $17,000
Loss of $19,000
Gain of $8,000
Gain of $6,000
38
In what situations are notes payable used in lieu of accounts payable?
To give the lender formal proof of the obligation, for collection of debt purposes, and to
require the borrower to pay interest
To provide short-term financing, for collection of debt purposes, and to pay off the debt
quicker
To create better credit, incur liability over a shorter time frame, and acquire additional
financing for different lines of business
Because other financing is not available, to facilitate business relationship with other
companies, and to improve goodwill
39
In the stockholders equity section of the balance sheet, the cost of treasure stock is
Retained earnings
Depreciation expense, gain on the sale of plant assets, and increase in current liability
account
Patent amortization expense, increase in current asset account, and decease in current
asset account
Depletion expense, loss on the sale of plant assets, and patent amortization expense
Gain on the sale of plant asset, increate in current asset account, and decrease in
current liability account
41
In horizontal analysis, each item is expressed as a percentage of the following:
Andersons supervisor asks him to inflate income for the current period to make the
company appear more profitable.
Anderson records income using the cash basis of accounting, contrary to GAAP.
Anderson causes $200 in ABC, Inc. merchandise to be shipped to him for free.
43
Strategic management involves the _________, directing, _________ and controlling of a
companys strategy-related decisions and actions.
financing; marketing
planning; financing
marketing; planning
planning; organizing
44
The DMAIC (define, measure, analyze, improve, control) process is relevant to
CCC21.
balanced scorecard.
Six Sigma.
45
Identifying and assessing a companys resource strengths and weaknesses and its
external opportunities and threats is called a __________________.
SWOT analysis
provide avenues for taking market share away from close rivals.
47
Organizational requirements to support and sustain cost leadership are
tradition of closeness to key customers.
leaders principle
mission
leaders vision
strategic intent
50
The overriding goal of a control system is to enable the __________ and __________ of
the business.
improvement, diversification
process, development
invention, entrepreneurship