Final Exam in STR581 Capstone Course

Power prices use price as a key strategic tool. These power prices have discovered the highly ________ effect of price on the bottom line.

A. direct 

B. dramatic 

C. soothing

D. Leveraged 

E. abrasive

Some intermediaries use the following: strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and ________.

A. dominant the manufacturers they do business with 

B. contend with dwindling customer bases 

C. aggressively pursue market expansion and diversification strategies

D. aggressively pursue take over strategies

E. aggressively “squeeze” manufacturer margins

Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products.

A.  similar

B. identical 

C. commodity-type 

D. over the Internet

Major retailer types include the following EXCEPT ________.

A.           the Internet

B.           specialty store

C.           superstore

D.           catalog showroom

E.            discountstore

Following the ________ approach to target market selection encompasses a strong knowledge of the segment’s needs, a strong market presence, and operating economies through specializing in production, distribution, and promotion.

selective specialization

market specialization

full market coverage

product specialization

single-segment concentration

To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who “get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family.” Which of the following techniques for reaching Generation Y are the Foo Fighters using?

Unconventional sports

Computer games

Online buzz

Cool events

Student ambassadors

A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ________ or _________ from another company.

license/receive permission

franchise/co-brand

franchise/acquire rights

license/franchise

New-to-the- world products are ________.

new products that allow a company to enter an established market for the first time

new products that provide improved performance or greater perceived value and replace existing products

existing products that are targeted to new markets or market segments

new products that supplement established product lines (package sizes, flavors, and so on)

new products that create an entirely new market

The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is ________.

1.logistics can become a nightmare

2.competitors can easily copy any new product introductions

3.e-commerce becomes difficult for the company

4.the product may be supplanted by an entirely new technology

5.no synergy exists

Which of the following statements best defines a work group?

A work group interacts primarily to share information, rather than to engage in work that requires joint effort.

A work group consists of 3 or more people from across departmental or functional lines.

A work group is a group comprised of 10 or more people

A work group consists of 3 or more people who take on self-supervising responsibilities.

The performance of a work group is generally greater than the sum of its inputs from individual members.

The traditional view of conflict is the belief that conflict is _____.

 

natural

situationally-dependent

neutral

necessary

harmful

Which of the following is NOT included in the definition of conflict?

disruption of tasks

negative effects

incompatibility

something that is cared about

perceptio

Which of the following statements about leadership is true?

Formal rights enable managers to lead effectively.

leaders are hierarchically superior to followers.

Nonsanctioned leadership is as important as or more important than formal influence.

managers are leaders.

leaders are managers

bargaining is negotiation that seeks to divide a fixed pie.

Integrative

Affective

Conjunctive

Reflective

Distributive

Danielle wants to become a surgeon, not only because achieving this goal will give her self-respect and autonomy, but also because she wants a job with high status and recognition from others. Which of Maslow’s needs is Danielle trying to fill?

social

psychological

safety

esteem

self-actualization

Which of the following qualities is NOT found in work groups?

security

energy

objectives

enthusiasm

synergy

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

marketing research system

marketing intelligence system

vertical system

product management system

marketing information system

Is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Perceived usefulness

Customer perceived value

Competitors market share rate

Report rating

Failure avoidance rate

is any good, service, or idea that is perceived by someone as new.

product

creative product

new idea

innovation

A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.

sales force surrogates

advisory panels

customer feedback systems

external networks

intermediaries

Most established companies focus on ________ when it comes to innovation.

incremental innovation

demand innovation

competitive innovation

everyday innovation

continuous innovatio

consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

A marketing information system

A promotional campaign

A marketing database

A marketing intelligence system

A marketing research system

The value proposition consists of a cluster of benefits the company promises to deliver; it is

customer expectations

Customer loyalty to the company

business processes

total customer satisfaction

customer experience with the company

Purchase decisions are based on how consumers perceive prices and what they consider to be the ________ price—not the marketer’s stated price.

current sale price

current actual

referent price

last purchased price

consists of a group of customers who share a similar set of needs and wants.

market segment

market target

market level

market slice

market group

Marketers usually identify niches by ________.

examining the demographics section of The Handbook of Marketing

dividing a segment into sub-segments

producing products that can be used in a variety of ways

allowing consumers to gravitate toward product brands

conducting VALS test

Which of the following is generally considered to be the last step in the marketing research process?

Make the decision.

Present the findings.

Draft the report

Control the environment.

Analyze the information.

is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Demographics

Marketing intelligence

Marketing management

Marketing research

MIS (marketing information system)

With respect to the sampling plan, three decisions must be made. The decisions are: the sampling unit—who is to be surveyed? Sample size—how many people should be surveyed? And ________.

sampling procedure—how should the respondents be chosen?

sample cost—how much does sampling cost?

sample supervisor—who will lead the sampling effort?

sample security—how to protect the sample data?

surveyor skill—who will do the surveying?

communicates a company’s intended value positioning of its product or brand to the market.

Promotion

Packaging

Physical evidence

Place

Price

A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break even are

$150,000.

$600,000.

$144,000.

$480,000.

A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income?

$420,000.

$234,000.

$126,000.

$306,000

At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit?

$16.00.

$11.50.

Not enough information

$43.50.

The last step in activity-based costing is to

identify and classify the major activities involved in the manufacture of specific products.

compute the activity-based overhead rate per cost driver.

identify the cost driver that has a strong correlation to the activity cost pool.

assign manufacturing overhead costs for each activity cost pool to products.

A well-designed activity-based costing system starts with

assigning manufacturing overhead costs for each activity cost pool to products.

computing the activity-based overhead rate.

analyzing the activities performed to manufacture a product.

identifying the activity-cost pools.

Identify which of the following statements about perfection standards is true.

They usually result in unfavorable variances.

They are expressions of the most efficient performance possible.

It is generally believed that they have a negative influence on employee morale.

All of these answers are correct

In a process cost system

a Work in Process account is maintained for each process.

a materials requisition must identify the job on which the materials will be used.

one Work in Process account is maintained for all the processes, similar to a job order cost system.

a Work in Process account is maintained for each product.

 

are profitability ratios.

Earnings per share and dividend yield

Dividend payout and rate of return in invested capital

Price earnings and current ratio

Gross profit rate and return on sale

The _____ is not one of the three major financial statements.

balance

income statement

statement of equity position

statement of cash flows

Financial statements are helpful to predict the future performance of a company for all of the following reasons except _____.

financial statements are required to give formal projections of management’s assessment of the next period’s financial results

the assets and liabilities of a company provide clues to a company’s future prospects

past performance is often a good indicator of future performance

the evaluation of management’s past performance gives clues to its ability to generate future return

A local retail shop has been operating as a sole proprietorship. The business is growing and now the owner wants to incorporate. Which of the following is not a reason for this owner to incorporate?

ability to raise capital for expansion

the ease in transferring shares of the corporation’s stock

the prestige of operating as a corporation

desire to limit the owner’s personal liability

Which country does the text describe as becoming the largest producer and consumer of many of the world’s goods?

Japan

Ecuador

China

Mexico

Canada

Which of the following might a company consider to help employees address work-life conflicts?

keeping work-related travel reasonable

relocation assistance

tie manager pay to customer satisfaction

offering off-site quality child-care

reducing workloads

Which of the following is not one of the Caux Round Table Principles for International Business?

Avoidance of Illicit Operations.

Responsibility of Business Beyond Shareholders Toward Stakeholders.

Respect for the Environment.

Promotion of Multiculturalism.

Support for Multilateral Trade.

One study found that manufacturing labor costs about ___ an hour in China, compared to ____ dollars in the United States

Less than $1; about 15

Less than $1; about 40

$2; about 25

Less than $1; about 25

About $2; about 15

Diversity training programs are generally intended to provide a vehicle for _____.

increasing awareness and examining stereotypes

socializing otherwise unmanageable employees

balancing work/life conflicts

eliminating group learning

focusing on individual difference

Which of the following is correct about litigating commercial disputes?

Nearly all states have specialized trial courts that hear commercial disputes.

In all states, commercial disputes must be heard in a limited-jurisdiction court.

Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business.

A few states have established specialized trial courts for commercial disputes.

Commercial disputes, because of their specialized nature, are first heard at the appellate court level

Which article of the United States Constitution deals with the judicial power of the federal government?

Article I.

Article V.

Article IV.

Article III.

Article II.

When an economist says that the demand for a product has increased, this means that:

quantity demanded is greater at each possible price.

the demand curve becomes steeper.

consumers respond to a lower price by buying more.

firms make less of the product available for sale.

When movie ticket prices increase, families tend to spend less time watching movies and more time at home watching videos instead. This best reflects:

diminishing marginal utility.

the substitution effect.

the rationing function of markets.

the income effect.

Which of the following is NOT a function of functional area information systems?

provides information to managers in the functional areas

provides analysis capabilities to middle level managers and staff

provides data from business events to the corporate database

provides information mainly in the form of reports

supports the managerial tasks of planning, organizing, and controlling operation

The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.

physical, financial

digital, e-commerce

physical, digital

digital, physical

e-commerce, digital

is the integration of economic, social, cultural, and ecological facets of life, enabled by

information technologies.

globalization

regionalization

business environment

nationalizatio

A _____ scale is a scale that scores an object or property without making a direct comparison to another object or property.

Sorting

Rating

Recording

Categorization

Ranking

The quartile deviation is:

In squared units of the original data.

The square root of the variance.

Appropriate only for symmetric distributions.

Based on the middle 50 percent of the observations.

Marketing research is now about a ________ billion industry globally.

$10

$21.5

$7.5

$16.5

$5

An investor’s risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?

1.Selling any stock in this portfolio will lower the beta of the portfolio.

2.An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).

3.Each stock in the portfolio will have a beta greater than one.

4.Each stock in the portfolio has its own beta.

Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is _________.

1.overvalued

2.caught up in a bear market

3.being sold by insiders

4.undervalued

Says to seek out investments that offer the greatest expected risk-adjusted real return.

1.The Signaling Principle

2.The Principle of Self-Interested Behavior

3.The Principle of Valuable Ideas

4.The Principle of Incremental Benefits

Under capital rationing, a good tool to use is the __________.

•payback method

•PI method

•NPV method

•IRR method

__________ says that if you transfer risk to another party, you must offer a return that fully compensates for the amount of risk transferred.

•The Principle of Self-Interested

•The Principle of Incremental Benefits

•The Risk-Return Trade-Off Principle

•The Behavioral Principle

A key variable covered in our text for the Black-Scholes OPM is __________.

•the riskless APR with continuous compounding

•dividends.

•EPS.

•transaction costs.

According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________.

greater risk

less risk

diversification

lack of diversification

According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________.

greater risk

less risk

diversification

lack of diversification

Which of these investments would you expect to have the highest rate of return for the next 20 years?

anybody’s guess 

intermediate-term U.S. government bonds

long-term corporate bonds

U.S. Treasury bills

The conversion price (for a convertible security) is usually adjusted __________.

1.for a new debt offering.

2.for stock splits.

3.for cash dividends.

4.all of these

Which (if any) statement is false?

1.The Principle of Self-Interested Behavior suggests that self-interested capital market transactions force market prices toward being fair prices.

2.The Principle of Two-Sided Transactions states that intense capital marketcompetition to get and use information to take advantage of arbitrage opportunities eliminates such opportunities.

3.The Principle of Signaling states that information in the transactions of others can be valuable, such as providing an accurate measure of currentmarket value, or information about expected future value.

4.none of these answers are correct.

Which of the following is (are) true?

1.The Principle of Capital Market Efficiency states that differences between financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level.

2.The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency.

3.The Principle of Valuable Ideas states that new ideas can provide value when first introduced, even in an efficient capital market.

4.all of these answers are correct.

A transfer price exists when two segments of the same organization sell _____.

•the same service to competitors

•a product in a foreign country

•a service to each other

•a product to the same customer

Incremental analysis would be appropriate for

•acceptance of an order at a special price.

•a retain or replace equipment decision.

•a sell or process further decision.

•all of the answers are correct

Undertaker Corporation has a joint process that produces three products: P, G, and A.

Each product may be sold at split-off or processed further and then sold.  Joint processing costs for a year amount to $25,000. Other relevant data are as follows:

Processing

Sales Value         Costs after          Sales Value

Product                at Split-off           Split-off                at Completion

P                             $62,000 $5,000   $88,000

G                             12,500   6,500     19,000

A                             9,400     5,000     12,000

Product G _____.

1.an be processed further or sold at split off; there is no difference in profit.

2.should be processed further to increase profits by $19,000.

3.should be sold at split off since processing further would only reduce profits by $6,500.

4.should be processed further to increase profits by $6,500.

It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?

•$30,000 increase

•$6,000 decrease

•$4,000 decrease

•$4,000 increase

Which of the following does not appear as a separate section on the cash budget?

1.Financing

2.Capital expenditures

3.Cash disbursements

4.Cash receipts