1) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovation process.
A. skunk works
B. new product “team”
C. stage-gate system
D. joint- venture system
E. venture team
2) A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
A. vertical system
B. product management system
C. marketing research system
D. marketing information system
E. marketing intelligence system
3) A(n) ________ is any good, service, or idea that is perceived by someone as new.
A. creative product
D. new idea
4) 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.
A. customer feedback systems
B. external networks
C. sales force surrogates
E. advisory panels
5) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
A. A marketing database
B. A marketing intelligence system
C. A marketing information system
D. A marketing research system
E. A promotional campaign
6) Most established companies focus on ________ when it comes to innovation.
A. competitive innovation
B. everyday innovation
C. incremental innovation
D. continuous innovation
E. demand innovation
7) ________ is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
A. Competitors market share rate
B. Report rating
C. Perceived usefulness
D. Failure avoidance rate
E. Customer perceived value
8) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents to reduce the product’s overall costs.
A. Experience curve
B. Target costing
C. Learning curve
D. Least cost producer
9) In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.
10) Marketers usually identify niches by ________.
A. producing products that can be used in a variety of ways
B. allowing consumers to gravitate toward product brands
C. dividing a segment into subsegments
D. conducting VALS tests
E. examining the demographics section of The Handbook of Marketing
11) Which of the following is generally considered to be the last step in the marketing research process?
A. Draft the report
B. Make the decision.
C. Analyze the information.
D. Control the environment.
E. Present the findings.
12) ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.
A. Marketing management
C. MIS (marketing information system)
D. Marketing research
E. Marketing intelligence
13) 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 ________.
A. sample supervisor—who will lead the sampling effort?
B. sampling procedure—how should the respondents be chosen?
C. surveyor skill—who will do the surveying?
D. sample security—how to protect the sample data?
E. sample cost—how much does sampling cost?
14) The marketing communications mix consists of six major modes of communications. Which of the following is NOT one of these modes?
C. Direct marketing
D. Sales promotions
E. Personal selling
15) Marketing communications can contribute to brand equity by establishing the brand in memory and to________ (in)a brand image.
B. create demand
C. create interest
16) ________ communicates a company’s intended value positioning of its product or brand to the market.
A. Physical evidence
17) 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?
A. Online buzz
B. Computer games
C. Unconventional sports
D. Cool events
E. Student ambassadors
18) New-to-the- world products are ________.
A. existing products that are targeted to new markets or market segments
B. new products that provide improved performance or greater perceived value and replace existing products
C. new products that allow a company to enter an established market for the first time
D. new products that supplement established product lines (package sizes, flavors, and so on)
E. new products that create an entirely new market
19) 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.
A. full market coverage
B. market specialization
C. selective specialization
D. product specialization
E. single-segment concentration
20) Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products.
D. over the Internet
21) 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. contend with dwindling customer bases
B. aggressively pursue take over strategies
C. dominant the manufacturers they do business with
D. aggressively “squeeze” manufacturer margins
E. aggressively pursue market expansion and diversification strategies
22) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom line.
23) 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.
C. franchise/acquire rights
D. license/receive permission
24) John Kotter’s view argues that management focuses on coping with complexity, whereas leadership focuses on coping with _____.
25) Leadership is best defined as _____.
A. the ability to influence a group in goal achievement
B. implementing the vision and strategy provided by management
C. coordinating and staffing the organization and handling day-to-day problems
D. keeping order and consistency in the midst of change
E. not a relevant variable in modern organizations
26) Which of the following is NOT included in the definition of conflict?
B. something that is cared about
C. negative effects
D. disruption of tasks
27) Negotiation can be defined as a process in which two or more parties exchange goods or services and attempt to agree upon _____.
A. the exchange rate for those goods and services
B. a model of the negotiation process for resolving differences
C. effective arbitrators for disputes
D. acceptable bargaining strategies for obtaining the goods and services
E. the monetary value of the exchanged items
28) _____ bargaining is negotiation that seeks to divide a “fixed pie.”
29) Which of the following statements about leadership is true?
A. leaders are managers.
B. managers are leaders.
C. leaders are hierarchically superior to followers.
D. Formal rights enable managers to lead effectively.
E. Nonsanctioned leadership is as important as or more important than formal influence.
30) 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?
31) _____ can be used to increase the perception that employees are treated fairly.
A. Selective evaluation
B. Multiple raters
C. Documenting with a journal
D. Due process
E. Focusing on subjective evaluations
32) Examples of off-the-job training include all of the following except _____.
A. classroom lectures
B. public seminars
C. Internet courses
E. apprenticeship programs
33) Training employees how to be better listeners falls under which of the following training categories?
A. ethical skills
B. interpersonal skills
C. problem-solving skills
D. cultural skills
E. technical skills
34) Which type of skill training has become increasingly important in organizations?
C. problem solving
35) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S. corporations receive ethics training.
36) Organizational structure has six key elements. Which of the following is not one of these elements?
C. work specialization
D. location of authority
37) Which of the following is not a primary force for change in organizations?
B. social trends
C. decreasing skill sets
D. the nature of the workforce
E. economic shocks
38) The “realistic” personality from Holland’s typology of personality and congruent occupations would be well suited for which of the following jobs?
39) What term is used for the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors?
A. fundamental attribution error
B. selective perception
E. self-serving bias
40) A task that is subdivided into many separate jobs is considered to have _____.
A. a high degree of departmentalization
B. a low degree of structure
C. a high degree of work specialization
D. a high degree of matrix structuring
E. a low degree of decentralization
41) Under exponential smoothing, if we want our forecast to be responsive to recent demand, the value of alpha should be:
42) Which of the following would NOT be classified as a time-series technique?
A. simple moving average
B. regression model
C. box Jenkins technique
D. trend projections
E. exponential smoothing
43) According to David Maister, the most complex projects requiring innovation and creativity are called _________.
A. “procedures” projects
B. “grinding” projects
C. “brain surgery” projects
D. “gray hair” projects
44) Goldratt's rule of production scheduling include all but:
A. Do not balance the capacity - balance the flow
B. Utilization and activation of a resource is not the same thing
C. Priorities can be set only by examining the system's constraints
D. An hour saved at a non-bottleneck is a mirage
E. A process batch should be fixed both along its route and in time
45) If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.
A. capacity-constrained resource, bottleneck
B. capacity-constrained resource, drum
C. none of these answers
D. bottleneck, capacity constrained resource
46) “Hard” capital rationing refers to the rationing __________.
A. imposed by external factors
B. imposed internally by the shareholders
C. always imposed by debt holders
D. always imposed by competitors
47) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets or to develop derivatives or design arrangements that enable firms to cope better with the risks they face in their foreign operations.
A. The Principle of Risk-Return Trade-off
B. The Principle of Diversification
C. The Principle of Valuable Ideas
D. The Principle of Capital Market Efficiency
48) __________ says to recognize the value of hidden options in a situation, such as the foreign exchange options in some derivative instruments.
A. The Options Principle
B. The Principle of Comparative Advantage
C. The Time Value of Money Principle
D. The Principle of Two-Sided Transactions
49) Under capital rationing, given the choice among several equally attractive investments, the best tool to use is the __________.
A. Internal Rate of Return method
B. Payback method
C. Net Present Value method
D. Profitability Index method
50) An all-equity-financed firm would __________.
A. not pay any income taxes because interest would exactly offset its taxable income.
B. pay corporate income taxes because it would have interest expense.
C. pay corporate income taxes if its taxable income is positive
D. not pay corporate income taxes because it would have no interest expense.
51) __________ says to seek out investments that offer the greatest expected risk-adjusted real return.
A. The Principle of Incremental Benefits
B. The Signaling Principle
C. The Principle of Valuable Ideas
D. The Principle of Self-Interested Behavior
52) A checking account is __________.
A. a place to “collect” money between inflows and outflows
B. an account that acts like a reservoir
C. useful because you can add money in any amount
D. all of these
53) Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is _________.
C. being sold by insiders
D. caught up in a bear market
54) Which of the following statements is true?
A. The Principle of Capital Market Efficiency says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.
B. The Behavioral Principle suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.
C. The Signaling Principle says to consider any possible change in capital structure carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstood.
D. all of these
55) Which of the following statements is true?
A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.
B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.
C. The Time Value of Money Principle advises to include any time-value-of-money tax benefits from capital structure choices.
D. all of these
56) __________ says to recognize the value of options contained in derivatives.
A. The Principle of Valuable Ideas
B. The Capital Market Efficiency Principle
C. The Principle of Comparative Advantage
D. The Options Principle
57) __________ says to use derivatives to pay others to take risks.
A. The Principle of Two-Sided Transactions
B. The Signaling Principle
C. The Principle of Self-Interested Behavior
D. The Principle of the Time Value of Money
58) The conversion price (for a convertible security) is usually adjusted __________.
A. for a new debt offering.
B. for stock splits.
C. for cash dividends.
D. all of these
59) The investment decision best addresses which of the following questions?
A. Should we buy new equipment?
B. Should debt be short-term?
C. Should we increase our advertising budget?
D. Should we borrow in a foreign currency?
60) Dimensions of risk include __________.
A. uncertainty about the future outcome
B. the impossibility of the same return
C. uncertainty about yesterday’s outcome
D. the certainty of a negative outcome
61) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________.
A. lack of diversification
B. less risk
C. greater risk
62) You do a study and find out that, on average, stock prices for firms decrease 3% for every 5% decrease in inside ownership. You are watching the nightly business report and find out that Magic Tape’s stock has announced that insiders have sold 10% of their holdings. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. If markets are at least semi-strong form efficient, what would you expect?
A. You would expect Magic Tape to close at $28 the day of the announcement.
B. You would lose $1,800.
C. You would lose $2.00 per share
D. You would lose $4,000.
63) Which of the following is not an advantage of going public?
A. Going public enables a firm to raise additional capital.
B. Going public generally brings a lower price in the public market than in the venture capital or private placement markets.
C. Going public achieves liquidity and diversification for current shareholders
D. Going public gives existing shareholders a chance to sell portions of their shares as part of the IPO giving them a cash return on their investment and allows them to diversify their investment portfolios.
64) Which of the following is not an advantage of going public?
A. Going public makes the common stock negotiable and creates a visible market value.
B. Going public increase the firm's equity financing flexibility.
C. Going public makes it easier for a firm to acquire other firms in exchange for shares of its stock.
D. Going public makes securities worth more because of their decreased liquidity.
65) 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:
Product Sales Value at Split-off Processing Costs after Split-off Sales Value 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 _____.
A. should be processed further to increase profits by $6,500.
B. should be processed further to increase profits by $19,000.
C. an be processed further or sold at split off; there is no difference in profit.
D. should be sold at split off since processing further would only reduce profits by $6,500.
66) Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
A. Income would decrease by $4,000.
B. Income would increase by $70,000.
C. Income would increase by $20,000
D. Income would increase by $4,000.
67) Transfer-pricing systems exist to _____.
A. encourage managers to purchase goods and services internally
B. maximize worldwide taxes, duties, and tariffs
C. evaluate segment performance
D. all of these answers are correct
68) Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?
A. Theory of constraints.
B. Activity-based costing.
C. Total-quality management
D. Just-in-time inventory.
69) The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is
A. subtracted from the "Make" costs.
B. Added to the "Make" costs.
C. added to the "Buy" costs.
D. none of these
70) Which of the following does not appear as a separate section on the cash budget?
A. Cash receipts
B. Capital expenditures
D. Cash disbursements
71) Important factors considered by sales forecasters include all of the following except _____.
A. past patterns of sales
B. the desired level of sales
C. marketing research studies
D. competitors’ activities
72) Effectiveness is indicated by _____.
A. sales-activity variances
B. all of these answers are correct
C. static-budget variances
D. flexible-budget variances
73) Beginning cash balance plus total receipts
A. equals ending cash balance.
B. is the excess of available cash over disbursements.
C. must equal total disbursements.
D. equals total available cash.
74) A cost which remains constant per unit at various levels of activity is a
A. variable cost.
B. manufacturing cost.
C. fixed cost.
D. mixed cost.
75) A variable cost is a cost that
A. varies per unit at every level of activity.
B. may or may not be incurred, depending on management's discretion.
C. occurs at various times during the year.
D. varies in total in proportion to changes in the level of activity.
76) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break even are
77) For an activity base to be useful in cost behavior analysis,
A. the activity should always be stated in dollars.
B. the activity level should be constant over a period of time.
C. there should be a correlation between changes in the level of activity and changes in costs.
D. the activity should always be stated in terms of units.
78) Identify which statement about "currently attainable standards" is NOT true.
A. They allow for normal spoilage and nonproductive time.
B. Employees usually view these goals as reasonable.
C. Because they allow for waste, they usually result in favorable variances.
D. They represent projections of what will probably be attained.
79) Joint costs are incurred _____.
A. before the production process is started
B. after the process-further decision
C. before individual products are separately identified
D. after the split-off point but before the process-further decision
80) The last step in activity-based costing is to
A. assign manufacturing overhead costs for each activity cost pool to products.
B. identify the cost driver that has a strong correlation to the activity cost pool.
C. compute the activity-based overhead rate per cost driver.
D. identify and classify the major activities involved in the manufacture of specific products.
81) In a process cost system,
A. a Work in Process account is maintained for each product.
B. one Work in Process account is maintained for all the processes, similar to a job order cost system.
C. a materials requisition must identify the job on which the materials will be used.
D. a Work in Process account is maintained for each process.
82) The proprietorship form of business organization
A. must have at least two owners in most states.
B. is classified as a separate legal entity.
C. generally receives favorable tax treatment relative to a corporation.
D. combines the records of the business with the personal records of the owner.
83) Identify which one of the following statements is false.
A. Owners’ equity solely represents the profits made by an organization in the current period.
B. Assets are economic resources that are expected to benefit future cash inflows or reduce future cash outflows.
C. Liabilities are economic obligations or claims against the assets of an organization by outsiders.
D. Assets must always equal the sum of liabilities and owners’ equity.
84) 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?
A. ability to raise capital for expansion
B. desire to limit the owner’s personal liability
C. the prestige of operating as a corporation
D. the ease in transferring shares of the corporation’s stock
85) _____ are sections of the balance sheet.
A. Revenues, assets, and liabilities
B. Assets, liabilities, and expenses
C. Expenses, revenues, and owners’ equity
D. Assets, liabilities, and owners’ equity
86) Although the U.S. has had a longstanding agreement with ___________, after the passage of NAFTA, _________ became the United States' second largest trading partner.
A. Canada, Venezuela
B. Canada, Mexico
C. Mexico, Canada
D. Mexico, Venezuela
E. Great Britain, Paraguay
87) Diversity training programs are generally intended to provide a vehicle for _____.
A. focusing on individual differences
B. increasing awareness and examining stereotypes
C. eliminating group learning
D. socializing otherwise unmanageable employees
E. balancing work/life conflicts
88) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?
89) Which of the following is not one of the Caux Round Table Principles for International Business?
A. Support for Multilateral Trade.
B. Avoidance of Illicit Operations.
C. Promotion of Multiculturalism.
D. Responsibility of Business Beyond Shareholders Toward Stakeholders.
E. Respect for the Environment.
90) One study found that manufacturing labor costs about ___ an hour in China, compared to ____ dollars in the United States.
A. About $2; about 15
B. Less than $1; about 15
C. Less than $1; about 25
D. Less than $1; about 40
E. $2; about 25
91) Which of the following is correct about litigating commercial disputes?
A. Commercial disputes, because of their specialized nature, are first heard at the appellate court level.
B. Nearly all states have specialized trial courts that hear commercial disputes.
C. A few states have established specialized trial courts for commercial disputes.
D. In all states, commercial disputes must be heard in a limited-jurisdiction court.
E. 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.
92) Which article of the United States Constitution deals with the judicial power of the federal government?
A. Article II.
B. Article I.
C. Article III.
D. Article V.
E. Article IV.
93) When an economist says that the demand for a product has increased, this means that:
A. quantity demanded is greater at each possible price.
B. firms make less of the product available for sale.
C. consumers respond to a lower price by buying more.
D. the demand curve becomes steeper.
94) When movie ticket prices increase, families tend to spend less time watching movies and more time at home watching videos instead. This best reflects:
A. diminishing marginal utility.
B. the income effect.
C. the rationing function of markets.
D. the substitution effect.
95) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A. digital, e-commerce
B. e-commerce, digital
C. digital, physical
D. physical, digital
E. physical, financial
96) Which of the following is NOT a function of functional area information systems?
A. supports the managerial tasks of planning, organizing, and controlling operations
B. provides information mainly in the form of reports
C. provides information to managers in the functional areas
D. provides data from business events to the corporate database
E. provides analysis capabilities to middle level managers and staff
97) The Global, Web-Based Platform enables individuals to do which of the following?
A. access information, services, and entertainment
B. exchange knowledge
C. connect, compute, communicate, collaborate, and compete everywhere and all the time
D. produce and sell goods and services
E. all of these answers are correct
98) Companies normally budget marketing research at ________ percent of company sales.
A. 2 to 3
C. 1 to 2
E. 10 to 12
99) The assignment of numbers or symbols to a property of objects according to value or magnitude is called _____.
100) A ________ has been defined as being a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.
A. marketing intelligence system
B. marketing decision support system
C. marketing information system
D. marketing research system
E. database management system
STR 581 A+