Final Ch 16-20

Question 1

Integrated marketing communication (IMC)

Answer 1

A technique that combines all the promotional tools into one comprehensive and unified promotional strategy

Question 2

Advertising

Answer 2

Paid, no personal communication through various media by organizations and individuals who are in some way identified in the advertising message

Question 3

Steps In the Selling Process

Answer 3

1) Prospect and Qualify- researching those who would be most likely to buy and those who need the product
2) Pre-approach- learn as much as possible about customers wants and needs
3) Approach- first impression with the customer
4) Make a presentation- match benefits to customers wants and needs
5) Answer objections - resolving doubts
6) Close the sale- wrap up the deal
7) Follow up- make sure customer is happy with result later on

Question 4

Business to consumer sales process

Answer 4

1) Approach
2) Ask questions
3) Make presentation
4) Close sale
5) follow up

Question 5

Public Relations (PR)

Answer 5

The management function that evaluated public attitudes, changes policies and procedures to Public’s requests, and executes information to earn public understanding and acceptance.

Question 6

Publicity

Answer 6

Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller.

Question 7

Sales promotion

Answer 7

The promotional tool that stimulates consumer purchasing and dealer interest by means of short term activities.

Question 8

Accounting

Answer 8

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.

Question 9

Financial statement

Answer 9

A summary of all the transactions that have occurred over a period of time.

Question 10

Balance sheet

Answer 10

Financial statement that reports a firms financial condition at a specific time and is composed of three major accounts: assets, liabilities, and owners equity.

Question 11

Statement of cash flows

Answer 11

Financial statement that reports cash receipts and disbursements related to a firm’s three major activities; operations, investments, and financing.

Question 12

Income statement

Answer 12

The financial statement that shows a firm’s profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm (expenses), and the resulting net income or loss.

Question 13

Fundamental accounting equation

Answer 13

Assets= Liabilities + Owners equity; the basis for the balance sheet.

Question 14

Net income/loss

Answer 14

Revenue left over after all costs and expenses, including taxes, are paid.

Question 15

Revenue

Answer 15

The monetary value of what a firm received for goods sold, services rendered, and other payments

Not same as sales (includes other monetary receivables)

Question 16

Profit

Answer 16

Revenue minus expenses, before taxes

Question 17

Annual report

Answer 17

A yearly statement of the financial condition, progress, and expectations of an organization.

Question 18

Finance

Answer 18

The function of business that acquires funds for the firm and manages those funds within a firm.

Question 19

Most common reasons a form fails financially

Answer 19

1) under capitalization
2) poor control over cash flows
3) inadequate expense control

Question 20

Financial management

Answer 20

The job of managing a firm’s resources so it can meets its goals and objectives

Question 21

Financial planning

Answer 21

Analyzing short term and long term money flows to and from the firm to optimize the firm’s profitability and make the best use of its money.

Question 22

Cash flow forecast

Answer 22

Forecast that predicts the cash inflows and outflows in future periods

Question 23

Short term forecast

Answer 23

Predicts revenues, costs, and expenses for a period of one year or less.

Question 24

Long term forecast

Answer 24

Predicts revenues, costs, and expenses for a period longer than one year .

Question 25

Security markets

Answer 25

Financial marketplaces for stocks, bonds, and other investments

Question 26

Stock exchange

Answer 26

An organization whose members can buy and sell securities for companies and investors.

Question 27

Common stock

Answer 27

Most basic form of ownership in a firm; it confers voting rights and the right to share profits through dividends, if offered by the firm’s board of directors.

Question 28

Preferred stock

Answer 28

Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and assets are sold.

Question 29

Money

Answer 29

Anything that people generally accept as payment for goods and services.

Question 30

Standards for a useful form of money

Answer 30

Portability, divisibility, stability, durability, and uniqueness

Question 31

Federal Reserve

Answer 31

The organization in charge of money in the United States

Question 32

Commercial banks services

Answer 32

Demand deposit (checking account)

Time deposit (savings account) requires prior notice to withdrawals

Certificate of Deposit (time deposit with interest delivered on a specific date)

Question 33

How governments protect our money

Answer 33

FDIC

SAIF- the part of the FDIC that insures holders of accounts in savings and loan associations

NCUA- provides the 250,000 per individual per institution in insurance

Question 34

FED district banks

Answer 34

San Francisco, Minneapolis, Chicago, St Louis, Kansas City, Dallas, Atlanta, Cleveland, Boston, New York, Pennsylvania

Question 35

Typed of Government Securities

Answer 35

US government bond

T- Bill - matures in less than a year

Treasury note- matures in 10 years or less

Treasury bond- matures in 25 years or more

Municipal bond- issued by states, cities, and counties ( exempt to federal taxes)

Yankee bond- issued by foreign government paid w US dollars.