Test Questions Flashcards
The single most important idea the company hopes to convey to its target audience about a product
core message
Occurs when the role of an intermediary is taken over by manufacturers upstream or customers downstream
disintermediation
T or F: The Federal Trade Commission is charged with investigating and penalizing advertisers who violate standards for truthful advertising
True
When you purchased your last TV, you likely spent a fair amount of time looking at different models and comparing prices before you made your purchase. Marketers categorize this purchasea as a/an _______ product
shopping
Dan works for a company that sells food service equipment from several different manufacturers to customers in Michigan, Wisconsin, Indiana, and Illinois. Dan is a _________
manufacturer’s representative
When a supermarket provides fresh, ready-to-eat dishes as an alternative to buying all of the ingredients needs to make dinner, it is creating _______ utility
form
If a television commercial encourages you to “ask your doctor” about a new prescription drug, the company is using a _____ strategy
pull
T or F: The marketing concept emphasizes building a business by generating as many sales transactions as possible
False
Eight women participated in a panel discussion on hotels and resorts. The facilitator asked the women what differentiated hotel and resort accommodations and what amenities they want in a hotel when they vacation. These women were participating in a/an ________.
focus group
When a marketing intermediary provides what customers need in a convenient place, they create ________ utility
place
Supplies such as paper towels, cleaning compounds, light bulbs, and copy paper that are used in a company’s daily operations are considered ________ items
expense
When a marketing intermediary is selling to individual consumers, it is functioning as a/an ________.
retailer
The product continuum extends from _______ to ________.
tangible; intangible
A “push strategy” is one in which the producer focuses on the ___________.
intermediaries
The Nike “swoosh” is an example of a _________.
brand mark
You can read product reviews about your intended purchase at Amazon.com and then post you own reviews after you’ve used the product. This would be an example of ______________.
social commerce
T or F: Distribution channels and marketing channels are interchangeable terms
True
The commercial for Bounty Paper Towels shows how Bounty absorbs a spill faster than the competitor’s paper towel. This is an example of ___________ advertising
comparative
Sony hired actors in different cities to approach strangers and ask them to take their picture with a new picture phone. The actors would then tell the stranger about the benefits of the new phone and encourage them to buy one for themselves. This is an example of _____________.
stealth marketing
At Grandma’s Cooking Company, a team was assigned to forecast sales, estimate costs of products, and evaluate profit projections for its new line of country-style gravies. This is the _________ stage of new product development
business analysis
Before Garden Grove Bank will loan money to Blackstone Properties to buy new snow removal equipment, it requires Blackstone to maintain a minimum amount of money on deposit at its bank for as long as the loan is outstanding. This is known as a/an _______________.
compensating balance
Cash, marketable securities, and accounts receivable would be classified as ___________ on the company’s balance sheet
current assets
Neimann Manufacturing has recently purchased a new wave soldering machine for its factory. On its balance sheet, this machine would be classified as a/an _____________
fixed asset
T or F: John has a business and he has borrowed $250,000 to purchase a building. The building has a market value of $300,000. Assuming this building is the only thing of value that the company owns, the total amount of the company’s liabilities is $50,000.
False. $250,000 liabilities, $50,000 owners equity, $300,000 assets
Spice Company has just shipped product to a customer along with an invoice for $7,165 – which is due within 60 days. This amount would be shown as a/an _______ on Spice Company’s balance sheet.
current asset
In order to purchase and renovate a historic Victorian home near the downtown area, Blackstone Properties has arranged for a $1.2 million line of credit through Garden Grove Bank and Trust. This would be an example of _________ financing.
debt
T or F: The document that outlines the funds a firm will need for a certain period of time, along with the sources and intended uses of those funds is known as a budget
False
If a company uses ______ financing, it borrows money; if it uses ______ financing, it sells ownership shares in the company.
debt; equity
If a company records revenue only when the money from the sale is received, it is using the _________ accounting method
cash basis
Two types of risk that are considered by lenders loaning money to business are: the financial stability of the borrower and the ________ of the loan
duration
If you wanted to buy 100 shares of Apple Computer (a publicly traded company that has already had their initial public offering), you would purchase these shares in the _________ market
secondary
Agricultural products, petroleum, and metals are frequently bought and sold through ________ futures
commodities
T of F: Investment banks assist high net-worth individuals in managing real estate, establishing trust funds, and planning philanthropic giving
False
What is the likely effect of the Federal Reserve buying Treasury bonds or bills in open-market operations?
The money supply with increase
During 2008, the Dow Jones Industrial Average (DJIA) fell from a high of 13, 058 in April to a low of 8,515 in December. This would show that it was a ________ market
bear
T or F: The value assigned to each share of stock when it is first issued is known as its book value
False
Which of the following types of banks offer services related to initial public offerings (IPOs)?
investment banks
T or F: Bonds are typically higher-risk investments than stocks buy they have the potential for higher returns as well
False
Non-bank institutions that specialize in making loans to business and consumers for a wide variety of purposes are known as ________.
finance companies
T or F: The Fed sets the prime rate.
False
