Test Questions

Question 1

The single most important idea the company hopes to convey to its target audience about a product

Answer 1

core message

Question 2

Occurs when the role of an intermediary is taken over by manufacturers upstream or customers downstream

Answer 2

disintermediation

Question 3

T or F: The Federal Trade Commission is charged with investigating and penalizing advertisers who violate standards for truthful advertising

Answer 3

True

Question 4

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

Answer 4

shopping

Question 5

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 _________

Answer 5

manufacturer’s representative

Question 6

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

Answer 6

form

Question 7

If a television commercial encourages you to “ask your doctor” about a new prescription drug, the company is using a _____ strategy

Answer 7

pull

Question 8

T or F: The marketing concept emphasizes building a business by generating as many sales transactions as possible

Answer 8

False

Question 9

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 ________.

Answer 9

focus group

Question 10

When a marketing intermediary provides what customers need in a convenient place, they create ________ utility

Answer 10

place

Question 11

Supplies such as paper towels, cleaning compounds, light bulbs, and copy paper that are used in a company’s daily operations are considered ________ items

Answer 11

expense

Question 12

When a marketing intermediary is selling to individual consumers, it is functioning as a/an ________.

Answer 12

retailer

Question 13

The product continuum extends from _______ to ________.

Answer 13

tangible; intangible

Question 14

A “push strategy” is one in which the producer focuses on the ___________.

Answer 14

intermediaries

Question 15

The Nike “swoosh” is an example of a _________.

Answer 15

brand mark

Question 16

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 ______________.

Answer 16

social commerce

Question 17

T or F: Distribution channels and marketing channels are interchangeable terms

Answer 17

True

Question 18

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

Answer 18

comparative

Question 19

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 _____________.

Answer 19

stealth marketing

Question 20

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

Answer 20

business analysis

Question 21

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 _______________.

Answer 21

compensating balance

Question 22

Cash, marketable securities, and accounts receivable would be classified as ___________ on the company’s balance sheet

Answer 22

current assets

Question 23

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 _____________

Answer 23

fixed asset

Question 24

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.

Answer 24

False. $250,000 liabilities, $50,000 owners equity, $300,000 assets

Question 25

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.

Answer 25

current asset

Question 26

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.

Answer 26

debt

Question 27

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

Answer 27

False

Question 28

If a company uses ______ financing, it borrows money; if it uses ______ financing, it sells ownership shares in the company.

Answer 28

debt; equity

Question 29

If a company records revenue only when the money from the sale is received, it is using the _________ accounting method

Answer 29

cash basis

Question 30

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

Answer 30

duration

Question 31

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

Answer 31

secondary

Question 32

Agricultural products, petroleum, and metals are frequently bought and sold through ________ futures

Answer 32

commodities

Question 33

T of F: Investment banks assist high net-worth individuals in managing real estate, establishing trust funds, and planning philanthropic giving

Answer 33

False

Question 34

What is the likely effect of the Federal Reserve buying Treasury bonds or bills in open-market operations?

Answer 34

The money supply with increase

Question 35

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

Answer 35

bear

Question 36

T or F: The value assigned to each share of stock when it is first issued is known as its book value

Answer 36

False

Question 37

Which of the following types of banks offer services related to initial public offerings (IPOs)?

Answer 37

investment banks

Question 38

T or F: Bonds are typically higher-risk investments than stocks buy they have the potential for higher returns as well

Answer 38

False

Question 39

Non-bank institutions that specialize in making loans to business and consumers for a wide variety of purposes are known as ________.

Answer 39

finance companies

Question 40

T or F: The Fed sets the prime rate.

Answer 40

False