________ refer(s) to intermediaries that sell products to other intermediaries for resale or to organizations for internal use.
Producers rely on a class of intermediaries called value-added resellers (VARs) to assist with which of the following functions?
Completing product solution
Which of the following is a defining characteristic of manufacturers' representatives?
Selling various non-competing products to customers in a specific region
Which of the following is a defining characteristic of distributors?
They take ownership, but not physical possession, of the goods they handle
Which of the following is an example of disintermediation?
A manufacturing firm supplies its products directly to the retailers, instead of selling them to the wholesaler
________ refers to an evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price-sensitive shoppers and are replaced by a new generation of leaner, low-price competitors.
wheel of retailing
________ refers to a type of specialty store that focuses on specific products on a massive scale and dominates retail sales in respective products categories.
Off-price retailers differ from discount stores in that off-price retailers ________.
off-price merchandise is bought from manufacturers with excess inventory at prices below wholesale price. while discount buys at full wholesale price, they just take less of a markup.
If a product requires significant technical skills to sell and support, what type of distribution process would be used?
Exclusive distribution/internal sales force
Why is a slotting allowance required by retailers with limited shelf space?
Help offset the financial risk of bringing new products
Market coverage refers to ________.
Number of wholesalers or retailers that will carry a product
Intensive distribution differs from selective distribution in that intensive distribution ________.
intensive tries to place a product in as many outlets as possible, while selective uses a few selected customers in a territory.
________ refer(s) to the coordinated use of multiple modes of transportation, particularly with containers that can be shipped by truck, rail, and sea.
How does logistics create competitive advantage, and therefore become a key strategy for companies?
Planning movement, flow of goods and related information throughout the supply chain; it creates cost efficiencies
What is the goal of the physical distribution process?
More finished products from the producer to the consumer, customer satisfaction with product.
Which of the following is the advantage of shipping a product by air?
Speed across long distances
The conventional promotion model differs from the social model of customer communication in that the conventional promotion model ________.
Tends to be intrusive and unidirectional. "we talk you listen", "lets have a convo"
Push strategy differs from pull strategy because in push strategy a producer ________
Focuses on intermediaries
________ refers to a creative tactic designed to capture the audience's attention and promote preference for the product or company being advertised.
Which of the following is an advantage of using newspapers as an advertising media?
Extensive local market coverage, low cost, credibility, geographic selectivity, short lead time for placing ads.
Which of the following is an advantage of product placement as an advertising medium?
It offers a way to get around viewers' advertising filters.
- 22) Which of the following is a disadvantage of using fixed web (from stationary computers) as an advertising media?
very low click-through rates, extreme degree of audience fragmentation, increasing clutter (pop up ads), not portables, ad-blocking software can prevent ads from being displayed,
- 23) Direct marketing differs from advertising in that direct marketing ________.
personally addressable (letters, email, messages), doesn't involve the purchase of time or space in other media, direct response.
- 24) If a company asks its customers or website visitors to opt-in to its mailing lists, it is using ________.
permission based email marketing
- 25) One of the advantages of direct marketing is the ability to experiment and improve the process, because of direct marketing's ________.
- 26) What is the advantage to using personal selling over website or direct marketing programs?
live chat, build relationships, and solve problems
- 27) What is the next step for a salesperson after beginning a conversation with the customer?
understanding the customers specific needs
- 28) ________ refer to printed or electronic certificates that offer discounts on particular items and is/are redeemed at the time of purchase.
- 29) Free or bargain-priced items offered to encourage consumers to buy a product are termed as ________.
- 30) Which of the following is an in-store presentation that can boost sales by as much as 50 percent over previous sales rates for mass merchandise stores?
- 31) Word-of-mouth marketing is often called ________.
- 32) Consumers who are united by their interest in, and ownership of, a particular product have created ________.
- 33) Which of the following is a key difference between financial accounting and management accounting?
Financial accounting creates information for outsiders, whereas management accounting is for insiders.
- 34) Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing, employee benefits, and business acquisitions?
- 35) Which of the following terms refers to a formal evaluation of the fairness and reliability of a client's financial statements?
- 36) How do banks and suppliers use the accounting information generated by an organization?
to determine creditworthiness, Suppliers, banks, and other parties want to know whether a business is creditworthy; shareholders and other investors are concerned with its profit potential; government agencies are interested in its tax accounting.
- 37) What must public accountants obtain before they are eligible to conduct a company's audit?
CPA's and state licensing certification
- 38) The ________ oversees GAAP compliance in the United States.
Financial accounting standards boards(FASB)
- 39) The Sarbanes-Oxley Act outlaws ________.
loans by corporations to their own executives/directors
- 40) Most countries outside of the United States use ________ to standardize their accounting practices.
International financial reporting standards(IFRS)
- 41) A company has the following assets: (1) Fixed assets worth $30,000 and (2) investments worth $6,000. The company's total liabilities amount to $25,000. What is the owner's equity of the company?
- 42) The ________ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period.
- 43) To analyze a firm's financial strengths in terms of its overall assets and liabilities, which of the following reports is best suited to estimate this on a particular date?
- 44) Which of the following is an example of a fixed asset?
long term use land, buildings, machinery, and equipment
- 45) Which of the following reports is best suited to analyze an organization's profitability over a period of time?
- 46) Expenses incurred through marketing and distributing a product are referred to as ________ expenses.
- 47) A firm has $30,000 cash, in addition to other current assets, amount to $55,000. The total amount of current liabilities add up to $50,000. Calculate the total working capital of this firm. Working capital= Current assets-current liabilities.
- 48) Which of the following ratios is used to measure a firm's short-term liquidity?
- 49) Leverage ratios indicate ________.
the extent to which the venture has used debt and its ability to meet debt obligations.
- 50) A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.
sales are slowing down
- 51) What type of stock minimizes risk as much as possible for the investor, but has a slower growth?
- 52) Stocks that sell for less than one dollar per share or stocks that are highly speculative are called ________ stocks.
- 53) The price at which the stock is actually selling is referred to as its ________ value.
- 54) ________ ratio is calculated by dividing the market value per share by the dividend paid on each share of stock.
- 55) The maturity date is the date on which ________.
the corporation is to repay the money borrowed from bondholders.
- 56) A call provision allows the issuer to ________.
pay off its bonds prior to their maturity date for an amount greater than par value, or repurchase the bond before maturity
- 57) The commission charged by a fund when selling the mutual funds to investors is referred to as ________.
- 58) ________ funds attempt to maintain a desirable balance of risk and growth potential based on a planned retirement date.
- 59) What is the advantage of buying a mutual fund over other types of investments?
simplifying decision making
- 60) A(n) ________ is the purchased right, without obligation, to buy or sell a specified number of shares of a stock or other security during a specified period of time.
- 61) What is a contract formed with a supplier to buy specific amounts of agricultural produce at a later date?
- 62) To guard against variations in exchange rates, companies that conduct business in multiple countries often speculate in ________.
- 63) Stock exchanges are organizations that ________.
facilitate the buying and selling of stock
- 64) In what way is a bond market different than a stock market?
Most trading is done over the counter in a bond market, unlike the stock market, in which most buying and selling is coordinated by organizations
- 65) A stop order is an order to sell a stock when ________.
its prices fall to a particular point
- 66) Money serves as a ________ when it is used to measure the value of goods and services.
unit of accounting
- 67) In the money supply, what represents the cash held by the public and money deposited in checking accounts?
- 68) When the Federal Reserve buys or sells U.S. Treasury bonds, bills and notes, it is influencing the money supply through ________.
open market operations
- 69) The Federal Reserve establishes the federal funds rate and influences the money supply by buying and selling Treasuries in the open market. If the Fed buys Treasuries, the money supply will ________ and the federal funds rate will ________.
- 70) Which of the following federal actions has the goal of reducing the money supply in markets?
The Federal Reserve raises the discount rate.
- 71) The ________ is the federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails.
Federal deposit insurance corporation
- 72) The Fed decides to increase the reserve requirements on the deposits of banks. This would ________.
reduce the money supply
- 73) ________ banking refers to a range of banking services for high-net-worth individuals and families, such as managing real estate and other investments.
- 74) ________ are non-bank companies that initiate loans on behalf of a mortgage lender in exchange for a fee.
- 75) A ________ is a market situation in which frenzied demand for an asset pushes the price of that asset far beyond its true economic value.
- 76) What effect will lower interest rates have on the housing market?
Consumers will be able to afford larger mortgages.
- 77) A home loan offered to a borrower with a low credit score, with loan-to-value at 80 percent, is an example of a(n) ________.
- 78) The ________ concept played a large role in risky and/or fraudulent subprime mortgage loans because lenders could make such loans and then use credit default swaps to avoid the consequences by passing the risk on to another party or institution.
- 79) ________ refers to a situation in which a lender takes possession of a home after the borrower defaults on his or her mortgage payments.
- 80) Which of the following is a major provision of the Dodd-Frank Act?
Taxpayers should not bail out companies as no company is too big to fail. Dodd-Frank seeks to prevent bailouts of individual firms, although it allows the government to make moves to support the overall banking industry if needed.