Which of the following work on commission, do not take title to the goods they sell, and serve as sales reps to manufact
urers who need them?
Ans: agents and brokers
Which distribution channel is used by companies like Goodyear and Kroger?
Ans: producer to retailer to consumer
Which type of store would you most likely find shoes, furniture, women's, and men's specialized sections?
Ans: department store
__________ are the fastest and most expensive transportation mode.
Ans: Planes
____________ carry more freight than any other transportation mode.
Ans: Railroads
A distribution channel is
Ans: a network of independent companies through which a product passes from producer to end-user.
Which of the following carries no inventory and never handles the product, but does take title to it?
Ans: drop shipper
The type of nonstore marketing used by Tupperware, Amway, and Avon is
Ans: direct selling.
In ____________, information about the seller's products and services is connected to customer's computers allowing co
nsumers to receive the information and purchase the products in the home.
Ans: electronic shopping
__________ occurs when members of a distribution channel disagree over roles or rewards.
Ans: Channel conflict
A ________ bond is issued by the federal government.
Ans: government
A _______ is a division of stock that gives stockholders a greater number of shares, but does not change each individua
l's proportionate share of ownership.
Ans: stock split
Which stock exchange has the highest volume of shares traded?
Ans: NASDAQ
Circuit breaker rules halt trading for _______ when the Dow Jones Industrial Average drops by 400 points in one day.
Ans: two hours
Which of the following is the fastest growing stock market?
Ans: NASDAQ
A large American city sells bonds to finance the building of a beautiful new sports stadium and explains that when fans st
art paying admission fees to games that the bond debt can be paid off. Which classification do these bonds fall into?
Given Answer: trans-issued bonds
Ans: obligation bonds
____________ are companies that pool investments from individuals and organizations to purchase a portfolio of stocks,
bonds, and other securities.
Ans: Mutual funds
A(n) ____________ is a dealer who buys and sells stock for his or her own inventory, but also acts as the exclusive auctio
neer for it.
Ans: specialist
With _______ bonds the names of the bondholders are tracked by the corporation who simply mails the interest checks
directly to them.
Ans: registered
Which of the following includes very few firms in its calculation?
Ans: Dow Jones Industrial Average
Which of the following will result in an increase of the money supply?
Ans: A decrease in reserve requirements.
Where will one find the most avid users of the smart card?
Ans: Europe and Asia
,______________ can send many kinds of financial information via electrical impulses over wire, cable, or microwave.
Ans: Electronic funds transfer systems
Which bank was the first foreign bank to receive approval from the People's Bank of China to issue local currency throug
h ATMs?
Ans: Citicorp
A(n) ___________ is a nondeposit financial institution that specializes in making loans to businesses and consumers.
Ans: finance company
Which of the following is a characteristic of money?
Ans: none of the above
Different parts of salmon are worth different amounts, thus violating the money characteristic of being
Ans: divisible.
Banks expand the money supply by
Ans: taking in deposits and loaning money.
The FDIC guarantees, through its Bank Insurance Fund (BIF), the safety of all deposits up to the current maximum (per de
posit) of
Ans: $100,000.
The Federal Reserve System of the United States is responsible for the conduct of which of the following policies?
Ans: monetary
In _______, a salesperson receives an order and sees to its handling and delivery.
Ans: order processing
Direct mail accounts for __________ of all advertising outlays.
Ans: 18 percent
____________ advertising digitally implants brands or products into live or taped programming.
Ans: Virtual
Questions such as "Could you take delivery Tuesday?" and "Why don't we start you off with an initial order of ten case
s?" would most likely be asked during the __________ stage of the personal selling process.
Ans: closing
______ are highly segmented, allow for excellent visual communication, and are long-lived, but require a long lead time.
Ans: Magazines
The communications vehicle that is very selective about its audience, allows a more personalized message, and whose re
sponse rate is very predictable is
Ans: direct mail.
Of all advertising outlays, what percent goes to television?
Ans: 24 percent
Direct-to-consumer marketing by drug companies is an example of __________ marketing.
Ans: pull
Of the following, which is the final stage in the buyer decision process?
Ans: Buyers evaluate products after purchase.
Magazine advertising accounts for __________ of all advertising outlays.
Ans: 5 percent
Which of the following is NOT a characteristic of an insurable risk?
Ans: profitability
_______ actively seek chances to invest in new firms with rapid growth potential.
Ans: Venture capital firms
Financial control is
Ans: the process of checking actual performance against plans to ensure that desired financial results occur.
The first step in a risk management program is to
Ans: identify risks and potential losses.
A trade draft that has been signed is a(n)
Ans: trade acceptance.
,Which of the following is the most conservative mix of long-term funding?
Ans: 100 percent equity
_________ are unpaid bills owed to suppliers, plus wages and taxes due within the upcoming year.
Ans: Accounts payable
Which of the following Financial World mutual fund ratings is considered the best balance between safety and anticipate
d financial return?
Ans: A
Group life insurance is
Ans: insurance underwritten for a group as a whole rather than each individual in it.
Which of the following requires a commitment fee?
Ans: revolving credit agreement
A(n) ____________ is a debt owed by a firm to an outside organization or individual.
Ans: liability
The income statement is divided into three major categories. What are these categories?
Ans: revenues, cost of goods sold, and operating expenses
The _________ is the value of a nation's currency as determined by market forces.
Ans: foreign currency exchange rate
Money owed to creditors is a(n)
Ans: liability.
A(n) ___________ is an economic resource that is expected to benefit a firm or individual who owns it.
Ans: asset
____________ is a profitability ratio measuring the size of the dividend that a firm can pay to shareholders.
Ans: Earnings per share
Arthur Andersen has been accused of malpractice in its audit of
Ans: all of the above.
A(n) ____________ is a salaried accountant hired by a business to carry out its day-to-day financial activities.
Ans: private accountant
Cash and other assets that can be converted into cash within the following year are referred to as
Ans: current assets.
____________ measures income earned for each dollar invested.
Ans: Return on equity
When Maytag gets premium prices for its appliances because they are perceived as offering more advanced features and
longer life than competing brands, they are using
Ans: performance quality.
The _________ is the group of companies and stream of activities that work together to create a product.
Ans: supply chain
When domestic productivity increases, gains may be shared with
Ans: all of the above.
___________ was introduced at Motorola in 1987.
Ans: Six Sigma
For loyal buyers of Godiva premium chocolates, __________ includes sensory satisfiers such as aroma, flavor, and textur
e.
Ans: performance quality
__________ failures are reducible costs incurred after defective products have left a plant.
Ans: External
Statistical process control is
Ans: a method for gathering data to analyze variations in production activities to see when adjustments are needed.
When Hewlett-Packard simplified its contracts and reduced them from 20 pages to as few as 2 pages, it was engaging in
Ans: value-added analysis.
, A control chart is
Ans: a process control method that plots test sampling results on a diagram to determine when a process is beginning to
depart from normal operating conditions.
Competitive product analysis is
Ans: the process by which a company analyzes a competitor's products to identify desirable improvements.
_____________ software allows users to create, store, search, and manipulate an organized collection of data.
Ans: Database management
__________ need information to analyze trends in the business environment and overall company performance in order
to make long-range plans.
Ans: Top-level managers
A(n) _________ permits users to send electronic messages and information quickly and economically.
Ans: data communication network
A(n) __________ program tells the computer what resources to use and how to use them.
Ans: system
A(n) __________ program tells the computer how and when to transfer data from primary storage and return informatio
n to the user.
Ans: operating system
Companies may use a(n) __________ to allow outsiders limited access to internal information such as order status.
Ans: extranet
______________ eliminates costly printing services for reports and proposals.
Ans: Desktop publishing
George is interesting in information on windsurfing. He has accessed the Yahoo! Web site, a(n) ____________ of Web co
ntent.
Ans: directory
Information is
Ans: the useful interpretation of facts and figures.
The _________ is the subsystem of computers providing access to the Internet and offering multimedia and linking capa
bilities.
Ans: World Wide Web
McDonald's offering beer with its meals in Germany is an example of
Ans: product adaptation.
In the mid 1980's, John Deere priced agricultural equipment very low. Its goal in pricing was
Ans: survival.
Coca-Cola, Pepsi, Kleenex, and Chevrolet are examples of
Ans: brand names.
____________ are the qualities, tangible and intangible, that a company builds into its products.
Ans: Features
Industrial goods can be divided into two categories,
Ans: expense items and capital items.
Which age group is the most lucrative market in terms of advertising revenue?
Ans: 18 to 49 years of age
Which of the following is considered unfair and illegal?
Ans: dumping
Which option below best describes price lining?
Ans: Many men's suits but at only three different prices.
High definition television and flat panel computer monitors are in the ___________ stage of the product life cycle.
Ans: growth
During the __________ stage of the product life cycle, sales begin to slow down, but profit levels are at their highest. Co
mpetition becomes more active and toward the end of this stage sales start to fall.
Ans: maturity
A __________ is a potential problem in service flow analysis.
urers who need them?
Ans: agents and brokers
Which distribution channel is used by companies like Goodyear and Kroger?
Ans: producer to retailer to consumer
Which type of store would you most likely find shoes, furniture, women's, and men's specialized sections?
Ans: department store
__________ are the fastest and most expensive transportation mode.
Ans: Planes
____________ carry more freight than any other transportation mode.
Ans: Railroads
A distribution channel is
Ans: a network of independent companies through which a product passes from producer to end-user.
Which of the following carries no inventory and never handles the product, but does take title to it?
Ans: drop shipper
The type of nonstore marketing used by Tupperware, Amway, and Avon is
Ans: direct selling.
In ____________, information about the seller's products and services is connected to customer's computers allowing co
nsumers to receive the information and purchase the products in the home.
Ans: electronic shopping
__________ occurs when members of a distribution channel disagree over roles or rewards.
Ans: Channel conflict
A ________ bond is issued by the federal government.
Ans: government
A _______ is a division of stock that gives stockholders a greater number of shares, but does not change each individua
l's proportionate share of ownership.
Ans: stock split
Which stock exchange has the highest volume of shares traded?
Ans: NASDAQ
Circuit breaker rules halt trading for _______ when the Dow Jones Industrial Average drops by 400 points in one day.
Ans: two hours
Which of the following is the fastest growing stock market?
Ans: NASDAQ
A large American city sells bonds to finance the building of a beautiful new sports stadium and explains that when fans st
art paying admission fees to games that the bond debt can be paid off. Which classification do these bonds fall into?
Given Answer: trans-issued bonds
Ans: obligation bonds
____________ are companies that pool investments from individuals and organizations to purchase a portfolio of stocks,
bonds, and other securities.
Ans: Mutual funds
A(n) ____________ is a dealer who buys and sells stock for his or her own inventory, but also acts as the exclusive auctio
neer for it.
Ans: specialist
With _______ bonds the names of the bondholders are tracked by the corporation who simply mails the interest checks
directly to them.
Ans: registered
Which of the following includes very few firms in its calculation?
Ans: Dow Jones Industrial Average
Which of the following will result in an increase of the money supply?
Ans: A decrease in reserve requirements.
Where will one find the most avid users of the smart card?
Ans: Europe and Asia
,______________ can send many kinds of financial information via electrical impulses over wire, cable, or microwave.
Ans: Electronic funds transfer systems
Which bank was the first foreign bank to receive approval from the People's Bank of China to issue local currency throug
h ATMs?
Ans: Citicorp
A(n) ___________ is a nondeposit financial institution that specializes in making loans to businesses and consumers.
Ans: finance company
Which of the following is a characteristic of money?
Ans: none of the above
Different parts of salmon are worth different amounts, thus violating the money characteristic of being
Ans: divisible.
Banks expand the money supply by
Ans: taking in deposits and loaning money.
The FDIC guarantees, through its Bank Insurance Fund (BIF), the safety of all deposits up to the current maximum (per de
posit) of
Ans: $100,000.
The Federal Reserve System of the United States is responsible for the conduct of which of the following policies?
Ans: monetary
In _______, a salesperson receives an order and sees to its handling and delivery.
Ans: order processing
Direct mail accounts for __________ of all advertising outlays.
Ans: 18 percent
____________ advertising digitally implants brands or products into live or taped programming.
Ans: Virtual
Questions such as "Could you take delivery Tuesday?" and "Why don't we start you off with an initial order of ten case
s?" would most likely be asked during the __________ stage of the personal selling process.
Ans: closing
______ are highly segmented, allow for excellent visual communication, and are long-lived, but require a long lead time.
Ans: Magazines
The communications vehicle that is very selective about its audience, allows a more personalized message, and whose re
sponse rate is very predictable is
Ans: direct mail.
Of all advertising outlays, what percent goes to television?
Ans: 24 percent
Direct-to-consumer marketing by drug companies is an example of __________ marketing.
Ans: pull
Of the following, which is the final stage in the buyer decision process?
Ans: Buyers evaluate products after purchase.
Magazine advertising accounts for __________ of all advertising outlays.
Ans: 5 percent
Which of the following is NOT a characteristic of an insurable risk?
Ans: profitability
_______ actively seek chances to invest in new firms with rapid growth potential.
Ans: Venture capital firms
Financial control is
Ans: the process of checking actual performance against plans to ensure that desired financial results occur.
The first step in a risk management program is to
Ans: identify risks and potential losses.
A trade draft that has been signed is a(n)
Ans: trade acceptance.
,Which of the following is the most conservative mix of long-term funding?
Ans: 100 percent equity
_________ are unpaid bills owed to suppliers, plus wages and taxes due within the upcoming year.
Ans: Accounts payable
Which of the following Financial World mutual fund ratings is considered the best balance between safety and anticipate
d financial return?
Ans: A
Group life insurance is
Ans: insurance underwritten for a group as a whole rather than each individual in it.
Which of the following requires a commitment fee?
Ans: revolving credit agreement
A(n) ____________ is a debt owed by a firm to an outside organization or individual.
Ans: liability
The income statement is divided into three major categories. What are these categories?
Ans: revenues, cost of goods sold, and operating expenses
The _________ is the value of a nation's currency as determined by market forces.
Ans: foreign currency exchange rate
Money owed to creditors is a(n)
Ans: liability.
A(n) ___________ is an economic resource that is expected to benefit a firm or individual who owns it.
Ans: asset
____________ is a profitability ratio measuring the size of the dividend that a firm can pay to shareholders.
Ans: Earnings per share
Arthur Andersen has been accused of malpractice in its audit of
Ans: all of the above.
A(n) ____________ is a salaried accountant hired by a business to carry out its day-to-day financial activities.
Ans: private accountant
Cash and other assets that can be converted into cash within the following year are referred to as
Ans: current assets.
____________ measures income earned for each dollar invested.
Ans: Return on equity
When Maytag gets premium prices for its appliances because they are perceived as offering more advanced features and
longer life than competing brands, they are using
Ans: performance quality.
The _________ is the group of companies and stream of activities that work together to create a product.
Ans: supply chain
When domestic productivity increases, gains may be shared with
Ans: all of the above.
___________ was introduced at Motorola in 1987.
Ans: Six Sigma
For loyal buyers of Godiva premium chocolates, __________ includes sensory satisfiers such as aroma, flavor, and textur
e.
Ans: performance quality
__________ failures are reducible costs incurred after defective products have left a plant.
Ans: External
Statistical process control is
Ans: a method for gathering data to analyze variations in production activities to see when adjustments are needed.
When Hewlett-Packard simplified its contracts and reduced them from 20 pages to as few as 2 pages, it was engaging in
Ans: value-added analysis.
, A control chart is
Ans: a process control method that plots test sampling results on a diagram to determine when a process is beginning to
depart from normal operating conditions.
Competitive product analysis is
Ans: the process by which a company analyzes a competitor's products to identify desirable improvements.
_____________ software allows users to create, store, search, and manipulate an organized collection of data.
Ans: Database management
__________ need information to analyze trends in the business environment and overall company performance in order
to make long-range plans.
Ans: Top-level managers
A(n) _________ permits users to send electronic messages and information quickly and economically.
Ans: data communication network
A(n) __________ program tells the computer what resources to use and how to use them.
Ans: system
A(n) __________ program tells the computer how and when to transfer data from primary storage and return informatio
n to the user.
Ans: operating system
Companies may use a(n) __________ to allow outsiders limited access to internal information such as order status.
Ans: extranet
______________ eliminates costly printing services for reports and proposals.
Ans: Desktop publishing
George is interesting in information on windsurfing. He has accessed the Yahoo! Web site, a(n) ____________ of Web co
ntent.
Ans: directory
Information is
Ans: the useful interpretation of facts and figures.
The _________ is the subsystem of computers providing access to the Internet and offering multimedia and linking capa
bilities.
Ans: World Wide Web
McDonald's offering beer with its meals in Germany is an example of
Ans: product adaptation.
In the mid 1980's, John Deere priced agricultural equipment very low. Its goal in pricing was
Ans: survival.
Coca-Cola, Pepsi, Kleenex, and Chevrolet are examples of
Ans: brand names.
____________ are the qualities, tangible and intangible, that a company builds into its products.
Ans: Features
Industrial goods can be divided into two categories,
Ans: expense items and capital items.
Which age group is the most lucrative market in terms of advertising revenue?
Ans: 18 to 49 years of age
Which of the following is considered unfair and illegal?
Ans: dumping
Which option below best describes price lining?
Ans: Many men's suits but at only three different prices.
High definition television and flat panel computer monitors are in the ___________ stage of the product life cycle.
Ans: growth
During the __________ stage of the product life cycle, sales begin to slow down, but profit levels are at their highest. Co
mpetition becomes more active and toward the end of this stage sales start to fall.
Ans: maturity
A __________ is a potential problem in service flow analysis.
