Reference no: EM132141647
1. Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer to leave their cash outside the United States because using those funds to pay dividends or purchase treasury stock would
a. promote foreign investment.
b. require a big U.S. corporate income tax payment.
c. create pressure for decreased exporting.
d. decrease foreign exchange.
e. inflate stock prices.
2. In projected financial statements, what is used as a plug figure?
a. Long-term liabilities
b. Fixed assets
c. Stockholders' equity
d. Retained earnings
e. The Cash Account
3. Which of the following is true about two different market segments?
a. They can usually be served with the same marketing strategy.
b. They are usually interchangeable.
c. They are always in different geographic locations.
d. All of these
e. They usually require different marketing strategies.
4. Which of the following is NOT given as an example of a decision that may require finance/accounting policies?
a. To establish a certain percentage discount on accounts within a specified period of time
b. To lease or buy fixed assets
c. To be a price leader or a price follower
d. To use LIFO, FIFO, or a market-value accounting approach
e. To extend the time of accounts receivable
5. What makes market segmentation an important variable in strategy implementation?
a. It allows a small firm to compete successfully with a large firm.
b. All of these
c. Market segmentation decisions directly affect marketing mix variables.
d. New or improved market-segmentation approaches are required for the successful execution of market development & market penetration.
e. It allows a firm to operate with limited resources.
6. If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?
a. It is unchanged.
b. It doubles.
c. It cannot be determined from the information given.
d. It decreases.
e. It increases.
7. The first step in performing projected financial analysis is to
a. prepare the projected balance sheet.
b. forecast sales as accurately as possible.
c. calculate the projected net income.
d. take an inventory of goods.
e. estimate increases in debt.
8. Which variable would be considered part of the "product" element of the marketing mix?
a. Inventory levels and location
b. Packaging
c. Payment terms
d. Advertising
e. Publicity
9. What is the most widely used technique for determining the best combination of debt and stock?
a. Capital Asset Pricing Model
b. Gross Profit Analysis
c. Earnings Per Share/Earnings Before Interest and Taxes Analysis
d. Debt-to-Stock Ratio
e. Present Value Analysis
10. What is a central strategy-implementation technique that allows an organization to examine the expected results of various strategy implementation decisions?
a. EPS/EBIT
b. Projected financial statement analysis
c. TOWS analysis
d. External analysis
e. Financial budgeting
11. Which variable would be considered part of the "place" element of the marketing mix?
a. Discounts and allowances
b. Product line
c. Service level
d. Sales territory
e. Personal selling
12. A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.
a. five times
b. three times
c. twice
d. ten times
e. fifteen times
13. Projected financial analysis is an important strategy-implementation technique because
a. it is an exact measurement of financial costs in the future.
b. insurance needs can be computed.
c. it allows an organization to examine the expected results of strategies being implemented.
d. it is an exact measurement of future company profits.
e. None of these
14. Which item is included in net worth?
a. Common stock
b. None of these are included in net worth.
c. Retained earnings
d. All of these are included in net worth.
e. Additional paid-in-capital
15. The Financial Accounting Standard Board (FASB) Rule 142 deals with
a. hacking issues in MIS.
b. goodwill.
c. illegal inflation of financial projections.
d. how firms conduct R&D.
e. improving marketing policies.
16. What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?
a. Perceptual mapping
b. Market segmentation
c. Market penetration
d. Unrelated diversification
e. Capital budgeting
17. Which one of the following statements regarding stock issuances is true?
a. They are not always better than debt for raising capital.
b. Dilution of ownership is not a special concern.
c. None of these statements regarding stock issuance is true
d. Their effect on stock price is not a concern.
e. They do not require a company to share future earnings with new shareholders.
18. What portion of the firms going public in 2014 were unprofitable?
a. About one quarter
b. Less than one tenth
c. Nearly all
d. Nearly three quarters
e. About one half
19. Multidimensional scaling is used in
a. perceptual mapping.
b. determining the size of a new building.
c. determining the size of a new department.
d. market segmentation.
e. evaluating the amount of high-tech equipment a firm needs.
20. Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?
a. Outstanding Shares Method
b. Long-term Asset Method
c. Debt/Equity Method
d. Price-Earnings Ratio Method
e. Current Ratio Method