Final Exam 1 In Tutorial Library

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TITLE: Final Exam 1

UNIVERSITY / INSTITUTE: University of Phoenix



1) Total customer satisfaction is the general feeling of pleasure or disappointment that results from comparing perceived performance to expectations. To achieve total customer satisfaction, organizations need to_____________.
A. Lower prices
B. Spend more money
C. Lower expectations
D. Manage customer experiences
E. Develop marketing campaigns

2) A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.
A. vertical system
B. marketing information system
C. marketing intelligence system
D. product management system
E. marketing research system

3) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovation process.
A. skunk works
B. joint- venture system
C. venture team
D. new product “team”
E. stage-gate system

4) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
A. A marketing database
B. A marketing research system
C. A promotional campaign
D. A marketing intelligence system
E. A marketing information system

5) A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.
A. customer feedback systems
B. intermediaries
C. advisory panels
D. external networks
E. sales force surrogates

6) Most established companies focus on ________ when it comes to innovation.
A. competitive innovation
B. continuous innovation
C. demand innovation
D. everyday innovation
E. incremental innovation

7) The value proposition consists of a cluster of benefits the company promises to deliver; it is
A. business processes
B. customer experience with the company
C. customer expectations
D. total customer satisfaction
E. Customer loyalty to the company

8) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars, many consumers use price as an indicator of ________.
A. status
B. size
C. quality
D. ability
E. capability

9) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents to reduce the product's overall costs.
A. Learning curve
B. Experience curve
C. Target costing
D. Least cost producer

10) A firm has to consider many factors in setting its pricing policy. We list these as a six-step process. Which of the following is NOT one of these steps?
A. Determining demand.
B. Selecting a pricing method.
C. Selecting the pricing objective.
D. Researching reference prices in the target market.
E. Selecting the final price.

[Section Description]
11) The first step in the marketing research process is to ________.
A. develop a research plan
B. contact a professional consultant
C. define the problem and research objectives
D. analyze the internal environment
E. read marketing research journals

12) Marketing research is now about a ________ billion industry globally.
A. $50
B. $7.5
C. $21.5
D. $16.5
E. $10


13) Which of the following types of marketing research firms would best be described as one that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)?
A. Custom marketing research firms
B. Non-profit marketing research firms
C. Syndicated-service research firms
D. Specialty-line marketing research firms
E. General-line marketing research firms

[Section Description]
14) ________ communicates a company's intended value positioning of its product or brand to the market.
A. Packaging
B. Price
C. Place
D. Physical evidence
E. Promotion


15) A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ________ or _________ from another company.
A. license/franchise
B. license/receive permission
C. franchise/co-brand
D. franchise/acquire rights


16) Some intermediaries use the following: strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and ________.
A. contend with dwindling customer bases
B. aggressively “squeeze” manufacturer margins
C. aggressively pursue take over strategies
D. aggressively pursue market expansion and diversification strategies
E. dominant the manufacturers they do business with


17) Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products.
A. identical
B. over the Internet
C. similar
D. commodity-type

18) The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is ________.
A. no synergy exists
B. logistics can become a nightmare
C. the product may be supplanted by an entirely new technology
D. e-commerce becomes difficult for the company
E. competitors can easily copy any new product introductions


19) To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who “get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family.” Which of the following techniques for reaching Generation Y are the Foo Fighters using?
A. Student ambassadors
B. Unconventional sports
C. Cool events
D. Online buzz
E. Computer games

20) The marketing communications mix consists of six major modes of communications. Which of the following is NOT one of these modes?
A. Personal selling
B. Sales promotions
C. Packaging
D. Direct marketing
E. Advertising

21) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom line.
A. dramatic
B. leveraged
C. direct
D. abrasive
E. soothing

22) Following the ________ approach to target market selection encompasses a strong knowledge of the segment's needs, a strong market presence, and operating economies through specializing in production, distribution, and promotion.
A. single-segment concentration
B. product specialization
C. market specialization
D. selective specialization
E. full market coverage

23) New-to-the- world products are ________.
A. new products that create an entirely new market
B. new products that supplement established product lines (package sizes, flavors, and so on)
C. new products that provide improved performance or greater perceived value and replace existing products
D. new products that allow a company to enter an established market for the first time
E. existing products that are targeted to new markets or market segments


[Section Description]
24) If no one is aware of conflict, it is generally agreed that _____.
A. employee-employer relations will be good
B. no conflict exists
C. conflict is inevitable
D. conflict is subversive
E. conflict is psychologically driven as opposed to physically manifest

25) The two general approaches to bargaining are known as ________.
A. emotional and rational.
B. distributive and integrative
C. formal and informal.
D. affective and reflective
E. legal and restrictive

26) Danielle wants to become a surgeon, not only because achieving this goal will give her self-respect and autonomy, but also because she wants a job with high status and recognition from others. Which of Maslow's needs is Danielle trying to fill?
A. self-actualization
B. esteem
C. psychological
D. social
E. safety

27) Which of the following statements about leadership is true?
A. leaders are managers.
B. Nonsanctioned leadership is as important as or more important than formal influence.
C. managers are leaders.
D. leaders are hierarchically superior to followers.
E. Formal rights enable managers to lead effectively.

28) The traditional view of conflict is the belief that conflict is _____.
A. harmful
B. neutral
C. necessary
D. situationally-dependent
E. natural

29) _____ bargaining is negotiation that seeks to divide a “fixed pie.”
A. Distributive
B. Conjunctive
C. Reflective
D. Affective
E. Integrative

30) Which of the following statements best defines a work group?
A. The performance of a work group is generally greater than the sum of its inputs from individual members.
B. A work group is a group comprised of 10 or more people
C. A work group consists of 3 or more people who take on self-supervising responsibilities.
D. A work group consists of 3 or more people from across departmental or functional lines.
E. A work group interacts primarily to share information, rather than to engage in work that requires joint effort.

[Section Description]
31) Which type of skill training has become increasingly important in organizations?
A. financial
B. social
C. problem solving
D. interpersonal
E. technical

32) Examples of on-the-job training include all of the following except _____.
A. job rotation
B. formal mentoring programs
C. simulation centers
D. understudy assignments
E. apprenticeship

33) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S. corporations receive ethics training.
A. 10
B. 25
C. 75
D. 50

34) Which of the following is NOT a typical written test used in organizations?
A. intelligence
B. integrity
C. aptitude
D. personality
E. work sample

35) _____ can be used to increase the perception that employees are treated fairly.
A. Selective evaluation
B. Due process
C. Documenting with a journal
D. Multiple raters
E. Focusing on subjective evaluations

[Section Description]
36) Which of the following is not a primary force for change in organizations?
A. technology
B. economic shocks
C. social trends
D. decreasing skill sets
E. the nature of the workforce

37) What term is used for the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors?
A. fundamental attribution error
B. self-serving bias
C. selective perception
D. consistency
E. stereotyping

38) Whenever Jane is successful she takes full credit for what has happened, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of _____.
A. fundamental attribution error
B. attribution bias
C. distinctiveness
D. the halo effect
E. self-serving bias

39) Work specialization is the same as _____.
A. departmentalization
B. division of labor
C. job grouping
D. decentralization
E. chain command

40) Organizational structure has six key elements. Which of the following is not one of these elements?
A. departmentalization
B. formalization
C. location of authority
D. work specialization
E. centralization

[Section Description]
41) According to David Maister, the most complex projects requiring innovation and creativity are called _________.
A. “procedures” projects
B. “brain surgery” projects
C. “grinding” projects
D. “gray hair” projects

42) Refer To: 0801 The inventory turnover for this company is:
A. 8.0
B. 32
C. 2.0
D. 10.67
E. 4.0

43) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
A. inventory turnover
B. quick ratio
C. dollar days
D. current ratio

44) Which of the following product promotional activities would probably help make the supply chain more efficient?
A. Price promotions that expire on a specific date
B. Special packaging for a specific event that occurs one time each year
C. A 2 for 1 price promotion
D. An "everyday" low price strategy where prices are not dependent on quantity delivered with a specific order

45) If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.
A. capacity-constrained resource, bottleneck
B. bottleneck, capacity constrained resource
C. none of these answers
D. capacity-constrained resource, drum

[Section Description]
46) A checking account is __________.
A. a place to “collect” money between inflows and outflows
B. an account that acts like a reservoir
C. useful because you can add money in any amount
D. all of these

47) An all-equity-financed firm would __________.
A. pay corporate income taxes because it would have interest expense.
B. pay corporate income taxes if its taxable income is positive
C. not pay corporate income taxes because it would have no interest expense.
D. not pay any income taxes because interest would exactly offset its taxable income.

48) Under capital rationing, given the choice among several equally attractive investments, the best tool to use is the __________.
A. Payback method
B. Net Present Value method
C. Profitability Index method
D. Internal Rate of Return method

49) An investor's risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?
A. Selling any stock in this portfolio will lower the beta of the portfolio.
B. Each stock in the portfolio will have a beta greater than one.
C. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).
D. Each stock in the portfolio has its own beta.

50) __________ says to seek out investments that offer the greatest expected risk-adjusted real return.
A. The Signaling Principle
B. The Principle of Valuable Ideas
C. The Principle of Self-Interested Behavior
D. The Principle of Incremental Benefits

51) Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is _________.
A. overvalued
B. being sold by insiders
C. caught up in a bear market
D. undervalued

52) “Hard” capital rationing refers to the rationing __________.
A. imposed internally by the shareholders
B. always imposed by debt holders
C. always imposed by competitors
D. imposed by external factors

53) Which of the following statements is true?
A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.
B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.
C. The Time Value of Money Principle advises to include any time-value-of-money tax benefits from capital structure choices.
D. all of these

54) __________ says to recognize the value of hidden options in a situation, such as the foreign exchange options in some derivative instruments.
A. The Principle of Comparative Advantage
B. The Time Value of Money Principle
C. The Principle of Two-Sided Transactions
D. The Options Principle

55) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets or to develop derivatives or design arrangements that enable firms to cope better with the risks they face in their foreign operations.
A. The Principle of Diversification
B. The Principle of Risk-Return Trade-off
C. The Principle of Valuable Ideas
D. The Principle of Capital Market Efficiency

[Section Description]
56) A key variable covered in our text for the Black-Scholes OPM is __________.
B. transaction costs.
C. the riskless APR with continuous compounding
D. dividends.

57) The conversion price (for a convertible security) is usually adjusted __________.
A. for a new debt offering.
B. for stock splits.
C. for cash dividends.
D. all of these

58) The managerial decision best addresses which of the following questions?
A. How fast should we grow?
B. What size of firm do we want?
C. How should we compensate our managers?
D. all of these

59) The investment decision best addresses which of the following questions?
A. Should debt be short-term?
B. Should we buy new equipment?
C. Should we increase our advertising budget?
D. Should we borrow in a foreign currency?

60) __________ says to use derivatives to pay others to take risks.
A. The Signaling Principle
B. The Principle of Two-Sided Transactions
C. The Principle of Self-Interested Behavior
D. The Principle of the Time Value of Money

61) __________ says to recognize the value of options contained in derivatives.
A. The Capital Market Efficiency Principle
B. The Principle of Valuable Ideas
C. The Principle of Comparative Advantage
D. The Options Principle

62) You do a study and find out that, on average, stock prices for firms decrease 3% for every 5% decrease in inside ownership. You are watching the nightly business report and find out that Magic Tape's stock has announced that insiders have sold 10% of their holdings. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. If markets are at least semi-strong form efficient, what would you expect?
A. You would lose $4,000.
B. You would expect Magic Tape to close at $28 the day of the announcement.
C. You would lose $2.00 per share
D. You would lose $1,800.

63) Which (if any) statement is false?
A. The Principle of Self-Interested Behavior suggests that self-interested capital market transactions force market prices toward being fair prices.
B. The Principle of Two-Sided Transactions states that intense capital market competition to get and use information to take advantage of arbitrage opportunities eliminates such opportunities.
C. The Principle of Signaling states that information in the transactions of others can be valuable, such as providing an accurate measure of current market value, or information about expected future value.
D. none of these answers are correct.

64) Which of the following is (are) true?
A. The Principle of Capital Market Efficiency states that differences between financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level.
B. The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency.
C. The Principle of Valuable Ideas states that new ideas can provide value when first introduced, even in an efficient capital market.
D. all of these answers are correct.

65) A transfer price exists when two segments of the same organization sell _____.
A. a service to each other
B. a product in a foreign country
C. a product to the same customer
D. the same service to competitors

66) Which decision will involve no incremental revenues?
A. Drop a product line
B. Accept a special order
C. Make or buy decision
D. Additional processing decision

67) Cena Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $25,000. Other relevant data are as follows:



                                           Sales Value      Costs after        Sales Value

                    Product            at Split-off        Split-off            at Completion

                          P                   $32,000           $5,000            $40,000

                         G                      16,500            7,500               29,000

                         A                        6,400            8,000               10,000

Once product P is produced, processing it further will cause profits to _____.

A. decrease by $5,000
B. decrease by $8,000
C. increase by $8,000
D. increase by $3,000

68) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?
A. $4,000 decrease
B. $6,000 decrease
C. $4,000 increase
D. $30,000 increase

69) Joint products should be processed beyond the split-off point if _____.
A. incremental expenses exceed incremental revenues
B. sale of the product is guaranteed
C. additional net revenue exceeds the sales value at split-off
D. there is a market for the joint products

70) Important factors considered by sales forecasters include all of the following except _____.
A. marketing research studies
B. competitors' activities
C. past patterns of sales
D. the desired level of sales

71) Which of the following does not appear as a separate section on the cash budget?
A. Cash disbursements
B. Capital expenditures
C. Cash receipts
D. Financing

72) Beginning cash balance plus total receipts
A. must equal total disbursements.
B. is the excess of available cash over disbursements.
C. equals ending cash balance.
D. equals total available cash.

73) The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than:
A. management's minimum required balance.
B. the industry average.
C. the prior years.
D. the amount needed to avoid a service charge at the bank.

74) How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000 and the contribution margin ratio is 40%?
A. $200,000.
B. $330,000.
C. $300,000.
D. $450,000.

75) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales necessary to break even are
A. $600,000.
B. $144,000.
C. $480,000.
D. $150,000.

76) A variable cost is a cost that
A. occurs at various times during the year.
B. may or may not be incurred, depending on management's discretion.
C. varies per unit at every level of activity.
D. varies in total in proportion to changes in the level of activity.

77) At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit?
A. $11.50.
B. Not enough information
C. $43.50.
D. $16.00.

78) A process cost accounting system is most appropriate when
A. the focus of attention is on a particular job or order.
B. individual products are custom made to the specification of customers
C. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.
D. similar products are mass-produced.

79) Absorption costing assigns _____ to the product.
A. variable manufacturing costs
B. all variable costs
C. variable and fixed manufacturing costs
D. all fixed and variable costs

80) Identify which statement about "currently attainable standards" is NOT true.
A. Because they allow for waste, they usually result in favorable variances.
B. They allow for normal spoilage and nonproductive time.
C. They represent projections of what will probably be attained.
D. Employees usually view these goals as reasonable.

81) A well-designed activity-based costing system starts with
A. computing the activity-based overhead rate.
B. identifying the activity-cost pools.
C. assigning manufacturing overhead costs for each activity cost pool to products.
D. analyzing the activities performed to manufacture a product.

82) Which of the following statements is incorrect with respect to creditors and equity investors?
A. Creditors are concerned with assessing the short term liquidity of a company.
B. Both creditors and equity investors are concerned about security prices.
C. Creditors are concerned with assessing the long term solvency of a company.
D. Equity investors are concerned about dividend payments.

83) _____ are sections of the balance sheet.
A. Assets, liabilities, and expenses
B. Revenues, assets, and liabilities
C. Expenses, revenues, and owners' equity
D. Assets, liabilities, and owners' equity

84) The _____ is not one of the three major financial statements.
A. income statement
B. statement of cash flows
C. balance
D. statement of equity position

85) _____ are profitability ratios.
A. Dividend payout and rate of return in invested capital
B. Gross profit rate and return on sales
C. Earnings per share and dividend yield
D. Price earnings and current ratio

86) Although the U.S. has had a longstanding agreement with ___________, after the passage of NAFTA, _________ became the United States' second largest trading partner.
A. Canada, Venezuela
B. Canada, Mexico
C. Mexico, Canada
D. Mexico, Venezuela
E. Great Britain, Paraguay

87) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?
A. Mexico
B. China
C. Canada
D. Japan
E. Ecuador

88) Diversity training programs are generally intended to provide a vehicle for _____.
A. eliminating group learning
B. balancing work/life conflicts
C. focusing on individual differences
D. increasing awareness and examining stereotypes
E. socializing otherwise unmanageable employees

89) Which social responsibility theory has been advocated by Novel Prizewinning economist Milton Friedman?
A. Stakeholder interest
B. Corporate citizenship
C. Moral minimum
D. Maximizing profits
E. Corporate social audit

90) One study found that manufacturing labor costs about ___ an hour in China, compared to ____ dollars in the United States.
A. Less than $1; about 25
B. $2; about 25
C. About $2; about 15
D. Less than $1; about 15
E. Less than $1; about 40

91) Which of the following statements is generally NOT true about state intermediate appellate courts?
A. The appellate court allows the parties to make oral arguments outlining their position.
B. The appellate court usually allows the parties to file briefs outlining support for their positions.
C. The appellate court reviews the record of the trial court.
D. The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial.

92) Which of the following is correct about litigating commercial disputes?
A. A few states have established specialized trial courts for commercial disputes.
B. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business.
C. Commercial disputes, because of their specialized nature, are first heard at the appellate court level.
D. Nearly all states have specialized trial courts that hear commercial disputes.
E. In all states, commercial disputes must be heard in a limited-jurisdiction court.

93) If consumer incomes increase, the demand for product Y will _____________.
A. shift to the right if Y is a complementary good
B. shift to the right if Y is a normal good
C. necessarily remain unchanged

94) When an economist says that the demand for a product has increased, this means that:
A. consumers respond to a lower price by buying more.
B. the demand curve becomes steeper.
C. firms make less of the product available for sale.
D. quantity demanded is greater at each possible price.

95) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy.
A. Globalization 3.0
B. None of these
C. Globalization 2.0
D. Globalization 1.0

96) The Global, Web-Based Platform enables individuals to do which of the following?
A. exchange knowledge
B. all of these answers are correct
C. access information, services, and entertainment
D. produce and sell goods and services
E. connect, compute, communicate, collaborate, and compete everywhere and all the time

97) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
A. digital, physical
B. physical, digital
C. digital, e-commerce
D. physical, financial
E. e-commerce, digital


98) Two complimentary approaches to measure marketing productivity are ________ and marketing-mix modeling to estimate casual relationships and how marketing activity affects outcomes.
A. marketing metrics to assess marketing effects
B. end-user samples
C. salesperson satisfaction scales
D. distributor satisfaction surveys
E. quality ratios

99) ________ is a qualitative research approach for getting inside a consumer's mind and finding out what they are thinking or feeling (e.g., a consumer says that the John Deere brand makes them think of a rugged Midwestern male who is hard-working and trustworthy).
A. Brand personification
B. Visualization
C. A projective technique
D. Laddering
E. Word association

100) The use of a(n) _____ serves as a comparison to assess the existence and potency of the manipulation.
A. Criterion variable
B. Field experiment
C. Control group
D. Explanatory variable
E. Experimental group

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