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STR 581 Final Exam Set 2            Answers are HERE!1) 3M, Hewlett-Packard, Lego, and other companies use the ________ to...
A.   competitive innovationB.   everyday innovationC.   incremental innovationD.   continuous innovationE.   demand innova...
C. MIS (marketing information system)D. Marketing researchE. Marketing intelligence13) With respect to the sampling plan, ...
C. new products that allow a company to enter an established market for the first timeD. new products that supplement esta...
B.   defeatC.   moraleD.   successE.   change25) Leadership is best defined as _____.A. the ability to influence a group i...
31) _____ can be used to increase the perception that employees are treated fairly.A. Selective evaluationB. Multiple rate...
B.   social trendsC.   decreasing skill setsD.   the nature of the workforceE.   economic shocks38) The “realistic” person...
D. “gray hair” projects44) Goldratts rule of production scheduling include all but:A. Do not balance the capacity - balanc...
51) __________ says to seek out investments that offer the greatest expected risk-adjusted realreturn. A. The Principle of...
57) __________ says to use derivatives to pay others to take risks.A. The Principle of Two-Sided TransactionsB. The Signal...
64) Which of the following is not an advantage of going public?A. Going public makes the common stock negotiable and creat...
70) Which of the following does not appear as a separate section on the cash budget?A. Cash receiptsB. Capital expenditure...
78) Identify which statement about "currently attainable standards" is NOT true.A. They allow for normal spoilage and nonp...
86) Although the U.S. has had a longstanding agreement with ___________, after the passage ofNAFTA, _________ became the U...
92) Which article of the United States Constitution deals with the judicial power of the federalgovernment?A. Article II.B...
99) The assignment of numbers or symbols to a property of objects according to value or magnitude iscalled _____.A. Scalin...
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Transcript of "Str 581 final exam set 2"

  1. 1. STR 581 Final Exam Set 2 Answers are HERE!1) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovationprocess.A. skunk worksB. new product “team”C. stage-gate systemD. joint- venture systemE. venture team2) A ________ is a set of procedures and sources managers use to obtain everyday information aboutdevelopments in the marketing environment.A. vertical systemB. product management systemC. marketing research systemD. marketing information systemE. marketing intelligence system3) A(n) ________ is any good, service, or idea that is perceived by someone as new.A. creative productB. innovationC. productD. new idea4) A company can take several steps to improve the quality of its marketing intelligence. If thecompany purchases competitive products for study, attends open houses and trade shows, and readscompetitors’ published reports and stockholder information, the company is using ________ toimprove the quality of its marketing intelligence.A. customer feedback systemsB. external networksC. sales force surrogatesD. intermediariesE. advisory panels5) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, anddistribute needed, timely, and accurate information to marketing decision makers.A. A marketing databaseB. A marketing intelligence systemC. A marketing information systemD. A marketing research systemE. A promotional campaign6) Most established companies focus on ________ when it comes to innovation.
  2. 2. A. competitive innovationB. everyday innovationC. incremental innovationD. continuous innovationE. demand innovation7) ________ is the difference between the prospective customer’s evaluation of all the benefits and allthe costs of an offering and the perceived alternatives.A. Competitors market share rateB. Report ratingC. Perceived usefulnessD. Failure avoidance rateE. Customer perceived value8) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents toreduce the product’s overall costs. A. Experience curveB. Target costingC. Learning curveD. Least cost producer9) In ________ marketing, the seller engages in the mass production, mass distribution, and masspromotion of one product for all buyers.A. differentiatedB. generalC. groupD. massE. segmented10) Marketers usually identify niches by ________.A. producing products that can be used in a variety of waysB. allowing consumers to gravitate toward product brandsC. dividing a segment into subsegmentsD. conducting VALS testsE. examining the demographics section of The Handbook of Marketing11) Which of the following is generally considered to be the last step in the marketing researchprocess?A. Draft the reportB. Make the decision.C. Analyze the information.D. Control the environment.E. Present the findings.12) ________ is the systematic design, collection, analysis, and reporting of data and findings relevantto a specific marketing situation facing the company.A. Marketing managementB. Demographics
  3. 3. C. MIS (marketing information system)D. Marketing researchE. Marketing intelligence13) With respect to the sampling plan, three decisions must be made. The decisions are: the samplingunit—who is to be surveyed? Sample size—how many people should be surveyed? And ________.A. sample supervisor—who will lead the sampling effort?B. sampling procedure—how should the respondents be chosen?C. surveyor skill—who will do the surveying?D. sample security—how to protect the sample data?E. sample cost—how much does sampling cost?14) The marketing communications mix consists of six major modes of communications. Which of thefollowing is NOT one of these modes?A. AdvertisingB. PackagingC. Direct marketingD. Sales promotionsE. Personal selling15) Marketing communications can contribute to brand equity by establishing the brand in memoryand to________ (in)a brand image.A. craftB. create demandC. create interestD. communicate16) ________ communicates a company’s intended value positioning of its product or brand to themarket.A. Physical evidenceB. PromotionC. PriceD. PlaceE. Packaging17) 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 ofchances to win great Foo Fighters prizes, and become part of the Foo Fighters Family.” Which of thefollowing techniques for reaching Generation Y are the Foo Fighters using?A. Online buzzB. Computer gamesC. Unconventional sportsD. Cool eventsE. Student ambassadors18) New-to-the- world products are ________.A. existing products that are targeted to new markets or market segmentsB. new products that provide improved performance or greater perceived value and replace existingproducts
  4. 4. C. new products that allow a company to enter an established market for the first timeD. new products that supplement established product lines (package sizes, flavors, and so on)E. new products that create an entirely new market19) Following the ________ approach to target market selection encompasses a strong knowledge ofthe segment’s needs, a strong market presence, and operating economies through specializing inproduction, distribution, and promotion.A. full market coverageB. market specializationC. selective specializationD. product specializationE. single-segment concentration20) Price has operated as the major determinant of buyer choice among poorer nations, amongpoorer groups, and with ________ products.A. commodity-typeB. similarC. identicalD. over the Internet21) Some intermediaries use the following: strategic planning, advanced information systems,sophisticated marketing tools, measure performance on a return-on-investment basis, segment theirmarkets, improve their target marketing and positioning, and ________.A. contend with dwindling customer basesB. aggressively pursue take over strategiesC. dominant the manufacturers they do business withD. aggressively “squeeze” manufacturer marginsE. aggressively pursue market expansion and diversification strategies22) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly________ effect of price on the bottom line.A. dramaticB. leveragedC. directD. abrasiveE. soothing23) A company can add new products through acquisition or development. The acquisition route cantake three forms. The company can buy other companies, it can acquire patents from othercompanies, or it can buy a ________ or _________ from another company.A. license/franchiseB. franchise/co-brandC. franchise/acquire rightsD. license/receive permission24) John Kotter’s view argues that management focuses on coping with complexity, whereasleadership focuses on coping with _____.A. conflict
  5. 5. B. defeatC. moraleD. successE. change25) Leadership is best defined as _____.A. the ability to influence a group in goal achievementB. implementing the vision and strategy provided by managementC. coordinating and staffing the organization and handling day-to-day problemsD. keeping order and consistency in the midst of changeE. not a relevant variable in modern organizations26) Which of the following is NOT included in the definition of conflict?A. perceptionB. something that is cared aboutC. negative effectsD. disruption of tasks27) Negotiation can be defined as a process in which two or more parties exchange goods or servicesand attempt to agree upon _____.A. the exchange rate for those goods and servicesB. a model of the negotiation process for resolving differencesC. effective arbitrators for disputesD. acceptable bargaining strategies for obtaining the goods and servicesE. the monetary value of the exchanged items28) _____ bargaining is negotiation that seeks to divide a “fixed pie.”A. DistributiveB. ReflectiveC. AffectiveD. IntegrativeE. Conjunctive29) Which of the following statements about leadership is true?A. leaders are managers.B. managers are leaders.C. leaders are hierarchically superior to followers.D. Formal rights enable managers to lead effectively.E. Nonsanctioned leadership is as important as or more important than formal influence.30) Danielle wants to become a surgeon, not only because achieving this goal will give her self-respectand autonomy, but also because she wants a job with high status and recognition from others. Whichof Maslow’s needs is Danielle trying to fill?A. self-actualizationB. esteemC. psychologicalD. socialE. safety
  6. 6. 31) _____ can be used to increase the perception that employees are treated fairly.A. Selective evaluationB. Multiple ratersC. Documenting with a journalD. Due processE. Focusing on subjective evaluations32) Examples of off-the-job training include all of the following except _____.A. classroom lecturesB. public seminarsC. Internet coursesD. videotapesE. apprenticeship programs33) Training employees how to be better listeners falls under which of the following trainingcategories?A. ethical skillsB. interpersonal skillsC. problem-solving skillsD. cultural skillsE. technical skills34) Which type of skill training has become increasingly important in organizations?A. financialB. interpersonalC. problem solvingD. socialE. technical35) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S.corporations receive ethics training.A. 10B. 75C. 50D. 2536) Organizational structure has six key elements. Which of the following is not one of theseelements?A. centralizationB. formalizationC. work specializationD. location of authorityE. departmentalization37) Which of the following is not a primary force for change in organizations?A. technology
  7. 7. B. social trendsC. decreasing skill setsD. the nature of the workforceE. economic shocks38) The “realistic” personality from Holland’s typology of personality and congruent occupationswould be well suited for which of the following jobs?A. painterB. lawyerC. mechanicD. biologistE. accountant39) What term is used for the tendency of an individual to attribute his own successes to internalfactors while putting the blame for failures on external factors?A. fundamental attribution errorB. selective perceptionC. consistencyD. stereotypingE. self-serving bias40) A task that is subdivided into many separate jobs is considered to have _____.A. a high degree of departmentalizationB. a low degree of structureC. a high degree of work specializationD. a high degree of matrix structuringE. a low degree of decentralization41) Under exponential smoothing, if we want our forecast to be responsive to recent demand, thevalue of alpha should be:A. largeB. zeroC. moderateD. small42) Which of the following would NOT be classified as a time-series technique?A. simple moving averageB. regression modelC. box Jenkins techniqueD. trend projectionsE. exponential smoothing43) According to David Maister, the most complex projects requiring innovation and creativity arecalled _________.A. “procedures” projectsB. “grinding” projectsC. “brain surgery” projects
  8. 8. D. “gray hair” projects44) Goldratts rule of production scheduling include all but:A. Do not balance the capacity - balance the flowB. Utilization and activation of a resource is not the same thingC. Priorities can be set only by examining the systems constraintsD. An hour saved at a non-bottleneck is a mirageE. A process batch should be fixed both along its route and in time45) If the system contains a bottleneck, the _______ is the best place for control. If there is nobottleneck, the __________ is the best place for control.A. capacity-constrained resource, bottleneckB. capacity-constrained resource, drumC. none of these answersD. bottleneck, capacity constrained resource46) “Hard” capital rationing refers to the rationing __________.A. imposed by external factorsB. imposed internally by the shareholdersC. always imposed by debt holdersD. always imposed by competitors47) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets orto develop derivatives or design arrangements that enable firms to cope better with the risks theyface in their foreign operations.A. The Principle of Risk-Return Trade-offB. The Principle of DiversificationC. The Principle of Valuable IdeasD. The Principle of Capital Market Efficiency48) __________ says to recognize the value of hidden options in a situation, such as the foreignexchange options in some derivative instruments.A. The Options PrincipleB. The Principle of Comparative AdvantageC. The Time Value of Money PrincipleD. The Principle of Two-Sided Transactions49) Under capital rationing, given the choice among several equally attractive investments, the besttool to use is the __________.A. Internal Rate of Return methodB. Payback methodC. Net Present Value methodD. Profitability Index method50) An all-equity-financed firm would __________.A. not pay any income taxes because interest would exactly offset its taxable income.B. pay corporate income taxes because it would have interest expense.C. pay corporate income taxes if its taxable income is positiveD. not pay corporate income taxes because it would have no interest expense.
  9. 9. 51) __________ says to seek out investments that offer the greatest expected risk-adjusted realreturn. A. The Principle of Incremental Benefits B. The Signaling Principle C. The Principle of Valuable Ideas D. The Principle of Self-Interested Behavior52) A checking account is __________.A. a place to “collect” money between inflows and outflowsB. an account that acts like a reservoirC. useful because you can add money in any amountD. all of these53) Due to asymmetric information, the market fears that a firm issuing securities will do so when thestock is _________.A. undervaluedB. overvaluedC. being sold by insidersD. caught up in a bear market54) Which of the following statements is true?A. The Principle of Capital Market Efficiency says to consider the possible ways to minimize the valuelost to capital market imperfections, such as asymmetric taxes, asymmetric information, andtransaction costs.B. The Behavioral Principle suggests to look for opportunities to create value by issuing securities thatare in short supply, perhaps resulting from changes in tax law.C. The Signaling Principle says to consider any possible change in capital structure carefully, becausefinancing transactions and capital structure changes convey information to outsiders and can bemisunderstood.D. all of these55) Which of the following statements is true?A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lostto capital market imperfections, such as asymmetric taxes, asymmetric information, and transactioncosts.B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuingsecurities 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 fromcapital structure choices.D. all of these56) __________ says to recognize the value of options contained in derivatives.A. The Principle of Valuable IdeasB. The Capital Market Efficiency PrincipleC. The Principle of Comparative AdvantageD. The Options Principle
  10. 10. 57) __________ says to use derivatives to pay others to take risks.A. The Principle of Two-Sided TransactionsB. The Signaling PrincipleC. The Principle of Self-Interested BehaviorD. The Principle of the Time Value of Money58) 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 these59) The investment decision best addresses which of the following questions?A. Should we buy new equipment?B. Should debt be short-term?C. Should we increase our advertising budget?D. Should we borrow in a foreign currency?60) Dimensions of risk include __________.A. uncertainty about the future outcomeB. the impossibility of the same returnC. uncertainty about yesterday’s outcomeD. the certainty of a negative outcome61) According to the Principle of Risk-Return Trade-Off, investors require a higher return tocompensate for __________.A. lack of diversificationB. less riskC. greater riskD. diversification62) 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 MagicTape’s stock has announced that insiders have sold 10% of their holdings. You are concerned becauseyou own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. Ifmarkets are at least semi-strong form efficient, what would you expect?A. You would expect Magic Tape to close at $28 the day of the announcement.B. You would lose $1,800.C. You would lose $2.00 per shareD. You would lose $4,000.63) Which of the following is not an advantage of going public?A. Going public enables a firm to raise additional capital.B. Going public generally brings a lower price in the public market than in the venture capital orprivate placement markets.C. Going public achieves liquidity and diversification for current shareholdersD. Going public gives existing shareholders a chance to sell portions of their shares as part of the IPOgiving them a cash return on their investment and allows them to diversify their investmentportfolios.
  11. 11. 64) Which of the following is not an advantage of going public?A. Going public makes the common stock negotiable and creates a visible market value.B. Going public increase the firms equity financing flexibility.C. Going public makes it easier for a firm to acquire other firms in exchange for shares of its stock.D. Going public makes securities worth more because of their decreased liquidity.65) Undertaker Corporation has a joint process that produces three products: P, G, and A. Eachproduct may be sold at split-off or processed further and then sold. Joint processing costs for a yearamount to $25,000. Other relevant data are as follows:Product Sales Value at Split-off Processing Costs after Split-off Sales Value at CompletionP $62,000 $5,000 $88,000G 12,500 6,500 19,000A 9,400 5,000 12,000Product G _____.A. should be processed further to increase profits by $6,500.B. should be processed further to increase profits by $19,000.C. an be processed further or sold at split off; there is no difference in profit.D. should be sold at split off since processing further would only reduce profits by $6,500.66) Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of$88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. Thecompany has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign marketwhich would not affect its present sales. If the company has sufficient capacity to produce theadditional units, acceptance of the special order would affect net income as follows:A. Income would decrease by $4,000.B. Income would increase by $70,000.C. Income would increase by $20,000D. Income would increase by $4,000.67) Transfer-pricing systems exist to _____.A. encourage managers to purchase goods and services internallyB. maximize worldwide taxes, duties, and tariffsC. evaluate segment performanceD. all of these answers are correct68) Which one of the following managerial accounting approaches attempts to allocate manufacturingoverhead in a more meaningful fashion?A. Theory of constraints.B. Activity-based costing.C. Total-quality managementD. Just-in-time inventory.69) The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision isA. subtracted from the "Make" costs.B. Added to the "Make" costs.C. added to the "Buy" costs.D. none of these
  12. 12. 70) Which of the following does not appear as a separate section on the cash budget?A. Cash receiptsB. Capital expendituresC. FinancingD. Cash disbursements71) Important factors considered by sales forecasters include all of the following except _____.A. past patterns of salesB. the desired level of salesC. marketing research studiesD. competitors’ activities72) Effectiveness is indicated by _____.A. sales-activity variancesB. all of these answers are correctC. static-budget variancesD. flexible-budget variances73) Beginning cash balance plus total receiptsA. equals ending cash balance.B. is the excess of available cash over disbursements.C. must equal total disbursements.D. equals total available cash.74) A cost which remains constant per unit at various levels of activity is aA. variable cost.B. manufacturing cost.C. fixed cost.D. mixed cost.75) A variable cost is a cost thatA. varies per unit at every level of activity.B. may or may not be incurred, depending on managements discretion.C. occurs at various times during the year.D. varies in total in proportion to changes in the level of activity.76) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The totalsales necessary to break even areA. $480,000.B. $144,000.C. $600,000.D. $150,000.77) For an activity base to be useful in cost behavior analysis,A. the activity should always be stated in dollars.B. the activity level should be constant over a period of time.C. there should be a correlation between changes in the level of activity and changes in costs.D. the activity should always be stated in terms of units.
  13. 13. 78) Identify which statement about "currently attainable standards" is NOT true.A. They allow for normal spoilage and nonproductive time.B. Employees usually view these goals as reasonable.C. Because they allow for waste, they usually result in favorable variances.D. They represent projections of what will probably be attained.79) Joint costs are incurred _____.A. before the production process is startedB. after the process-further decisionC. before individual products are separately identifiedD. after the split-off point but before the process-further decision80) The last step in activity-based costing is toA. assign manufacturing overhead costs for each activity cost pool to products.B. identify the cost driver that has a strong correlation to the activity cost pool.C. compute the activity-based overhead rate per cost driver.D. identify and classify the major activities involved in the manufacture of specific products.81) In a process cost system,A. a Work in Process account is maintained for each product.B. one Work in Process account is maintained for all the processes, similar to a job order cost system.C. a materials requisition must identify the job on which the materials will be used.D. a Work in Process account is maintained for each process.82) The proprietorship form of business organizationA. must have at least two owners in most states.B. is classified as a separate legal entity.C. generally receives favorable tax treatment relative to a corporation.D. combines the records of the business with the personal records of the owner.83) Identify which one of the following statements is false.A. Owners’ equity solely represents the profits made by an organization in the current period.B. Assets are economic resources that are expected to benefit future cash inflows or reduce futurecash outflows.C. Liabilities are economic obligations or claims against the assets of an organization by outsiders.D. Assets must always equal the sum of liabilities and owners’ equity.84) A local retail shop has been operating as a sole proprietorship. The business is growing and nowthe owner wants to incorporate. Which of the following is not a reason for this owner to incorporate?A. ability to raise capital for expansionB. desire to limit the owner’s personal liabilityC. the prestige of operating as a corporationD. the ease in transferring shares of the corporation’s stock85) _____ are sections of the balance sheet.A. Revenues, assets, and liabilitiesB. Assets, liabilities, and expensesC. Expenses, revenues, and owners’ equityD. Assets, liabilities, and owners’ equity
  14. 14. 86) Although the U.S. has had a longstanding agreement with ___________, after the passage ofNAFTA, _________ became the United States second largest trading partner.A. Canada, VenezuelaB. Canada, MexicoC. Mexico, CanadaD. Mexico, VenezuelaE. Great Britain, Paraguay87) Diversity training programs are generally intended to provide a vehicle for _____.A. focusing on individual differencesB. increasing awareness and examining stereotypesC. eliminating group learningD. socializing otherwise unmanageable employeesE. balancing work/life conflicts88) Which country does the text describe as becoming the largest producer and consumer of many ofthe worlds goods? A. Canada B. Japan C. Mexico D. EcuadorE. China89) Which of the following is not one of the Caux Round Table Principles for International Business?A. Support for Multilateral Trade.B. Avoidance of Illicit Operations.C. Promotion of Multiculturalism.D. Responsibility of Business Beyond Shareholders Toward Stakeholders.E. Respect for the Environment.90) One study found that manufacturing labor costs about ___ an hour in China, compared to ____dollars in the United States.A. About $2; about 15B. Less than $1; about 15C. Less than $1; about 25D. Less than $1; about 40E. $2; about 2591) Which of the following is correct about litigating commercial disputes?A. Commercial disputes, because of their specialized nature, are first heard at the appellate courtlevel.B. Nearly all states have specialized trial courts that hear commercial disputes.C. A few states have established specialized trial courts for commercial disputes.D. In all states, commercial disputes must be heard in a limited-jurisdiction court.E. Businesses generally dislike the concept of specialized trail courts for commercial disputes becausethe large numbers of consumers who sue businesses in these courts have led the judges to becomegenerally biased against business.
  15. 15. 92) Which article of the United States Constitution deals with the judicial power of the federalgovernment?A. Article II.B. Article I.C. Article III.D. Article V.E. Article IV.93) When an economist says that the demand for a product has increased, this means that:A. quantity demanded is greater at each possible price.B. firms make less of the product available for sale.C. consumers respond to a lower price by buying more.D. the demand curve becomes steeper.94) When movie ticket prices increase, families tend to spend less time watching movies and moretime at home watching videos instead. This best reflects:A. diminishing marginal utility.B. the income effect.C. the rationing function of markets.D. the substitution effect.95) The costs of delivering products in the _____ channel are much higher than delivering products inthe _____ channel.A. digital, e-commerceB. e-commerce, digitalC. digital, physicalD. physical, digitalE. physical, financial96) Which of the following is NOT a function of functional area information systems?A. supports the managerial tasks of planning, organizing, and controlling operationsB. provides information mainly in the form of reportsC. provides information to managers in the functional areasD. provides data from business events to the corporate databaseE. provides analysis capabilities to middle level managers and staff97) The Global, Web-Based Platform enables individuals to do which of the following?A. access information, services, and entertainmentB. exchange knowledgeC. connect, compute, communicate, collaborate, and compete everywhere and all the timeD. produce and sell goods and servicesE. all of these answers are correct98) Companies normally budget marketing research at ________ percent of company sales.A. 2 to 3B. 4C. 1 to 2D. 6.5E. 10 to 12
  16. 16. 99) The assignment of numbers or symbols to a property of objects according to value or magnitude iscalled _____.A. ScalingB. WeighingC. MeasurementD. SamplingE. Coding100) A ________ has been defined as being a coordinated collection of data, systems, tools, andtechniques with supporting software and hardware by which an organization gathers and interpretsrelevant information from business and environment and turns it into a basis for marketing action.A. marketing intelligence systemB. marketing decision support systemC. marketing information systemD. marketing research systemE. database management system

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