STR 581 Final Exam Set 3 Answers are HERE!1) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovationprocess.A. joint- venture systemB. skunk worksC. venture teamD. new product “team”E. stage-gate system2) ________ is the difference between the prospective customer’s evaluation of all the benefits and allthe costs of an offering and the perceived alternatives.A. Failure avoidance rate B. Competitors market share rate C. Customer perceived value D. Report rating E. Perceived usefulness3) 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. intermediaries B. sales force surrogates C. external networks D. advisory panels E. customer feedback systems4) Most established companies focus on ________ when it comes to innovation.A. continuous innovationB. incremental innovationC. everyday innovationD. demand innovationE. competitive innovation5) A(n) ________ is any good, service, or idea that is perceived by someone as new.A. innovationB. productC. new ideaD. creative product
6) Total customer satisfaction is the general feeling of pleasure or disappointment that results fromcomparing perceived performance to expectations. To achieve total customer satisfaction,organizations need to_____________.A. Spend more money B. Develop marketing campaigns C. Manage customer experiences D. Lower expectations E. Lower prices7) A ________ is a set of procedures and sources managers use to obtain everyday information aboutdevelopments in the marketing environment.A. marketing information systemB. marketing research systemC. product management systemD. marketing intelligence systemE. vertical system8) Marketers usually identify niches by ________.A. conducting VALS testsB. dividing a segment into subsegmentsC. allowing consumers to gravitate toward product brandsD. examining the demographics section of The Handbook of MarketingE. producing products that can be used in a variety of ways9) In ________ marketing, the seller engages in the mass production, mass distribution, and masspromotion of one product for all buyers.A. massB. groupC. generalD. segmentedE. differentiated10) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars, manyconsumers use price as an indicator of ________.A. ability B. capability C. status D. size E. quality11) A marketing manager needs to know the cost of the research project before approving it. Duringwhich step in the marketing research process would such a consideration most likely take place?A. Step 1—drafting the research objectives. B. Step 2—develop the research plan. C. Step 1—defining the problem. D. Step 3—information collection E. Step 1—creating decision alternatives.
12) Which of the following is generally considered to be the last step in the marketing researchprocess?A. Control the environment.B. Make the decision.C. Present the findings.D. Draft the reportE. Analyze the information.13) ________ is the systematic design, collection, analysis, and reporting of data and findings relevantto a specific marketing situation facing the company.A. Marketing research B. Demographics C. Marketing intelligence D. Marketing management E. MIS (marketing information system)14) 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. product specialization B. market specialization C. single-segment concentration D. full market coverage E. selective specialization15) The marketing communications mix consists of six major modes of communications. Which of thefollowing is NOT one of these modes?A. Sales promotions B. Packaging C. Personal selling D. Advertising E. Direct marketing16) The chief disadvantage to a firm that decides to follow a product specialization strategy inselecting target markets is ________.A. the product may be supplanted by an entirely new technology B. competitors can easily copy any new product introductions C. no synergy exists D. e-commerce becomes difficult for the company E. logistics can become a nightmare17) Marketing communications can contribute to brand equity by establishing the brand in memoryand to________ (in)a brand image.A. communicateB. craftC. create interestD. create demand
18) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly________ effect of price on the bottom line.A. leveragedB. soothingC. dramaticD. abrasiveE. direct19) 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. aggressively pursue take over strategies B. aggressively pursue market expansion and diversification strategies C. contend with dwindling customer bases D. aggressively “squeeze” manufacturer margins E. dominant the manufacturers they do business with20) Major retailer types include the following EXCEPT ________.A. catalog showroomB. superstoreC. specialty storeD. discount storeE. the Internet21) ________ communicates a company’s intended value positioning of its product or brand to themarket.A. PlaceB. Physical evidenceC. PackagingD. PriceE. Promotion22) Price has operated as the major determinant of buyer choice among poorer nations, amongpoorer groups, and with ________ products.A. over the InternetB. commodity-typeC. identicalD. similar23) New-to-the- world products are ________.A. new products that supplement established product lines (package sizes, flavors, and so on)B. existing products that are targeted to new markets or market segmentsC. new products that create an entirely new marketD. new products that allow a company to enter an established market for the first timeE. new products that provide improved performance or greater perceived value and replace existingproducts24) _____ bargaining is negotiation that seeks to divide a “fixed pie.”
A. ReflectiveB. DistributiveC. AffectiveD. ConjunctiveE. Integrative25) The two general approaches to bargaining are known as ________.A. distributive and integrativeB. emotional and rational.C. formal and informal.D. legal and restrictiveE. affective and reflective26) Leadership is best defined as _____.A. implementing the vision and strategy provided by managementB. the ability to influence a group in goal achievementC. coordinating and staffing the organization and handling day-to-day problemsD. not a relevant variable in modern organizationsE. keeping order and consistency in the midst of change27) Which of the following statements best defines a work group?A. A work group consists of 3 or more people who take on self-supervising responsibilities. B. The performance of a work group is generally greater than the sum of its inputs from individualmembers. C. A work group consists of 3 or more people from across departmental or functional lines. D. A work group is a group comprised of 10 or more people E. A work group interacts primarily to share information, rather than to engage in work that requiresjoint effort.28) Which of the following statements about leadership is true?A. managers are leaders.B. leaders are managers.C. leaders are hierarchically superior to followers.D. Nonsanctioned leadership is as important as or more important than formal influence.E. Formal rights enable managers to lead effectively.29) Negotiation can be defined as a process in which two or more parties exchange goods or servicesand attempt to agree upon _____.A. a model of the negotiation process for resolving differencesB. the exchange rate for those goods and servicesC. effective arbitrators for disputesD. the monetary value of the exchanged itemsE. acceptable bargaining strategies for obtaining the goods and services30) If no one is aware of conflict, it is generally agreed that _____.A. no conflict existsB. employee-employer relations will be goodC. conflict is inevitable
D. conflict is psychologically driven as opposed to physically manifestE. conflict is subversive31) Training employees how to be better listeners falls under which of the following trainingcategories?A. problem-solving skills B. ethical skills C. interpersonal skills D. cultural skills E. technical skills32) _____ can be used to increase the perception that employees are treated fairly.A. Multiple ratersB. Documenting with a journalC. Due processD. Selective evaluationE. Focusing on subjective evaluations33) Which of the following is NOT a typical written test used in organizations?A. personalityB. aptitudeC. integrityD. intelligenceE. work sample34) Examples of off-the-job training include all of the following except _____.A. Internet coursesB. public seminarsC. apprenticeship programsD. classroom lecturesE. videotapes35) Which of the following has proven to be a particularly good predictor for jobs that requirecognitive complexity?A. work sampling B. aptitude tests C. integrity evaluations D. intelligence tests E. behavioral assessment36) Which of the following is not a primary force for change in organizations?A. decreasing skill setsB. social trendsC. economic shocksD. technologyE. the nature of the workforce
37) The “realistic” personality from Holland’s typology of personality and congruent occupationswould be well suited for which of the following jobs?A. mechanicB. lawyerC. accountantD. painterE. biologist38) _____ developed a Vocational Preference Inventory questionnaire that contains 160 occupationaltitles.A. Hofstede B. Herzberg C. Holland D. Maslow E. Surber39) Investors bragged about their investing expertise during the stock market rally between 1996 andearly 2000, then blamed analysts, brokers, and the Federal Reserve when the market imploded in2000. These investors were most probably guilty of what?A. distinctivenessB. selective perceptionC. the halo effectD. self-serving biasE. fundamental attribution error40) 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. selective perception B. stereotyping C. consistency D. self-serving bias E. fundamental attribution error41) Operations stage toolkit for the Data Analysis and Solution Development phase include(s):I. SPC tools II. Bottleneck analysis III. Computer simulation IV. Balanced scoreboardA. II, III, and IV B. I, II, III, and IV C. I, II, III D. II and III E. I and II42) The phenomenon of magnification of demand variability as we move from the customer to theproducer in the supply-chain is referred to as the:A. price deflator B. Just-in-time approach C. bullwhip effect D. Elasticity of demand
E. postponement effect43) According to David Maister, the most complex projects requiring innovation and creativity arecalled _________.A. “brain surgery” projects B. “grinding” projects C. “gray hair” projects D. “procedures” projects44) Which of the following according to Goldratt is not a component of production cycle time?A. queue time B. maintenance time C. wait time D. process time E. setup time45) Which of the following would NOT be classified as a time-series technique?A. regression modelB. trend projectionsC. box Jenkins techniqueD. exponential smoothingE. simple moving average46) 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 securitiesthat are 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 these47) “Hard” capital rationing refers to the rationing __________.A. always imposed by competitorsB. always imposed by debt holdersC. imposed internally by the shareholdersD. imposed by external factors48) Due to asymmetric information, the market fears that a firm issuing securities will do so when thestock is _________.A. caught up in a bear market B. undervalued C. being sold by insiders D. overvalued49) An investors risky portfolio is made up of individual stocks. Which of the following statementsabout this portfolio is true?
A. An investor cannot change the risk of this portfolio by her choice about personal leverage (lendingor borrowing).B. Each stock in the portfolio has its own beta.C. Each stock in the portfolio will have a beta greater than one.D. Selling any stock in this portfolio will lower the beta of the portfolio.50) __________ 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 Capital Market Efficiency B. The Principle of Risk-Return Trade-off C. The Principle of Valuable Ideas D. The Principle of Diversification51) __________ says to seek out investments that offer the greatest expected risk-adjusted realreturn.A. The Principle of Self-Interested Behavior B. The Principle of Incremental Benefits C. The Principle of Valuable Ideas D. The Signaling Principle52) __________ says to recognize the value of hidden options in a situation, such as the foreignexchange options in some derivative instruments.A. The Principle of Two-Sided TransactionsB. The Options PrincipleC. The Time Value of Money PrincipleD. The Principle of Comparative Advantage53) 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 these54) 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 these55) Under capital rationing, given the choice among several equally attractive investments, the besttool to use is the __________.A. Profitability Index method B. Internal Rate of Return method C. Net Present Value method
D. Payback method56) __________ says to recognize the value of options contained in derivatives.A. The Options PrincipleB. The Capital Market Efficiency PrincipleC. The Principle of Comparative AdvantageD. The Principle of Valuable Ideas57) 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 these58) __________ says that if you transfer risk to another party, you must offer a return that fullycompensates for the amount of risk transferred. A. The Principle of Incremental Benefits B. The Risk-Return Trade-Off Principle C. The Principle of Self-Interested D. The Behavioral Principle59) According to the Principle of Risk-Return Trade-Off, investors require a higher return tocompensate for __________.A. less risk B. diversification C. greater risk D. lack of diversification60) Which of these investments would you expect to have the highest rate of return for the next 20years?A. intermediate-term U.S. government bondsB. long-term corporate bondsC. anybody’s guessD. U.S. Treasury bills61) Dimensions of risk include __________.A. the impossibility of the same returnB. the certainty of a negative outcomeC. uncertainty about yesterday’s outcomeD. uncertainty about the future outcome62) You work for ABC, Inc. in the finance department. You own shares in ABC, Inc. that are selling at$20 per share on the NYSE. You just found out they will have a new stock offering. You just found outthey will publicly announce a new stock offering. The costs from the offering will be 10% of the newoffering. The new offering will increase the number of outstanding share by 30%. There are currently20,000,000 shares of ABC outstanding. Once the announcement is made public, what might be theexpected impact from transaction (or issuance) costs on each share you own?A. You will lose 2% of the value of the shares you own.
B. You will lose 3% of the value of the share you own.C. There will be no costs because markets are perfect when it comes to new stock offerings.D. There will be no costs because there is no information asymmetry present.63) Which of the following is (are) true?A. The Principle of Risk-Return Trade-Off states that differences between financial assets aremeasured primarily in terms of risk and return.B. The Principle of Capital Market Efficiency states that people apply the Principles of Self-InterestedBehavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financialassets, 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.64) 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 lose $1,800.B. You would lose $2.00 per shareC. You would expect Magic Tape to close at $28 the day of the announcement.D. You would lose $4,000.65) Incremental analysis would not be appropriate forA. elimination of an unprofitable segment.B. Analysis of manufacturing variancesC. a make or buy decision.D. an allocation of limited resource decision.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 increase by $70,000. B. Income would increase by $20,000 C. Income would decrease by $4,000. D. Income would increase by $4,000.67) Which one of the following characteristics would likely be associated with a just-in-time inventorymethod?A. Minimal finished goods inventory on hand.B. An understanding with customers that they may come to the showroom and select from inventoryon hand.C. Ending inventory of work in process that would allow several production runs.D. A backlog of inventory orders not yet shipped.68) For what purpose is the theory of constraints used?
A. To identify and manage constraints that bottle-neck operations.B. To reduce inventory levelsC. To reduce product defects.D. To balance performance measurement.69) Which decision will involve no incremental revenues?A. Additional processing decisionB. Make or buy decisionC. Drop a product lineD. Accept a special order70) Important factors considered by sales forecasters include all of the following except _____.A. the desired level of salesB. past patterns of salesC. marketing research studiesD. competitors’ activities71) _____ is an important factor considered by sales forecasters.A. All of these answers are correctB. Past patterns of salesC. Estimates made by the sales forceD. General economic conditions72) A _____ gives the expected sales under a given set of conditions.A. sales forecastB. sales predictionC. sales budgetD. budget forecast73) Which of the following does not appear as a separate section on the cash budget?A. FinancingB. Cash receiptsC. Cash disbursementsD. Capital expenditures74) A variable cost is a cost thatA. may or may not be incurred, depending on managements discretion.B. varies per unit at every level of activity.C. occurs at various times during the year.D. varies in total in proportion to changes in the level of activity.75) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The totalsales necessary to break even areA. $144,000. B. $600,000. C. $480,000. D. $150,000.
76) A cost which remains constant per unit at various levels of activity is aA. manufacturing cost.B. fixed cost.C. variable cost.D. mixed cost.77) How much sales are required to earn a target net income of $128,000 if total fixed costs are$160,000 and the contribution margin ratio is 40%?A. $320,000.B. $648,000.C. $400,000.D. $720,000.78) An absorption-costing income statement separates cost into the major categories of_____.A. all of these answers are correctB. product and periodC. manufacturing and nonmanufacturingD. inventoriable and noninventoriable79) The last step in activity-based costing is toA. identify the cost driver that has a strong correlation to the activity cost pool.B. compute the activity-based overhead rate per cost driver.C. assign manufacturing overhead costs for each activity cost pool to products.D. identify and classify the major activities involved in the manufacture of specific products.80) The first step in activity-based costing is toA. assign manufacturing overhead costs for each activity cost pool to products.B. compute the activity-based overhead rate per cost driver.C. identify and classify the major activities involved in the manufacture of specific products.D. identify the cost driver that has a strong correlation to the activity cost pool.81) There is no difference between variable-costing and absorption-costing income if there isno_____.A. variable overhead costB. change in inventory levelC. beginning inventoryD. ending inventory82) _____ are profitability ratios.A. Price earnings and current ratioB. Earnings per share and dividend yieldC. Gross profit rate and return on salesD. Dividend payout and rate of return in invested capital83) Which statements describe the principal reason(s) why investors and creditors use financialstatement analysis? 1. To assess the risks associated with expected returns 2. To establishrecommended dividend and interest payments 3. To evaluate top and middle level management 4. Topredict the amount of expected returns
A. 1, 2, and 3B. 3 and 4C. 1 and 2D. 1 and 484) _____ are sections of the balance sheet.A. Assets, liabilities, and owners’ equityB. Expenses, revenues, and owners’ equityC. Revenues, assets, and liabilitiesD. Assets, liabilities, and expenses85) 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. the ease in transferring shares of the corporation’s stock B. the prestige of operating as a corporation C. ability to raise capital for expansion D. desire to limit the owner’s personal liability86) 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) One study found that manufacturing labor costs about ___ an hour in China, compared to ____dollars in the United States.A. Less than $1; about 40B. $2; about 25C. About $2; about 15D. Less than $1; about 15E. Less than $1; about 2588) Which of the following is not one of the Caux Round Table Principles for International Business?A. Responsibility of Business Beyond Shareholders Toward Stakeholders.B. Support for Multilateral Trade.C. Promotion of Multiculturalism.D. Respect for the Environment.E. Avoidance of Illicit Operations.89) Which social responsibility theory has been advocated by Novel Prizewinning economist MiltonFriedman?A. Corporate social auditB. Moral minimumC. Stakeholder interestD. Corporate citizenshipE. Maximizing profits
90) Diversity training programs are generally intended to provide a vehicle for _____.A. socializing otherwise unmanageable employeesB. focusing on individual differencesC. eliminating group learningD. balancing work/life conflictsE. increasing awareness and examining stereotypes92) Which of the following is correct about litigating commercial disputes?A. In all states, commercial disputes must be heard in a limited-jurisdiction court. B. Commercial disputes, because of their specialized nature, are first heard at the appellate courtlevel. C. A few states have established specialized trial courts for commercial disputes. D. Businesses generally dislike the concept of specialized trail courts for commercial disputesbecause the large numbers of consumers who sue businesses in these courts have led the judges tobecome generally biased against business. E. Nearly all states have specialized trial courts that hear commercial disputes.93) When an economist says that the demand for a product has increased, this means that:A. the demand curve becomes steeper.B. quantity demanded is greater at each possible price.C. consumers respond to a lower price by buying more.D. firms make less of the product available for sale.94) If consumer incomes increase, the demand for product Y will _____________.A. shift to the right if Y is a normal goodB. necessarily remain unchangedC. shift to the right if Y is a complementary good95) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, orsteam power that a country could deploy.A. None of these B. Globalization 2.0 C. Globalization 3.0 D. Globalization 1.096) The Global, Web-Based Platform enables individuals to do which of the following?A. all of these answers are correct B. exchange knowledge C. produce and sell goods and services D. connect, compute, communicate, collaborate, and compete everywhere and all the time E. access information, services, and entertainment97) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled byinformation technologies.A. business environment B. nationalization C. globalization D. regionalization
98) Which research design listed below is most appropriate for establishing causality?A. Individual depth interviewB. Behavioral observationC. Focus groupD. SurveyE. Experiment99) Which of the following statements is true concerning the applicability of attitudes inunderstanding behavior?A. Behavior is affected equally by those attitudes formed via social learning and those formed viabehavioral learningB. A single, global measure of attitude is necessary to predict behaviorC. General attitudes are the best predictors of behaviorD. Cognitive attitudes influence behavior better than affective-based attitudes100) The quartile deviation is:A. Based on the middle 50 percent of the observations.B. Appropriate only for symmetric distributions.C. The square root of the variance.D. In squared units of the original data.