STR 581 Final Exam Set 5 Answers are HERE!1) A ________ is a set of procedures and sources managers use to obtain everydayinformation about developments in the marketing environment. A. marketing research system B. marketing intelligence system C. vertical system D. product management system E. marketing information system2) ________ is the difference between the prospective customer’s evaluation of all thebenefits and all the costs of an offering and the perceived alternatives. A. Perceived usefulness B. Customer perceived value Competitors market share C. rate D. Report rating E. Failure avoidance rate3) A(n) ________ is any good, service, or idea that is perceived by someone as new. A. product B. creative product C. new idea D. innovation4) A company can take several steps to improve the quality of its marketing intelligence. Ifthe company purchases competitive products for study, attends open houses and tradeshows, and reads competitors’ published reports and stockholder information, the companyis using ________ to improve the quality of its marketing intelligence.
A. sales force surrogates B. advisory panels C. customer feedback systems D. external networks E. intermediaries5) Most established companies focus on ________ when it comes to innovation. incremental A. innovation B. demand innovation C. competitive innovation D. everyday innovation E. continuous innovation6) ________ 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 information system B. A promotional campaign C. A marketing database D. A marketing intelligence system E. A marketing research system7) The value proposition consists of a cluster of benefits the company promises to deliver; itis A. customer expectations B. Customer loyalty to the company C. business processes D. total customer satisfaction customer experience with the company
E.8) Purchase decisions are based on how consumers perceive prices and what they considertobe the ________ price—not the marketer’s stated price. A. current sale price B. current actual C. referent price D. last purchased price9) A ________ consists of a group of customers who share a similar set of needs and wants. A. market segment B. market target C. market level D. market slice E. market group10) Marketers usually identify niches by ________. A. examining the demographics section of The Handbook of Marketing B. dividing a segment into subsegments C. producing products that can be used in a variety of ways D. allowing consumers to gravitate toward product brands E. conducting VALS tests11) Which of the following is generally considered to be the last step in the marketing
research process? A. Make the decision. B. Present the findings. C. Draft the report D. Control the environment. E. Analyze the information.12) ________ is the systematic design, collection, analysis, and reporting of data andfindings relevant to a specific marketing situation facing the company. A. Demographics B. Marketing intelligence C. Marketing management D. Marketing research E. MIS (marketing information system)13) With respect to the sampling plan, three decisions must be made. The decisions are: thesampling unit—who is to be surveyed? Sample size—how many people should be surveyed?And ________. A. sampling procedure—how should the respondents be chosen? B. sample cost—how much does sampling cost? C. sample supervisor—who will lead the sampling effort? D. sample security—how to protect the sample data? E. surveyor skill—who will do the surveying?14) ________ communicates a company’s intended value positioning of its product or brandto the market. A. Promotion B. Packaging C. Physical evidence
D. Place E. Price15) “Power prices” use price as a key strategic tool. These “power prices” have discoveredthe highly ________ effect of price on the bottom line. A. direct B. dramatic C. soothing D. leveraged E. abrasive16) Some intermediaries use the following: strategic planning, advanced informationsystems, sophisticated marketing tools, measure performance on a return-on-investmentbasis, segment their markets, improve their target marketing and positioning, and________. A. dominant the manufacturers they do business with B. contend with dwindling customer bases C. aggressively pursue market expansion and diversification strategies D. aggressively pursue take over strategies E. aggressively “squeeze” manufacturer margins17) Price has operated as the major determinant of buyer choice among poorer nations,among poorer groups, and with ________ products. A. similar B. identical C. commodity-type D. over the Internet18) Major retailer types include the following EXCEPT ________. the Internet
A. B. specialty store C. superstore D. catalog showroom E. discount store19) Following the ________ approach to target market selection encompasses a strongknowledge of the segment’s needs, a strong market presence, and operating economiesthrough specializing in production, distribution, and promotion. A. selective specialization B. market specialization C. full market coverage D. product specialization E. single-segment concentration20) To reach Generation Y, rock band Foo Fighters created a digital street team that sendstargeted e-mail messages to members who “get the latest news, exclusive audio/video sneakpreviews, tons of chances to win great Foo Fighters prizes, and become part of the FooFighters Family.” Which of the following techniques for reaching Generation Y are the FooFighters using? A. Unconventional sports B. Computer games C. Online buzz D. Cool events E. Student ambassadors21) A company can add new products through acquisition or development. The acquisitionroute can take three forms. The company can buy other companies, it can acquire patentsfrom other companies, or it can buy a ________ or _________ from another company. A. license/receive permission B. franchise/co-brand
C. franchise/acquire rights D. license/franchise22) New-to-the- world products are ________. new products that allow a company to enter an established market for the first A. time new products that provide improved performance or greater perceived value B. and replace existing products C. existing products that are targeted to new markets or market segments new products that supplement established product lines (package sizes, flavors, D. and so on) E. new products that create an entirely new market23) The chief disadvantage to a firm that decides to follow a product specialization strategyin selecting target markets is ________. A. logistics can become a nightmare B. competitors can easily copy any new product introductions C. e-commerce becomes difficult for the company D. the product may be supplanted by an entirely new technology E. no synergy exists24) Which of the following statements best defines a work group? A work group interacts primarily to share information, rather than to engage in A. work that requires joint effort. A work group consists of 3 or more people from across departmental or B. functional lines. C. A work group is a group comprised of 10 or more people A work group consists of 3 or more people who take on self-supervising D. responsibilities. The performance of a work group is generally greater than the sum of its inputs E. from individual members.25) The traditional view of conflict is the belief that conflict is _____. A. natural situationally-
B. dependent C. neutral D. necessary E. harmful26) Which of the following is NOT included in the definition of conflict? A. disruption of tasks B. negative effects C. incompatibility D. something that is cared about E. perception27) Which of the following statements about leadership is true? A. Formal rights enable managers to lead effectively. B. leaders are hierarchically superior to followers. Nonsanctioned leadership is as important as or more important than formal C. influence. D. managers are leaders. E. leaders are managers.28) _____ bargaining is negotiation that seeks to divide a “fixed pie.” A. Integrative B. Affective C. Conjunctive D. Reflective E. Distributive29) Danielle wants to become a surgeon, not only because achieving this goal will give herself-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. social B. psychological C. safety D. esteem E. self-actualization30) Which of the following qualities is NOT found in work groups? A. security B. energy C. objectives D. enthusiasm E. synergy31) Between the late 1960s and the mid-1980s, the use of written tests declined because theywere characterized as _____. A. mathematically flawed B. unprofessional C. invalid D. discriminatory E. unreliable32) _____ can be used to increase the perception that employees are treated fairly. A. Focusing on subjective evaluations B. Selective evaluation C. Documenting with a journal D. Due process E. Multiple raters
33) Which of the following has proven to be a particularly good predictor for jobs thatrequire cognitive complexity? A. behavioral assessment B. intelligence tests C. aptitude tests D. integrity evaluations E. work sampling34) Examples of off-the-job training include all of the following except _____. A. videotapes B. classroom lectures C. public seminars D. apprenticeship programs E. Internet courses35) Which type of skill training has become increasingly important in organizations? A. social B. financial C. interpersonal D. technical E. problem solving36) The “realistic” personality from Holland’s typology of personality and congruentoccupations would be well suited for which of the following jobs? A. biologist B. painter C. lawyer D. accountant
E. mechanic37) Investors bragged about their investing expertise during the stock market rally between1996 and early 2000, then blamed analysts, brokers, and the Federal Reserve when themarket imploded in 2000. These investors were most probably guilty of what? A. selective perception B. fundamental attribution error C. distinctiveness D. self-serving bias E. the halo effect38) Each of the six personality types developed in Holland’s personality-job fit theory has a________. A. supplemental skill set B. supplemental personality style C. supplemental occupational environment D. congruent personality style E. congruent occupational environment39) _____ developed a Vocational Preference Inventory questionnaire that contains 160occupational titles. A. Surber B. Maslow C. Herzberg D. Holland E. Hofstede40) Phrases such as “more cultural diversity,” “many new entrants with inadequate skills,”and “increase in aging workers” are all examples of what force for change? competition
A. B. technology C. social trends D. world politics nature of the work E. force41) According to David Maister, the most complex projects requiring innovation andcreativity are called _________. A. “gray hair” projects B. “brain surgery” projects C. “grinding” projects D. “procedures” projects42) The ______ the percentage of contact time between the service system and the customer,the ________ the degree of interaction between the two during the production process. A. lesser, greater B. greater, greater none of these C. answers D. greater, lesser43) Goldratts rule of production scheduling include all but: A. An hour saved at a non-bottleneck is a mirage B. A process batch should be fixed both along its route and in time C. Priorities can be set only by examining the systems constraints D. Do not balance the capacity - balance the flow E. Utilization and activation of a resource is not the same thing44) If the system contains a bottleneck, the _______ is the best place for control. If there isno bottleneck, the __________ is the best place for control. A. capacity-constrained resource, drum
B. bottleneck, capacity constrained resource C. none of these answers D. capacity-constrained resource, bottleneck45) Operations stage toolkit for the Data Analysis and Solution Development phaseinclude(s): I. SPC tools II. Bottleneck analysis III. Computer simulation IV. Balancedscoreboard A. I, II, III B. II, III, and IV C. I, II, III, and IV D. I and II E. II and III46) Which of the following statements is true? The Principle of Incremental Benefits says to consider the possible ways to A. minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs. The Principle of Valuable Ideas suggests to look for opportunities to create value B. by issuing securities that are in short supply, perhaps resulting from changes in tax law. The Time Value of Money Principle advises to include any time-value-of-money C. tax benefits from capital structure choices. D. all of these47) An all-equity-financed firm would __________. A. pay corporate income taxes because it would have interest expense. B. not pay corporate income taxes because it would have no interest expense. C. pay corporate income taxes if its taxable income is positive not pay any income taxes because interest would exactly offset its taxable D. income.48) __________ says to recognize the value of hidden options in a situation, such as theforeign exchange options in some derivative instruments. The Principle of Comparative Advantage
A. B. The Principle of Two-Sided Transactions C. The Time Value of Money Principle D. The Options Principle49) __________ says to look for opportunities to invest in positive-NPV projects in foreignmarkets or to develop derivatives or design arrangements that enable firms to cope betterwith the risks they face in their foreign operations. A. The Principle of Diversification B. The Principle of Capital Market Efficiency C. The Principle of Valuable Ideas D. The Principle of Risk-Return Trade-off50) Which of the following statements is true? The Principle of Capital Market Efficiency says to consider the possible ways to A. minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs. The Behavioral Principle suggests to look for opportunities to create value by B. issuing securities that are in short supply, perhaps resulting from changes in tax law. The Signaling Principle says to consider any possible change in capital structure C. carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstood. D. all of these51) An investors risky portfolio is made up of individual stocks. Which of the followingstatements about this portfolio is true? A. Selling any stock in this portfolio will lower the beta of the portfolio. An investor cannot change the risk of this portfolio by her choice about personal B. leverage (lending or borrowing). C. Each stock in the portfolio will have a beta greater than one. D. Each stock in the portfolio has its own beta.52) Due to asymmetric information, the market fears that a firm issuing securities will do so
when the stock is _________. A. overvalued B. caught up in a bear market C. being sold by insiders D. undervalued53) __________ says to seek out investments that offer the greatest expected risk-adjustedreal return. A. The Signaling Principle B. The Principle of Self-Interested Behavior C. The Principle of Valuable Ideas D. The Principle of Incremental Benefits54) Under capital rationing, a good tool to use is the __________. A. payback method B. PI method C. NPV method D. IRR method55) A checking account is __________. a place to “collect” money between inflows and A. outflows B. an account that acts like a reservoir C. useful because you can add money in any amount D. all of these56) __________ says that if you transfer risk to another party, you must offer a return thatfully compensates for the amount of risk transferred. A. The Principle of Self-Interested B. The Principle of Incremental Benefits
C. The Risk-Return Trade-Off Principle D. The Behavioral Principle57) A key variable covered in our text for the Black-Scholes OPM is __________. the riskless APR with continuous A. compounding B. dividends. C. EPS. D. transaction costs.58) Dimensions of risk include __________. A. uncertainty about yesterday’s outcome B. the impossibility of the same return C. the certainty of a negative outcome D. uncertainty about the future outcome59) According to the Principle of Risk-Return Trade-Off, investors require a higher returnto compensate for __________. A. greater risk B. less risk C. diversification D. lack of diversification60) Which of these investments would you expect to have the highest rate of return for thenext 20 years? A. anybody’s guess intermediate-term U.S. government B. bonds C. long-term corporate bonds D. U.S. Treasury bills
61) 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 these62) Which (if any) statement is false? The Principle of Self-Interested Behavior suggests that self-interested capital A. market transactions force market prices toward being fair prices. The Principle of Two-Sided Transactions states that intense capital market B. competition to get and use information to take advantage of arbitrage opportunities eliminates such opportunities. The Principle of Signaling states that information in the transactions of others C. 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.63) Which of the following is (are) true? The Principle of Capital Market Efficiency states that differences between A. financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level. The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an B. environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency. The Principle of Valuable Ideas states that new ideas can provide value when C. first introduced, even in an efficient capital market. D. all of these answers are correct.64) Which of the following is (are) true? The Principle of Capital Market Efficiency states that differences between A. financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level. The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an B. environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency. The Principle of Valuable Ideas states that new ideas can provide value when C.
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. the same service to competitors B. a product in a foreign country C. a service to each other D. a product to the same customer66) Incremental analysis would be appropriate for A. acceptance of an order at a special price. B. a retain or replace equipment decision. C. a sell or process further decision. D. all of the answers are correct.67)Undertaker 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 processingcosts for a year amount to $25,000. Other relevant data are as follows: Processing Sales Value Costs after Sales Value Product at Split-off Split-off at Completion P $62,000 $5,000 $88,000 G 12,500 6,500 19,000 A 9,400 5,000 12,000Product G _____. A. an be processed further or sold at split off; there is no difference in profit. B. should be processed further to increase profits by $19,000. should be sold at split off since processing further would only reduce profits by C. $6,500. D. should be processed further to increase profits by $6,500.
68) It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroomscale 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 wereaccepted. Garner has sufficient unused capacity to produce the 2,000 scales. If the specialorder is accepted, what will be the effect on net income? A. $30,000 increase B. $6,000 decrease C. $4,000 decrease D. $4,000 increase69) Incremental analysis would not be appropriate for A. Analysis of manufacturing variances B. elimination of an unprofitable segment. C. an allocation of limited resource decision. D. a make or buy decision.70) Which of the following does not appear as a separate section on the cash budget? A. Financing B. Capital expenditures C. Cash disbursements D. Cash receipts71) Blue Company planned to sell 35,000 units. Actual sales were 30,000 units. Based on thisinformation, Blue Company was _____. A. ineffective B. effective C. inefficient D. efficient72) Effectiveness is indicated by _____. A. all of these answers are correct
B. flexible-budget variances C. static-budget variances D. sales-activity variances73) A _____ gives the expected sales under a given set of conditions. A. budget forecast B. sales budget C. sales forecast D. sales prediction74) For an activity base to be useful in cost behavior analysis, A. the activity should always be stated in terms of units. there should be a correlation between changes in the level of activity and B. changes in costs. C. the activity level should be constant over a period of time. D. the activity should always be stated in dollars.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 $150,000 A. . $600,000 B. . $144,000 C. . $480,000 D. .76) A company requires $1,020,000 in sales to meet its net income target. Its contributionmargin is 30%, and fixed costs are $180,000. What is the target net income? $420,000 A. . $234,000 B. . $126,000 C. .
$306,000 D. .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. $16.00. B. $11.50. Not enough C. information D. $43.50.78) The last step in activity-based costing is to identify and classify the major activities involved in the manufacture of specific A. products. B. compute the activity-based overhead rate per cost driver. C. identify the cost driver that has a strong correlation to the activity cost pool. D. assign manufacturing overhead costs for each activity cost pool to products.79) A well-designed activity-based costing system starts with A. assigning manufacturing overhead costs for each activity cost pool to products. B. computing the activity-based overhead rate. C. analyzing the activities performed to manufacture a product. D. identifying the activity-cost pools.80) Identify which of the following statements about "perfection standards" is true. A. They usually result in unfavorable variances. B. They are expressions of the most efficient performance possible. C. All of these answers are correct D. It is generally believed that they have a negative influence on employee morale.81) In a process cost system, A. a Work in Process account is maintained for each process.
B. a materials requisition must identify the job on which the materials will be used. one Work in Process account is maintained for all the processes, similar to a job C. order cost system. D. a Work in Process account is maintained for each product.82) _____ are profitability ratios. A. Earnings per share and dividend yield B. Dividend payout and rate of return in invested capital C. Price earnings and current ratio D. Gross profit rate and return on sales83) The _____ is not one of the three major financial statements. A. balance B. income statement C. statement of equity position D. statement of cash flows84) Financial statements are helpful to predict the future performance of a company for allof the following reasons except _____. financial statements are required to give formal projections of managements A. assessment of the next periods financial results the assets and liabilities of a company provide clues to a companys future B. prospects C. past performance is often a good indicator of future performance the evaluation of managements past performance gives clues to its ability to D. generate future returns85) A local retail shop has been operating as a sole proprietorship. The business is growingand now the owner wants to incorporate. Which of the following is not a reason for thisowner to incorporate? A. ability to raise capital for expansion B. the ease in transferring shares of the corporation’s stock
C. the prestige of operating as a corporation D. desire to limit the owner’s personal liability86) Which country does the text describe as becoming the largest producer and consumer ofmany of the worlds goods? A. Japan B. Ecuador C. China D. Mexico E. Canada87) Which of the following might a company consider to help employees address work-lifeconflicts? A. keeping work-related travel reasonable B. relocation assistance C. tie manager pay to customer satisfaction D. offering off-site quality child-care E. reducing workloads88) Which of the following is not one of the Caux Round Table Principles for InternationalBusiness? A. Avoidance of Illicit Operations. B. Responsibility of Business Beyond Shareholders Toward Stakeholders. C. Respect for the Environment. D. Promotion of Multiculturalism. E. Support for Multilateral Trade.89) One study found that manufacturing labor costs about ___ an hour in China, comparedto ____ dollars in the United States. Less than $1; about 15
A. B. Less than $1; about 40 C. $2; about 25 D. Less than $1; about 25 E. About $2; about 1590) Diversity training programs are generally intended to provide a vehicle for _____. A. increasing awareness and examining stereotypes B. socializing otherwise unmanageable employees C. balancing work/life conflicts D. eliminating group learning E. focusing on individual differences91) Which of the following is correct about litigating commercial disputes? A. Nearly all states have specialized trial courts that hear commercial disputes. B. In all states, commercial disputes must be heard in a limited-jurisdiction court. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue C. businesses in these courts have led the judges to become generally biased against business. D. A few states have established specialized trial courts for commercial disputes. Commercial disputes, because of their specialized nature, are first heard at the E. appellate court level.92) Which article of the United States Constitution deals with the judicial power of thefederal government? A. Article I. B. Article V. C. Article IV. D. Article III. E. Article II.
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. the demand curve becomes steeper. C. consumers respond to a lower price by buying more. D. firms make less of the product available for sale.94) When movie ticket prices increase, families tend to spend less time watching movies andmore time at home watching videos instead. This best reflects: A. diminishing marginal utility. B. the substitution effect. the rationing function of C. markets. D. the income effect.95) Which of the following is NOT a function of functional area information systems? A. provides information to managers in the functional areas B. provides analysis capabilities to middle level managers and staff C. provides data from business events to the corporate database D. provides information mainly in the form of reports supports the managerial tasks of planning, organizing, and controlling E. operations96) The costs of delivering products in the _____ channel are much higher than deliveringproducts in the _____ channel. A. physical, financial B. digital, e-commerce C. physical, digital D. digital, physical E. e-commerce, digital97) _____ is the integration of economic, social, cultural, and ecological facets of life,
enabled by information technologies. A. globalization B. regionalization C. business environment D. nationalization98) A _____ scale is a scale that scores an object or property without making a directcomparison to another object or property. A. Sorting B. Rating C. Recording D. Categorization E. Ranking99) The quartile deviation is: A. In squared units of the original data. B. The square root of the variance. C. Appropriate only for symmetric distributions. D. Based on the middle 50 percent of the observations.100) Marketing research is now about a ________ billion industry globally. A. $10 $21. B. 5 C. $7.5 $16. D. 5 E. $50