Question 1

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.

Accepted Answer

A)  twice 
B)  three times 
C)  five times 
D)  ten times 
E)  fifteen times 
A)  twice 
B)  three times 
C)  five times 
D)  ten times 
E)  fifteen times

Question 2

Which item is included in net worth?

Accepted Answer

A)  Retained earnings 
B)  Common stock 
C)  Additional paid-in-capital 
D)  All of the above are included in net worth. 
E)  None of the above are included in net worth. 
A)  Retained earnings 
B)  Common stock 
C)  Additional paid-in-capital 
D)  All of the above are included in net worth. 
E)  None of the above are included in net worth.

Question 3

Which two variables rank as marketing's most important contributions to strategic management?

Accepted Answer

A)  Diversification and budgeting 
B)  Marketing penetration and competition 
C)  Competition and collaboration 
D)  Product development and market development 
E)  Market segmentation and product positioning 
A)  Diversification and budgeting 
B)  Marketing penetration and competition 
C)  Competition and collaboration 
D)  Product development and market development 
E)  Market segmentation and product positioning

Question 4

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

Accepted Answer

A)  Debt appears to be the best financing alternative. 
B)  Stock would be the best financing alternative. 
C)  A combination of debt and stock is probably the best financial alternative. 
D)  Dividends must be considered before conclusions can be made. 
E)  The company should be privately owned. 
A)  Debt appears to be the best financing alternative. 
B)  Stock would be the best financing alternative. 
C)  A combination of debt and stock is probably the best financial alternative. 
D)  Dividends must be considered before conclusions can be made. 
E)  The company should be privately owned.

Question 5

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

Accepted Answer

A)  Net Worth Method 
B)  Net Income Method 
C)  Percentage-of-Sales Method 
D)  Price-Earnings Ratio method 
E)  Outstanding Shares Method 
A)  Net Worth Method 
B)  Net Income Method 
C)  Percentage-of-Sales Method 
D)  Price-Earnings Ratio method 
E)  Outstanding Shares Method

Question 6

As a balance sheet entry, goodwill represents the favor a business has acquired through its environmentally conscious and socially responsible actions.

Accepted Answer

A) True 
 B)False

Question 7

Although acquiring needed capital can be an important task, it is not seen as central to strategy implementation.

Accepted Answer

A) True 
 B)False

Question 8

What tends to become a more attractive financing technique when interest rates are high?

Accepted Answer

A)  Stock issuance 
B)  Debt 
C)  Cost cutting 
D)  Borrowing 
E)  Staying privately owned 
A)  Stock issuance 
B)  Debt 
C)  Cost cutting 
D)  Borrowing 
E)  Staying privately owned

Question 9

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

Accepted Answer

A)  Cost of goods sold 
B)  Selling expense 
C)  Administrative expense 
D)  Interest expense 
E)  All of these items can be forecasted using the percentage-of-sales method. 
A)  Cost of goods sold 
B)  Selling expense 
C)  Administrative expense 
D)  Interest expense 
E)  All of these items can be forecasted using the percentage-of-sales method.

Question 10

If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?

Accepted Answer

A)  It increases. 
B)  It is unchanged. 
C)  It decreases. 
D)  It doubles. 
E)  It cannot be determined from the information given. 
A)  It increases. 
B)  It is unchanged. 
C)  It decreases. 
D)  It doubles. 
E)  It cannot be determined from the information given.

Question 11

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

Accepted Answer

A)  To extend the time of accounts receivable 
B)  To establish a certain percentage discount on accounts within a specified period of time 
C)  To lease or buy fixed assets 
D)  To use LIFO, FIFO, or a market-value accounting approach 
E)  To be a price leader or a price follower 
A)  To extend the time of accounts receivable 
B)  To establish a certain percentage discount on accounts within a specified period of time 
C)  To lease or buy fixed assets 
D)  To use LIFO, FIFO, or a market-value accounting approach 
E)  To be a price leader or a price follower

Question 12

The current attitude of U.S. firms toward research and development is best described by which of the following?

Accepted Answer

A)  The veil of secrecy is being lifted, resulting in more collaboration. 
B)  Firms are more cutthroat than ever and less cooperative with each other. 
C)  Firms are less interested in working with universities. 
D)  Firms are feeling less competitive pressure. 
E)  Firms are less involved with research consortia than ever. 
A)  The veil of secrecy is being lifted, resulting in more collaboration. 
B)  Firms are more cutthroat than ever and less cooperative with each other. 
C)  Firms are less interested in working with universities. 
D)  Firms are feeling less competitive pressure. 
E)  Firms are less involved with research consortia than ever.

Question 13

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

Accepted Answer

A) True 
 B)False

Question 14

A reason for concern about the dilution of ownership is the possibility of hostile takeover.

Accepted Answer

A) True 
 B)False

Question 15

If an initial stock issuance is $800,000, what would be the expected cost paid to lawyers, accountants, and underwriters, based on the average for IPOs in this range?

Accepted Answer

A)  $20,000 
B)  $40,000 
C)  $80,000 
D)  $200,000 
E)  $400,000 
A)  $20,000 
B)  $40,000 
C)  $80,000 
D)  $200,000 
E)  $400,000

Question 16

The online community of customers increasingly mirrors the offline community but is much quicker, cheaper, and effective to reach than traditional focus groups and surveys.

Accepted Answer

A) True 
 B)False

Question 17

A firm can usually serve two or more market segments with the same strategy.

Accepted Answer

A) True 
 B)False

Question 18

Which is NOT a step in performing a projected financial analysis?

Accepted Answer

A)  Prepare the projected income statement before preparing the balance sheet 
B)  Forecast sales as accurately as possible 
C)  Use the percentage-of-sales method to project CGS 
D)  Subtract from the net income any dividends to be paid for that year and bring this retained earnings amount over to the balance sheet 
E)  Use the revenue account as the plug figure 
A)  Prepare the projected income statement before preparing the balance sheet 
B)  Forecast sales as accurately as possible 
C)  Use the percentage-of-sales method to project CGS 
D)  Subtract from the net income any dividends to be paid for that year and bring this retained earnings amount over to the balance sheet 
E)  Use the revenue account as the plug figure

Question 19

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Accepted Answer

A) True 
 B)False

Question 20

Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

Accepted Answer

A) True 
 B)False

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.

Which item is included in net worth?

Which two variables rank as marketing's most important contributions to strategic management?

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

As a balance sheet entry, goodwill represents the favor a business has acquired through its environmentally conscious and socially responsible actions.

Although acquiring needed capital can be an important task, it is not seen as central to strategy implementation.

What tends to become a more attractive financing technique when interest rates are high?

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

The current attitude of U.S. firms toward research and development is best described by which of the following?

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

A reason for concern about the dilution of ownership is the possibility of hostile takeover.

If an initial stock issuance is $800,000, what would be the expected cost paid to lawyers, accountants, and underwriters, based on the average for IPOs in this range?

The online community of customers increasingly mirrors the offline community but is much quicker, cheaper, and effective to reach than traditional focus groups and surveys.

A firm can usually serve two or more market segments with the same strategy.

Which is NOT a step in performing a projected financial analysis?

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management, Operations, and Human Resource Issues

Strategy Review, Evaluation, and Control

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters

Exam 8: Implementing Strategies: Marketing, Financeaccounting, Rd, and Mis Issues

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.

Which item is included in net worth?

Which two variables rank as marketing's most important contributions to strategic management?

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

As a balance sheet entry, goodwill represents the favor a business has acquired through its environmentally conscious and socially responsible actions.

Although acquiring needed capital can be an important task, it is not seen as central to strategy implementation.

What tends to become a more attractive financing technique when interest rates are high?

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

The current attitude of U.S. firms toward research and development is best described by which of the following?

When performing projected financial analysis, the balance sheet should be prepared before the income statement.

A reason for concern about the dilution of ownership is the possibility of hostile takeover.

If an initial stock issuance is $800,000, what would be the expected cost paid to lawyers, accountants, and underwriters, based on the average for IPOs in this range?

The online community of customers increasingly mirrors the offline community but is much quicker, cheaper, and effective to reach than traditional focus groups and surveys.

A firm can usually serve two or more market segments with the same strategy.

Which is NOT a step in performing a projected financial analysis?

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Segmentation often reveals that large, random fluctuations in demand actually consist of several small, predictable, and manageable patterns.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management, Operations, and Human Resource Issues

Strategy Review, Evaluation, and Control

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters