Deck 9: Implementing Strategies: Marketing, financeaccounting, rd, and Mis Issues

Question 1

Multidimensional scaling is used to determine

A)the size of a new department.
B)the size of a new building.
C)the amount of high- tech equipment a firm needs.
D)market segmentation.
E)product positioning.

Answer 1

E

Question 2

In the low earnings period,too much in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

A)tax
B)debt
C)cash
D)liquid assets
E)equity

Answer 2

B

Question 3

Which variable would be considered part of the place element of the marketing mix?

A)Personal selling
B)Discounts and allowances
C)Product line
D)Sales territory
E)Service level

Answer 3

D

Question 4

Why is market segmentation an important variable in the strategy- implementation process?

A)Company strategies do not require increased sales through new markets and products.
B)It directly affects marketing mix variables.
C)It allows a firm to minimize per- unit profits and per- segment sales.
D)It allows a firm to operate with no resources.
E)all of the above

Question 5

Who has mandated that every publicly held company in the United States must issue an annual cash- flow statement in addition to the usual financial reports?

A)Congress
B)FCC
C)FASB
D)OPEC
E)SEC

Question 6

Why is market segmentation an important variable in strategy implementation?

A)All company strategies require increased sales through new markets and products.
B)Market segmentation decisions directly affect marketing mix variables.
C)Mass production,mass distribution and mass advertising are not always required.
D)It allows a firm to operate with limited resources.
E)all of the above

Question 7

The first step in preparing a projected statement is to

A)prepare the projected income statement.
B)prepare the projected balance sheet.
C)calculate the projected net income.
D)take an inventory of goods.
E)estimate increases in debt.

Question 8

A good information system can allow a firm to

A)increase productivity.
B)gain competitive advantage.
C)reduce turnover.
D)reduce costs.
E)increase customers.

Question 9

Which two variables are of central importance to strategy implementation?

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

Question 10

Which of the following is (are)true about two different market segments?

A)They usually require different marketing strategies.
B)They can usually be served with the same marketing strategy.
C)They are most effective when a firm squats between two segments.
D)They are usually incompatible.
E)They are always in different geographic locations.

Question 11

What level of management is directly affected by strategy implementation?

A)Project managers
B)Plant managers
C)Division managers
D)Sales managers
E)all of these

Question 12

Which of these obligations generally must be met,regardless of circumstances?

A)Employee
B)Equity
C)Dividends
D)Fixed debt
E)all of these

Question 13

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

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

Question 14

Retained earnings is obtained by subtracting

A)taxes from EBIT.
B)EBIT from CGS.
C)net income from EBIT.
D)interest expense from EBT.
E)any dividends from net income.

Question 15

All of the following are examples of marketing decisions that require policies except

A)to offer a complete or limited warranty.
B)to be a market leader or follower.
C)to use heavy,light,or no TV advertising.
D)to use exclusive dealerships or multiple channels of distribution.
E)to advertise online or not.

Question 16

Which variable would be considered part of the product element of the marketing mix?

A)Advertising
B)Payment terms
C)Inventory levels and location
D)Packaging
E)Publicity

Question 17

What is a limitation of using financial budgets?

A)They can become a substitute for objectives.
B)They can hide inefficiencies if done only on precedent.
C)They can be so detailed that they are cumbersome and expensive.
D)They are sometimes used as instruments of tyranny.
E)all of the above

Question 18

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?

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

Question 19

Subdividing a market into distinct subsets of customers according to their needs and the way they buy and use a product or service is

A)product diversification.
B)positioning.
C)market segregation.
D)market penetration.
E)market segmentation.

Question 20

What is a central strategy- implementation technique that allows an organization to examine the expected results of various actions and approaches?

A)Projected financial statement analysis
B)Financial budgeting
C)External analysis
D)TOWS analysis
E)EPS/EBIT

Question 21

A benefit of using projected balance sheets and income statements is that

A)all of the above
B)insurance needs can be computed.
C)money can be put aside to pay future income taxes.
D)an organization can compute projected financial ratios under various scenarios.
E)it is useful in analyzing past performance.

Question 22

As competition increases and Arab companies engage in alliance and merger and acquisition activities,is expected take off in the Arab world.

A)ANF
B)EPS/EBIT analysis
C)MIS
D)all of the above.
E)R&D

Question 23

In projected financial statements,what account is used as a plug figure?

A)Stockholders' equity
B)Long- term liabilities
C)Retained earnings
D)Fixed assets
E)Cash

Question 24

Matching of which factors would allow factories to produce desirable levels without extra shifts,overtime or subcontracting?

A)Supply and demand
B)Customer behavior and positioning
C)Competition and positioning
D)Markets and competitors
E)Segments and demand

Question 25

The Financial Accounting Standard Board (FASB)Rule 142 deals with

A)illegal inflation of financial projections.
B)hacking issues in MIS.
C)improving marketing policies.
D)how firms conduct R & D.
E)goodwill.

Question 26

What is the most common type of financial budget?

A)Sales
B)Profits
C)Factory
D)Flexible
E)Cash

Question 27

What percent of strategies formulated are successfully implemented?

A)More than 80 percent
B)Between 40 to 60 percent
C)About 30 percent
D)Less than 10 percent
E)Approximately 66 percent

Question 28

What is the most widely used technique for determining the best combination of debt and stock?

A)Earnings Per Share/Earnings Before Interest and Taxes analysis
B)Gross profit analysis
C)Present value analysis
D)Capital asset pricing model
E)Debt- to- stock ratio

Question 29

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

A)Percentage- of- sales method
B)What a firm earns method
C)Determining the net worth method
D)Outstanding shares method
E)Price- earnings ratio met

Question 30

Projected financial analysis is an important strategy- implementation technique because

A)insurance needs can be computed.
B)it is an exact measurement of financial costs in the future.
C)it is an exact measurement of future company profits.
D)it allows an organization to examine the expected results of various actions and approaches.
E)none of the above

Question 31

Perhaps the most dramatic new market segmentation strategy is the

A)targeting of regional tastes.
B)preference for international over domestic sales.
C)treatment of industrial markets.
D)focusing on universal products.
E)none of these

Question 32

Which of the following is/are not included in net worth?

A)Common stock
B)Additional paid- in- capital
C)Retained earnings
D)Fixed assets
E)All of these are included in net worth

Question 33

Looking for a vacant niche helps a company determine

A)the size of the marketing department.
B)its projected R & D expenditures.
C)its advertising budget.
D)the best place to position a product.
E)the best place to locate a new facility.

Question 34

Which of the following is not a major approach to R&D?

A)To be a low- cost producer by mass- producing products similar to but less expensive than products recently introduced.
B)To be an innovative imitator.
C)All of the above are major approaches to R&D.
D)To be a pioneer.
E)To be a liquidator.

Question 35

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

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

Question 36

R&D employees and managers perform all of the following tasks except

A)alternating products to particular tastes and specifications.
B)adapting processes to local markets.
C)researching resource availability.
D)adjusting process to local raw materials.
E)transferring complex technology.

Question 37

What is a drawback of using only equity to raise capital?

A)The cost
B)That it doesn't raise as much capital as debt financing
C)Fluctuations in the stock market
D)Dilution of the control of the company
E)That it will cause EPS to roller- coaster

Question 38

What best describes how much a company is worth?

A)It is the result of explicit accounting standards.
B)It is static.
C)An exact science.
D)It is known only to the firm's accountants.
E)An educated guess.

Question 39

What entails developing schematic representations that reflect how products or services compare to competitors',on the dimensions that are most important to success in the industry?

A)Segmentation
B)Positioning
C)Diversification
D)Penetration
E)Budgeting

Question 40

Which of the following variables are not directly affected by market segmentation?

A)Promotion
B)Place
C)Price
D)Product
E)Process

Question 41

Which of the following methods is not accepted for determining a business' worth?

A)What the firm earns.
B)What the firm's return on investment has been.
C)What the firm will bring in the market.
D)What the firm owns.
E)All of the above are accepted.

Question 42

The Sarbanes- Oxley Act of 2002 has eliminated the problem of firms inflating their financial projections,so stakeholders need not worry about the financial projections of different companies.

Question 43

Less than 2 percent of formulated strategies are successfully implemented.

Question 44

The percentage- of- sales method should be used for computing the cost of goods sold and additional expense items in projected income statements.

Question 45

Given that most information on individuals is available online,the extent to which companies can track individuals' movements on the Internet is not a marketing issue of great concern to consumers today.

Question 46

Which of these is the most common type of budgeting time frame?

A)Every decade
B)Annual
C)Quarterly
D)Monthly
E)Daily

Question 47

Besides net profit from operations and the sale of assets,the two basic sources of funds for an ongoing enterprise are debt and equity.

Question 48

To determine the price- earnings ratio,divide the market price of the firm's annual earnings per share by the common stock,and multiply this number by the firm's average net income for the past 10 years.

Question 49

What becomes a more attractive financing technique when cost of capital is high?

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

Question 50

If a firm incurs a loss during a particular year,or if the firm had positive net income but paid out dividends more than the net income,its retained earnings for that year will most likely be

A)a large positive number.
B)a low positive number.
C)zero.
D)impossible to determine from this information.
E)a negative number.

Question 51

In general,the Internet makes market segmentation easier.

Question 52

The process of strategic management is facilitated immensely in firms that have an effective information system.

Question 53

A reason for concern over the dilution of company stock is a possible hostile takeover.

Question 54

How should financial budgets be thought of?

A)A method for determining who should receive the largest pay raise.
B)A tool for forecasting future profits.
C)A method for obtaining the most productive and profitable use of an organization's resources.
D)A tool for limiting expenditures.
E)A method for rationing the profits from the past year.

Question 55

All the methods for determining a business' worth can be grouped into three basic approaches: what a firm owns,what a firm earns,and what a firm spends.

Question 56

Segmenting industrial markets is generally simpler and easier than segmenting consumer markets.

Question 57

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share,and multiplies the result by the firm's average net income for the past five years?

A)Long- term asset method
B)Current ratio method
C)Price- earnings ratio method
D)Outstanding shares method
E)Debt/equity method

Question 58

When performing pro forma financial analyses,the balance sheet should be prepared before the income statement.

Question 59

What is the best definition of goodwill?

A)Excess of assets over liabilities
B)Excess of current assets over liabilities
C)Value associated with benefits from environmental programs
D)Premiums paid for acquisition
E)Value attached to the firm's reputation

Question 60

If an initial stock issuance is at or under $1 million,what is the average total cost paid to lawyers,accountants and underwriters?

A)5 percent
B)5 percent
C)40 percent
D)25 percent
E)10 percent

Question 61

A projected financial analysis can be used to forecast the impact of various implementation decisions.

Question 62

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Question 63

An EPS/EBIT chart can be constructed to determine the breakeven point,where one financing alternative becomes more attractive than another.

Question 64

After segmenting markets so that a firm can target particular customer groups,the next step is to find out what customer groups want and expect.

Question 65

A recommended approach for determining a firm's worth is to base the analysis on the selling price of a similar company.

Question 66

The most common type of financial budget is the capital budget.

Question 67

A limitation of financial budgets is that they can hide inefficiencies,if they are based solely on precedent rather than on periodic evaluation of circumstances and standards.

Question 68

It is generally not recommended for companies with less than $10 million in sales to go public.

Question 69

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

Question 70

If the rate of market growth and technical progress is fast and there are few barriers to possible new entrants,then in- house R&D is the preferred solution.

Question 71

Although cash budgets can be a useful financial tool,publicly held companies are not required to complete them.

Question 72

R&D policies can enhance strategy implementation efforts to emphasize product or process improvements.

Question 73

With market segmentation,a firm can better operate with limited resources.

Question 74

In low earning periods,too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival.

Question 75

Additional capital is often required for successful strategy implementation.

Question 76

Limiting an organization's expenditures is the primary purpose of financial budgets.

Question 77

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

Question 78

Increased costs are a disadvantage of a good information system.

Question 79

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

Question 80

One R&D strategy is to be an innovative imitator of successful products.