Question 1

The valuation of a firm's worth

Accepted Answer

A)   is an exact science.
B)   requires both qualitative and quantitative skills.
C)   is based solely on financial facts.
D)   is known only to the firm's accountants.
E)   is static. B

Question 2

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

Accepted Answer

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

Question 3

The cash account is used as the plug figure in projected balance sheets.

Accepted Answer

A) True 
 B)False  True

Question 4

Discuss guidelines used to determine whether a firm should conduct R&D internally or externally.

Accepted Answer

The answer of Discuss guidelines used to determine whether a...

Question 5

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

Accepted Answer

A)   They can usually be served with the same marketing strategy.
B)   They usually require different marketing strategies.
C)   They are always in different geographic locations.
D)   They are usually interchangeable.
E)   All of the above

Question 6

Looking for a vacant niche helps a company determine

Accepted Answer

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

Question 7

Return on assets is the most widely used technique for determining whether debt,stock,or a combination of debt and stock is the best alternative for raising capital to implement strategies.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

The only costs involved in going public are the initial costs.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Retained earnings is obtained by subtracting

Accepted Answer

A)   any dividends to be paid for that year from net income.
B)   net income from EBIT.
C)   taxes from EBIT.
D)   interest expense from EBIT.
E)   EBIT from CGS.

Question 14

Less than 2 percent of formulated strategies are successfully implemented.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   debt
B)   liquidity
C)   equity
D)   cash
E)   tax liability

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

Exam 8: Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

The valuation of a firm's worth

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

The cash account is used as the plug figure in projected balance sheets.

Discuss guidelines used to determine whether a firm should conduct R&D internally or externally.

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

Looking for a vacant niche helps a company determine

Return on assets is the most widely used technique for determining whether debt,stock,or a combination of debt and stock is the best alternative for raising capital to implement strategies.

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

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.

The only costs involved in going public are the initial costs.

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

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

Retained earnings is obtained by subtracting

Less than 2 percent of formulated strategies are successfully implemented.

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

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

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

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

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

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