Question 1

What are the marketing-mix component variables? Give some examples of each.

Accepted Answer

The answer of What are the marketing-mix component variables? Give...

Question 2

Name five examples of marketing decisions that may require policies.

Accepted Answer

The answer of Name five examples of marketing decisions that...

Question 3

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

Accepted Answer

A)  Debt-to-stock ratio 
B)  Earnings per share/earnings before interest and tax analysis 
C)  Gross profit analysis 
D)  Capital asset pricing model 
E)  Present value analysis

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.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The first step in performing projected financial analysis is to

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

Which of the following is not true regarding stock issuances?

Accepted Answer

A)  They are always better than debt for raising capital. 
B)  Their effect on stock price is a concern. 
C)  They can leave a company vulnerable to a hostile takeover. 
D)  Dilution of ownership is a special concern. 
E)  All of the above statements are true.

Question 9

According to research,the most successful new product companies use a research and development strategy that ties internal strengths to external opportunities and is linked with corporate objectives.

Accepted Answer

A) True 
 B)False

Question 10

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.

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

Being long-term in nature,strategy implementation affects top and middle managers but not lower-level employees.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

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

Accepted Answer

A) True 
 B)False

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

What are the marketing-mix component variables? Give some examples of each.

Name five examples of marketing decisions that may require policies.

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

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?

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

The first step in performing projected financial analysis is to

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

Which of the following is not true regarding stock issuances?

According to research,the most successful new product companies use a research and development strategy that ties internal strengths to external opportunities and is linked with corporate objectives.

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

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.

Being long-term in nature,strategy implementation affects top and middle managers but not lower-level employees.

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

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

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.

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

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

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

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

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