Question 1

Financial ratio analysis becomes less useful if one goes beyond the actual calculation and interpretation of each individual ratio.

Accepted Answer

A) True 
 B)False

Question 2

Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?

Accepted Answer

A)  Planning 
B)  Organizing 
C)  Motivating 
D)  Staffing 
E)  Controlling

Question 3

The management function of organizing is included in human resource management.

Accepted Answer

A) True 
 B)False

Question 4

Chief marketing officers now spend more than 50 percent of their budgets on technology to manage activities like online marketing and social media.

Accepted Answer

A) True 
 B)False

Question 5

What category of ratios includes return on total assets and return on stockholders' equity?

Accepted Answer

A)  Leverage 
B)  Activity 
C)  Profitability 
D)  Growth 
E)  Liquidity

Question 6

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called

Accepted Answer

A)  dysfunctional behavior. 
B)  groupthink. 
C)  behavior modification. 
D)  organizational culture. 
E)  internal audit effect.

Question 7

Which is NOT one of the four common approaches to determine R&D budget allocations?

Accepted Answer

A)  Finance as many project proposals as possible. 
B)  Budget for R&D about what competitors spend. 
C)  Use a percentage-of-costs method. 
D)  Decide how many successful new products are needed and work backwards to estimate the required R&D investment. 
E)  Use a percentage-of-sales method.

Question 8

Discuss the limitations of financial ratio analysis.

Accepted Answer

The answer of Discuss the limitations of financial ratio analysis....

Question 9

Who should perform an internal audit?

Accepted Answer

A)  A private auditing firm 
B)  The organization's accounting department 
C)  Representative managers and employees from throughout the firm 
D)  A small team of top-level managers 
E)  The chief executive officer

Question 10

Although a useful step in the strategic management process, value chain analysis does little to help a firm monitor whether its prices and costs are competitive.

Accepted Answer

A) True 
 B)False

Question 11

________ exemplifies the complexity of relationships among the functional areas of business.

Accepted Answer

A)  Government auditing 
B)  External auditing 
C)  Financial ratio analysis 
D)  Environmental scanning 
E)  Distribution strategy

Question 12

In the area of marketing, a cost/benefit analysis is an appraisal of the costs, benefits, and risks associated with marketing decisions.

Accepted Answer

A) True 
 B)False

Question 13

Any object, act, event, quality, or relation used to convey meaning is known as a

Accepted Answer

A)  myth. 
B)  rite. 
C)  value. 
D)  symbol. 
E)  metaphor.

Question 14

The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

The times-interest-earned ratio would be classified as a(n)

Accepted Answer

A)  activity ratio. 
B)  leverage ratio. 
C)  profitability ratio. 
D)  liquidity ratio. 
E)  growth ratio.

Question 16

Which of the following does the text call an up-front investment in success?

Accepted Answer

A)  Planning 
B)  Organizing 
C)  Motivating 
D)  Staffing 
E)  Controlling

Question 17

All of the following are basic functions of marketing EXCEPT

Accepted Answer

A)  value chain analysis. 
B)  customer analysis. 
C)  product and service planning. 
D)  pricing. 
E)  distribution.

Question 18

What marketing function includes test marketing?

Accepted Answer

A)  Selling products and services 
B)  Pricing 
C)  Customer analysis 
D)  Product and service planning 
E)  Distribution

Question 19

Staffing involves all of these activities EXCEPT

Accepted Answer

A)  recruiting employees. 
B)  rewarding employees. 
C)  analyzing customers. 
D)  managing union relations. 
E)  training and developing employees.

Question 20

Four common approaches to determine R&D budget allocations are: 1) finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment.

Accepted Answer

A) True 
 B)False

Exam 4: The Internal Assessment

Financial ratio analysis becomes less useful if one goes beyond the actual calculation and interpretation of each individual ratio.

Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?

The management function of organizing is included in human resource management.

Chief marketing officers now spend more than 50 percent of their budgets on technology to manage activities like online marketing and social media.

What category of ratios includes return on total assets and return on stockholders' equity?

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called

Which is NOT one of the four common approaches to determine R&D budget allocations?

Discuss the limitations of financial ratio analysis.

Who should perform an internal audit?

Although a useful step in the strategic management process, value chain analysis does little to help a firm monitor whether its prices and costs are competitive.

________ exemplifies the complexity of relationships among the functional areas of business.

In the area of marketing, a cost/benefit analysis is an appraisal of the costs, benefits, and risks associated with marketing decisions.

Any object, act, event, quality, or relation used to convey meaning is known as a

The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

The times-interest-earned ratio would be classified as a(n)

Which of the following does the text call an up-front investment in success?

All of the following are basic functions of marketing EXCEPT

What marketing function includes test marketing?

Staffing involves all of these activities EXCEPT