business test 4 review

E-business differs from traditional business in that:
the former carries out the goals of business through the use of the internet.
Which of the following scenarios makes a reference to e-business?
Alexis purchases a tablet PC through an online retail store.
Which of the following characteristics distinguishes digital marketing from traditional marketing?
Addressability
Google can use web searches done through its search engine to learn about customer interests. This underlies the ___ aspect of digital communication.
Accessibility
In the context of digital communication,___ refers to consumers’ ability to get in touch with marketers along with other consumers.
connectivity
In the context of digital communication,___ refers to the customers’ ability to regulate the information they view as well as the rate and exposure to that information.
control
Which of the following media is used by digital marketing?
Social Networks
Which of the following statements is true of the internet?
It has made it possible for businesses to reach previously inaccessible markets.
A successful digital marketing strategy focuses:
on creating products that customers need.
One challenge that digital media has created for businesses is:
employees wasting time surfing the internet
Which aspect of marketing has not changes with digital media?
The importance of achieving the right marketing mix
Supernova Inc, is a gadgets and accessories retailer that has recently introduced a new concept. A customer can order products not usually available in its stores from their website; the products are then shipped to the Supernova store nearest to the customer. The customer can pick up the products from the store at his or her conveinece without having to pay any shipping charges. This concept is called___.
“site to store” system
____ is the most flexible element of the marketing mix.
Price
A___ is a web-based meeting place for friends, family, coworkers, and peers that lets users create a profile and connect with other users for a wide range of purposes.
Social network
Many social networking sites today provide users with the ability to:
download applications
Which service allows users to “like” a company’s profile and thereby interact and build a relationship with the firm?
Facebook
Which of the following factors has sparked the rise of consumer-generated information??
The tendency of consumers to publish their opinions through digital media
Which of the following statements is true of Facebook?
It appeals to a wide demographic that includes parents and grandparents
Which of the following statements is true of blogs?
They allow users to post whatever they like about a company or its products
Which of the following is a drawback associated with blogs?
Consumers can write bad reviews of products in their blogs, which leads to negative
___ is a tool that uses the internet, particularly social networking and video sharing sites, to spread a message and create brand awareness.
Viral marketing
___ is the most popular photo sharing application which allows users to make their photos look dreamy or retrospective with different tints and then share them with their friends
Instagram
___ are audio or video files that can be downloaded from the internet via a subscription that automatically delivers new content to listening devices or personal computers.
Podcasts
The little black and white squares that sometimes appear in magazines, posters, and store displays which let a consumer with a smart device view a website, video, or image with additional marketing information is known as a
QR code
___ are an innovative digital marketing tool to personalize web pages, alert users to the latest company information, and spread awareness of the company’s products
Widgets
Why should critics be a primary component in a company’s digital marketing strategy?
Because many online shoppers read reviews to aid their purchasing decisions
_____ describes how marketers use digital media to find out the opinions or needs of potential markets.
Crowdsourcing
____ permit website operators to track how often a user visits the site, what he or she looks at while there, and in what sequence and also allow web users to customize services and content.
Cookies
Due to consumers over privacy, the ____ is considering developing regulations that would better protect consumers privacy by limiting the amount of consumer information that businesses can gather online.
Federal Trade Commission
What is the best way to be safe form online fraud or identity theft?
Refraining from divulging personal information
Accounting refers to the process of:
recording, measuring, and interpreting financial information
A certified Public Accountant has the right to:
express, officially, an unbiased opinion regarding the accuracy of a client’s financial status
The___ required firms to be more rigorous in their accounting and reporting practices
Sarbanes-Oxley Act
A forensic accountant:
analyzes financial documents in search of fraudulent entries or financial misconduct.
Vikram is an accountant employed by a large corporation. He works for the billing and taxation department. He is most likely to be a:
Private accountant
____ is the movement of money through an organization over a daily, weekly, monthly, or yearly basis.
Cash flow
Potential investors typically study the ___ in a firm’s annual report to determine whether the company meets their investment requirements.
financial statements
Thomson is a manager at a bank. He has to decide whether to lend an amount of $10,000 to Safe Toy. He should:
review the company’s financial statements
What are the fundamentals of the accounting process?
The accounting equation and the double-entry bookkeeping system
Clara’s label owes certain debts to the Small Business Administration and her suppliers. In accounting, these debts are known as___.
liabilities
Which of the following equations is equivalent to the accounting equation?
Owner’s equity= assets- liabilities
Evelyn is a self-employed, state-certified accountant who provides the following accounting service-filing tax returns, preparing financial records, auditing corporate financial records. She is known as a:
certified public accountant
An income statement shows:
an organization’s profitability over a periof of time
An equivalent term for net income in accounting terms is:
profit after taxes
___ is the total amount of money received from the sale of goods or service, as well as from other business activities such as the rental of property and investments.
Revenue
Do-It-Yourself Home Repair Shop started the accounting period with $10,000 worth of shovels in inventory. During the accounting period, it purchased $5,00 worth shovels and sold $7,500 worth In this scenario, what is the cost of goods sold?
$7,500
In the context of expense accounts, salaries of executives and their staff are included under the category of:
general and administrative expenses
The process of spreading the costs of long-lived assets such as building and equipment over the total number of accounting periods in which they are expected to be used is called____.
Depreciation
Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of:
Depreciation
Net income is:
earnings after all expenses have been deducted
Which of the following equations describes the information presented in an income statement?
Revenues-expenses= net income
The ____ presents a snapshot of an organization’s financial position at a give moment.
balance sheet
___ refers to money owed a company by its clients or customers who have promised to pay for the products at a later date
accounts receivable
A company’s assets that are used or converted into cash within the course of a calendar year are called:
current assets.
Which of the following is a liability in a balance sheet?
Accounts payable
___ includes the owners’ contributions to a company along with income earned by the company and retained to finance continued growth and product development
Owner’s equity
___refers to calculations that measure an organization’s financial health.
Ratio analysis
One of the ways to analyze a company’s financial performance is to compare its performance with those of:
the companies in the same industry.
A company with a low return on assets
is not using its assets very productively
Maurice was asked to extend trade credit to a restaurant she hadn’t serviced before. She asked to see its balance sheet to determine if it could pay its bills. She divided its current assets by current liabilities to get its:
current ratio
Which of the following statements is true of money?
it is anything accepted in exchange for goods and services
A person swaps a bag of fruits for some meat. In this case, money functions as a:
medium of exchange
As a measure of value money primarily serves as a:
common standard of yardstick of the worth of goods and service.
When money serves as a way to accumulate wealth, money primarily functions as a:
store value
To be used as a medium of exchange, money must be:
durable
Ryan traded his tablet PC for a cellphone. since both were of the same value, there was no exchange of money. Which of the following concepts does this scenario illustrate?
Bartering
To be effective, money must be readily receive for the purchases of goods and services and for the settlement of debts. Which of the following characteristics of money does this statement reflect?
Acceptability
For money to function as a medium of exchanged, it must be easily moved form one location to the next. Which of the following characteristics of money does this statement reflect?
Portability
Which of the following characteristics of money allows people to postpone purchases and save their money to do so?
Stability
The life expectancy of a $20 bill is estimated to be 7.7 years. Which of the following characteristics of money does this statements illustrate?
Durability
In some countries with very high inflation rates, citizens tend to spend their money as fast as they receive it in order to keep it form losing any more of its value. Under these conditions, money is said to lack:
stability
Why is the life span of a $1 note likely to be lesser than that of $100 note?
a $100 note is less frequently passed between users
A check:
can be rendered worthless in case of suspected forgery
____ or time deposits are accounts with funds that can be withdrawn only with advance notice.
Savings accounts
____ are saving accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely
certificates of deposits
In general, the longer the term of a certificate of deposit, the:
higher is its interest rate
Credit Cards:
allow cardholders to pay for transactions at a later date
If consumers do not pay off their entire credit card balance, they:
have to pay interest on the unpaid amount
Why are credit cards a popular substitute for cash payments?
they are accepted by merchants around the world
The Federal Reserve Board was established by Congress in 1913 to:
regulate the banking industry
The Federal Reserve Board controls the amount of money available in the economy:
Through monetary policy
Which of the following effects is seen on the money supply and the economy when the federal Reserve Board raises the discount rate?
Interest rates increase; the money supply decrease;economic activity slows down.
When the Federal Reserve Board increases the reserve requirements, the :
money supply declines
The oldest and largest of all financial institutions are:
commercial banks
The Federal Reserve Board is primarily responsible for:
creating a stable environment for economic growth.
Commercial banks:
rely on checking and savings accounts for funds
The major difference between banks and credit unions is that:
credit unions are owned and controlled by their depositors.
A checking account at a credit union is commonly referred to as a :
Share draft account
The ___ insures individual bank accounts.
Federal Deposit Insurance Corporation
Insurance companies protect their clients against financial losses from certain specified risks in exchange for a fee, called a:
premium
Cash, investments, accounts receivable, and inventory are:
current assets
Working capital management refers to___.
managing short-term assets and liabilities
Astute money managers try to keep just enough cash on hand to pay employee wages and utility bills. this cash is referred to as:
Transaction balances
As idle cash does not make money, a manager may choose to invest this extra cash in temporary investments called:
marketable securities
Which of the following is true of a lockbox?
It is simply an address for receiving payments
More and more companies are now using electronic funds transfer systems to pay and collect bills online because:
it helps them increase the speed of collections and disbursements to one day
U.S. Treasury bill, certificates of deposits, commercial paper, and eurodollar deposits are examples of:
marketable securities
___ are issued by commercial banks and brokerage companies, are available in minimum amounts of $100,000, and may be traded prior to maturity.
Commercial certificates of deposit
___ is a written promise from one company to another to pay a certain amount of money.
Commercial paper
Which of the following is true of commercial paper?
It is backed only by the name and reputation of the issuing company
Which of the following is money owed to a business by credit customers?
Accounts receivable
Which of the following is money that an organization owes to suppliers for goods and services?
Accounts payable
___ is the credit extended by suppliers for the purchases of their goods and services.
trade credit
Dan bought three new trucks with a loan obtained from the First National Bank. If he fails to repay to the loan, the bank will repossess the trucks. The trucks typically represent:
collateral
Which of the following is an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request?
A line of credit
If Linda Wilson borrow $20,000 to buy a car and ends up paying the lender a total of $24,000, the $20,000 represents the:
principal
The ___ is the interest rate commercial banks charge their best customers for short-term loans.
prime rate
AMZ Inc., a company that deals with bikes, has its own manufacturing unit. The equipment used in the manufacturing unit of the company is an example of a:
Fixed asset
Which of the following involves paying a fee for usage rather than owning a particular asset?
Leasing
The amount of money budgeted for the purchase of long-term assets is called the:
capital budget
The board of directors of a leading automobile company wants to opt for an investment project that has the least risk. Which of the following projects is the board most likely to undertake?
Repairing the old manufacturing equipment
Long-term liabilities are:
debts that will be repaid over a number of years
Which of the following statements is true of bonds?
They must be repaid according to the terms set in the indenture.
Which of the following statements is true of floating-rate bonds?
They do not have fixed interest payments
Which of the following types of bonds offer relatively high rates of interest because they have higher inherent risks?
Junk Bonds
___ is the single most important source of capital for most new companies.
Common stock
___ is the price at which a particular common stock is currently trading.
Market value
Stockholders who are prioritized in the distribution of a firm’s dividends but cannot vote are called:
Preferred stockholders
___ are reinvested in the assets of the firm and belong to the owners in the form of equity.
Retained earnings
___ make it possible for owner to sell their stocks and bonds to other investors
Securities markets