Intro to Business Ch.15-18

The channel of distribution consists of ___________, who provide transportation and storage of goods as they are distributed from producers to ultimate consumers.
marketing intermediaries
The types of utility commonly provided by marketing intermediaries include:
Time, place, possession, information, and service.
____________ wholesalers are independently owned and take title to the goods they handle.
Merchant
_________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Logistics
__________ is the term used to describe the use of outside firms to help move their goods through the supply chain.
Third-party logistics
__________ utility is usually provided by producers rather than marketers.
Form
A convenience store is open seven days a week and remains open on holidays. The store provides its customers with _________ utility.
time
A firm that wants to distribute its products as widely in a market as possible would use a(n) ___________ distribution strategy.
intensive
The major difference between wholesalers and retailers is that:
Retailers sell to final consumers, while wholesalers sell to another member of the channel of distribution, not final consumers.
A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.
channel of distribution
Compared to a channel of distribution, a supply chain:
Is longer, because it includes links from suppliers.
Which of the different types of utility is usually provided by producers rather than marketing intermediaries?
form utility
Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers are known as a:
supply chain
Marketing intermediaries can provide _________ utility by offering customers affordable credit, free delivery, and product guarantees.
posession
One successful nonstore retailer today is called Team. This company sells MonaVie, a relatively expensive fruit juice that is packaged in a wine bottle. Salespeople for MonaVie earn commissions on their own sales, create commissions for the upliners who recruited them, and receive commissions from the downliners they have recruited. MonaVie operates in the area of _____________.
multilevel marketing
A(n) ______________ distribution strategy uses only one retail outlet in a given geographic area.
exclusive
At Stockman’s Butcher Shop the butchers will hand cut steaks to the thickness their customers specify and trim off the excess fat. This extra service provides ________ utility.
form
A(n) ___________ distribution strategy distributes a product through only a preferred group of retailers in a given area.
selective
Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute.
agents and brokers
__________ warehouses are used to hold products for a relatively long time.
storage
___________ are limited-function wholesalers who furnish shelves full of merchandise to retailers who sell these items on consignment.
Rack Jobbers
Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:
drop shippers
The movement of information and the movement of goods is a function of which of the following?
logistics
Which of the following statements is accurate regarding marketing intermediaries?
Intermediaries perform some functions cheaper and faster than manufacturers.
Currently, in the United States the greatest volume of goods and services is shipped by:
rail
Which of the following is true of supply chain management systems?
They create a more efficient method of distribution by widening the channel to include suppliers.
A __________ is a marketing intermediary that sells to ultimate consumers.
retailer
When Fountain of Youth Tea Company strategized on how to distribute its product to customers, it elected to first start offering it through high-end grocery stores. The company essentially added ______________ utility to the distribution process.
place
Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a:
Broker
__________ warehouses are used to gather and redistribute products.
Distribution
In a(n) ____________ distribution system all of the organizations in the channel of distribution are owned by one firm.
corporate
_________ refers to any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message.
Advertising
________ advertising encourages wholesalers and retailers to carry the products of a specific manufacturer.
trade
In the seven-step B2B selling process, the selection of potential customers is known as:
qualifying
People with an unmet need, the authority to buy, and the willingness to listen to a sales message represent a firm’s:
prospects
________ combines all the promotional tools employed by a firm into one comprehensive and unified promotional strategy.
Integrated marketing communication
Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?
product placement
The final step of the selling process involves:
follow-up
The traditional promotion mix for a firm consists of the:
Advertising, personal selling, public relations, and sales promotion used to reach a target market.
The activity that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance is called:
public relations
__________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor.
publicity
Compared to other promotional tools, publicity:
Offers the firm little control over the message.
________ refers to the face-to-face presentation and promotion of goods and services. This also includes searching for prospects and providing follow-up services.
personal selling
Budliter has a new ad campaign for its product. In an effort to determine whether consumers like the ad and characters it created, Budliter is monitoring _________, or online diaries for mention of their campaign.
blogs
The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange.
promotion
In evaluating the best advertising medium to reach a specific target market the clear choice is:
direct mail
The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade shows, event sponsorships, and contests, is known as:
sales promotion
A _________ is an endorsement from a customer praising a firm’s product.
testimonial
The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a:
push strategy
________ advertising supports a particular view or position on an issue.
Advocacy
Mo’s Movies markets DVD and Blu-Ray movies online. The company recently adopted a new program that offers their current customers free DVDs if they encourage their friends to visit Mo’s Movies’ website. This promotional program represents:
viral marketing
The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a:
pull strategy
Advertisers like online advertising because:
They are able to see how many people have read or watched some part of a commercial.
___________ encourages people to tell other people about goods or services they have enjoyed.
Word-of-mouth promotion
A ___________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities.
statement of cash flows
The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of:
financial accounting
The accounting book or computer program where each day’s transactions are first recorded is called a:
journal
__________ accounting is used to provide information and analysis to managers within the firm to assist them in decision making.
Managerial
A(n) _________ is a yearly published statement of the financial condition, progress and expectations of an organization.
annual report
The primary purpose of accounting is to:
Help managers evaluate the financial condition of the firm.
A Certified Public Accountant (CPA) is ___________ .
An accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants.
When reviewing the balance sheet for Preferred Pet Care, Inc., a mobile small animal care business, Julian noted the following information: Company assets totaling $3.5 million, and liabilities totaling $1.3 million. On paper, the net worth (owners’ equity) for this business = ___________.
$2.2million
Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios.
leverage
Jim Hopson is an accountant who works for a number of businesses as a consultant. He has helped to design an accounting system, provides accounting services, and has analyzed the financial strength of many of his clients. Jim is working as a:
public accountant
The purpose of the current ratio is to evaluate the firm’s ability to:
Pay its bills in the short run.
As a first step in the accounting cycle, _________ involves the recording of business transactions.
bookkeeping
__________ involves the review and evaluation of the records that are used to prepare the organization’s financial statements.
Auditing
Which of the following is most helpful in analyzing the financial performance of a company?
financial ratios
The __________ is an accounting statement that reports the financial condition of a firm at a specific point in time.
balance sheet
A __________ is a specialized accounting book, where transactions are categorized according to type. For example, all utility transactions are recorded in the same category.
ledger
As an accountant, Joe’s responsibilities include:
Summarizing and interpreting financial information needed by his firm’s managers.
A(n) __________ provides accounting services to individuals or firms on a fee basis.
public accountant
Which of the following describes an activity associated with accounting?
Summarizing and interpreting company financial information.
Which of the following is true of the use of computers in accounting?
Computers can free up accountants to do important tasks, such as financial analysis and forecasting.
________ is the monetary value that is received for goods sold, services rendered and money received from other sources.
revenue
Earnings per share, return on sales, and return on equity are examples of:
profitability ratios
This legislation created new government reporting standards for publicly traded companies.
The Sarbanes-Oxley Act
The balance sheet is set up to reflect the Fundamental Accounting Equation. This equation shows:
ASSETS = LIABILITIES + OWNERS’ EQUITY
The accounting profession follows generally accepted accounting principles as defined by __________________.
the FASB (Financial Accounting Standards Board)
The accounting cycle is a six-step process that results in:
The compilation of financial statements and their analysis.
The area of accounting that provides managers inside the organization with information they need to make decisions is called:
managerial accounting
The three important financial statements prepared by accountants are:
Balance sheet, income statement, and statement of cash flows.
_________ refers to how quickly an asset can be converted into cash.
Liquidity
The balance sheet is composed of the following types of accounts:
assets, liabilities, and owners’ equity.
FIFO and LIFO are two common:
inventory valuation methods
_________ is the systematic write-off of the value of a tangible asset over its useful life.
Depreciation
A firm’s ________ reports the profit or loss for the firm over a specified time period.
income statement
In order for information to be meaningful, a firm’s accounting processes and procedures should be certified as accurate by acceptable accounting standards. Companies hire ________ to provide unbiased opinions about the accuracy of a firm’s financial statements.
independent auditors
Selling accounts receivable to obtain short-term funds is called:
factoring
A firm negotiates a(n) _________ with its bank. This arrangement gives the firm access to a specified amount of unsecured short-term funds, provided the bank has the funds available.
line of credit
By purchasing stock in Entertainment Today, Veronica has become a(n) ________ the company.
owner of
Money has a time value because:
Money earns interest over time.
Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs a large amount of funding—fast! The handful of seed scientists that own the company decide to offer shares of stock to general investors. This first-time offering is a(n):
Initial Public Offering (IPO)
Acquiring funds through borrowing represents:
debt financing
Which of the following provides the buyer with collateral?
Secured Bond
________ is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.
Trade Credit
Undercapitalization refers to the problem of:
insufficient start-up funds
The first step in the financial planning process is:
forecasting financial needs
If a firm sells shares of stock, it is financing with _______.
equity
Which of the following represents a capital expenditure?
Purchasing a building to be used for office space.
A _________ forecast predicts the revenues, costs, and expenses a firm will incur for a period longer than one year.
long-term
__________ refers to the strategy of using borrowed funds to increase the rate of return for stockholders.
Leverage
Maryland Nursery offers customers credit terms of 3/15, net 30. This gives customers a:
3 percent discount if they pay in fifteen days.
A just-in-time inventory system allows a firm to:
Reduce their investment in inventory.
__________ provide financing to new or emerging companies with high profit potential. In return, these organizations expect a share of ownership in the company.
Venture Capital Firms
In order to assist in revenue realization, a(n) ________ allocates resources throughout the firm.
Budget
A loan backed by collateral represents a(n):
secured loan