Question

1-

Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer to leave their cash outside the United States because using those funds to pay dividends or purchase treasury stock would

Select one:

a. promote foreign investment.

b. require a big U.S. corporate income tax payment.

c. create pressure for decreased exporting.

d. decrease foreign exchange.

e. inflate stock prices.

2-

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

Select one:

a. Long-term liabilities

b. Fixed assets

c. Stockholders' equity

d. Retained earnings

e. The Cash Account

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

Select one:

a. They can usually be served with the same marketing strategy.

b. They are usually interchangeable.

c. They are always in different geographic locations.

d. All of these

e. They usually require different marketing strategies.

4-

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

Select one:

a. To establish a certain percentage discount on accounts within a specified period of time

b. To lease or buy fixed assets

c. To be a price leader or a price follower

d. To use LIFO, FIFO, or a market-value accounting approach

e. To extend the time of accounts receivable

5-

What makes market segmentation an important variable in strategy implementation?

Select one:

a. It allows a small firm to compete successfully with a large firm.

b. All of these

c. Market segmentation decisions directly affect marketing mix variables.

d. New or improved market-segmentation approaches are required for the successful execution of market development & market penetration.

e. It allows a firm to operate with limited resources.

6-

If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?

Select one:

a. It is unchanged.

b. It doubles.

c. It cannot be determined from the information given.

d. It decreases.

e. It increases.

7-

The first step in performing projected financial analysis is to

Select one:

a. prepare the projected balance sheet.

b. forecast sales as accurately as possible.

c. calculate the projected net income.

d. take an inventory of goods.

e. estimate increases in debt.

8-

Which variable would be considered part of the "product" element of the marketing mix?

Select one:

a. Inventory levels and location

b. Packaging

c. Payment terms

d. Advertising

e. Publicity

9-

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

Select one:

a. Capital Asset Pricing Model

b. Gross Profit Analysis

c. Earnings Per Share/Earnings Before Interest and Taxes Analysis

d. Debt-to-Stock Ratio

e. Present Value Analysis

10 -

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

Select one:

a. EPS/EBIT

b. Projected financial statement analysis

c. TOWS analysis

d. External analysis

e. Financial budgeting

11-

Which variable would be considered part of the "place" element of the marketing mix?

Select one:

a. Discounts and allowances

b. Product line

c. Service level

d. Sales territory

e. Personal selling

12-

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit.

Select one:

a. five times

b. three times

c. twice

d. ten times

e. fifteen times

13-

Projected financial analysis is an important strategy-implementation technique because

Select one:

a. it is an exact measurement of financial costs in the future.

b. insurance needs can be computed.

c. it allows an organization to examine the expected results of strategies being implemented.

d. it is an exact measurement of future company profits.

e. None of these

14-

Which item is included in net worth?

Select one:

a. Common stock

b. None of these are included in net worth.

c. Retained earnings

d. All of these are included in net worth.

e. Additional paid-in-capital

15-

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

Select one:

a. hacking issues in MIS.

b. goodwill.

c. illegal inflation of financial projections.

d. how firms conduct R&D.

e. improving marketing policies.

16-

What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?

Select one:

a. Perceptual mapping

b. Market segmentation

c. Market penetration

d. Unrelated diversification

e. Capital budgeting

17-

Which one of the following statements regarding stock issuances is true?

Select one:

a. They are not always better than debt for raising capital.

b. Dilution of ownership is not a special concern.

c. None of these statements regarding stock issuance is true

d. Their effect on stock price is not a concern.

e. They do not require a company to share future earnings with new shareholders.

18-

What portion of the firms going public in 2014 were unprofitable?

Select one:

a. About one quarter

b. Less than one tenth

c. Nearly all

d. Nearly three quarters

e. About one half

19-

Multidimensional scaling is used in

Select one:

a. perceptual mapping.

b. determining the size of a new building.

c. determining the size of a new department.

d. market segmentation.

e. evaluating the amount of high-tech equipment a firm needs.

20-

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?

Select one:

a. Outstanding Shares Method

b. Long-term Asset Method

c. Debt/Equity Method

d. Price-Earnings Ratio Method

e. Current Ratio Method

Answer 1

1. option b. require a big U.S. corporate income tax payment.

When the firms bring the foreign income into US they require to pay a lot of taxes which they avoid by keeping the cash out.

2. option e. The Cash Account

In projected financials cash account is used as a plug figure.

3. option e. They usually require different marketing strategies.

two different markets can be in the same geography, but they require different market strategies, and completely different marketing mix.

4. option c. To be a price leader or a price follower

being a price leader or a price follower is a marketing strategy and not accounting.