Podcast
Questions and Answers
What is the term used to describe a record of information such as age, income level, and occupation for a target market?
What is the term used to describe a record of information such as age, income level, and occupation for a target market?
- Consumer composite
- Customer profile (correct)
- Preference list
- Demographic breakdown
When setting marketing objectives, what characteristics should these objectives possess?
When setting marketing objectives, what characteristics should these objectives possess?
- Measurable and achievable (correct)
- Qualitative and general
- Flexible and incompatible
- Timely and costly
What method is regarded as controversial for collecting data on consumer purchasing habits?
What method is regarded as controversial for collecting data on consumer purchasing habits?
- Random telephone surveys
- Detailed consumer questionnaires
- Online tracking devices (correct)
- Indirect response techniques
What do businesses link performance measures to in order to understand the financial outcomes of marketing?
What do businesses link performance measures to in order to understand the financial outcomes of marketing?
To justify marketing expenditure, what do marketers often translate performance measures into?
To justify marketing expenditure, what do marketers often translate performance measures into?
What is a primary purpose of data mining in a business context?
What is a primary purpose of data mining in a business context?
How can a hospitality business act on the trend of a population segment between 60 and 70 years old?
How can a hospitality business act on the trend of a population segment between 60 and 70 years old?
Which source of information do companies monitor to obtain internal data about their business activities?
Which source of information do companies monitor to obtain internal data about their business activities?
Which of the following often provides trade credit to businesses?
Which of the following often provides trade credit to businesses?
If a business has credit card sales of $78,450 and negotiates a 3.6% discount rate, what amount does it owe the bank?
If a business has credit card sales of $78,450 and negotiates a 3.6% discount rate, what amount does it owe the bank?
What additional capital is needed if a new piece of equipment costs $250,000, a bank loans 75%, and $20,000 is available cash?
What additional capital is needed if a new piece of equipment costs $250,000, a bank loans 75%, and $20,000 is available cash?
What is often the best source of credit for business start-ups?
What is often the best source of credit for business start-ups?
What is one downside of debt financing that could be cited against it?
What is one downside of debt financing that could be cited against it?
Which characteristic of current assets is highlighted in financial statements?
Which characteristic of current assets is highlighted in financial statements?
What is the base amount used for vertical analysis of items on the income statement?
What is the base amount used for vertical analysis of items on the income statement?
Coca-Cola, Minute Maid frozen orange juice, Fruitopia, and Powerade sports drink are all examples of the Coca-Cola Company's product:
Coca-Cola, Minute Maid frozen orange juice, Fruitopia, and Powerade sports drink are all examples of the Coca-Cola Company's product:
When determining the particular services to provide to customers, businesses consider their __________ and __________ resources.
When determining the particular services to provide to customers, businesses consider their __________ and __________ resources.
A primary reason for providing customer service is to increase:
A primary reason for providing customer service is to increase:
What might your business do if a competitor is using a brand mark and a brand name that are similar to your business's leading private brand?
What might your business do if a competitor is using a brand mark and a brand name that are similar to your business's leading private brand?
The marketing function that helps sellers provide information to buyers about the seller's products is:
The marketing function that helps sellers provide information to buyers about the seller's products is:
Which of the following is an example of a transit advertising media?
Which of the following is an example of a transit advertising media?
When is the use of email an effective direct-advertising strategy?
When is the use of email an effective direct-advertising strategy?
Ben received a $50 check after mailing back a form and sales receipt for his new cell phone. What type of sales-promotion technique was used?
Ben received a $50 check after mailing back a form and sales receipt for his new cell phone. What type of sales-promotion technique was used?
What is a primary factor that maintains quality in the modern business landscape?
What is a primary factor that maintains quality in the modern business landscape?
Why is enterprise risk management valuable for companies?
Why is enterprise risk management valuable for companies?
What practice does Eddie engage in to prepare for potential business problems?
What practice does Eddie engage in to prepare for potential business problems?
What is Carla's role at WorkSocks, Inc. after moving her workers to start production?
What is Carla's role at WorkSocks, Inc. after moving her workers to start production?
What is a key reason for creating a business plan before launching a new venture?
What is a key reason for creating a business plan before launching a new venture?
How did Chuck act to protect his business network from viruses?
How did Chuck act to protect his business network from viruses?
What does a computer application that shows the current number of callers in queue exemplify?
What does a computer application that shows the current number of callers in queue exemplify?
When creating a successful business plan, what quality should it possess?
When creating a successful business plan, what quality should it possess?
What is the primary focus of managerial accounting?
What is the primary focus of managerial accounting?
How might a business improve its short-term cash flow?
How might a business improve its short-term cash flow?
What is one advantage of taking out a loan for a business?
What is one advantage of taking out a loan for a business?
What is typically included in an annual report prepared through financial accounting?
What is typically included in an annual report prepared through financial accounting?
What role do wholesalers play in the supply chain?
What role do wholesalers play in the supply chain?
What is a potential benefit of trade credit for businesses?
What is a potential benefit of trade credit for businesses?
What is a common misconception about managerial accounting?
What is a common misconception about managerial accounting?
What type of transactions does financial accounting primarily deal with?
What type of transactions does financial accounting primarily deal with?
Study Notes
Trade Credit
- Wholesalers often provide trade credit to businesses
- Trade credit permits businesses to obtain goods for resale without borrowing money from a lending institution
Discount Rate
- Discount rate is the processing fee a business pays for accepting credit cards
- A discount rate of 3.6% on 78,450creditcardsalesresultsinafeeof78,450 credit card sales results in a fee of 78,450creditcardsalesresultsinafeeof2,824.20 owed to the bank
Capital Needs
- A business needs $250,000 to purchase equipment
- A bank will loan 75% of the price, or $187,500
- The business has $20,000 in cash
- The business needs an additional $42,500 in capital
Start-Up Credit
- Traditional lenders and commercial banks are often the best sources of credit for business start-ups
Debt Financing
- One downside of debt financing is that the business will have to pay interest on the borrowed amount
Return on Equity (ROE)
- ROE is calculated using the formula: Net Income / Shareholders' Equity
- ROE can be used to assess how efficiently a company is using shareholder investments
Business Assets
- Current assets on a business's financial statements are liquid
- Liquid assets can be easily converted to cash
Vertical Analysis
- Vertical analysis on the income statement uses net sales as the base amount
Balance Sheet
- Employees should know the equation: Assets = Liabilities + Owner's Equity when verifying the accuracy of a business’ balance sheet
Marketing
- A demographic breakdown is used to identify a target market
- A demographic breakdown includes information such as age, income level, ethnic background, occupation, and attitudes
- Marketing objectives should be measurable and achievable
- Businesses use data mining to discover relationships between marketing activities and financial outcomes
- Trends in the population can be used to market products
Customer Service
- Businesses identify service standards to ensure the standards meet customer expectations
- Customer service is used to increase sales volume
- Businesses can take legal action to protect their brand if a competitor is using a similar brand mark and brand name
Marketing Functions
- Promotion is the marketing function that helps sellers to provide information to buyers about the seller's products
Advertising
- Transit advertising includes ads displayed on public transportation
- Email marketing is effective when the message appeals to a small audience interested in a specific product
Sales Promotions
- Rebates are a type of sales promotion where customers receive a cash refund after a purchase
- Consumer pressure for quality keeps quality at the forefront of the modern business world
Enterprise Risk Management (ERM)
- ERM helps businesses identify and manage potential risks
- Businesses conduct a risk assessment to identify potential problems that could harm the company
Selling
- Selling should influence customer purchase decisions
Management
- Supervisors are at the supervisory level of management
- Businesses develop business plans to estimate financial needs
Computer Security
- Businesses use firewalls to protect their computer networks from viruses and spyware
- Dashboards are used to monitor business activities
Business Plans
- Successful business plans are clear, concise, focused, and realistic
Capital Needs
- Selling assets can be a short-term solution for a business with cash flow problems
- Loans can be a better option than selling assets because businesses may be able to deduct the loan interest for tax purposes
Accounting
- Managerial accounting:
- Involves capturing, maintaining, and interpreting accounting information for internal use
- Primarily focuses on summarizing information about day-to-day financial activities
- Financial accounting:
- Involves capturing, maintaining, preparing, and reporting financial information to external audiences
- Includes activities such as preparing tax data for the government and developing the annual report for the business’ stakeholders
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Description
Test your knowledge on key concepts in business finance, including trade credit, discount rates, and capital needs. This quiz covers important aspects such as debt financing and return on equity (ROE) that are crucial for understanding business operations and financing options.
