BU Final Exam Review (24-25) PDF

24-25 BU FINAL EXAM REVIEW Importance of Market Research: 1. What is one of the primary purposes of market research in understanding customers? a. Identifying customer needs and preferences b. To increase product costs c. To hire more employees d. To decrease...

24-25 BU FINAL EXAM REVIEW Importance of Market Research: 1. What is one of the primary purposes of market research in understanding customers? a. Identifying customer needs and preferences b. To increase product costs c. To hire more employees d. To decrease production time 2. How does market research help businesses with their marketing strategies? a. By providing insights into product manufacturing b. By identifying the best channels and messages to reach potential customers c. By reducing employee turnover d. By increasing product prices 3. Why is assessing competition important in market research? a. It helps business ignore competitor’s strengths and weaknesses b. It provides insights into competitors' strengths and weaknesses c. It allows businesses to copy competitors strategies d. It prevents businesses from entering new markets 4. How does market research help in resource allocation? a. It aids in determining where to allocate resources effectively b. It increases the number of resources needed c. It decreases the need for market analysis d. It focuses on short-term resource allocation The Role of an Accountant 5. What is one of the primary responsibilities of an accountant when it comes to Financial Records a. Conducting market research b. Maintaining accurate financial records c. Designing marketing strategies d. Developing new products 6. Which financial statement provides insights into a company's financial performance over a specific period? a. Balance sheet b. Statement of retained earnings c. Income statement d. Statement of shareholders' equity 7. In the context of an accountant’s role, what does compliance primarily involve?  a. Ensuring the organization meets financial regulations and standards b. Developing new financial products c. Conducting external audits d. Providing training to employees 8. What is the purpose of financial forecasting conducted by accountants? a. To create promotional campaigns b. To project future financial trends based on historical data c. To manage employee payroll d. To assess customer satisfaction Strategic Direction in a Company 9. What is the primary purpose of conducting a situational analysis/SWOT in determining a strategic direction? a. To establish a company's mission and vision b. To identify internal strengths and weaknesses, as well as external opportunities and threats c. To develop actionable strategies for market expansion d. To implement and evaluate strategic goals 10. Which of the following best describes a vision statement? a. It outlines the company's daily operational tasks b. It describes what the company aspires to achieve in the future c. It provides the company's financial goals d. It identifies the company's competition 11. What does the acronym SMART stand for in the context of setting strategic goals? a. Specific, Measurable, Achievable, Relevant, Time-bound b. Strategic, Manageable, Actionable, Realistic, Timely c. Simple, Motivational, Achievable, Resourceful, Timed d. Systematic, Measured, Aligned, Reasoned, Tested 12. Which strategy might a company pursue if it aims to increase its market share within an existing market? a. Diversification b. Market penetration c. Cost leadership d. Product development 13. Why is continuous evaluation important in the implementation of a strategic direction? a. Ensures employees understand their roles b. It allows the company to adapt strategies to respond to changing conditions  c. It provides a framework for decision-making d. It defines the company s core values Fixed & Operating Capacity in 3D Printing 14. What impact does adjusting the operating capacity have on the production process in the simulator? a. It changes the number of sales orders b. It affects the number of workers employed c. It alters the location of production facilities d. It modifies the shipping process The Strategic Role of Marketing Leadership in Corporate Success 15. Why is brand awareness crucial for a company? a. It ensures the company has a large workforce b. It helps maintain brand recognition and customer familiarity c. It decreases product costs d. It guarantees a monopoly in the market 16. How does marketing contribute to revenue generation? a. By reducing the cost of production b. By attracting new customers and encouraging repeat business c. By hiring more salespeople d. By increasing product prices 17. Which skill is essential in the area of Marketing? a. Proficiency in coding b. Strategic thinking c. Ability to speak multiple languages d. Expertise in manufacturing 18. How can the Marketing department ensure maximum ROI? a. Increase marketing budget without analysis b. Ignore market insights c. By allocating and managing the marketing budget effectively d. Focus exclusively on digital marketing 19. What is one potential negative impact of poor marketing leadership? a. Developing effective marketing strategies b. Building a strong brand c. Misaligning marketing strategies with company goals d. Identifying new market opportunities 20. What role does marketing research play in a company?  a. It reduces the need for customer service b. It provides valuable data about customer preferences and market trends c. It determines the salaries of employees d. It eliminates the need for advertising 21. Why is adaptability important for Marketing? a. It helps them avoid making any changes b. It allows them to adjust strategies in response to market dynamics c. It ensures they stick to traditional methods d. It encourages them to ignore new technologies Understanding the Role and Impact of a Chief Executive Officer (CEO) 23. What is the primary responsibility of a CEO in a company? a. Conducting employee performance reviews b. Setting the company's strategy and vision c. Managing day-to-day administrative tasks d. Supervising customer service representatives 24. Which of the following qualities is NOT essential for a good CEO? a. Strong leadership skills b. Integrity and ethical behavior c. Ability to micromanage d. Strategic thinking 25. In what way can a CEO negatively impact a company's growth? a. By fostering a positive company culture b. By making poor strategic decisions c. By expanding into new markets d. By attracting top talent 26. Why is adaptability an important trait for a CEO? a. It helps in micromanaging the team b. It aids in maintaining a rigid company structure c. It allows pivoting strategies in a changing business landscape d. It ensures strict adherence to outdated methods Understanding the Role of Manufacturing 27. What is one of the main responsibilities of Manufacturing in terms of strategic planning? a. Implementing short-term marketing strategies b. Developing long-term manufacturing strategies aligned with company goals c. Managing customer service operations  d. Designing new product features 28. Which of the following is a key aspect of cost management in Manufacturing? a. Increasing advertising expenditure b. Optimizing inventory levels c. Expanding the sales department d. Reducing employee benefits 29. How can a VP of Manufacturing positively impact a company's growth? a. By focusing solely on increasing production speed b. By reducing product quality to cut costs c. By implementing cost-saving measures to boost profitability d. By ignoring technological advancements to maintain traditional methods Market Market Opportunity Analysis & Brand Design 30. What is the primary focus market opportunity analysist? a. The design of product components b. The cost of product production c. Understanding customer wants and needs d. Compatibility of product features 31. Why might executives struggle with market opportunity analysis? a. They focus too much on customer benefits b. They deal primarily with product components c. They lack knowledge of the real-world market d. They don't understand the utility of features 32. What is the ultimate goal of matching benefits with features? a. To lower production costs b. To ensure maximum profitability c. To identify appealing features for target segments d. To maintain a stable market position Territory Development and Market Strategy 33. What factor must be balanced with greater market potential when deciding on territory a. Customer loyalty b. Operating expenses c. Market recognition d. Advertising strategies 34. How does competition influence territory development decisions? a. It increases initial sales b. It enhances brand awareness  c. It is stronger in high demand areas d. It reduces operating expenses 35. What advantage do early entrants in a market have? a. Higher initial sales b. Pioneering customer loyalty c. Lower advertising costs d. Less competition 36. Why might actual sales be less than market potential in the early stages of a product's cycle? a. High operating expenses b. Lack of competition c. Unfulfilled target market needs d. Strong brand loyalty Human Resource Management /Compensation Strategies 37. What is the primary tool used by Human Resource Management to recruit, satisfy, and motivate employees? a. Training programs b. Compensation package c. Corporate culture d. Performance reviews 38. Which of the following is NOT typically included in a compensation package? a. Annual salary b. Health benefits c. Company shares d. Vacation time 39. Why is it important for the HR department to monitor compensation packages and productivity levels of competitors? a. To create advertisements b. To ensure legal compliance c. To maintain competitive advantage d. To determine office hours 40. According to industry experts, what is the likely outcome for firms offering the best compensation packages? a. Increased turnover b. Higher employee productivity c. More employee complaints d. Higher training costs 41. What should the HR department review to formulate a human resource strategy for compensation? a. Industry survey on typical compensation b. Employee feedback forms c. Company's annual revenue report d. Local labor laws Understanding Income Statements 42. What is the primary purpose of an income statement? a. To assess the company's liquidity b. To summarize a company s revenues, expenses, and profits or losses c. To evaluate the company's cash flow d. To list all company assets 43. Which component of an income statement represents the total income generated from sales or services? a. Operating Income b. Gross Profit c. Revenues d. Net Income 44. What does Gross Profit represent in an income statement? a. Revenues minus Operating Expenses b. Revenues minus Cost of Goods Sold (COGS) c. Net Income minus Other Expenses d. Operating income minus Other Expenses 45. Why might investors and creditors analyze an income statement? a. To determine the company's market value b. To make informed decisions about investing in or lending to the company c. To assess the company's physical assets d. To decide on the company's inventory levels 46. What is Net Income? a. The company's total revenue b. The company's total expenses c. The final profit or loss after all revenues and expenses have been accounted for d. The amount of cash available Cash Flow Statement 47. Which of the following is the primary purpose of a cash flow statement?  a. To determine tax liabilities b. To assess a company's ability to meet short-term obligations c. To evaluate market trends d. To forecast currency exchange rates 48. What is included in the operating activities section of a cash flow statement? a. Proceeds from issuing shares b. Cash received from the sale of investments c. Payments made to suppliers for goods and services d. Purchases of property, plant, and equipment 49. Which section of the cash flow statement reflects cash flow related to long-term assets? a. Operating activities b. Financing activities c. Investing activities d. Net cash flow 50. What does the financing activities section of a cash flow statement usually include? a. Cash received from customers b. Payments for salaries and wages c. Proceeds from issuing shares or equity d. Cash received from interest and dividends 51. What does a positive cash flow from operating activities typically indicate? a. The company is facing liquidity issues b. The company is generating enough cash to cover expenses and invest in growth c. The company is heavily reliant on borrowed funds d. The company is making significant capital expenditures 52. Which of the following would be considered a cash inflow under investing activities? a. Purchasing new equipment b. Selling assets c. Paying dividends d. Raising equity 53. What might high cash outflows for repayment or dividends suggest about a company? a. The company is investing in growth b. The company is experiencing declining sales c. The company relies heavily on borrowed funds d. The company is generating sufficient cash flow from operations 54. How can you assess a company's cash conversion cycle?  a. By comparing net income with cash flow from operations b. By calculating cash flow margin c. By evaluating the speed of converting investments into cash flow from operations d. By examining dividend payment consistency 55. Why is it important to compare cash flow statements over multiple periods? a. To identify trends in cash generation and usage b. To confirm the company is paying high dividends c. To ensure the company is selling assets consistently d. To check for discrepancies in non-cash items Financial Management and Strategic Planning 56. What is a significant constraint on firms during the start-up phase? a. Lack of skilled employees b. Cash flow c. High competition d. Excessive regulations Understanding the Balance Sheet 57. What does a balance sheet primarily show? a. The company's cash flow over a year b. The company's financial position at a specific point in time c. The company's profit and loss for the year d. The company's revenue streams 58. How is equity calculated on a balance sheet? a. Assets minus liabilities b. Liabilities minus assets c. Current assets minus current liabilities d. Revenue minus expenses 59. Why is it important to consider off-balance sheet items? a. They always lead to more revenue b. They provide additional information on cash flow c. They can significantly affect financial health despite not appearing on the balance sheet d. They are irrelevant to financial stability Lean Manufacturing 60. What is the primary goal of lean manufacturing? a. To increase production speed b. To minimize inventory and align production with demand  c. To enhance product quality d. To reduce labor costs 61. How does the pull system benefit production facilities? a. It increases the need for storage space b. It requires precise brand-level demand forecasting c. It eliminates the need for inventory and storage facilities d. It reduces the variety of products produced 62. Which of the following is NOT an advantage of lean manufacturing? a. Decreased capital tied up in inventory b. Increased flexibility in production c. More accurate individual brand forecasting d. Reduced need for warehousing 63. What risk remains even when forecasting total demand in lean manufacturing? a. the risk of overproduction b. the risk of underproduction c. the risk is distributed across brand assortments d. the risk is increased storage costs Manufacturing and operating production capacity 64. What happens to labor and overhead costs as the operating capacity approaches the fixed capacity? a. cost decreases continuously b. costs remain constant c. cost increase d. costs are unaffected Financial ratios assessment 65. What does a quick liquidity test ratio greater than 1 indicate about a company? a. the company has more debt than assets b. the company can cover its short-term obligations c. the company is inefficient in asset utilization  d. the company has a high gross profit margin 66. What does a high total assets turnover ratio suggest about a company? a. the company is taking on too much debt b. the company is efficient in using its assets to generate sales c. the company has a high cash reserve d. the company is at risk of bankruptcy 67. If a company’s debt ratio is over 100% what does this imply? a. the company has more assets than debt b. the company is highly profitable c. the company has more debt than asset d. the company is efficient is asset utilization 68. Which ratio measures the proportion of profit relative to capital invested by stockholders? a. return assets b. return on paid-in capital c. gross profit margin d. debt to paid-in capital 69. Why might a company have a low Fixed Asset Turnover ratio but still be considered healthy? a. It is highly leveraged. b. It has recently made a large investment that hasn't yet paid off, c. It has low net income. d. It has a high gross profit margin. 70. Why is a positive Net Profit Margin important? a. it indicates high cash reserves b. It shows the company's efficiency in managing overhead costs. c. It implies high leverage. d. It suggests low asset turnover. 71. What does a high Debt to Paid-In Capital ratio imply from an investor's standpoint?  a. The company is more stable. b. The company is riskier. c. The company has high liquidity. d. The company has a high net income. Q3 Market Research 72 What is the primary purpose of the fast tests in market research? a. To conduct detailed customer interviews b. To obtain a summary judgment from customers on brands, prices, and ads c. To gather comprehensive customer opinions on product features d. To conduct market surveys at an abstract level 73. How are price judgments obtained in the fast test process? a. Through customer surveys conducted online b. By evaluating each brand's price in comparison with others c. By analyzing sales data from the past year d. Through focus group discussions 74. During which market phase is the role of fast tests considered to be more of a monitoring function? a. Test-marketing phase b. Introductory phase c. Growth phase d. Maturity phase 75. What is a potential drawback of expanding the study to include customer opinions along with ratings? a. Increased accuracy of the data b. Reduced cost of the study c. Increased cost and potential inaccuracy of customer opinions d. Simplification of the data collection process Q3. Price Elasticity and Market Response 76. What is Price Elasticity primarily concerned with? a. Quality of a product b. Sensitivity of demand to price changes c. Cost of production d. Availability of substitutes 77. Which pricing strategy involves setting low prices to attract a large number of customers? a. Skim-the-cream pricing b. Penetration pricing c. Price Rebates d. Dynamic pricing 78. If a market segment is less sensitive to price changes, what is likely to happen when prices increase? a. Demand will significantly decrease b. Demand will remain relatively stable c. Demand will increase d. The market will expand a. Immediate increase in demand 79. Which of the following is a possible outcome of using price rebates? a. Immediate increase in demand b. Long-term brand loyalty c. Decrease in overall market size d. Decrease in product quality perception Q3. Price Rebates 80. What is one potential downside of offering a price rebate program? a. It always increases future sales. b. It guarantees customer loyalty. c. It may result in borrowing from future sales.  d. It attracts only price inelastic customers. 81. Why might price inelastic customers perceive rebates negatively? a. They prefer regular discounts. b. They see rebates as an indication of low-quality products. c. They believe rebates are a sign of unwanted inventory. d. They are unaffected by price changes. 82. What is a typical range for rebates aimed at price-sensitive customers? a. 10 to 20 b. 50 to 100 c. 150 to 200 d. 200 to 300 Q3 Advertising and Ad Copy Design 83. Why should the brand name not be the primary focus in an advertisement's early stages? a. the brand name is not important b. customers are already familiar with the brand c. a key benefit should be highlighted instead d. it is too expensive to promote the brand name 84. What happens if too many benefits are included in an ad message? a. the ad becomes more effective b. the message becomes cluttered and less effective c. customer become more interested d. the brand becomes more recognizable 85. How can improvements in ad design impact advertising expenditure? a. they increase the cost significantly b. they do not affect the expenditure c. customers become more interested d. they make no difference unless the budget is increased Q3. Media Planning & Advertising 86. Why might an ad agency avoid saturating a single magazine with too many advertisements? a. to save on advertising costs b. to maintain the magazines quality c. to prevent the market from being overwhelmed d. to target a broader audience 87. What is a potential risk of running the same ad too frequently in the same media category? a. diminished advertising returns b. increased production costs c. legal repercussions d. loss of brand identity 88. What is an advantage of using multiple types of magazines for advertising? a. reducing advertising costs b. enhancing brand exclusivity c. increasing exposure in various contexts d. simplifying the media planning process Q3. Market Research & competitive benchmark 89. What type of data is provided by competitive benchmark research? a. qualitative data b. subjective data c. quantitative data d. observational data 90. What is a key challenge in analyzing competitive benchmark data? a. to reduce production costs b. to create brand awareness and communicate the brand’s capability to satisfy consumer needs c. To improve employee satisfaction d. To increase the number of salespeople