WEEK 15:
GENERAL REVIEW
BUSN 102 – Özge Can
Final Exam
2
Format:
 Multiple-choice questions (%60)
 Short essays (%40)
Content:





Product and pricing strategies (Chp.14)
Distribution and logistics (Chp.15)
Customer communication (Chp.16)
Accounting (Chp.17)
Financial management (Chp.18)
Key Topics
3









Key product types
The product life cycle
Product development process
Branding and product mix
Pricing strategies
Contributions of intermediaries
Major types of wholesalers and retailers
Distribution channel decisions
Market coverage
Key Topics
4



Attributes of social communication model
Communication strategy and mix
Custumer communication channels
 Advertising,
direct marketing, personal selling, sales
promotions, social media, public relations




Fundamental accounting concepts
Three financial statements
Components of balance sheet
Components of income statement
Key Topics
5

Types of financial ratios:
 Profitability,





liquidity, activity and leverage (debt)
Major tasks of financial managers
Budgeting process and four budget types
Comparison of debt and equity financing
Alternatives of short-term financing
Alternatives and long-term financing
Example Questions:
6
________ are particular brands that the buyer
especially wants and will seek out such as
professional violin lessons.
A) Specialty products
B) Capital items
C) Convenience products
D) Shopping products
Example Questions:
7
The maturity stage of product lifecycle is ________.
A) a stage where a product's price is at a high level
B) usually the shortest stage in a product's lifetime
C) characterized by steep decline in profits
D) a stage where firms have to win sales away from
competitors
Example Questions:
8
During the business analysis stage, a company
________.
A) sells the product on a limited basis to gauge its market
appeal
B) reviews the sales, costs, and profit projections
C) screens the business ideas that it has generated
D) generates a wide variety of ideas to introduce a new
product
Example Questions:
9

A group of fifteen entrepreneurs starts a manufacturing
firm. The total fixed costs that they have incurred in
setting up the business amounts to $50000. The
variable cost of selling a unit of product is $25. What is
the break-even point if each unit is priced at $50?
A) 2000
B) 500
C) 666
D) 1000
Example Questions:
10

Which of the following pricing methods is
characterized by charging a high price for a new
product during the introductory stage and lowering
the price later?
A) cost-based pricing
B) value-based pricing
C) skim pricing
D) penetration pricing
Example Questions:
11
Wholesalers differ from retailers in that wholesalers
________.
A) sell products to organizational customers
B) are marketing intermediaries
C) primarily sell products to consumers for personal
use
D) create place utility and time utility
Example Questions:
12
When the role of an intermediary is taken over by
manufacturers upstream or customers downstream,
________ occurs.
A) centralization
B) disintermediation
C) market penetration
D) horizontal integration
Example Questions:
13
Stores that carry only a particular type of goods,
often with deep selection in those specific
categories, are called ________.
A) department stores
B) distributors
C) specialty stores
D) convenience stores
Example Questions:
14
Intensive distribution differs from selective
distribution in that intensive distribution
________.
A) offers products in only one outlet in each market area
B) tries to place a product in as many outlets as possible
C) refers to producers that sell directly to consumers
D) involves selling through a limited number of outlets
Example Questions:
15
The new social model of customer communication
differs from the conventional promotion model in
that the social communication model ________.
A) is unidirectional and intrusive
B) is hierarchical and static
C) views audiences as passive recipients of messages
D) is interactive and conversational
Example Questions:
16
Push strategy differs from pull strategy because in
push strategy a producer ________.
A) appeals directly to end customers
B) uses integrated marketing communications
C) focuses on wholesalers or retailers
D) uses reminder advertising
Example Questions:
17
The ad that tells you to "call within the next ten
minutes because supplies are limited" is using
advertising appeal based on ________.
A) logic
B) emotion
C) humor
D) scarcity
Example Questions:
18
Direct marketing differs from advertising in that direct
marketing ________.
A) is carried by someone else's medium
B) promotes the features and benefits of specific products
C) involves the purchase of time or space in other media
D) often uses personally addressable media
Example Questions:
19
Luminescent Inc. manufactures and sells products related to
surfing, skateboarding, and snowboarding. During Christmas,
the firm gave free sports bottles with a Luminescent logo to
all its customers, with the aim of keeping the firm's name in
front of customers for a long period of time. This is an
example of ________ advertising.
A) institutional
B) comparative
C) specialty
D) cooperative
Example Questions:
20
Which of the following refers to evaluating a company's
performance and the economic implications of strategic
decisions such as product pricing, employee benefits,
and business acquisitions?
A) financial analysis
B) tax accounting
C) bookkeeping
D) cost accounting
Example Questions:
21
Public accountants are professionals who provide
________.
A) accounting services to businesses and individuals for a
fee
B) financial services to not-for-profit organizations
C) financial services without charging a fee for them
D) financial services to people who trade in the stock
market
Example Questions:
22
________ is an accounting method in which revenue is
recorded when a sale is made and expense is
recorded when it is incurred.
A) Cash basis
B) Accrual basis
C) Profit basis
D) Deferral basis
Example Questions:
23
Which of the following statements is true of the order in
which assets are listed in the balance sheet?
A) Assets such as property and plant are mentioned first in a
balance sheet.
B) Fixed assets are listed before current assets in a balance
sheet.
C) Current assets are not generally mentioned in a balance sheet.
D) Assets are listed in descending order by liquidity in the
balance sheet.
Example Questions:
24
The profit earned or loss incurred by a firm,
determined by subtracting expenses from revenues,
is referred to as the ________.
A) working capital
B) gross profit
C) net income
D) net sales
Example Questions:
25
Activity ratios analyze ________.
A) how well a company is making use of its assets
B) a firm's ability to pay its short-term obligations
C) a firm's ability to pay its long-term obligations
D) the extent to which a business is financed by debt
Example Questions:
26
Which of the following is the best example of an
external source for obtaining funds for business?
A) revenue from selling assets
B) funds from shareholders
C) earnings from investments
D) issuing corporate bonds
Example Questions:
27

X Learning company identifies the training needs of
organizations and designs flash-based online training
programs for them. The company has recently received an
order to create product training platforms for an electronic
manufacturer. The company creates a budget specifically for
this order to determine the pricing of the project. This budget is
an example of a ________ budget.
A) operating
B) capital
C) project
E) start-up
Example Questions:
28
________ is an arrangement in which a financial
institution makes money available for use at any
time after the loan has been approved.
A) Corporate bond
B) Factoring
C) Line of credit
D) Lease agreement
Example Questions:
29
Frost Bank lends $500,000 to Arbex Manufacturer. Arbex
has agreed to pay this amount back in fifty equal
installments over a period of ten years. This is an
example of a ________.
A) lease agreement
B) trade credit
C) corporate bond
D) long-term loan
Securities
19-30

Securities
 Investments
such as stocks, bonds, options,
futures, and commodities
1) Stocks
19-31

Stock
 Ownership
of or equity in a company
 A share of stock represents a specific portion of
ownership

Two major forms of stocks:
 Common
stocks
 Preferred stocks
Types of Stock:
19-32

Common Stock
 Shares

of ownership that include voting rights
Preferred Stock
 Shares
of ownership without voting rights but with
defined dividends
2) Bonds
19-33


Bonds are issued by corporations and
various government bodies to raise funds
Three key variables:
Face Value: The amount of money, or principal, a
bond buyer lends to a bond issuer; also known as par
value or denomination
 Maturity Date: The date on which the principal of a
bond will be repaid in full
 Yield: Interest income a purchaser receives from the
bond

Several Types of Bonds:
19-34




Treasury bills
Treasury notes
Treasury bonds
Municipal bonds
3) Mutual Funds
19-35

Portfolio Diversification
 Spreading
investments across enough different
vehicles to protect against significant declines in
any one vehicle

Mutual Funds
 Financial
instruments that pool money from
many investors to buy a diversified mix of
stocks, bonds, or other securities
4) Derivatives
19-36

Derivatives
 Contracts
whose value is derived from some
other entity (usually an asset of some kind,
but not necessarily)
 Used to hedge against or speculate on risk

Two major types of derivatives:
 Options
 Futures
Financial Markets
19-37

Stock Exchanges
 Organizations
that facilitate the buying and selling
of stock

Bond Market
 The
collective buying and selling of bonds
 most bond trading is done over the counter, rather
than in organized exchanges
Financial Markets
19-38

Money Market
 An
over-the-counter marketplace for short-term
debt instruments such as Treasury bills and
commercial paper

Derivatives Market
A
market that includes exchange trading (for
futures and some options) and over-the-counter
trading