1. Which one of the following measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset? Squared deviationBeta coefficientStandard deviationMeanVariance
2. Sensitivity analysis: looks at the most reasonably optimistic and pessimistic results for a project.helps identify the variable within a project that presents the greatest forecasting risk.is used for projects that cannot be analyzed by scenario analysis because the cash flows are unconventional.is generally conducted prior to scenario analysis just to determine if the range of potential outcomes is acceptable.illustrates how an increase in operating cash flow caused by changing both the revenue and the costs simultaneously will change the net present value for a project.
3. A pro forma financial statement is a financial statement that: expresses all values as a percentage of either total assets or total sales.compares actual results to the budgeted amounts.compares the performance of a firm to its industry.projects future years’ operations.values all assets based on their current market values. 4. A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so, the firm:automatically gives preferential treatment in the allocation of funds to its riskiest division.encourages the division managers to only recommend their most conservative projects.maintains the current risk level and capital structure of the firm.automatically maximizes the total value created for its shareholders.allocates capital funds evenly amongst its divisions
Question 5A major way marketers create positive and distinct images is through:A. marketing plans.B. hiring marketing personnel.C. marketing communications.D. funding charities.
Question 6An important goal of marketing communications is to build a relationship with the organization’s:A. employees.B. technological team.C. channel members.D. research and development channel.
Question 7__________ is an activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product.A. Sales promotionB. Promoting a companyC. Selling goodsD. None of the above
Question 8A non paid form of non personal communication about the organization and its products that is transmitted through a mass medium in the form of a news story is referred to as:A. advertising.B. newsletters.C. publicity.D. None of the above
Question 9Why would the manufacturer of a $390 video home security system be reluctant to use advertising as its sole promotional tool?A. The manufacturer would have little control over the promotional message.B. Advertising is an ineffective way to create a product or brand image.C. The advertising message can be targeted to an individual.D. Advertising reaches many people who are not potential buyers.
Question 10The specialist viewpoint is represented by advertising experts who are primarily concerned with measuring the effects of:A. specific ads or campaigns.B. the economical status.C. the research approach.D. the percent of sales approach
Question 11
What are the objectives for advertising?A. Specific ads or campaignsB. Creating awareness, aiding comprehension, developing conviction, and encouraging orderingC. Implement marketing plansD. None of the above
Question 12The ultimate objective of the business advertiser is to make:A. people aware of the company.B. sales and profit.C. informed guesses about how to manipulate buyers.D. None of the above
Question 13The __________ method attempts to determine retail price by using product costs as a base.A. per-unit expenditureB. purchase pricingC. percentage-of-salesD. all-you-can-afford
Question 14Well-planned advertising programs usually make use of the __________ approach.A. marketingB. financialC. taskD. None of the above
Question 15__________ are in the best position to act as the intermediaries through whom valuable information can be passed back and forth between buyers and producers.A. Marketing managersB. CustomersC. AdvertisersD. Salespeople
Question 16The process of locating potential customers is called:A. database building.B. planning sales calls.C. pre-selling.D. prospecting.
Question 17Which of the following is a salesperson’s best source of prospects?A. Trade showsB. Referrals from satisfied customersC. CanvassingD. Centers of influence
Question 18Which of the following statements about objections during a sales presentation is true?A. Objections are typically trivial, and best handled by ignoring them.B. Objections can arise at any time during the sales presentation.C. A good salesperson allows objections to be raised only when the sales presentation is concluded.D. In handling an objection, a salesperson should be willing to challenge the prospect’s opinion and experience.
Question 19In response to an objection, the salesperson should __________ the customer.A. not immediately challengeB. thankC. listen passively toD. actively challenge
Question 20The concept of __________ focuses the organization’s attention on providing continuing satisfaction and reinforcement to individuals or organizations that are past or current customers.A. pre marketingB. advertisingC. after marketingD. warranting
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