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what are ratios that measure the extent to which firm relies on debt financing in its capital structure
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Jeremy holds 14.5% shares of stock in an car company. as per the company norms, if they issue new stock, as an existing stockholder, Jeremy can buy 14.5% of the new shares before the stock is offered to the other investors, what kind of scenario is this?
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Business Final
| Question | Answer |
|---|---|
| what are ratios that measure the extent to which firm relies on debt financing in its capital structure | leverage ratios |
| Jeremy holds 14.5% shares of stock in an car company. as per the company norms, if they issue new stock, as an existing stockholder, Jeremy can buy 14.5% of the new shares before the stock is offered to the other investors, what kind of scenario is this? | A preemptive right |
| Which of the following is a drawback of private placements? | they do not have the potential to raise as much money as public offerings |
| A(n) _____ is the first time a company issues stock that may be bought by the general public. | initial public offering |
| Urasil mobil corporation is a small petrochemicals firm. Since the owners of the firm do not want to pay a high listing fee, the firm's shares are not listed on an organized exchange. in this case, urasil mobil corporation would trade its stock in the ___ | over-the-counter market |
| Which of the following is a difference between credit unions and commercial banks? | Unlike commercial banks, credit unions and not-for-profit organizations. |
| According to critics, the Glass-Steagall Act: | Impeded financial innovation. |
| One drawback of exchange-traded funds (ETFs) is that investors: | have to pay brokerage commissions every time they buy or sell shares. |
| Glen wants to find the stock prices of some of the large actively traded companies listed on the Tokyo Stock Exchange. Which of the following indices should Glen follow? | The Nikkei225 |
| Damien buys stock worth $2800 in a cosmetic products manufacturing company. His investment turns out to be a sound decision as the prices of his stocks go u by $900. In this scenario, Damien earns a ____. | capital gain |
| Which of the following is a difference between dividends on stock and interest on bonds? | A firm has a legal obligation to pay interest on bonds, whereas it has no legal obligation to pay dividends on stock. |
| Which of the following is a disadvantage of market timing? | It requires investors to make frequent trades. |
| Jonathon is a common stockholder in an info tech firm. Owing to his right to a residual claim on assets, he is entitled to receive a share in the proceeds of the company that is proportionate to his ownership if the company: | goes out of business. |
| ___ is found by multiplying the price per share times the number of shares of common stock outstanding. | market cap |
| A(n) ___ is a type of stock that gives its holder priority over common stockholders in terms of dividends and claims on assets. | preferred stock |
| Which of the following is true of stock exchanges? | each exchange establishes its own requirements for the securities it lists. |
| Elliott holds a bond in a health care company that matures after a period of ten years. Taken together with the interest on the principal amount, on maturity, Elliott will receive a sum of $55,000, which is the bond's _____. | Par value |
| A drawback of actively managed funds is: | That significant tax consequences occur when there is a lot of trading |
| T OR F: Par value is the value of a bond at its maturity; what the issuer promises to pay the bondholder when the bond matures. | True |
| A(n) ____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets. | investment bank |
| Flammox Growth Fund, a mutual fund, issues 200 shares in the market. However, because of a sharp demand from the investors, the fund issues 350 additional shares. In this scenario, the Flammox Growth Fund is structured as a(n) ____. | An open-end fund. |
| The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the ____. | over-the-counter market |
| T OR F? The difference between the prices at which securities are bought and sold is called a thrift. | False |
| Which of the following is true of financial diversification? | Investing in a large number of individual securities is time consuming than investing in exchange-traded funds. |
| Which of the following is a difference between demographic segmentation and geographic segmentation? | Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live. |
| Peter is starting a new business. He selects his target market by identifying similar characteristics, attributes, and behavior of customers and then grouping them accordingly. Which of the following strategies has Peter employed? | Market segmentation |
| Idea marketing is often combined with ___ to market ideas that are meant to change how people think or act. | event marketing |
| ___ is the description of how people act when they are buying, using, and discarding goods and services for their own personal consumption. | consumer behavior. |
| A whole range of public and private organizations market beliefs that are meant to change how people think or act. This is referred to as ____ | idea marketing |
| Which of the following is a drawback of primary data? | it tends to be expensive |
| ____ is the ongoing process of acquiring, maintaining, and growing profitable customer association by delivering unmatched value. | customer relationship management |
| Which of the following statements is true of product-use-based market segmentation? | it helps small companies in narrowing the target markets for their products |
| Companies employ ____ when they actively promote the ecological benefits of their products. | green marketing |
| T OR F: A budgeted income statement is a projected financial statement that forecasts the types and amounts of assets a firm will need to implement its future plans and how the firm will finance those assets. | False |
| T OR F: Return-on-equity indicates how much net income a firm earned per share of common stock outstanding. | False |
| Which of the following is a similarity between demographic segmentation and psychographic segmentation? | Both divide markets based on consumer characteristics. |
| In the context of customer relationship management (CRM), a firm selling high-ticket product to a small customer base is most likely to: | pursue a full partnership with each of its key clients. |
| T OR F: Cherry Doux Berry reaches an agreement with Candy Call to use Candy Call's original dark chocolate in its popular chocolate cookies and sell them in its stores. The two companies are using a strategy known as cobranding. | True |
| In the context of the marketing mix, which of the following statements is true of a distribution strategy? | its key decisions include shipping, warehousing, and selling outlets. |
| Team selling works best for: | large and complex accounts |
| Kiddiecon, a company that manufactures stationery products for children, signs a contract with an animation studio to use one of its popular cartoon characters as a design on its school bags. Kiddiecon's contract with the animation studio is an ex. of _ | licensing |
| ___ refers to how well a product performs its core function. | quality level |
| Consumers tend to view sponsorships in a positive light because: | they are clearly connected to events that matter to the target audience. |
| In the context of new product adoption, the process of a new product spreading throughout a market after it is introduced is called ___. | diffusion |
| Cafemona, a broad of premium coffee, introduces three new variants-ginger coffee, hazelnut-flavored coffee, and rum-flavored coffee. This is an example of a _____. | continuous innovation |
| Which of the following is true of augmented products? | they are additional goods or services that are attached to the main purchase or actual goods |
| A home decor company manufactures a range of bedding products such as bedspreads, pillows, and mattresses. The range of bedding products represents the ___ of the company. | product line |
| An advantage of cobranding is that: | both partners leverage their strengths to enter new markets |
| ___ tools include premiums, promotional products, samples, coupons, rebates, and displays. | consumer promotion |
| The physical good or delivered service that provides a core benefit is called the ____. | actual product |
| Operos, a laptop manufacturing company, introduces three new colors-midnight blue, aquamarine, and hot pink in its Z series laptops. This scenario reflects ____. | line extension |
| In the context of the new product development process, the ___ stages leads to detailed descriptions of each concept with specific product features. | development |
| In the context of business product categories, the marketing of component parts and processed materials emphasizes: | product quality, price, and service |
| Which of the following exemplifies a discontinuous innovation? | Shinzen Labs, a food analysis and research lab, develops a food packaging material that repels bugs and rodents. |
| Which of the following is most likely to take place when a company launches a new product that is lower in price than the current products of the company? | cannibalizaiton |
| Which of the following is true of licensing? | it involves a payment of fee to the core brand. |
| Which of the following is true about new product development? | it requires an understanding of the customer base and involves creativity |
| For successful product differentiation: | A product should not only be different from its competitor products but also be better |
| Productt Augmentation: | sharpens the competitive edge of the marketer's products |
| Which of the following statements is true of ownership utility? | it adds value by making it easier for customer to possess the goods that they purchase. |
| ____ involves hiring independent contracts to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions. | multilevel marketing |
| ____ are distribution organization that facilitate the movement of products from the producer to the consumer. | channel intermediaries |
| Merchant Wholesalers can develop their own marketing strategies, including pricing strategies, because they: | take legal title to the goods they distribute |
| T OR F: The current ratio is calculated by dividing a firm's current liabilities by its total assets. | False |
| In the context of e-commerce, most websites transmit online payment information using ___ to ensure safe transactions. | A secure socket layer protocol. |
| Which of the following is an advantage of a broadband internet connection? | it allows users to quickly download large files such as music, games, and movies. |
| Which of the following statements is true of radio frequency identification? | it can be used to help track goods and other resources. |
| In the context of equal employment opportunities, affirmatives action: | seeks to make up for the systematic discrimination of the past by creating more opportunities in the present. |
| Which of the following is a difference between a job description and job specification? | a job description defines the jobholder's responsibilities, whereas job specifications define the qualifications necessary to do a job. |
| ____ refers to the pay that employees receive over a fixed period, most often weekly or monthly. | salaries |
| The __ required firms with 50 or more employees to provide up to 12 weeks of job-secure, unpaid leave on the birth or adoption of a child or the serious illness of a spouse, child, or parent. | Family and Medical Leave Act of 1993 |
| Everything.com, an online cosmetics portal, does not allow its customers to reach the final billing section unless they share its offer links to at least two friends. In this scenario, everything.com uses ___ to communication its message. | viral marketing |
| Data mining allows organizations to: | analyze vast amounts of data to identify useful information that had been hidden. |
| ___ is a network based on fiber-optic cable and uses high-speed connectivity to improve education, research, and collaboration. | internet2 |
| ___ is similar to a virus, except that it is an independent program that can spread across computer networks without begin attached to other files. | a worm |
| Firms create ___ by offering limited access to certain areas of their private networks to a selected group of stakeholders. | extranents |
| ____ software enables users to test, analyze, and optimize their designs through computer simulations. | computer-aided engineering |
| T OR F: In a servicescape, functionally refers to factors such as decors, background music, lighting, noise levels, and even scents. | False |
| Enterprise resource planning (ERP) systems are: | complex |
| Which of the following statements is true of a product layout? | it organizes machinery, equipment, and other resources according to the specific sequence of operations that must be performed. |
| The ___ is a project-management tool that illustrates the relationship among all the activities involved in competing a project and identifies the sequence of activities likely to take the longest to complete. | critical path method |
| Which of the following is a disadvantage of holding large inventories? | additional holding costs |
| Distinguishing between the critical path and other paths can: | help operations managers allocated resources more efficiently |
| Arranging for other organizations to perform supply chain functions that were previously performed internally is known as ___. | outsourcing |
| Which of the following statements is true of enterprise resource planning (ERP) systems? | they help manage activities along an entire supply chain |
| ___ consists of the sequence of activities in a project that is expected to take the longest to complete. | the critical path |
| which of the following statements is true of offshoring? | a firm often offshores processes by directly investing in its own foreign facilities. |
| Which of the following statements is true of computer-integrated manufacturing (CIM) software? | It allows firms to produce custom-designed products for individual customers quickly and at low costs. |
| Unlike total quality management (TQM), Six Sigma : | uses advanced techniques that require a high level of experience |
| Which of the following statements is true of offshoring? | it doesn't require outsourcing |
| Given the trend toward offshoring, and outsourcing, value chains have become: | complex |
| A ___ falls between the product layout and the process layout. | cellular layout |
| ___ is a software-based approach to integrate an organization's information flows. | enterprise resource planning |
| Which of the following exemplifies the use of a cybermediary? | Haider buys a football online and pays for it through a third-party's transaction page. |
| ___ uses hardware or software to create a barrier that prevents unwanted messages or instructions from entering a computer system. | a firewall |
| Unlike business-to-consumer (B2C) e-commerce, business-to-business (B2B) e-commerce: | results in long-term supply chain relationship |
| Which of the following statements is true of total quality management (TQM)? | It recognizes that quality should be defined by the perceptions of customers. |
| Which of the following scenarios involves the use of corporate bonds? | Nigel buys an IOU of Herbiscus pharmaceutical with a maturity period of eight years. |
| Which of the following statements best describes a highly leveraged firm? | it is a firm that relies heavily on debt. |
| Financial managers emphasized the goal of maximizing the market price of stock because: | they have a fiduciary duty |
| Which of the following statements is true of financial leverage? | it is the use of debt in a firm's capital structure |
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