When sizing up the marketing management of the firm, it is important to examine: A) the level of technological innovation and investment of the firm. B) the firm’s particular target market. C) the product’s critical physical and intangible attributes. D) Both B and C ANSWER D
Whenever the percentage change in EBIT resulting from a given percentage change in sales is greater than the percentage change in sales, operating leverage exists. Indicate whether the statement is true or false ANSWER TRUE
The risk to a U.S. importer with foreign-currency-denominated accounts payable is that the dollar will depreciate. Indicate whether the statement is true or false ANSWER TRUE
Which of the following is NOT a question related to marketing management and demand risk analysis? A) Is the distribution channel appropriate? B) Is the product appropriate relative to the competitors? C) How much marketing management depth does the firm have? D) Who are the firm’s target customers? ANSWER C
The closer the base sales level used is to the operating breakeven point, the smaller the operating leverage. Indicate whether the statement is true or false ANSWER FALSE
In doing business in foreign countries, financing operations in the local market not only improves the company’s business ties to the host community but also minimizes exchange rate risk. Indicate whether the statement is true or false ANSWER TRUE
The strategic and tactical choices that a firm makes lead to the firm’s marketing mix which is referred to as the Four P’s of Marketing. They are: A) distinguishing between who buys the product and who consumes it. B) determining the channel through which the product or service is purchased. C) assessing the firm’s plant […]
Which type of firm described is likely to have a high dividend payout ratio policy? A) A younger firm with uncertain income but significant growth opportunities. B) An older firm with steady earnings but few growth opportunities.. C) An older firm with irregular income and significant growth opportunities. D) A younger firm with significant income […]
Tangshan Mining issued $10,000 of commercial paper for $9,925 for 60 days. Based on this information, the effective annual rate of interest on the commercial paper would be about 10 percent. Indicate whether the statement is true or false ANSWER FALSE
When a firm needs to raise money via a bond issue, one of the quickest ways is through a ________. This activity involves the purchase of a large block of securities by a large institutional investor such as a pension fund, an endowment fund, or an insurance company. A) private placement. B) public placement. C) […]