Question 1

What is the most widely used technique for determining the best combination of debt and stock?
A) Debt-to-stock ratio
B) Earnings per share/earnings before interest and taxes analysis
C) Gross profit analysis
D) Capital asset pricing model
E) Present value analysis

Accepted Answer

Earnings per share/earnings before interest and taxes analysis is commonly used to determine the optimal capital structure by analyzing the impact of different financing options on a company's earnings.

Question 2

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?
A) To extend the time of accounts receivable
B) To establish a certain percentage discount on accounts within a specified period of time
C) To lease or buy fixed assets
D) To use LIFO, FIFO, or a market-value accounting approach
E) To be a price leader or a price follower

Accepted Answer

Being a price leader or price follower is a decision that may require marketing or pricing policies, not necessarily finance or accounting policies.

Question 3

Multidimensional scaling is used to determine
A) the size of a new building.
B) the size of a new department.
C) the amount of high-tech equipment a firm needs.
D) perceptual mapping.
E) market segmentation.

Accepted Answer

Multidimensional scaling is primarily used for perceptual mapping, which involves analyzing and visualizing consumers' perceptions of the similarities and differences between brands or products. It helps companies understand how customers mentally process and categorize different options in a market.

Question 4

A benefit of using projected balance sheets and income statements is that
A) the impact of various implementation decisions can be forecasted.
B) money can be put aside to pay future income taxes.
C) insurance needs can be computed.
D) it is useful in analyzing past performance.
E) all of the above

Accepted Answer

Projected balance sheets and income statements allow a company to forecast the impact of various implementation decisions, such as expansion or cost-cutting measures. This provides valuable information for decision-making and can improve future performance. While insurance needs and tax planning can also be accomplished with this type of forecasting, these benefits are secondary to the primary purpose of projecting future financial outcomes. Analyzing past performance is not a benefit of projected balance sheets and income statements, as this type of analysis would be better suited to historical financial statements.

Question 5

Perhaps the most dramatic new market segmentation strategy is the
A) targeting of regional tastes.
B) focusing on universal product.
C) preference of international over domestic sales.
D) treatment of industrial markets.
E) none of the above

Accepted Answer

Targeting regional tastes is a dramatic new market segmentation strategy because it involves tailoring products and marketing to specific geographic regions with unique preferences and needs. This strategy recognizes that consumer tastes and preferences can vary by region, and allows companies to better serve specific markets with targeted products and advertising campaigns. Other strategies listed, such as focusing on universal products and treating industrial markets, are not necessarily new or dramatic segmentation strategies.

Question 6

Which of these is NOT a rule of thumb when using product positioning as a strategy-implementation tool?
A) "The best opportunity might be an unserved segment."
B) "Look for the hole or vacant niche."
C) "Try to serve more than one segment with the same strategy."
D) "Don't position yourself in the middle of the map."
E) All of these are valid rules of thumb.

Accepted Answer

Trying to serve more than one segment with the same strategy goes against the principle of product positioning, which is to differentiate and tailor the product or service to a specific target market. A single strategy might not be effective in satisfying the needs of different segments.

Question 7

In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.
A) debt
B) liquidity
C) equity
D) cash
E) tax liability

Accepted Answer

In low-earning periods, high levels of debt can become a burden on the organization as it struggles to make interest and principal payments. This can lead to bankruptcy or default, which can cause a decline in the value of the stock and jeopardize the company's survival. Therefore, too much debt in the capital structure can endanger stockholders' return and jeopardize company survival.

Question 8

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?
A) Debt appears to be the best financing alternative.
B) Stock would be the best financing alternative.
C) A combination of debt and stock is probably the best financial alternative.
D) Dividends must be considered before conclusions can be made.
E) The company should be privately owned.

Accepted Answer

The answer of After completing an EPS/EBIT analysis, what conclusions...

Question 9

An area on a perceptual map without ideal points indicates a
A) market segment.
B) demand void.
C) vacant niche.
D) multidimensional scale.
E) product reposition.

Accepted Answer

An area on a perceptual map without ideal points indicates a demand void or an unmet need in the market. This means that there are no products or brands that meet the needs or preferences of the customers in that specific area, creating an opportunity for companies to develop and introduce a new product or service to fill that gap in the market.

Question 10

Which is NOT a required step in perceptual mapping?
A) Select key criteria that effectively differentiate products or services in the industry.
B) Serve two segments with the same strategy.
C) Plot major competitors' products or services in the resultant matrix.
D) Identify areas in the positioning map where the company's products or services could be most competitive in the given target market.
E) Develop a marketing plan to position the company's products and services appropriately.

Accepted Answer

Serving two segments with the same strategy is not a required step in perceptual mapping. The other options mentioned (selecting key criteria, plotting competitors' products, identifying competitive areas, and developing a marketing plan) are all essential steps in the process.

Question 11

Which of the following is true about two different market segments?
A) They can usually be served with the same marketing strategy.
B) They usually require different marketing strategies.
C) They are always in different geographic locations.
D) They are usually interchangeable.
E) All of the above

Accepted Answer

Different market segments usually have different characteristics, needs, and preferences, which require different marketing strategies to effectively reach and communicate with them. Using the same marketing strategy may not resonate with both segments and could lead to missed opportunities. The other options are not always true for different market segments.

Question 12

What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?
A) EPS/EBIT
B) Financial budgeting
C) TOWS analysis
D) Projected financial statement analysis
E) External analysis

Accepted Answer

Projected financial statement analysis is a strategy-implementation technique that allows organizations to forecast the financial outcomes of various strategic actions and approaches, helping them to make informed decisions.

Question 13

Matching which factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting?
A) Markets and competitors
B) Competition and positioning
C) Customer behavior and positioning
D) Supply and demand
E) Segments and competitors

Accepted Answer

Supply and demand is the best choice as it is the main factor that determines the level of production required to meet the demand of the market. If supply equals demand, then factories can produce at desirable levels without extra shifts, overtime, or subcontracting. If demand is higher than supply, then factories may need to increase production through overtime, extra shifts, or subcontracting. Similarly, if demand is lower than supply, factories may need to reduce production to avoid excess inventory.

Question 14

Which variable would be considered part of the "product" element of the marketing mix?
A) Advertising
B) Packaging
C) Payment terms
D) Inventory levels and location
E) Publicity

Accepted Answer

Packaging is an element of the product mix, which also includes the quality, design, features, and branding of the product. Advertising and publicity are part of the promotion mix, payment terms are part of the price mix, and inventory levels and location are part of the place/distribution mix.

Question 15

What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?
A) Perceptual mapping
B) Market segmentation
C) Market penetration
D) Unrelated diversification
E) Capital budgeting

Accepted Answer

Perceptual mapping involves developing a visual representation of how products or services compare on key dimensions in the industry, allowing for an easy comparison between competitors. Market segmentation is the process of dividing a market into smaller groups with similar needs and characteristics. Market penetration refers to the strategy of increasing market share within an existing market. Unrelated diversification is a strategy where a company expands into new industries that are not related to their current business. Capital budgeting is the process of evaluating and selecting long-term investments that will generate future cash flows.

Question 16

Which variable would be considered part of the "place" element of the marketing mix?
A) Product line
B) Service level
C) Personal selling
D) Sales territory
E) Discounts and allowances

Accepted Answer

The variable that would be considered part of the "place" element of the marketing mix is the sales territory. The place element refers to the distribution channels used to get the product or service to the customer, and the sales territory is a key factor in determining where the product or service is sold and how it is delivered.

Question 17

Which of the following is NOT true regarding stock issuances?
A) They are always better than debt for raising capital.
B) Their effect on stock price is a concern.
C) They can require a company to share future earnings with all new shareholders.
D) Dilution of ownership is a special concern.
E) All of the above statements are true.

Accepted Answer

Stock issuances may not always be better than debt for raising capital, as the decision would depend on the specific circumstances of the company and the market conditions. Sometimes, taking on debt may be a more favorable option than diluting ownership through stock issuances, especially if the company's creditworthiness is strong and interest rates are low.

Question 18

Projected financial analysis is an important strategy-implementation technique because
A) it is an exact measurement of financial costs in the future.
B) it is an exact measurement of future company profits.
C) it allows an organization to examine the expected results of various actions and approaches.
D) insurance needs can be computed.
E) none of the above

Accepted Answer

Projected financial analysis helps organizations to assess the financial implications of various strategies and actions. It enables companies to make informed decisions about the allocation of resources, identify potential risks, and evaluate the potential returns on investment. While it can provide estimates of future costs and profits, it is not an exact measurement as economic conditions and other factors can impact outcomes. Insurance needs are not directly related to projected financial analysis.

Question 19

What becomes a more attractive financing technique when cost of capital is high?
A) Stock issuance
B) Debt
C) Cost cutting
D) Borrowing
E) Staying privately owned

Accepted Answer

Issuing stock becomes more attractive when the cost of capital is high because it does not require paying interest like debt, thus avoiding high financing costs.

Question 20

Which statement is NOT true?
A) Having an effective management information system may be the most important factor in differentiating successful from unsuccessful firms.
B) Like inventory and human resources, information is now recognized as a valuable organizational asset that can be controlled and managed.
C) Computer vulnerability has been eradicated by recent innovations, and it is now possible to secure and safeguard all corporate communications, files, and business conducted over the Internet.
D) In many firms, information technology is doing away with the workplace and allowing employees to work at home or anywhere, anytime.
E) Improved quality and service often result from an improved management information system.

Accepted Answer

The statement that computer vulnerability has been eradicated by recent innovations and it's now possible to secure and safeguard all corporate communications, files, and business conducted over the internet is not true. While there have been advancements in cybersecurity measures, there is still a risk of cyber attacks and data breaches. Therefore, it is important for organizations to continuously invest in improving their cybersecurity measures.

Quiz 8: Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

What is the most widely used technique for determining the best combination of debt and stock?

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

Multidimensional scaling is used to determine

A benefit of using projected balance sheets and income statements is that

Perhaps the most dramatic new market segmentation strategy is the

Which of these is NOT a rule of thumb when using product positioning as a strategy-implementation tool?

In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

An area on a perceptual map without ideal points indicates a

Which is NOT a required step in perceptual mapping?

Which of the following is true about two different market segments?

What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?

Matching which factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting?

Which variable would be considered part of the "product" element of the marketing mix?

What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?

Which variable would be considered part of the "place" element of the marketing mix?

Which of the following is NOT true regarding stock issuances?

Projected financial analysis is an important strategy-implementation technique because

What becomes a more attractive financing technique when cost of capital is high?

Which statement is NOT true?