Question 1

Looking for a vacant niche helps a company determine
A) its advertising budget.
B) the size of the marketing department.
C) the best place to position a product.
D) the best place to locate a new facility.
E) its projected R & D expenditures

Accepted Answer

Finding a vacant niche helps a company determine the best place to position a product, as it allows the company to identify a gap in the market and meet the needs of its target audience in a unique way. It does not directly relate to advertising budget, the size of the marketing department, locating a new facility, or projected R&D expenditures.

Question 2

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 3

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 tax analysis
C) Gross profit analysis
D) Capital asset pricing model
E) Present value analysis

Accepted Answer

The answer of What is the most widely used technique...

Question 4

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) Positioning
B) Segmentation
C) Penetration
D) Diversification
E) Budgeting

Accepted Answer

Developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry is known as positioning. This helps businesses understand their unique value proposition and differentiate themselves from competitors.

Question 5

In the low earnings period, too much ______ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.
A) debt
B) liquid assets
C) equity
D) cash
E) tax

Accepted Answer

In the low earnings period, too much debt in the capital structure can become a burden as the company may struggle to make interest payments and may default on loans, endangering stockholders' return and even the survival of the company. On the other hand, liquid assets, cash, equity, and tax are not directly related to the capital structure and may not have the same impact as too much debt.

Question 6

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 these

Accepted Answer

Targeting regional tastes is a significant and dramatic new market segmentation strategy that aims to cater to the specific preferences and needs of different geographic regions. This approach recognizes that consumer behavior and preferences can vary greatly depending on their location, and it allows companies to customize their products or marketing efforts to better appeal to different regions. This can enable businesses to gain a competitive advantage by offering more relevant and appealing products or services to their target audiences.

Question 7

Which of these obligations generally must be met, regardless of circumstances?
A) Dividends
B) Employee
C) Fixed debt
D) Equity
E) all of these

Accepted Answer

Fixed debt obligations must be met regardless of circumstances, as they are legally binding and failure to meet them can result in penalties and legal action. Dividends and equity obligations may vary depending on company performance and decisions made by management, and employee obligations may be affected by factors such as workforce needs and budget constraints.

Question 8

A benefit of using projected balance sheets and income statements is that
A) an organization can compute projected financial ratios under various scenarios.
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 can help an organization compute financial ratios under various scenarios, providing insight into potential future performance. This is a key benefit of using them. While insurance needs and tax planning can be taken into consideration when creating these projections, they are not necessarily the primary purpose of creating them. Additionally, while past performance can be analyzed using historical financial statements, projected financial statements are not typically used for this purpose.

Question 9

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

Sales territory is a variable that falls under the "place" element of the marketing mix, as it pertains to the physical distribution and availability of the product in specific geographic locations. The other options are more closely associated with the "product" or "promotion" elements of the marketing mix.

Question 10

Which of these is not a rule of thumb when using product positioning as a strategy-implementation tool?
A) "Don't squat between segments."
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

Serving more than one segment with the same strategy goes against the purpose of product positioning, which is to differentiate your product from competitors and attract a specific target market.

Question 11

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 allows organizations to evaluate the expected outcomes of different strategies and approaches, thereby helping them to make informed decisions about resource allocation, investment, and risk management. It is not an exact measurement of future costs or profits, although it can provide valuable insights into these areas. Insurance needs may be one factor considered in projected financial analysis, but it is not the primary purpose of the technique.

Question 12

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 a key component of the product element of the marketing mix. It includes the design, materials, and functionality of the packaging used to contain and present the product to customers.

Question 13

Which of these is not a correct step in product positioning?
A) Select key criteria that effectively differentiate products or services in the industry.
B) Look for a hole or vacant niche
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

Looking for a hole or vacant niche is actually a correct step in product positioning, as it can help identify unmet needs in the market. Therefore, the incorrect step would be B.

Question 14

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 or borrowing, which can be expensive.

Question 15

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

The answer of What is a central strategy-implementation technique that...

Question 16

Which of the following is are) 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 incompatible.
E) They are most effective when a firm squats between two segments

Accepted Answer

Different market segments usually have different needs, preferences, and behavior patterns, which require different marketing strategies to effectively target and appeal to each segment. Therefore, B is the correct choice. A, C, D and E are incorrect because they are either too broad, too specific or irrelevant to the question.

Question 17

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) product positioning.
E) market segmentation

Accepted Answer

Multidimensional scaling (MDS) is a statistical technique used to visualize the similarities and differences among a group of objects or individuals. It is used for product positioning, which involves determining how a product is perceived by consumers in relation to other products. MDS can help determine the ideal location for a product in a multi-dimensional space based on how similar or dissimilar it is to other products in terms of attributes such as price, quality, and features.

Question 18

Matching of 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 demand

Accepted Answer

Matching supply and demand is critical for factories to produce desirable levels without the need for extra shifts, overtime, or subcontracting. By understanding the demand for their products, factories can adjust their production schedules to optimize their output and minimize waste or excess inventory. This approach can help factories avoid the costs and inefficiencies that result from overproduction or underproduction. Factors such as markets, competitors, customer behavior, and positioning are important considerations for factories, but they are not as directly related to optimizing production levels as supply and demand.

Question 19

What is a drawback of using only equity to raise capital?
A) The cost
B) Fluctuations in the stock market
C) Dilution of the control of the company
D) That it will cause EPS to roller coaster
E) That it doesn't raise as much capital as debt financing

Accepted Answer

Using only equity to raise capital can lead to dilution of the control of the company. As more shares are issued to raise capital, the ownership of current shareholders gets diluted, reducing their control over decision-making.

Question 20

Which of the following is not 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 determine the amount of product diversification

Accepted Answer

The amount of product diversification is not directly related to finance or accounting policies. It may involve strategies related to operations, marketing, or other departments. The other options, such as extending accounts receivable, setting discount policies, determining whether to lease or buy fixed assets, and choosing an accounting approach, all have financial implications and require finance/accounting policies to be established.

Quiz 8: Implementing Strategies: Marketing, Financeaccounting, RD, and Mis Issues

Looking for a vacant niche helps a company determine

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?

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

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

In the low earnings period, too much ______ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

Perhaps the most dramatic new market segmentation strategy is the

Which of these obligations generally must be met, regardless of circumstances?

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

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

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

Projected financial analysis is an important strategy-implementation technique because

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

Which of these is not a correct step in product positioning?

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

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

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

Multidimensional scaling is used to determine

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

What is a drawback of using only equity to raise capital?

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