Question 1

After segmenting markets so a firm can target particular customer groups, the next step is to find out what customer groups want and expect.

Accepted Answer

A) True 
 B)False

Question 2

Discuss some ways in which management information systems can benefit a company.

Accepted Answer

Having an effective management informati...

Question 3

One R&D strategy is to be an innovative imitator of successful products.

Accepted Answer

A) True 
 B)False

Question 4

Which statement is NOT true?

Accepted Answer

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.F) B) and C)
G) A) and D)

Question 5

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Accepted Answer

A) True 
 B)False

Question 6

Why is market segmentation an important variable in strategy implementation?

Accepted Answer

A)   It allows a small firm to compete successfully with a large firm.
B)   It allows a firm to operate with limited resources.
C)   Mass production, mass distribution, and mass advertising are not always required.
D)   Market segmentation decisions directly affect marketing mix variables.
E)   All of the aboveF) B) and D)
G) D) and E)

Question 7

One of the four recommended approaches for determining a firm's worth is to base the analysis on the selling price of a similar company.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an accepted approach for determining a business' worth?

Accepted Answer

A)   Determining what the firm owns
B)   Determining what the firm earns
C)   Determining what the firm's return on investment has been
D)   Determining what the firm will bring in the market
E)   All of the above are accepted approaches.F) A) and E)
G) B) and E)

Question 9

What is a limitation of using financial budgets?

Accepted Answer

A)   They can be so detailed that they are cumbersome and expensive.
B)   They can become a substitute for objectives.
C)   They can hide inefficiencies if done only on precedent.
D)   They are sometimes used as instruments of tyranny.
E)   All of the aboveF) A) and E)
G) B) and D)

Question 10

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

Accepted Answer

A)   debt
B)   liquidity
C)   equity
D)   cash
E)   tax liabilityF) None of the above
G) A) and C) A

Question 11

The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies.

Accepted Answer

A) True 
 B)False  False

Question 12

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

Accepted Answer

A)   Stock issuance
B)   Debt
C)   Cost cutting
D)   Borrowing
E)   Staying privately ownedF) A) and C)
G) D) and E)

Question 13

The only reasons businesses have for determining their worth is preparing to be sold or to buy other companies.

Accepted Answer

A) True 
 B)False

Question 14

A limitation of financial budgets is that they can hide inefficiencies if based solely on precedent rather than on periodic evaluation of circumstances and standards.

Accepted Answer

A) True 
 B)False

Question 15

Identify and describe three approaches for determining a business' worth.

Accepted Answer

Students should identify and describe th...

Question 16

Name five examples of finance and accounting decisions that may require policies.

Accepted Answer

Possible answers include:
1)To raise cap...

Question 17

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Accepted Answer

A) True 
 B)False

Question 18

Who has mandated that every publicly held company in the United States must issue an annual cash-flow statement in addition to the usual financial reports?

Accepted Answer

A)   SEC
B)   Congress
C)   FCC
D)   FASB
E)   OPECF) A) and E)
G) A) and B) D

Question 19

Which of the following variables is NOT directly affected by market segmentation?

Accepted Answer

A)   Product
B)   Place
C)   Process
D)   Promotion
E)   PriceF) A) and C)
G) B) and D)

Question 20

Why is market segmentation an important variable in the strategy-implementation process?

Accepted Answer

A)   Company strategies do not require increased sales through new markets and products.
B)   It allows a firm to operate with no resources.
C)   It directly affects marketing mix variables.
D)   It allows a firm to minimize per-unit profits and per-segment sales.
E)   All of the aboveF) All of the above
G) C) and E)

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

After segmenting markets so a firm can target particular customer groups, the next step is to find out what customer groups want and expect.

Correct AnswerverifiedShow Answer

Discuss some ways in which management information systems can benefit a company.

Correct AnswerverifiedHaving an effective management informati...View AnswerShow Answer

One R&D strategy is to be an innovative imitator of successful products.

Correct AnswerverifiedShow Answer

Which statement is NOT true?

Correct AnswerverifiedShow Answer

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Correct AnswerverifiedShow Answer

Why is market segmentation an important variable in strategy implementation?

Correct AnswerverifiedShow Answer

One of the four recommended approaches for determining a firm's worth is to base the analysis on the selling price of a similar company.

Correct AnswerverifiedShow Answer

Which of the following is NOT an accepted approach for determining a business' worth?

Correct AnswerverifiedShow Answer

What is a limitation of using financial budgets?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

The only reasons businesses have for determining their worth is preparing to be sold or to buy other companies.

Correct AnswerverifiedShow Answer

A limitation of financial budgets is that they can hide inefficiencies if based solely on precedent rather than on periodic evaluation of circumstances and standards.

Correct AnswerverifiedShow Answer

Identify and describe three approaches for determining a business' worth.

Correct AnswerverifiedStudents should identify and describe th...View AnswerShow Answer

Name five examples of finance and accounting decisions that may require policies.

Correct AnswerverifiedPossible answers include:1)To raise cap...View AnswerShow Answer

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Correct AnswerverifiedShow Answer

Who has mandated that every publicly held company in the United States must issue an annual cash-flow statement in addition to the usual financial reports?

Correct AnswerverifiedD

Which of the following variables is NOT directly affected by market segmentation?

Correct AnswerverifiedShow Answer

Why is market segmentation an important variable in the strategy-implementation process?

Correct AnswerverifiedShow Answer

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Having an effective management informati...
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A

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False

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Students should identify and describe th...
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Possible answers include:
1)To raise cap...
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D

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