BUS 475 Week 2 Knowledge Check

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https://uopcourses.com/category/bus-475/
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BUS 475 Week 2 Knowledge
Check

Instructions

Complete the Week 2 Knowledge Check.

Week 2 Knowledge Check

The material presented
below is not meant to be a comprehensive list of all you need to know in the
content area. Rather it is a starting point for building your knowledge and
skills. Additional study materials are recommended in each area below to help
you master the material.



1.

Compared with other approaches to business, the marketing concept
is distinct in that it

·        
A.

focuses on sales

·        
B.

produces new products and services

·        
C.

creates a broad assortment of products

·        
D.

focuses on satisfying customers' needs



Concept: ADVERTISING
STATEMENTS




Mastery


100%


Questions


·        
2




Materials on the concept


  • Focusing Marketing Strategy with Segmentation and Positioning





2.

A company provides its advertising agency with a statement about a
new product to use in designing an advertising campaign, and this statement
includes a description of the target market, the product type, the primary
benefits of using the product, and how this product is different from, and better
than, competitive products. What type of statement is this?

·        
A.

Qualifying

·        
B.

Positioning

·        
C.

Determining

·        
D.

Clustering



Concept: NEW PRODUCT
PRICING




Mastery


100%


Questions


·        
3




Materials on the concept


  • Product Management and New-Product Development





3.

The sales analysis of a product revealed that profits were highest
when it was initially introduced into the market with a high selling price.
However, the price was gradually reduced as it started facing competition as
substitutes entered the market. This is an example of a(n)

·        
A.

introductory price dealing

·        
B.

temporary price cut policy

·        
C.

skimming price policy

·        
D.

penetration price policy



Concept: INTEGRATED
MARKETING COMMUNICATIONS




Mastery


100%


Questions


·        
4




Materials on the concept


  • Promotion—Introduction to Integrated Marketing Communications





4.

Blending the firm's promotion efforts to convey a complete and
consistent message is the goal of

·        
A.

sales management communications

·        
B.

sales promotion communications

·        
C.

integrated promotional marketing

·        
D.

integrated marketing communications



Concept: SOCIAL
RESPONSIBILITY




Mastery


100%


Questions


·        
5




Materials on the concept


  • Organizational Structure

  • Ethical Marketing in a Consumer–Oriented World: Appraisal and
    Challenges





5.

According to the concept of social responsibility, a firm has a
duty to

·        
A.

communicate regularly with the public

·        
B.

place profit above all other considerations

·        
C.

place customer satisfaction above all other considerations

·        
D.

conduct business in a way that is good for society as a whole,
both now and for the future



Concept: FINANCIAL MARKET
PARTICIPANTS




Mastery


100%


Questions


·        
6




Materials on the concept


  • Firms and the Financial Market





6.

The principal participants in the financial markets are

·        
A.

businesses, banks, and government

·        
B.

borrowers, savers, and financial institutions

·        
C.

mutual funds, hedge funds, and investment bankers

·        
D.

dealers, brokers, and regulators



Concept: FUTURE VALUE




Mastery


100%


Questions


·        
7




Materials on the concept


  • Time Value of Money: The Basics





7.

You just purchased a parcel of land for $10,000. If you expect a
12% annual rate of return on your investment, how much will you sell the land
for in 10 years? Note. Due to rounding and method of calculation, your answer
might vary slightly. Choose the closest answer.

·        
A.

$25,000

·        
B.

$31,060

·        
C.

$38,720

·        
D.

$34,310



Concept: NET PRESENT VALUE




Mastery


100%


Questions


·        
8




Materials on the concept


  • Analyzing Project Cash Flows





8.

Bull Gator Industries is considering a new assembly line costing
$6,000,000. The assembly line will be fully depreciated by the simplified
straight line method over its 5-year depreciable life. Operating costs of the
new machine are expected to be $1,100,000 per year. The existing assembly line
has 5 years remaining before it will be fully depreciated and has a book value
of $3,000,000. If sold today the company would receive $2,400,000 for the
existing machine. Annual operating costs on the existing machine are $2,100,000
per year. Bull Gator is in the 46 percent marginal tax bracket and has a
required rate of return of 12 percent. Calculate the net present value of
replacing the existing machine. Note. Due to rounding and method of
calculation, your answer might vary slightly. Choose the closest answer.

·        
A.

$816,000

·        
B.

$382,320

·        
C.

$2,941,680

·        
D.

$-382,320



Concept: COST OF CAPITAL




Mastery


100%


Questions


·        
9




Materials on the concept


  • The Cost of Capital





9.

A strong stock market and reasonably good earnings have caused the
price of the firm's common stock to increase by 25%.

·        
A.

This will have no effect on the firm's cost of capital.

·        
B.

All things equal, this will increase the firm’s cost of capital.

·        
C.

All things equal, this will lower the firm's cost of capital.

·        
D.

This will only affect the cost of capital if the firm uses CAPM to
compute the cost of equity.



Concept: FOREIGN EXCHANGE
RISK




Mastery


100%


Questions


·        
10




Materials on the concept


  • International Business Finance





10.

Buying and selling in more than one market to make a riskless
profit is called

·        
A.

profit maximization

·        
B.

arbitrage

·        
C.

international trading

·        
D.

This cannot be determined from the above information.



Concept: SUPPLY AND DEMAND




Mastery


100%


Questions


·        
11




Materials on the concept


  • Using Supply and Demand





11.

The United States imposes substantial taxes on cigarettes but not
on loose tobacco. When the tax on cigarettes went into effect, the demand for
home cigarette rolling machines most likely

·        
A.

decreased, causing the price of cigarette rolling machines to fall
and the quantity of machines purchased to fall

·        
B.

decreased, causing the price of cigarette rolling machines to rise
and the quantity of machines purchased to fall

·        
C.

increased, causing the price of cigarette rolling machines to rise
and the quantity of machines purchased to rise

·        
D.

increased, causing the price of cigarette rolling machines to rise
and the quantity of machines purchased to fall



Concept: AS AND AD MODEL




Mastery


100%


Questions


·        
12




Materials on the concept


  • The Short-Run Keynesian Policy Model: Demand-Side Policies





12.

Keynes believed that an increase in savings would

·        
A.

raise aggregate demand by reducing investment

·        
B.

raise aggregate demand by increasing consumption

·        
C.

reduce aggregate demand by reducing investment

·        
D.

reduce aggregate demand by reducing consumption



Concept: MONETARY POLICY




Mastery


100%


Questions


·        
13




Materials on the concept


  • Monetary Policy





13.

Which of the following monetary policies reduces aggregate demand
and output?

·        
A.

A cut in the federal funds rate

·        
B.

An open market purchase of government securities

·        
C.

An increase in the discount rate

·        
D.

A cut in the required reserve ratio



Concept: DEFICIT




Mastery


100%


Questions


·        
14




Materials on the concept


  • Deficits and Debt





14.

Deficits may be desirable in the short run if they

·        
A.

help to stabilize the economy when the economy falls below
potential output

·        
B.

increase savings necessary for future investment and growth

·        
C.

increase savings necessary for future consumption and demand

·        
D.

help to stabilize the economy when the economy is above potential
output



Concept: BALANCE OF
PAYMENTS




Mastery


100%


Questions


·        
15




Materials on the concept


  • International Financial Policy





15.

If for a country, the quantity of its currency demanded exceeds
the quantity supplied, then there is a

·        
A.

balance of payments surplus

·        
B.

balance of payments deficit

·        
C.

balance of payments equilibrium

·        
D.

trade balance



Concept: SHIFTS IN DEMAND




Mastery


100%


Questions


·        
16




Materials on the concept


  • Economics and Economic Reasoning





16.

Suppose that college tuition is higher this year than last year
and that more students are enrolled in college this year than last year. Based
on this information, we can best conclude that

·        
A.

the law of demand is invalid

·        
B.

despite the increase in price, quantity demanded rose due to some
other factor changing

·        
C.

this situation has nothing to do with the law of demand

·        
D.

the demand for a college education is positively sloped



Concept: ECONOMIC AND
TECHNICAL EFFICIENCY




Mastery


0%


Questions


·        
17




Materials on the concept


  • Oligopoly and Antitrust Policy





17.

Economic efficiency is achieved at a particular output level if

·        
A.

marginal cost is as low as possible

·        
B.

average fixed cost is as low as possible

·        
C.

average total cost is as low as possible

·        
D.

average variable cost is as low as possible



Concept: PROFIT
MAXIMIZATION




Mastery


100%


Questions


·        
18




Materials on the concept


  • Perfect Competition





18.

A perfectly competitive firm will be profitable if price at the
profit-maximizing quantity is above

·        
A.

MC

·        
B.

AVC

·        
C.

ATC

·        
D.

AFC



Concept: COMPARATIVE
ADVANTAGE




Mastery


100%


Questions


·        
19




Materials on the concept


  • Comparative Advantage, Exchange Rates, and Globalization





19.

How are goods manufactured in other countries creating jobs in the
United States?

·        
A.

People whose jobs were outsourced are now discouraged workers.

·        
B.

U.S. firms are specializing in managing the trade of these goods.

·        
C.

Foreign countries are importing U.S. natural resources

·        
D.

People who have lost jobs have more time to shop and therefore
increase demand for goods.

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