Marketing Apps Unit 2 Review Part 2

Positive and negative results can often be directly related to which

factors about a company?

• Its taxes

• Its actions

• Its customers

• Its locations

Customers are more likely to spend a lot of time evaluating several

options before buying a product during which situation?

• When the product is perishable

• When the product is expensive

• When the need is immediate

• When brand insistence is a factor

Technological advances can help companies provide more customer

service with fewer employees, but why must the companies be careful?

• Technology cannot provide 24-7 service.

• Computers and telephones break down regularly.

• Current employees may go on strike.

• Customers may feel they are losing the human touch.

The government decides to pass a new law requiring certain standards of

air cleanliness be met. They will levy a tax on the production of

automobiles that generate gas emissions above a certain limit. However,

they also will provide tax incentives to automobile manufacturers for

research and development of new cars with lower gas emissions. This is

an example of which activity or activities?

• Direct controls

• Transfer payments

• Hidden costs

• Rent seeking

An established business receives its primary flow of money from which

source or sources?

• Loans

• Credit

• Fees

• Sales

The reason why a business prepares a balance sheet is to determine

which factor?

• The estimated annual income

• The average cash flow

• The current financial situation

• The future sales goal

Which category of an income statement indicates total profit?

• Gross profit

• Bottom line

• Cash flow

• Net profit

What are often the largest sources of money flowing out of a business?

• Payroll and benefits

• Accounts receivable

• Profit and loss

• Goods and services

One reason why a business compares its income statement figures with

those of competitors is to find out how it is doing in relation to which

factors?

• Industry standards

• Research projections

• Economic forecasts

• Marketing procedures

Why would a company need a flow of money?

• To borrow

• To exist

• To sell

• To invest