Marketing Apps Unit 2 Review Part 3

If a business lowers the price of a product for the purpose of taking

business away from its competitors, which action is often the result?

• a decrease in cost

• an increase in profit

• a gain in market

• a reduction in staff

When conducting an external environmental analysis, businesses often

focus on which factor or factors?

• Previous demand

• Industry growth

• Marketing goals

• Financial costs

Which is an example of an internal change that could affect a sales

forecast?

• A direct competitor is planning a new promotional campaign.

• The birth rate increased following a war.

• A new product line is to be offered by the business.

• The economy is struggling with a major drop in stock market prices.

To convince someone to use quantitative sales forecasting, which factor

should be stressed?

• Variety of opinions

• Factual basis

• Minimal cost

• Ease with which findings are understood

Which is an example of current liabilities that a business should include

in its balance sheet?

• Owner's equity

• Accounts receivable

• Employees' salaries

• Mortgage loans

By comparing the categories in an income statement, a business will be

able to determine which situation?

• If it is earning too much income

• If it is paying too little for supplies

• If it is spending too much on expenses

• If it is acquiring goods for too low a price

A business estimates that its cash flow from sales during the upcoming

season will be higher than it was for the same period last year. The

estimate is possible based on this financial information and which other

sources?

• Realistic goals

• Future earnings

• Potential costs

• Industry trends

Which is a way a business can use financial information?

• To identify trends

• To select selling strategies

• To conduct focus groups

• To create an economic system

During its 20 years of operation, the Normandy Company has made very

few changes to its accounting methods and system. As a result, its

financial information is likely to be in which condition?

• Comparable

• Consistent

• Reliable

• Conservative

Emma is reviewing the sales budget in relation to the actual sales

generated for a set time frame. How is Emma using financial information

in this situation?

• To analyze the impact of aging accounts

• To establish new quality standards and benchmarks

• To identify external economic trends

• To compare estimated performance with actual performance