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Marketing Applications 2.00

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

What should Jason avoid doing to shorten his sales cycles?

a)

Avoid answering objections

b)

Rely on other team members for product knowledge

2.

While reviewing financial information, Troy noted that the company earned $245,956 in January, $248,122 in February, and $252,878 in March. Which most likely summarizes the financial situation?

a)

Sales are steadily increasing.

b)

Accounts receivable exceed accounts payable.

3.

The price of raw materials used in manufacturing a product doubled what had been projected for the year. What can the business determine by analyzing its financial information?

a)

Supply and demand

b)

Variances

c)

Errors in forecasting

4.

A manager is most likely to use financial information for which situation?

a)

In determining resources available to fund a new project

b)

For researching the demographics of a new target market

c)

For calculating the number of on-the-job injuries in the past year

d)

In establishing lines of authority within an organization

5.

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?

a)

Comparable

b)

Consistent

c)

Reliable

d)

Conservative

6.

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?

a)

To analyze the impact of aging accounts

b)

To establish new quality standards and benchmarks

c)

To identify external economic trends

d)

To compare estimated performance with actual performance

7.

Which is a way a business can use financial information?

a)

To identify trends

b)

To select selling strategies

c)

To conduct focus groups

d)

To create an economic system

8.

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?

a)

Realistic goals

b)

Future earnings

c)

Potential costs

d)

Industry trends

9.

Which is an example of current liabilities that a business should include in its balance sheet?

a)

Owner's equity

b)

Accounts receivable

c)

Employees' salaries

d)

Mortgage loans

10.

What are the categories that a business uses to summarize information on their balance sheets?

a)

Cash, budget, and credit

b)

Equity, budget, and cash

c)

Liabilities, equipment, and sales

d)

Assets, liabilities, and equity

11.

Why would a company need a flow of money?

ABD

a)

To borrow

b)

To exist

c)

To sell

d)

To invest

12.

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?

a)

Industry standards

b)

Research projections

c)

Economic forecasts

d)

Marketing procedures

13.

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

a)

Payroll and benefits

b)

Accounts receivable

c)

Profit and loss

d)

Goods and services

14.

Which category of an income statement indicates total profit?

a)

Bottom line

b)

Cash flow

c)

Gross profit

d)

Net profit

15.

An established business receives its primary flow of money from which source or sources?

a)

Loans

b)

Credit

c)

Fees

d)

Sales

16.

The reason why a business prepares a balance sheet is to determine which factor?

a)

The estimated annual income

b)

The average cash flow

c)

The current financial situation

d)

The future sales goal

17.

During economic fluctuations, taxes serve which purpose for the economy?

ABCD

a)

Destroying

b)

Reducing

c)

Expanding

d)

Stabilizing

18.

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?

a)

Direct controls

b)

Transfer payments

c)

Hidden costs

d)

Rent seeking

19.

Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor?

ABCD

a)

Proportional

b)

Regressive

c)

Progressive

d)

Exclusive

20.

In the United States, how are public schools are usually funded?

a)

Through corporate taxes

b)

Through tariffs on imported goods

c)

Through local property taxes

d)

Through tax-exempt donations

21.

Which is a function of some taxes?

ABCD

a)

Decrease employee liability

b)

Limit business profit

c)

Control employee compensation

d)

Regulate business activity

22.

Which is a characteristic of taxes?

ABCEncouraged by consumers

a)

Restricted to businesses

b)

Levied by governments

c)

Encouraged by consumers

d)

Applied only to tangibles