Category: Uncategorized

Pinkerton Corporation’s trial balance at December 31, 2010, is presented below. A

Pinkerton Corporation’s trial balance at December 31, 2010, is presented below. A

Question
	CP9 Pinkerton Corporation's trial balance at December 31, 2010, is presented below. All 2010 transactions have been recorded except for the items described after the trial balance.

Debit Credit
Cash $ 28,000
Accounts Receivable 36,800
Notes Receivable 10,000
Interest Receivable –0–
Merchandise Inventory 36,200
Prepaid Insurance 3,600
Land 20,000
Building 150,000
Equipment 60,000
Patent 9,000
Allowance for Doubtful Accounts $ 500
Accumulated Depreciation—Building 50,000
Accumulated Depreciation—Equipment 24,000
Accounts Payable 27,300
Salaries Payable –0–
Unearned Rent 6,000
Notes Payable (short-term) 11,000
Interest Payable –0–
Notes Payable (long-term) 35,000
Common Stock 50,000
Retained Earnings 63,600
Dividends 12,000
Sales 900,000
Interest Revenue –0–
Rent Revenue –0–
Gain on Disposal –0–
Bad Debts Expense –0–
Cost of Goods Sold 630,000
Depreciation Expense—Buildings –0–
Depreciation Expense—Equipment –0–
Insurance Expense –0–
Interest Expense –0–
Other Operating Expenses 61,800
Amortization Expense—Patents –0–
Salaries Expense 110,000
Total $1,167,400 $1,167,400






Unrecorded transactions
1. On May 1, 2010, Pinkerton purchased equipment for $16,000 plus sales taxes of $800 (all paid in cash).

2. On July 1, 2010, Pinkerton sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2010, was $1,800; 2010 depreciation prior to the sale of equipment was $450.

3. On December 31, 2010, Pinkerton sold for $5,000 on account inventory that cost $3,500.

4. Pinkerton estimates that uncollectible accounts receivable at year-end are $4,000.

5. The note receivable is a one-year, 8% note dated April 1, 2010. No interest has been recorded.

6. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2010.

7. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000.

8. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.

9. The equipment purchased on May 1, 2010, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800.

10. The patent was acquired on January 1, 2010, and has a useful life of 9 years from that date.

11. Unpaid salaries at December 31, 2010, total $2,200.

12. The unearned rent of $6,000 was received on December 1, 2010, for 3 months rent.

13. Both the short-term and long-term notes payable are dated January 1, 2010, and carry a 10% interest rate. All interest is payable in the next 12 months.

14. Income tax expense was $15,000. It was unpaid at December 31.




Instructions
(a) Prepare journal entries for the transactions listed above.

(b) Prepare an updated December 31, 2010, trial balance.
Totals $1,213,150

(c) Prepare a 2010 income statement and a 2010 retained earnings statement.
Net income $58,000

(d) Prepare a December 31, 2010, balance sheet.
Total assets $258,700

Network Security Paper 1

Network Security Paper 1

Question
	
Eavesdropping on a telephone call, known as wiretapping, is illegal in the
United States unless a court order has been issued. Does sniffing fall into this
category? What about an organization that uses a sniffer to secretly monitor
employee activity? What are your feelings about sniffer use both by insiders of
an organization as well as outsiders? If you were to craft a law about packet
sniffing, what would it include?




Minimum of two pages.

Armstrong_03_5Dec

Armstrong_03_5Dec

Question
	1. Which of the following terms is used to describe the factors and forces outside
marketing that affect marketing management’s ability to build and maintain
successful relationships with target customers?
a. the marketing environment
b. strategic planning
c. target markets
d. the marketing mix
e. none of the above
2. You are directed to study the actors close to the company that affect its ability
to serve its customers—departments within the company, suppliers, marketing
intermediaries, customer markets, competitors, and publics. What are you studying?
a. the macroenvironment
b. the microenvironment
c. the marketing environment
d. the green movement
e. the global environment
3. You are directed to study the factors that are larger societal forces that affect your
company—demographic, economic, natural, technological, political, and cultural.
What are you studying?
a. the macroenvironment
b. the microenvironment
c. the marketing environment
d. the marketing mix
e. the global environment
4. Which of the following is not a type of factor in a company’s macroenvironment?
a. demographic
b. economic
c. technological
d. competitors
e. political
5. All of the groups within a company are called the ________.
a. culture
b. diversity
c. internal environment
d. climate
e. range
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 69
Part 2: Understanding the Marketplace and Consumers
6. Which type of organization helps companies to stock and move goods from their
points of origin to their destination?
a. financial intermediaries
b. physical distribution firms
c. marketing service firms
d. resellers
e. suppliers
7. Banks, credit companies, insurance companies, and other businesses that help finance
transactions or insure against the risks associated with the buying and selling of goods
and services are referred to as ________.
a. financial intermediaries
b. physical distribution firms
c. marketing service agencies
d. resellers
e. wholesalers
8. Percy Original caters to a market of individuals and households that buys goods and
services for personal consumption. What type of market does Percy Original cater to?
a. business
b. reseller
c. government
d. consumer
e. marketing intermediary
9. Which type of market buys goods and services for further processing or for use in the
production process?
a. business
b. reseller
c. wholesale
d. consumer
e. retail
10.Rachel Patino works for a wholesale company called Distributors Unlimited. She
is responsible for buying and selling goods at a profit to small retailers. What is her
market?
a. business
b. reseller
c. wholesale
d. consumer
e. retail
11.A company’s marketing environment includes various ________ that are made up
of groups that have an actual or potential interest in, or impact on, an organization’s
ability to achieve its objectives.
70 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
a. teams
b. audiences
c. markets
d. publics
e. intermediaries
12.Which of the following is not an example of a public that is part of a company’s
marketing environment?
a. financial
b. media
c. government
d. citizen-action
e. marketing department
13. A radio station that carries news, features, and editorial opinions about your area is
which type of public?
a. financial
b. media
c. citizen-action
d. local
e. regional
14.A consumer organization, environmental group, or minority group has challenged
your firm’s stand on a local issue. This is the ________ public.
a. general
b. local
c. government
d. citizen-action
e. media
15. Workers, managers, and members of the board of directors are all part of a company’s
________.
a. general public
b. internal public
c. local public
d. intermediary public
e. market public
16.Your marketing department is currently researching the size, density, location, age,
and occupations of your target market. Which environment is being researched?
a. demographic
b. psychographic
c. economic
d. geographic
e. cultural
17. The three largest age groups in America are the baby boomers, Generation Xers, and
________.
a. seniors
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 71
Part 2: Understanding the Marketplace and Consumers
b. Millennials
c. teens
d. tweens
e. toddlers
18. The most commercially influential American demographic group today is ________.
a. Generation X
b. the baby boomers
c. the Millennials
d. the seniors
e. the infants
19. Research has shown that the most important demographic trend in the United States is
the ________.
a. changing age structure of the population
b. mobility of people
c. slowing birth rate
d. increase in professional jobs
e. aging population
20. Baby boomers were born between the years 1946 and _____.
a. 1954
b. 1960
c. 1964
d. 1970
e. 1980
21. Which of the following descriptions most accurately characterizes the baby boomers?
a. They are aging and slowing down.
b. They are a shrinking market for new housing and home remodeling.
c. They are past their peak earning and spending years.
d. They hold 75% of the country’s financial assets.
e. They are uninterested in adapting new technologies.
22.Which demographic group has a relatively cautious economic outlook, cares about
the environment, and responds favorably to socially responsible companies?
a. Generation X
b. Millennials
c. Generation Y
d. baby boomers
e. teenagers
23. Which of the following descriptions most accurately characterizes Gen Xers?
a. There are more Gen Xers than Millennials.
b. They were the first generation of latchkey kids.
c. They grew up during times of great economic growth.
d. They are more interested in acquiring goods than having experiences.
e. They rarely research a product before purchasing it.
72 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
24. Which demographic group is also referred to as the echo boomers?
a. Generation X
b. Millennials
c. Generation Z
d. Baby boomers
e. Baby busters
25. Which demographic group has created large tween and teen markets?
a. Generation X
b. Millennials
c. baby busters
d. baby boomers
e. the elderly
26. Which of the following descriptions most accurately characterizes Millennials?
a. They are children of baby boomers.
b. They are less ethnically diverse than Gen Xers.
c. They have reached their peak earning and spending years.
d. They were once labeled “the MTV generation.”
e. They have graduated from college and are taking over positions of power in the
business world.
27.Which demographic group is characterized by a total fluency and comfort with
computer, digital, and Internet technology?
a. Generation X
b. Millennials
c. the elderly
d. Generation Z
e. baby boomers
28.Defining people by their birth date may be less effective than segmenting them by
their ________ or ________.
a. income; occupation
b. lifestyle; occupation
c. lifestyle; life stage
d. occupation; life stage
e. gender; sexual preference
29. Which of the following demographic groups has not seen a percentage increase in the
past 50 years?
a. women staying at home with their children
b. men staying at home with their children
c. nontraditional households
d. nonfamily households
e. women working outside of the home
30. _____ households are now growing faster than ________ households.
a. Traditional; nontraditional
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 73
Part 2: Understanding the Marketplace and Consumers
b. Large; traditional
c. Nontraditional; smaller
d. Nontraditional; traditional
e. Male-dominant; female-dominant

Question_Doc9_15Dec

Question_Doc9_15Dec

Question
	
6-1. Your brother wants to borrow $10,000
from you. He has offered to pay you back $12,000 in a year. If the cost of
capital of this investment opportunity is 10%, what is its NPV? Should you
undertake the investment opportunity? Calculate the IRR and use it to determine
the maximum deviation allowable in the cost of capital estimate to leave the
decision unchanged.



6-2. You are considering investing in a
start-up company. The founder asked you for $200,000 today and you expect to
get $1,000,000 in nine years. Given the riskiness of the investment
opportunity, your cost of capital is 20%. What is the NPV of the investment
opportunity? Should you undertake the investment opportunity? Calculate the IRR
and use it to determine the maximum deviation allowable in the cost of capital
estimate to leave the decision unchanged.



6-3. You are considering opening a new
plant. The plant will cost $100 million upfront. After that, it is expected to
produce profits of $30 million at the end of every year. The cash flows are
expected to last forever. Calculate the NPV of this investment opportunity if
your cost of capital is 8%. Should you make the investment? Calculate the IRR
and use it to determine the maximum deviation allowable in the cost of capital
estimate to leave the decision unchanged.




 

 
 

 		
 
 

 		
 
 

 		
 
 

 		
 
 

 		
 
 

 		









6-4. Your firm is considering the launch of
a new product, the XJ5. The upfront development cost is $10 million, and you
expect to earn a cash flow of $3 million per year for the next five years. Plot
the NPV profile for this project for discount rates ranging from 0% to 30%. For
what range of discount rates is the project attractive?























6-5. Bill Clinton reportedly was paid $10
million to write his book My Way. The book took three years to write. In
the time he spent writing, Clinton
could have been paid to make speeches. Given his popularity, assume that he
could earn $8 million per year (paid at the end of the year) speaking instead
of writing. Assume his cost of capital is 10% per year.



a. What is the NPV of agreeing to write the
book (ignoring any royalty payments)?



b. Assume that, once the book is finished, it is expected to
generate royalties of $5 million in the first year (paid at the end of the
year) and these royalties are expected to decrease at a rate of 30% per year in
perpetuity. What is the NPV of the book with the royalty payments?








6-6. FastTrack Bikes, Inc. is thinking of
developing a new composite road bike. Development will take six years and the
cost is $200,000 per year. Once in production, the bike is expected to make
$300,000 per year for 10 years. Assume the cost of capital is 10%.



a. Calculate the NPV of this investment
opportunity, assuming all cash flows occur at the end of each year. Should the
company make the investment?



b. By how much must the cost of capital
estimate deviate to change the decision? (Hint: Use Excel to calculate
the IRR.)



c. What is the NPV of the investment if the
cost of capital is 14%?









6-8. You are considering an investment in a clothes
distributor. The company needs $100,000 today and expects to repay you $120,000
in a year from now. What is the IRR of this investment opportunity? Given the
riskiness of the investment opportunity, your cost of capital is 20%. What does
the IRR rule say about whether you should invest?



6-9. You have been offered a very long term
investment opportunity to increase your money one hundredfold. You can invest
$1000 today and expect to receive $100,000 in 40 years. Your cost of capital
for this (very risky) opportunity is 25%. What does the IRR rule say about
whether the investment should be undertaken? What about the NPV rule? Do they
agree?



6-10. Does the IRR rule agree with the NPV rule
in Problem 3? Explain.





6-11. How many IRRs are there in part (a) of
Problem 5? Does the IRR rule give the right answer in this case? How many IRRs
are there in part (b) of Problem 5? Does the IRR rule work in this case?









6-12. Professor Wendy Smith has been offered
the following deal: A law firm would like to retain her for an upfront payment
of $50,000. In return, for the next year the firm would have access to 8 hours
of her time every month. Smith’s rate is $550 per hour and her opportunity cost
of capital is 15% (EAR). What does the IRR rule advise regarding this
opportunity? What about the NPV rule?



6-13. Innovation Company is thinking about
marketing a new software product. Upfront costs to market and develop the
product are $5 million. The product is expected to generate profits of $1
million per year for 10 years. The company will have to provide product support
expected to cost $100,000 per year in perpetuity. Assume all profits and
expenses occur at the end of the year.



a. What is the NPV of this investment if the
cost of capital is 6%? Should the firm undertake the project? Repeat the
analysis for discount rates of 2% and 12%.



b. How many IRRs does this investment
opportunity have?



c. Can the IRR rule be used to evaluate this
investment? Explain.



6-14. You own a coal mining company and are
considering opening a new mine. The mine itself will cost $120 million to open.
If this money is spent immediately, the mine will generate $20 million for the
next 10 years. After that, the coal will run out and the site must be cleaned
and maintained at environmental standards. The cleaning and maintenance are
expected to cost $2 million per year in perpetuity. What does the IRR rule say
about whether you should accept this opportunity? If the cost of capital is 8%,
what does the NPV rule say?






If the opportunity cost of capital is between 2.93% and 8.72%, the investment
should be undertaken.



6-15. Your firm spends $500,000 per year in
regular maintenance of its equipment. Due to the economic downturn, the firm
considers forgoing these maintenance expenses for the next three years. If it
does so, it expects it will need to spend $2 million in year 4 replacing failed
equipment.



a. What is the IRR of the decision to forgo
maintenance of the equipment?



b. Does the IRR rule work for this decision?



c. For what costs of capital is forgoing
maintenance a good decision?








6-16. You are considering investing in a new
gold mine in South Africa.
Gold in South Africa
is buried very deep, so the mine will require an initial investment of $250
million. Once this investment is made, the mine is expected to produce revenues
of $30 million per year for the next 20 years. It will cost $10 million per
year to operate the mine. After 20 years, the gold will be depleted. The mine
must then be stabilized on an ongoing basis, which will cost $5 million per
year in perpetuity. Calculate the IRR of this investment. (Hint: Plot
the NPV as a function of the discount rate.)



 






6-17. Your firm has been hired to develop new
software for the university’s class registration system. Under the contract,
you will receive $500,000 as an upfront payment. You expect the development
costs to be $450,000 per year for the next three years. Once the new system is
in place, you will receive a final payment of $900,000 from the university four
years from now.



a. What are the IRRs of this opportunity?



b. If your cost of capital is 10%, is the
opportunity attractive?



 Suppose
you are able to renegotiate the terms of the contract so that your final
payment in year 4 will be $1 million.



c. What is the IRR of the opportunity now?



d. Is it attractive at these terms?








6-18. You are considering constructing a new
plant in a remote wilderness area to process the ore from a planned mining
operation. You anticipate that the plant will take a year to build and cost
$100 million upfront. Once built, it will generate cash flows of $15 million at
the end of every year over the life of the plant. The plant will be useless 20
years after its completion once the mine runs out of ore. At that point you
expect to pay $200 million to shut the plant down and restore the area to its
pristine state. Using a cost of capital of 12%,



a. What is the NPV of the project?



b. Is using the IRR rule reliable for this
project? Explain.



c. What are the IRR’s of this project?



6-19. You are a real estate agent thinking of
placing a sign advertising your services at a local bus stop. The sign will
cost $5000 and will be posted for one year. You expect that it will generate
additional revenue of $500 per month. What is the payback period?






6-20. You are considering making a movie. The
movie is expected to cost $10 million upfront and take a year to make. After
that, it is expected to make $5 million when it is released in one year and $2
million per year for the following four years. What is the payback period of
this investment? If you require a payback period of two years, will you make
the movie? Does the movie have positive NPV if the cost of capital is 10%?




 

 
 

 		


 

 
 

 		












6-21. You are deciding between two mutually
exclusive investment opportunities. Both require the same initial investment of
$10 million. Investment A will generate $2 million per year (starting at the
end of the first year) in perpetuity. Investment B will generate $1.5 million
at the end of the first year and its revenues will grow at 2% per year for
every year after that.



a. Which investment has the higher IRR?



b. Which investment has the higher NPV when
the cost of capital is 7%?



c. In this case, for what values of the cost
of capital does picking the higher IRR give the correct answer as to which
investment is the best opportunity?



 



6-22. You have just started your summer
internship, and your boss asks you to review a recent analysis that was done to
compare three alternative proposals to enhance the firm’s manufacturing
facility. You find that the prior analysis ranked the proposals according to
their IRR, and recommended the highest IRR option, Proposal A. You are concerned
and decide to redo the analysis using NPV to determine whether this
recommendation was appropriate. But while you are confident the IRRs were
computed correctly, it seems that some of the underlying data regarding the
cash flows that were estimated for each proposal was not included in the
report. For Proposal B, you cannot find information regarding the total initial
investment that was required in year 0. And for Proposal C, you cannot find the
data regarding additional salvage value that will be recovered in year 3. Here
is the information you have:









 Suppose
the appropriate cost of capital for each alternative is 10%. Using this
information, determine the NPV of each project. Which project should the firm
choose? 



 Why
is ranking the projects by their IRR not valid in this situation?



6-23. Use the incremental IRR rule to correctly
choose between the investments in Problem 21 when the cost of capital is 7%. At
what cost of capital would your decision change?






6-24. You work for an outdoor play structure manufacturing
company and are trying to decide between two projects:









 You
can undertake only one project. If your cost of capital is 8%, use the
incremental IRR rule to make the correct decision.



Since the incremental IRR of 7.522% is less
than the cost of capital of 8%, you should take the Playhouse.






6-25. You are evaluating the following two
projects:









 Use
the incremental IRR to determine the range of discount rates for which each
project is optimal to undertake. Note that you should also include the range in
which it does not make sense to take either project.



 



6-26. Consider two investment projects, which
both require an upfront investment of $10 million, and both of which pay a
constant positive amount each year for the next 10 years. Under what conditions
can you rank these projects by comparing their IRRs?



6-27. You are considering a safe investment
opportunity that requires a $1000 investment today, and will pay $500 two years
from now and another $750 five years from now.



a. What is the IRR of this investment?



b. If you are choosing between this investment
and putting your money in a safe bank account that pays an EAR of 5% per year
for any horizon, can you make the decision by simply comparing this EAR with
the IRR of the investment? Explain.



6-28. AOL is considering two proposals to
overhaul its network infrastructure. They have received two bids. The first
bid, from Huawei, will require a $20 million upfront investment and will
generate $20 million in savings for AOL each year for the next three years. The
second bid, from Cisco, requires a $100 million upfront investment and will
generate $60 million in savings each year for the next three years.



a. What is the IRR for AOL associated with
each bid?



b. If the cost of capital for this investment
is 12%, what is the NPV for AOL of each bid? Suppose Cisco modifies its bid by
offering a lease contract instead. Under the terms of the lease, AOL will pay
$20 million upfront, and $35 million per year for the next three years. AOL’s
savings will be the same as with Cisco’s original bid.



c. Including its savings, what are AOL’s net
cash flows under the lease contract? What is the IRR of the Cisco bid now?



d. Is this new bid a better deal for AOL than
Cisco’s original bid? Explain.



6-29. Natasha’s Flowers, a local florist,
purchases fresh flowers each day at the local flower market. The buyer has a
budget of $1000 per day to spend. Different flowers have different profit
margins, and also a maximum amount the shop can sell. Based on past experience,
the shop has estimated the following NPV of purchasing each type:









 What
combination of flowers should the shop purchase each day?






6-30. You own a car dealership and are trying
to decide how to configure the showroom floor. The floor has 2000 square feet
of usable space.You have hired an analyst and asked her to estimate the NPV of
putting a particular model on the floor and how much space each model requires:






 In
addition, the showroom also requires office space. The analyst has estimated
that office space generates an NPV of $14 per square foot. What models should
be displayed on the floor and how many square feet should be devoted to office
space?






6-31. Kaimalino Properties (KP) is evaluating
six real estate investments. Management plans to buy the properties today and
sell them five years from today. The following table summarizes the initial
cost and the expected sale price for each property, as well as the appropriate
discount rate based on the risk of each venture.









 KP
has a total capital budget of $18,000,000 to invest in properties.



a. What is the IRR of each investment?



b. What is the NPV of each investment?



c. Given its budget of $18,000,000, which
properties should KP choose?



d. Explain why the profitably index method
could not be used if KP’s budget were $12,000,000 instead. Which properties
should KP choose in this case?



6-32. Orchid Biotech Company is evaluating
several development projects for experimental drugs. Although the cash flows
are difficult to forecast, the company has come up with the following estimates
of the initial capital requirements and NPVs for the projects. Given a wide
variety of staffing needs, the company has also estimated the number of
research scientists required for each development project (all cost values are
given in millions of dollars).









a. Suppose that Orchid has a total capital budget of $60 million.
How should it prioritize these projects?



b. Suppose in addition that Orchid currently
has only 12 research scientists and does not anticipate being able to hire any
more in the near future. How should Orchid prioritize these projects?



c. If instead, Orchid had 15 research
scientists available, explain why the profitability index ranking cannot be
used to prioritize projects. Which projects should it choose now?









Lecture Five - Payout Policy



17-1. What options does a firm
have to spend its free cash flow (after it has satisfied all interest
obligations)?



17-2. ABC Corporation announced that it will
pay a dividend to all shareholders of record as of Monday, April 3, 2006. It
takes three business days of a purchase for the new owners of a share of stock
to be registered.



a. When is the last day an investor can
purchase ABC stock and still get the dividend payment?



b. When is the ex-dividend day?



17-3. Describe the different mechanisms
available to a firm to use to repurchase shares



17-4. RFC Corp. has announced a $1 dividend. If
RFC’s price last price cum-dividend is $50, what should its first ex-dividend
price be (assuming perfect capital markets)?



17-5. EJH Company has a market capitalization
of $1 billion and 20 million shares outstanding. It plans to distribute $100
million through an open market repurchase. Assuming perfect capital markets:



a. What will the price per share of EJH be
right before the repurchase?



b. How many shares will be repurchased?



c. What will the price per share of EJH be
right after the repurchase?



17-7. Natsam Corporation has $250 million of
excess cash. The firm has no debt and 500 million shares outstanding with a
current market price of $15 per share. Natsam’s board has decided to pay out
this cash as a one-time dividend.



a. What is the ex-dividend price of a share in
a perfect capital market?



b. If the board instead decided to use the
cash to do a one-time share repurchase, in a perfect capital market what is the
price of the shares once the repurchase is complete?



c. In a perfect capital market, which policy,
in part (a) or (b), makes investors in the firm better off?



17-8. Suppose the board of Natsam Corporation
decided to do the share repurchase in Problem 7(b), but you, as an investor,
would have preferred to receive a dividend payment. How can you leave yourself
in the same position as if the board had elected to make the dividend payment
instead?

general business data bank

general business data bank

Question
	
101.
Your marketing communications mix includes mail, telephone, fax,
e-mail, or the Internet to communicate directly with specific customers and
prospects. Which of the eight major modes of communication are you using?



1.
sales promotions



2.
advertising



3.
direct marketing



4.
personal selling



5.
events and experiences






101.
If a consumer has an equally strong, favorable, and unique brand
association of Subaru with the concepts “outdoors,” “active,” and rugged”
because of exposure to a TV ad that shows the car driving over rugged terrain
at different times of the year, the impact in terms of Subaru’s brand equity
should be ________.



1. identical



2. confusing



3. heightened



4. long lasting



5.
none of the above



101.
In the process of buying a new car, a consumer might talk to
others, research the car on the Internet, visit showrooms, and buy magazines
dedicated to the automobile industry. Where would you start in developing your
marketing communication planning?



1.
Appoint an ad agency.



2.
Conduct an audit of all the potential interactions the target
market has with the brand.



3.
Create message strategy.



4.
Create the creative strategy.



5.
None of the above










    
 
  1. Your responsibility is to spend
 the company’s communications dollars efficiently. As a result, you have
 collected the costs of the various forms of the communications mix. Your
 decision on “where” to spend your company dollars will be determined
 ________.
    2. 
 
      
 
    1. according to its ability to
 build brand equity and drive brand sales
      2. 
 
    2. according to its ability to
 reach the most consumers
      3. 
 
    3. according to its ability to
 return the “most bang for the buck”
      4. 
 
    4. according to its ability to
 communicate the “message” most creatively
      5. 
 
    5. according to its ability to
 have the highest return on investment
      6. 

    







    
 
  1. For your target audience of new
 parents, communicating to them via newsletters, parenting magazines, baby
 clubs, and through hospitals is an example of what element of the
 macromodel of the communications process?
    2. 
 
      
 
    1. Response
      2. 
 
    2. Receiver
      3. 
 
    3. Decoding
      4. 
 
    4. Encoding
      5. 
 
    5. Media
      6. 

    




101.
In developing effective communications, the first step that you
must take is to identify your target audience. It is often useful to define
target audience in terms of ________ and loyalty.



1.
exposure



2.
image



3.
reach



4.
usage



5.
none of the above



    
 
  1. Establishing a product
 category, such as electric cars, as necessary to remove or satisfy a
 perceived discrepancy between a current motivational state and a desired
 emotional state is an example of a ________.
    2. 
 
      
 
    1. category need
      2. 
 
    2. brand awareness
      3. 
 
    3. brand attitude
      4. 
 
    4. cognitive dissonance
      5. 
 
    5. purchase intention
      6. 

    











101.
The commercials for pain remedies that promise quick relief to
your aches and pains is an example of what type of creative strategy?



1.
Informational appeal



2.
Transformational appeal



3.
Collective appeal



4.
Personal appeal



5.
Differentiated appeal



    
 
  1. By focusing on a
 non-product-related image, VW’s advertising to active, youthful people
 with its “Drivers Wanted” campaign was an example of a ________.
    2. 
 
      
 
    1. informational appeal
      2. 
 
    2. collective appeal
      3. 
 
    3. transformational appeal
      4. 
 
    4. personal appeal
      5. 
 
    5. differentiated appeal
      6. 

    




    
 
  1. Qualities such as candor,
 humor, and naturalness make a source more _______, and therefore more
 credible.
    2. 
 
      
 
    1. trustworthy
      2. 
 
    2. expert
      3. 
 
    3. knowledgeable
      4. 
 
    4. likable
      5. 
 
    5. interesting
      6. 

    




    
 
  1. Which of the following
 statements best describes findings by Osgood and Tannenbaum related to
 congruity?
    2. 
 
      
 
    1. Attitude change will take
 place in the direction of decreasing the amount of congruity between two
 evaluations.
      2. 
 
    2. Attitude change will take
 place in a way that increases the amount of congruity between two
 evaluations.
      3. 
 
    3. Attitude change will take
 place moving away from increasing the amount of congruity between two
 evaluations.
      4. 
 
    4. Attitude change will take
 place in a way that increases the amount of incongruity between two
 evaluations.
      5. 
 
    5. None of the above.
      6. 

    











    
 
  1. A visit by a textbook
 publisher’s sales representative is an example of ________.
    2. 
 
      
 
    1. advocate channels
      2. 
 
    2. expert channels
      3. 
 
    3. social channels
      4. 
 
    4. interactive marketing
      5. 
 
    5. e-marketing
      6. 

    







101.
When Chipotle entered the Manhattan market, it gave burritos away
to 6,000 people, anticipating that the event would create sufficient buzz to
get the store on its feet after opening. This is an example of ________
marketing.



1. events and entertainment



2. billboard



3. word-of-mouth



4. nonpersonal



5. public relations



101.
The premise surrounding public relations and publicity is that
news stories and features about your company’s product are more authentic and
________ to readers than advertisements.



1.
true



2.
influenced



3.
impartial



4.
effective



5.
credible



    
 
  1. Communications-mix allocations
 vary between consumer and business markets. Consumer marketers tend to
 spend comparatively more on sales promotion and advertising; business
 marketers tend to spend comparatively more on ________.
    2. 
 
      
 
    1. word-of-mouth marketing
      2. 
 
    2. personal selling
      3. 
 
    3. direct marketing
      4. 
 
    4. interactive marketing
      5. 
 
    5. events and experiences
      6. 

    











    
 
  1. When a communications director
 presents senior management with such things as press clipping counts, the
 number of ads placed, media costs, and such, he is supplying ________.
    2. 
 
      
 
    1. feedback
      2. 
 
    2. revenues
      3. 
 
    3. outcomes
      4. 
 
    4. inputs
      5. 
 
    5. outputs and expenses
      6. 

    




101.
We find that 80% of the consumers in the total market are aware of
brand A, 60% have tried it, and only 20% who have tried it are satisfied. This
indicates that the communications program is effective in creating awareness,
but the product fails to meet consumer ________.



1.
effect on complementary products



2.
purchase intent



3.
awareness



4.
interests



5.
expectations






101.
For a Citibank campaign to market home equity loans, the bank used
“mail plus coupon plus 800 number plus outbound telemarketing plus print
advertising.” This kind of campaign is known as a ________.



1. single-vehicle,
single-stage campaign



2. single-vehicle,
multiple-stage campaign



3. multiple-vehicle,
single-stage campaign



4. multiple-vehicle,
multiple-stage campaign



5. none of the above



101.
Dannon makes it a priority to drive traffic to its Dannon Yogurt
homepage so that the company can benefit from the twin paybacks of (1) forging
direct relationships with customers and (2) building a database of its best
customers. This is an example of ________.



1.
personal selling



2.
integrated marketing communications



3.
coordinating media



4.
brand linkages



5.
direct marketing










101.
In assessing the collective impact of an IMC program, the
marketer’s overriding goal is to create the most effective and efficient communications
program possible. The criterion of ________ is the proportion of the audience
reached by each communication option employed, as well as how much overlap
exists among communication options.



1. coverage



2. contribution



3. commonality



4. complementarity



5. versatility

Determine the error for each of the following forecasts

Determine the error for each of the following forecasts

Question
	

This assignment requires you to use Excel. In question 3, you will use the regression tool from the analysis toolpack. Make sure to use the Assignment 5 template found in your online course when you turn in your answers. Question 1 Determine the error for each of the following forecasts. Compute MAD and MSE. Period Value Forecast Error 1 202 — — 2 191 202 3 173 192 4 169 181 5 171 174 6 175 172 7 182 174 8 196 179 9 204 189 10 219 198 11 227 211 Question 2 The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown here are factory orders in the United States over a 13-year period ($ billion). a. Use these data to develop forecasts for the years 6 through 13 using a 5-year moving average. b. Use these data to develop forecasts for the years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1. c. Compute the errors of the forecasts in parts (a) and (b) and then the MAD. Which forecast is better? Year Factory Orders ($ billion) 1 2,512.7 2 2,739.2 3 2,874.9 4 2,934.1 5 2,865.7 6 2,978.5 7 3,092.4 8 3,356.8 9 3,607.6 10 3,749.3 11 3,952.0 12 3,949.0 13 4,137.0 Question 3 The “Economic Report to the President of the United States” included data on the amounts of manufacturers’ new and unfilled orders in millions of dollars. Shown here are the figures for new orders over a 21-year period. Use Excel to develop a regression model to fit the trend effects for these data. Use a linear model and then try a quadratic model. How well does either model fit the data? Year Total Number of New Orders 1 55,022 2 55,921 3 64,1 82 4 76,003 5 87,327 6 85,139 7 99,513 8 115,109 9 131,629 10 147,604 11 156,359 12 168,025 13 162,140 14 175,451 15 192,879 16 195,706 17 195,204 18 209,389 19 227,025


In the summary tables below, insert only the answers. You will show work after the summary section.


Question 1


MAD
MSE


Question 2


MAD for part a
MAD for part b


Recommended forecast method:


Question 3
R-squared for Linear model


R-squared for quadratic model


Regression formula for linear model


Regression formula for quadratic model



Work


Show all your work for the questions below.


Question 1


Show the errors you calculated


Question 2


Show the two forecasts and the errors


Question 3


Show the regression output tables

Ethics questions

Ethics questions

Question
	
Question 1. 1.(TCO
7) Describe each of the following five theories of forgetting, and include
examples to illustrate each one: decay theory, interference theory, motivated
forgetting, encoding failure, and retrieval failure theory. (6 points each) (Points : 30)

2.(TCO 9) (a) Describe the three main components of emotional
intelligence, and (b) give an example of how each component is essential for
successful interactions with others. (10 points each)(Points : 30)

3.(TCO 11) In your own words, (a) give
an overview of humanistic psychology’s theory of personality (6 points). Also
in your own words (b) describe and explain the humanistic terms self-concept,
congruence, unconditional positive regard, and self-actualization. (6 points
each)(Points : 30)

4.(TCO 12) (a) Define group therapies (5 points), and (b) describe
three advantages of this kind of therapy (5 points). (c) Differentiate between
group therapy, self-help groups and family therapy, and provide examples of
when the latter two therapies are most effective. (10 points for the
differentiation and 10 points for the examples)(Points : 30)

 

 
 
Question 5. 5.(TCO 13) In your own words (a) define aggression (6 points),
 and (b) describe five biological factors and
 three psychosocial factors that may contribute to its expression. (3 points
 each)(Points : 30

bus644 week 3 discussion

bus644 week 3 discussion

Question
	bus644 week 3 discussion

Forecasting Methods

1. Read Problem 6 in Chapter 6 of your textbook. Calculate and answer parts a through d. Include all calculations and spreadsheets in your post. Explain why the moving average method was used instead of another forecasting method. What might be another forecasting method that could prove to be just as useful?

2. The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

Year Mergers Year Mergers

2000 46 2006 83

2001 46 2007 123

2002 62 2008 97

2003 45 2009 186

2004 64 2010 225

2005 61 2011 240

a. Calculate a 5-year moving average to forecast the number of mergers for 2012.

b. Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

c. Calculate a 5-year weighted moving average to forecast the number of mergers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

d. Use regression analysis to forecast the number of mergers in 2012.

BM350 Marketing Management Paper

BM350 Marketing Management Paper

Question
	
Question posted for Steve Herrod, Note: Steve you answered this question previously.


Assignment 07


BM350 Marketing Management Directions: Sources must be cited in APA format. Your response should be a minimum of (1) single-spaced page to a maximum of (2) pages in length; refer to the "Assignment Format" page for specific format requirements.


Case 11: harleydavidson.com and the Global Motorcycle Industry (pp. 354-358) This case discusses the success of Harley-Davidson and reviews its global position in 1998. It discusses the company's initiatives that continued a thirteen-year record of growth in revenues and earnings. The company had a phenomenal 74 percent increase in the value of the firm in 1998 alone. It offers market share and sales information for global competitors in three regions, North America, Europe, and Asia/Pacific, and briefly discusses the product offerings of competitors including BMW, Honda, Kawasaki, Suzuki, and Yamaha. The case has been kept relatively short since the Web sites for Harley and its competitors contain abundant additional information. The major objective of the case is to get you to visit these Web sites, compare them, and evaluate them as strategic marketing tools


Questions


1. Why is the Internet a particularly good promotion medium for Harley-Davidson? Discuss at least three (3) reasons. (55 points)
2. What different roles could Harley-Davidson’s Web site play for Harley owners, for people shopping for a motorcycle, and for people just interested in motorcycles in general? (45 points)


Assignment 08


BM350 Marketing Management Directions: Sources must be cited in APA format. Your response should be a minimum of (1) single-spaced page to a maximum of (2) pages in length; refer to the "Assignment Format" page for specific format requirements.


Case 22: Cowgirl Chocolates (pp. 488-500) Marilyn Lysohir, an internationally celebrated ceramic artist, started Cowgirl Chocolates to provide some funding support for a yearly published arts magazine, High Ground, that she and her husband, Ross Coates, started in 1995. Her love of chocolates and hot and spicy foods spurred the idea of making hot and spicy chocolates to be sold in creative, artistic tins and packaging, which she labeled Cowgirl Chocolates. Her small business, begun in 1997, had won a number of awards in fiery food competitions. While Cowgirl Chocolates had grown steadily over its four years in business, it still had only generated $30,000 in sales revenue in 2000, which was not enough to cover expenses. Marilyn had drained much of her personal savings to keep Cowgirl Chocolates in business. Her cash accounting methods and record keeping were not very sophisticated although she seemed to have a good sense of her costs in production and raw materials and the packaging. However, Marilyn had taken a shotgun approach to most of her marketing efforts and had tried a number of activities to increase product demand. She allowed herself to make one risky financial move each year in her pursuit of profitability and increased sales. She had just made her one risky move for year 2001: She had taken out a full-page ad in Chile Pepper magazine for $3,000.


Questions


1. The suggested retail price and wholesale prices of Cowgirl Chocolates products are displayed in Exhibit 2 (p. 491) along with the product and packaging costs. Based on this information, discuss the relative merits of using a cost-based, demand-based, and competition-based pricing method. (50 points)


2. What are four (4) options that Cowgirl Chocolates may consider as far as pricing? What would you recommend? (50 points)