BUSN310 all forums (forum 1-8)

Question
	
BUSN310
Business Theory all forums

Forum
1

Choose one of the types of
environments discussed in the Lesson for Week 1 and complete the following:



1.
Perform research (minimum of 2
scholarly sources in APA format; see resources).

2.
Briefly summarize your chosen
environment's past, present, and future.

a.
What was that environment like in
the past (more than 20 years ago)? Was it affected by the other environments?

b.
Next, describe what it's like in
today's business world.

c.
Lastly, what does the future hold
for your environment?

d.
At least one business theorist must
be integrated into the information.

3.
This is specific to the environment;
don't discuss companies and industries, yet.

4.
Minimum 5 complete paragraphs; a
paragraph is a minimum of 100 words.

5.
Reply to 2 other of your classmates’
original posting.

6.
Refer to the syllabus about the
minimum requirements for forums.



LO - 1 – Identifying one of the
business environments used in this course, the student will be able to discuss
that environment’s past, present, and future with the use one business
theorist.



Submit your Forum Post 2 initial
post by Wednesday, Day 3. Replies due by midnight, Day 7.

Forum 2



Forum 2



Choose a company of your choice from the Fortune 500 Best
List (see resources) and complete the following:

1.
Identify the company (for instance,
US Airways).

2.
Identify the industry your chosen
company operates in (for instance, US Airways operates in the Airline
Industry).

3.
Identify the domestic environment
(home country) of your chosen company (for instance, the domestic environment
for US Airways is the USA).

4.
Identify the business theorist you
used in Forum 2.

5.
Perform research (minimum of 2
scholarly sources (see resources) in APA format).

6.
Investigate the government
regulations associated with the industry (for instance, government regulations
for the Airline industry).

7.
How will the domestic government
regulations affect your chosen company in its domestic environment?

8.
How would your business theorist
help your company in its domestic environment? You must provide some critical
thought (see resources).

9.
NOTE: Items 1-4 should not exceed 1
paragraph (100 words in a paragraph).

10. Minimum 4 complete
paragraphs; a paragraph is a minimum of 100 words.

11. Reply to 2 other of your
classmates’ original posting.

12. Refer to the syllabus about
the minimum requirements for forums.



Forum
3

Continue
working with the company you chose from Week 2 for forums and complete the
following:



1.Perform
research (minimum of 2 sources plus text in APA format).

2.Identify a
Global Environment for the company (an international country for the company).

3.What are
the characteristics of the new Global Country/Environment that will best suit
the company for success?

4.What
barriers exist in the new Global Country/Environment? You cannot state there
are no barriers.

5.How will
the company overcome those barriers (strategies)?

6.Minimum 3
complete paragraphs; a paragraph is a minimum of 100 words.

7.Reply to 2
other of your classmates’ original posting.

8.Refer to
the syllabus about the minimum requirements for forums.



Forum
4



Continue working with your company
and industry from Week 2 for forums and complete the following:



Perform research (minimum of 2 sources in APA format).
Identify the hard and soft technology used for both the
 domestic and global environments. This is not about computers or software;
 see lesson plan for details and remember to incorporate critical thinking
 (see resources).
Identify the technology barriers to the company in both
 environments.
Evaluate the strategy used and how the company will
 protect their technology.
Make recommendations on how the company can overcome
 these. It is not sufficient to say you have no recommendations;
 incorporate critical thinking (see resources).
Minimum 3 complete paragraphs; a paragraph is a minimum
 of 100 words.
Reply to 2 other of your classmates’ original posting.
Refer to the syllabus about the minimum requirements
 for forums.



Forum
5



Continue working with your company
and industry from Week 2 for forums and complete the following:



1.
Perform research (minimum of 2
sources in APA format).

2.
Integrate the company's political
and legal environments from its domestic country.

3.
What barriers do you notice?

4.
What limitations do you see for this
company?

5.
Minimum 3 complete paragraphs; a
paragraph is a minimum of 100 words.

6.
Reply to 2 other of your classmates’
original posting.

7.
Refer to the syllabus about the
minimum requirements for forums.





Forum 6

Continue working with your company
and industry from Week 2 and complete the following:



1.
Perform research (minimum of 2
sources in APA format).

2.
Identify the country cluster (as
identified in the text) for both your Domestic and Global environments.

3.
Include sociocultural factors that
may help and hinder the company and its operations in 2 different cluster
countries.

4.
Evaluate their successes and/or
failures.

5.
Minimum 4 complete paragraphs; a
paragraph is a minimum of 100 words.

6.
Reply to 2 other of your classmates’
original posting.

7.
Refer to the syllabus about the
minimum requirements for forums.



Forum 7

Continue working with your company
and industry from Week 2 and complete the following:



1.
Perform research (minimum of 2
sources in APA format).

2.
Using your chosen company’s domestic
and global environments identify the economic environment of each and compare
and contrast it using Rostow and Galbraith (see lesson plan and resources).

3.
Which are the limitations? Why?

4.
Minimum 5 complete paragraphs; a
paragraph is a minimum of 100 words.

5.
Reply to 2 other of your classmates’
original posting.

6.
Refer to the syllabus about the
minimum requirements for forums.



LO - 7 – Given two economic
theories, the student will compare and contrast each theory using the company’s
Domestic and Global environments.



Submit your Forum Post 8 initial
post by Wednesday, Day 3. Replies due by midnight, Day 7.







Forum
8

Continue with your chosen company
for forums and complete the following:



1.
You have been working with each
environment individually; now it's time to integrate and synthesize.

2.
Perform research (minimum of 3
sources in APA format).

3.
Analyze each environment
collectively by incorporating theories learned.

4.
How are the individual environments
working together for your chosen company?

5.
How is each working with the other
environments?

6.
Is an environment causing
limitations on another? If so, which environments are involved and what are the
limitations?

7.
What could you change to create
synergy? Your answer cannot be that you wouldn’t change a thing. You must
incorporate critical thinking (see resources).

8.
Minimum 6 complete paragraphs; a
paragraph is a minimum of 100 words.

9.
Reply to 2 other of your classmates’
original posting.

10. Refer to the syllabus about the
minimum requirements for forums.
	

Kaplan GB590 Unit 2

Question
	Instructions
Please use APA guidelines to prepare this case study. Include a cover and reference sheet. Your
paper should be between 5-7 pages excluding the cover and reference pages. Also include an
introduction and conclusion. Submit your paper via the Unit 2 Assignment Dropbox.
Read the case on the global corporation, IKEA, after you have completed the reading for the week.
Answer the following questions for the case:
1. Who are the stakeholders in this case? What are their values or rights? Are there any
competing interests between stakeholders? Remember to include the shareholder as one of
the stakeholders.
2. What are the national and global laws you need to consider for this case and how do they
apply?
3. What are the areas of social responsibility or sustainability (environmental, social or economic)
that apply to this case and how do they apply?
4. Identify the decision you would make and why you would make it considering: Global versus
national values, stakeholder rights and values, national and global laws, economic and
shareholder rights and values, and social responsibility issues in this case.	
,

		
Attachments
		
 (59.64 KB) 
		

Survival Industries, Inc. purchased a boat at a cost

Question
	1) As of January 1, 2011, Survival Industries, Inc. purchased a boat at a cost of $490,000.
When purchased, the company was using the double declining depreciation method.
Key info on the asset at time of purchase is the following.
Estimated useful life is 7 years.
Residual Value is $0.
At the beginning of 2014, the CFO decided to change to straight-line depreciation method. Compute the depreciation expense for 2014.
It was explained to me that the correct answer is:
[(490,000 - (140,000 – 100,000 – 71,429)] / 3 = $44,643
Purchase Price of Boat = $490,000
3 = 3 years depreciation?
However, I do not understand how the other numbers ($140,000, $100,000, and $71,429) were arrived at.

2) Mystical Corporation found the following errors in their year-end financial statements.
As of Dec. 2012 As of Dec. 2013
Ending Inventory $32,000 understated $46,000 overstated
Depreciation Exp. $7,000 understated

On December 31, 2013, a fully depreciated machine was sold for $35,000 but the sale was not recorded until January 15, 2014 when the cash was received. In 2012, a three-year insurance premium was prepaid for $45,000, of which the entire amount was expensed in the first year.
There were no other errors or corrections. Ignore any tax considerations.
What is the total net effect of errors on Mystical's 2013 net income?
As explained, $32,000 + $46,000 + $15,000 - $35,000
= overstated Net Income by $58,000,
where $32,000 = understated ending inventory for 12/31/2012
$46,000 = overstated ending inventory for 12/31/2013
$35,000 = depreciated sale price of the machine
Is $15,000 = $45,000/3 years or the amount of depreciation for 2013 only?
Why is it important that the sale was not recorded until 1/15/2014 when the cash was received?
Could you explain in detail how the answer was arrived at.

3) Financial Data of Johnson Company for 2013 & 2012:
Comparative Balance Sheet as of 12/31/2013 & 12/31/2012
2013 2012
Cash $260,000 $230,000
Receivables $156,000 $130,000
Inventory $180,000 $220,000
Plant Assets $160,000 $135,000
Accumulated Deprec. ($80,000) ($76,000)
Long Term Invest
(Held-To-Maturity) $80,000 $93,000
Total $756,000 $722,000

Accounts Payable $135,000 $122,000
Accrued Liabilities $30,000 $33,100
Bonds Payable $135,000 $166,000
Common Stock $180,000 $165,000
Retained Earnings $276,000 $235,000
Total $756,000 $722,000

Income Statement
For the Year Ended 12/31/2013
Sales $750,000
Cost of Goods Sold $530,000
Gross Margin $220,000
Selling & Administrative Expenses $106,000
Income from Operations $114,000
Other Revenues & Gains
Gain on Sale of Investments $7,000
Income Before Tax $121,000
Income Tax Expense $48,400
Net Income $72,600

Additional Information:
During the year, $9,000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32,500.

Required:
1) Prepare a statement of cash flows using the Indirect Method
2) Prepare a statement of cash flows using the Direct Method. (Do not prepare a Reconciliation Schedule.	

BAM 570 – E-Commerce Management -Unit 1-4 Exam

Question
	
BAM 570 - E-Commerce Management -Unit 1-4 Exam
Publisher: Pearson Prentice Hall
BAM 570 
E-Commerce Management 
Text: Electronic Commerce: A Managerial Perspective 
Sixth Ed ition 
ISBN-10: 0-13-610036-8 
Authors: 
Efraim Turban, David King, Jae Lee, Ting-Peng Liang, Deborrah Turban
Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 
1) The 2008 Olympics in Beijing was the most digital Olympics to date for each of the following reasons except: 
many of the tickets were purchased online by people worldwide, using Beijing Gehue Ticketmaster, in what is called business-to-business (B2B) e-commerce. 
the International Olympic Committee launched a YouTube channel to broadcast clips that were accessible in many developing countries. 
millions watched the Olympics through online videos and Internet-enabled cell phones and other mobile devices. 
Global Positioning Systems (GPS) were used to track the position of sailing and rowing boats. 
EC can take several forms depending on the degree of digitization of the following three dimensions: 
the product or service sold, the process and the delivery method. 
the busi ness process, the collaboration and the transaction. 
the payment method, the delivery method and the production method. 
the marketing channel, the agent and the collaboration method. 
Purely physical companies are referred to as companies, whereas companies that are engaged only in EC are considered companies. 
pure play, virtual 
brick-and-mortar: virtual 
cl ick-and-rnortar: cl ick-and-brick 
virtual; pure play 
A business, such as Apple, doing online transactions with its trading partners is an example of _ 
B2B 
B2C 
e-CRM 
EDI 
5) refers to the second-generation of Internet services that let people collaborate and share information online in new ways such as social networks and wikis. 
Virtual Web 
Media Web 
Web 2.0 
Social Web 
6) Which of the following is not a characteristic of the Digital Revolution? 
Many business processes expedited by up to 50 percent 
Intell igent search agents to help manage information overload 
A high rate of obsolescence 
Fraud and other cybercons carried out via the Internet 
Many companies employ a(n) , which is a gateway for customers, employees, and partners to reach corporate information and to communicate with the company. 
corporate portal 
intranet 
extra net 
social network 
The digital enterprise shifts the focus from managing individual information resources such as devices, applications and data to that define the business and ultimately deliver value to customers and end users. 
developing models 
orchestrati ng the services and workflows 
organizing supply chains 
transforming revenue models 
Because the rate of change and the level of uncertainty in the marketplace are expected to accelerate, organizations are _ 
unable to react quickly enough to threats and opportunities. 
operating under increasing pressures to produce more products, faster, and with fewer resources. 
making fewer decisions and/or decisions less frequently. 
considering less information when making decisions. 
Large private organizational buyers and government agencies make large-volume or large-value purchases through , also known as reverse auctions. 
electronic tendering systems 
online direct marketing 
name-your-own-price models 
viral marketing 
11) Benefits of EC to organizations include each of the following except: 
cost reduction. 
information security. 
supply chain improvements. 
efficient procurement.
12) All of the following are benefits of EC to society except: 
more public services. 
closing the digital divide. 
fewer permits and less tax. 
improve homeland security. 
Eastern Mountain Sports introduced tools in order to increase collaboration, information sharing and communication among stores and their employees, suppliers and customers. 
business intelligence 
B2B 
B2C 
Web 2.0 
Traditional and electronic markets have three main functions which include each of the following except: 
matching buyers and sellers. 
faci I itati ng the exchange, purchase or transfer of information, goods, services and payments associated with transactions. 
financing the transformation of raw materials into finished products. 
providing an institutional infrastructure, such as a legal and regulatory framework that enables the efficient functioning of the market. 
The cost curves of digital products differ from the cost curves of physical products because in digitization _ 
most costs are variable and fixed costs are low 
most costs are fixed and variable costs are very low 
most costs are fixed, but variable costs are high 
all costs are variable 
Activities related to order fulfillment, inventory management, purchasing from suppliers, accounting and finance, packaging and delivery are done in what is termed the of the business. 
front end 
back end 
infrastructure 
intermediary 
17) Insurance companies and hotels sell services through storefronts called _ 
RSS 
browsers 
portals 
wikis 
Human or electronic intermediaries attempt to reduce each of the following limitations of direct interaction except: 
search costs. 
lack of privacy. 
contract risk. 
product distribution. 
Customized catalogs are especially useful in B2B e-commerce for each of the following reasons except: 
e-catalogs can be designed to show only the items that the employees in a specific organization are allowed to purchase. 
I ntranets, in particu lar, can del iver customized catalogs to different business customers. 
e-catalogs can show the buyer's ID number for the item, model, or SKU number rather than the seller's ID numbers. 
e-catalogs can be customized to show the same item to different customers at different prices, reflecting discounts or purchase-contract agreements. 
E-catalogs have several common characteristics. Which of the following is not a characteristic of e-catalogs? 
Easy to create without advanced information technology 
Easy to update product information 
Easy to customize 
Good search and comparison capabilities 
A(n) is an order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. 
intelligent agent 
e-fulfillment agent 
electronic shopping cart 
mobile portal 
22) All of the following are benefits of e-auctions to buyers except: 
can liquidate large quantities quickly. 
convenience of bidding anywhere and any time. 
opportunity to bargain. 
opportunities to find unique items. 
23) are audio files that enable companies to deliver audio-specific content, including music, speeches, radio-style presentations and more. 
Blogs 
Mashups 
Podcasts 
Wikis 
According to Internet Retailer (2007), approximately percent of adult U.S. Internet users shop online or research offline sales online. 
25 
45 
65 
85 
25) All of the following categories have been selling well online except: 
groceries. 
travel. 
cars. 
health and beauty. 
With all else being equal in the online environment, goods with any of the following product characteristics are expected to facilitate greater online sales except: 
relatively expensive items. 
high brand recognition. 
digitized format. 
frequently purchased items. 
27) Dell's distribution strategy is best described as _ 
a brick-and-mortar strategy 
a shared service mall strategy 
a cl ick-and-mortar strategy 
direct marketing from a manufacturer 
28) A marketer that uses e-mail to advertise to potential customers is called a _ 
market maker 
transaction broker 
content disseminator 
viraI marketer 
29) All of the following are revenue models for online independent travel agents except: 
direct marketing revenues. 
direct revenues from commissions. 
subscription or membership fees. 
revenue sharing fees. 
30) Which is not a characteristic of social computing technologies? 
Social computing is increasingly playing a larger role in corporate online strategy. 
Social computing has shifted online travel from passive selling to active customer engagement. 
Companies that implement social computing technologies on their own websites should view it primarily as a sales tool and less as supporting business goals. 
Social computing plays an important role by providing more correct and relevant information. 
31) One of the characteristics of Web 2.0 in the travel industry is _ 
standardization 
segmentation 
personal ization 
intermediation 
Characteristics of the job market and employment placement include all of the following except: 
they are very stable. 
there is an unbalanced supply and demand. 
career portals on corporate websites reduce recruitment costs. 
the job market has essentially moved online. 
33) The TRUSTe seal is an example of _ 
a business rating 
an intermediary 
a B2B exchange 
a trustmark
Atn) is someone whose advice or view carries some weight in making a final purchasing decision. 
initiator 
influencer 
decider 
buyer 
Marketing and advertising approaches have evolved from mass marketing to market segmentation to one-to-one marketing. This evolution occurred because _ 
the marketing focus shifted from customers to products 
companies sought to decrease the number of marketing campaigns 
concerns about privacy have diminished 
the Internet enabled companies to better communicate with customers and understand their needs and buying habits 
By increasing customer loyalty, EC companies can achieve each of the following benefits except: 
lower marketing and advertising costs. 
higher warranty claims costs. 
lower transaction costs. 
lower resistance to competitors. 
Procter & Gamble (P&G) used the Internet in the new product development of Whitestrips. a teeth-brightening product. Based on this experience, P&G _ 
decided to add Internet research to its traditional marketing test model 
could not determine the target market segments for the Whitestrips 
learned that the cost of online surveys was about the same as similarly sized telephone surveys, but online surveys expedited research considerably 
reduced the time-to-market from concept to market launch by approximately two years 
38) The use of cookies _ 
is one of the most controversial issues in EC 
has not helped Internet marketers target their ads 
is a widely used method for mass marketing 
is being replaced by adware and spyware programs 
Two key factors limiting the use of personalization to more precisely target marketing efforts to individual customers are _ 
matching profiles with product offerings and delivering those offerings 
communication costs and filtering costs 
privacy and trust issues 
lack of customer loyalty and service customization costs 
40) Which of the following statement about Web mining is false? (Docstoc)
Web mining refers to the use of data mining techniques for discovering and extracting information from Web documents. 
Web mining explores both Web content and Web usage. 
Web mining uses customer data to infer or predict customer interest in other products or services. 
Usage analysis is derived from cl ickstream data. 
41) What is the key problem that biometric marketing is intended to solve? 
Knowing the identity of the actual shopper 
Improving accuracy of the shopper's data 
Increasing the speed of order processing 
Creating a loyalty program 
42) , such as concerts and videos, can generate tremendous public excitement and bring huge crowds to a website. 
Live Web events 
Webcasting 
Phone casting 
Mobile casting 
As the volume of customers, products, vendors, and information increases, it becomes uneconomical or impossible for customers to consider all relevant information, and available products/services. The practical solution to handling such information overload is _ 
to use permission marketing 
to use software or intelligent agents 
to increase the use of ad agencies 
to design Web sites with minimal content 
44) can be supported more effectively and efficiently through direct buyer-seller negotiations that are either offline or online, which can be done in private exchanges. 
Strategic sourcing 
Spot buying 
B2C e-commerce 
MRO
45) What are the two types of materials and supplies that are traded in B2B? 
Digital and physical 
Direct and indirect 
Horizontal and vertical 
Commodities and nonproduction 
46) Nonproduction materials such as equipment and tools that support production are called 
indirect materials 
operational materials 
direct materials 
virtual materials 
47) The major B2B service industries include each of the following except: 
travel. 
financial. 
stock trading. 
retail. 
By using the Internet and automatic-response software agents, GE reduced the cost of customer service calls from $5.00 per call when done by phone to per electronically answered call. 
$2.50 
$1.00 
$0.20 
$0.05 
Companies use to sell their unneeded assets for quick disposal or to dispose of excess, obsolete and returned products. 
private auctions 
liquidation 
reverse auctions 
forward auctions 
Benefits of e-procurement over traditional procurement methods include all of the following except: 
increasing the productivity of purchasing agents. 
lowering purchase prices through product standardization, reverse auctions, volume discounts, and consolidation of purchases. 
increasing the skill requirements and training needs of purchasing agents. 
streamlining invoice reconciliation and dispute resolution. 
51) All of the following are true of dynamic pricing except: 
anonymity often is a key ingredient. 
buyers and sellers interact with bids and offers in real time. 
e-malls are a prime example of this pricing model. 
a deal is struck when there is an exact match between a buyer and a seller on price, volume, and other variables, such as location or quality. 
Denver Boards, a B2B manufacturer of snowboard equipment, can reach and target new retail customers in order to grow its online business by _ 
hiring an affiliation service to drive traffic to its website 
reviewing POS data 
mining data 
advertising in traditional media 
53) The e-SCM process that includes integrated production and distribution processes is 
supply chain replenishment 
collaborative planning 
e-procurement 
e-Iogistics 
54) When planning, designing and implementing integrated supply chain operations, management requires a holistic focus that takes into account all of the following primary factors except:
strategy, structure, and people. 
location and revenues. 
IT and business processes. 
culture, including performance measurement, mon itori ng, and incentives. 
55) Which of the following about supply chain problems is not true? 
Supply chains in military and business operations have been plagued with problems for generations. 
Supply chain problems have sometimes caused armies to lose wars and companies to go out of business. 
Supply chain problems are most apparent in complex supply chains. 
Supply chain problems are lowest when many business partners are involved. 
56) The last fifteen orders from a manufacturer to its suppliers range from $100,000 to $8,750,000. This is an example of _ 
the bullwhip effect 
demand manipulation 
supply inadequacy 
order instability 
11
Software that helps integrate different types of information systems among collaborating companies is called _ 
middleware 
browser technology 
collaborative software 
extranet technology 
58) All of the following are types of communication and collaboration done in real time except: 
blogging. 
webinars. 
instant messaging. 
VolP. 
59) The Lotus Notes/Domino suite includes all of the following except: 
instant video. 
document management. 
database. 
communication support. 
60) All of the following apply to instant video except: 
It evolved from the spread of instant messaging and Internet telephony. 
The idea is for a kind of video chat room that allows users to chat in real time and see the people they are communicating with. 
It is the natural result of wanting to link people via both voice and audio. 
d.The highest quality approach is to add video cameras to the participants' computers. 
61) An example of G2C is _ 
an employee at the Chamber of Commerce gets local demographic data from a U.S. census site. 
a driver applies for and pays for the renewal of his auto tag online. 
a road contractor uses the Internet to submit a closed bid on a paving contract. 
a regional hospital conducts an online reverse auction for cleaning supplies. 
62) All of the following are potential advantages of e-Iearning except: 
college professors are anxious to develop new online courses. 
knowledge retention is higher. 
learning time is reduced. 
it costs less to deliver education online than in a traditional classroom. 
63) One of the facilitators of e-Iearning is technology such as wikipedia.org. 
Web 2.0 
Blackboard 
WebeT 
Macromed ia 
64) All of the following describe Second Life (SL) and SL Educators (SLED) except: 
SLED sponsors meet-and-greet events in SL, helping real-life educators to connect with each other. 
Educators have been slow to embrace SL because of the complexity of its media-rich features. 
Students and educators can work together in SL from anywhere in the world as part of a globally networked virtual classroom environment. 
Using SL as a supplement to traditional classroom environments provides new opportunities for enriching existing curricula. 
65) More and more people are willing to pay for digital music, as shown by the success of 
Napster 
Kazaa 
iTunes 
P2P 
66) The exclusive online publication of Stephen King's e-book Riding the Bullet _ 
was a failure because the cost of the book was too high. 
produced very few sales. 
was an unqualified success and established electronic publishing as a legitimate competitor for traditional publishers. 
was disrupted by hackers who breached security, then distributed free copies of the book. 
67) A major purpose of an organizational knowledge base is to support and allow _ 
knowledge sharing. 
e-Iearning. 
responsible blogging. 
organizational capital.
Food Lion is a U.S. supermarket chain that relies on to compete against Wal-Mart and other stores. 
low prices and vast selection 
m-commerce technology for customer convenience 
huge online selection and fast delivery 
organic and unique gourmet foods 
The development of m-commerce is being driven by all of the following technological, business, social, and economic factors except: 
the transition to a manufacturing economy. 
the widespread availability of more powerful mobile devices. 
the growth of a handset cu Iture and mobile workforce. 
the improved price/performance of mobile services. 
As in e-commerce, m-commerce B2C applications are concentrated in each of the following areas except: 
retail shopping. 
advertising. 
telecommunications. 
financial. 
A is suitable for mobile users who need to make very short-range device-to-device wireless connections within a small space, such as a single room, and most commonly with Bluetooth. 
personal area network 
local area network 
wireless area network 
Wi-Fi area network 
72) The major enterprise mobile applications are all of the following except: 
e-mail and cell phone contacts. 
sales force automation. 
field force automation. 
research and development. 
73) You are walking near a coffee shop and suddenly your cell phone beeps with a message: "Come inside and get a free biscotti with any purchase." This is an example of _ 
permission marketing. 
location-based advertisi ng. 
customer relationship management. 
m-commerce. 
Wikipedia is a free online collaborative encyclopedia that had to resolve each of the following problems except: 
people with malicious agendas posting false information. 
competition from the bigger Encyclopedia Britannica. 
poor or substandard quality of the content. 
invasions of privacy. 
75) Perspectives about Web 2.0 include all of the following except: 
Web 2.0 is organized around pages, software, technology, individuals, and corporations. 
Web 2.0 has become the framework for bringing together the contributions of millions of people to enhance creativity, information sharing, and collaboration. 
Web 2.0 communities are one of the most powerful influences on society. 
Web 2.0 stands to greatly improve internal business processes and marketing. 
The real estate brokerage industry has been disrupted by companies such as Zillow and HomeGain for each of the following reasons except: 
Homeowners can enter zillow.com and go to zestimate to get an approximation of their home's market value with a map of the neighborhood. 
The Zillow and Homegain sites provide more services and information than Web 1.0. 
The Web 2.0 real estate sites have driven down commissions from 6 percent to almost 1 percent. 
Homeowners can get comparisons of the estimated price of their home with neighbors' homes. 
77) All of the following are true about YouTube except: 
YouTube is building a community that is highly motivated to watch and share videos. 
The company encourages users to contact YouTube. 
Some experts think Yahoo paid too much for YouTube. 
The growth of YouTube has been extremely rapid, depending largely on referrals from users who alerted their friends and family to a favorite video. 
78) Distinct layers of the Web 3.0 topology include each of the following except: 
v-commerce. 
API services. 
appl ication services. 
serviced cl ients. 
An evolving extension of the Web in which Web content can be expressed not only in natural language, but also in a form that can be understood, interpreted, and used by intelligent computer software agents is known as _ 
net neutrality 
mobile social networks 
semantic web 
voice commerce 
80) For companies, it may be even more important to change strategies quickly. 
traditional 
pure play 
service 
retail 
Projections of the busi ness, technological, pol itical, economic, and other environ ments are called _ 
forecasts 
SWOT analysis 
competitive intelligence 
value propositions 
A specific outcome of the strategy initiation phase is the , which includes the vision, mission, value proposition, goals, capabilities, constraints, strengths, and weaknesses of the company. 
company analysis 
val ue proposition 
core competency 
functional strategy 
After four years in business, a magazine publisher decides to add the online distribution of its magazine to its existing traditional publishing business. The company would need to develop a _ 
busi ness strategy. 
business plan. 
busi ness case. 
business metric.
84) The pricing strategy means adding up all the costs involved, such as material, labor, rent, overhead, and so forth, and adding a percentage mark-up as profit. 
cost-plus 
competitor model 
revenue markup 
price percentage 
With the balanced scorecard approach, the term balance arises because the combined set of measures is supposed to encompass indicators that are all of the following except: 
core and non-core. 
financial and nonfinancial. 
leading and lagging. 
quantitative and qualitative. 
Not all EC investments need to be formally justified. All of the following are cases where formal evaluation may not be needed except: 
when the value of the investment is relatively small for the organization. 
when competitors have made that type of investment. 
when the relevant data are not available, are inaccurate, or are too volatile. 
when the EC project is mandated and must be done regardless of the costs and benefits. 
87) Metrics are used to describe all of the following except: 
standards. 
costs. 
benefits. 
the ratio of costs to benefits. 
88) In G2C, an example of a tangible EC metric from the buyer's perspective is _ 
ease of use of EC 
convenience in purchasing 
profit per customer 
cost/price of the product 
89) Transaction costs include all of the following except: 
production costs incurred for labor and overhead. 
search costs incurred by buyers and sellers in locating each other and specific products and services. 
negotiation costs that result from meetings, communication-related expenses, exchanges of technical data or brochures, entertainment, and legal costs. 
monitoring costs incurred when buyers and sellers make sure that the exchange proceeds according to the terms under which the sale was made. 
McAfee allows users of its VirusScan virus-detection software to automatically update the latest security patches online. This is an example of to attract customers who value this automatic update. 
competitive advantage 
core competency 
product or service differentiation 
agility 
91) is money invested in a business by an individual or a group of individuals in exchange for equity in the business. 
Venture capital 
Operating capital 
Start-up funding 
Advancement 
A site is an exact duplicate of the original Website physically located on a Web server on another continent. 
backup 
mi rror 
download 
hot 
The Web hosting option under which the business acquires the hardware, software, staff, and dedicated telecommunications services needed to host a Website is called _ 
self-hosting 
mirror hosting 
using a storebuilder 
ISP hosting 
94) Creating content that offers upgraded or more expensive versions of the product is called 
up-selling 
comment 
cross-selling 
promotion 
95) offers one of the most popular storefront packages with three levels of merchant solutions: starter, standard, and professional. 
Google 
Amazon.com 
e8ay 
Yahoo! 
96) Which of the following is a major property right relevant to EC and websites? 
Control of the use of the property 
The right to any benefit from the property 
The right to exclude others from the property 
All are major property rights. 
97) Which of the following is true about the scope of business ethics? 
The scope of business ethics has expanded to encompass the nature and quality of the relationships with shareholders, customers, business partners, suppliers, the community, environment, and future generations. 
The scope of business ethics has been limited to a company's actions with regard to how it treats employees and obeys laws. 
The scope of busi ness eth ics has not changed because laws have not changed. 
The scope of business ethics has not changed even though laws have expanded. 
98) Corporate Web policy guidelines include all of the following except: 
issue word-of-mouth acceptable use policies (AUP). 
make it clear to employees that they cannot use copyrighted or trademarked material without perm ission. 
post disclaimers concerning content. 
have attorneys with cyber law expertise review Web content.
Companies can improve their responsibility as custodians of customers' personal data by implementing _ 
opt-in and opt-out information practices. 
AUP. 
e-mail monitoring. 
firewalls. 
100) EC sellers need to protect against fraud and each of the following except: 
public keys. 
customers who deny that they placed an order. 
customers who give false credit card or bad check information in payment for products and services provided. 
use of their name by imposter sellers. 
	

general business data bank

Question


181. Personal selling lets the
salesperson adapt the firm's marketing mix to a specific customer. This is an
aspect of which marketing mix variable?

A.
Price 

B.
Place 

C.
Promotion 

D.
Product 
















182. is direct spoken
communication between sellers and potential customers.

A.
Personal
selling 



B.
Sales promotion 

C.
Advertising 

D.
Publicity 

E.
Mass selling 



183. From the
perspective of the four Ps, personal selling is to advertising as

A.
mass selling is to
branding. 



B.
Place is to Product. 

C.
sales promotion is to
pricing. 

D.
warranties are to
channel type. 

E.
geographic terms are to
price allowances. 



184.refers
to personal communication between a seller and a customer who wants the seller
to resolve a problem with a purchase. 



A.
Advertising 

B.
Sales promotion 

C.
Publicity 

D.
Personal selling 

E.
Customer service 



185. Advertising
is:



A.
the designing and
distribution of novelties, point-of-purchase materials, store signs, contests,
catalogs, and circulars. 



B.
direct communication
between sellers and potential customers. 

C.
any paid form of
nonpersonal presentation of ideas, goods, or services by an identified sponsor.


D.
the main form of
publicity. 

E.
All of these are
included in Advertising. 



186. A popular television show, The
Unexpected, achieved skyrocketing ratings after moralist Tom Bowman attempted
to have it removed from the air. This is an example of mass selling through

A.
advertising. 

B.
publicity. 

C.
unethical means. 

D.
personal selling. 

E.
media hype. 



187. Sales
promotion:

A.
lets the salesperson
adapt the firm's marketing mix to each potential customer. 



B.
is the main form of
advertising. 

C.
tries to help the
personal selling and mass selling people. 

D.
is free. 

E.
consists of both
advertising and personal selling. 



188. Catalogs, point-of-purchase
materials, and free samples are all examples of:

A.
publicity. 



B.
personal selling. 

C.
sales promotion. 

D.
advertising. 



189. Coupons,
samples, and point-of-purchase materials are examples of

A.
advertising. 



B.
publicity. 

C.
specialty service. 

D.
personal selling. 

E.
sales promotion. 
















190. When Herbal Essences offers
"dollar-off coupons" to adult women to try to get them to try its
shampoos and conditioners, this is an example of:

A.
publicity. 

B.
sales promotion. 

C.
product development. 

D.
market penetration. 

E.
distribution. 



191. Ford Motor Co. "loaned"
new Fiestas to social trendsetters who drove the cars as part of their Meals on
Wheels responsibilities. When Ford asked them to write about their driving
experiences on Facebook and Twitter, it was emphasizing which aspect of the
4Ps?

A.
Product 

B.
Place 

C.
Price 

D.
Promotion 



192. The owner of the new Sharp Scissors
hair salon gave coupons to potential customers walking by her store to
stimulate interest and trial of her new hair salon. The coupons are an example
of

A.
advertising. 

B.
publicity. 

C.
sales promotion. 

D.
a channel of
distribution. 

E.
media. 



193. To help cosmetic company, RedRain
Inc., launch a new line of lipstick, tickets that can be redeemed for prizes
are enclosed in some of the lipstick packages. This activity can be best
classified as

A.
advertising. 

B.
publicity. 

C.
sales promotion. 

D.
personal selling. 

E.
mass marketing. 



194. When 3M sent samples of Breathe
Right Nasal Strips to the NFL trainers, this was an example of a strategy.

A.
price




B.
promotion 

C.
personnel 

D.
product 

E.
place 



195."Price":

A.
is affected by the kind
of competition in the target market. 



B.
includes markups and
discounts, but not allowances and freight charges. 

C.
is not affected by
customer reactions. 

D.
is the most important
part of a marketing mix. 



196. The Price
area of the marketing mix:



A.requires
consideration of the cost of the marketing mix and the competition facing the
firm when setting prices. 



B.
does not involve
estimating consumer reaction to possible prices. 



C. refers
to any paid form of nonpersonal presentation of ideas, goods, or services by an
identified sponsor. 



D.
does not include the
consideration of geographic terms in price setting. 

E.
None of these is
correct. 




















197. When
developing a marketing mix, a marketing manager should remember that:

A.
"Promotion"
includes only personal selling and publicity. 



B.
A channel of
distribution includes at least one intermediary. 

C.
"Price"
includes markups, discounts, allowances, and geographic terms. 

D.
"Product"
includes physical goods but not services. 



198. When Ford Motor Co. introduced its
Escape hybrid SUV, it offered a $1,000 rebate as an incentive to attract new
buyers. This was an example of which aspect of the marketing mix?

A.
Price 

B.
Promotion 

C.
Place 

D.
Product 



199. The most
important variable in a firm's marketing mix is:

A.
Product. 



B.
Price. 

C.
Promotion. 

D.
Place. 

E.
None of these since all
contribute to one whole. 



200. When ranked
in importance from greatest to least, the four Ps line up as follows:

A.
Product, price,
promotion, place. 



B.
Price, promotion, place,
product. 

C.
Promotion, place,
product, price. 

D.
Place, product, price,
promotion. 

E.
The four Ps are of equal
importance. 



201. The
appropriate marketing mix is determined in large part by:

A.
the preferences of the
marketing managers. 



B.
the length of the
product production cycle. 

C.
the needs of the target
market. 

D.
the hottest trends in
viral marketing. 

E.
the popularity of big
box retail stores. 



202. An
appropriate marketing mix should be determined PRIMARILY by

A.
what has worked for the
company in the past. 



B.
the needs of a target
market. 

C.
the budget available to
spend. 

D.
the past experiences of
the marketing manager. 

E.
what product the firm
can produce with economies of scale. 



203. Ideally, a
good marketing mix should:

A.
be very similar to the
marketing mix typically used by key competitors. 



B.
be determined by which
marketing mix costs the least. 

C.
not include much
advertising because it's expensive and usually isn't very effective. 

D.
flow logically from all
the relevant dimensions of a target market. 



204. The text's
"Toddler University" example shows that:



A. parents
are not price sensitive when it comes to assuring that their kids will get a
good college education. 



B.
the needs of a target
market determine the nature of the appropriate marketing mix. 

C.
a small producer can't
compete effectively against large competitors. 

D.
in the long run, a firm
cannot make a profit without its own production facilities. 

E.
All of these are true. 






















205. The text's "Toddler
University" example shows that:

A.
no mass market exists
for general-purpose baby shoes. 

B.
the needs of a target
market determine the nature of the appropriate marketing mix. 

C.
a small producer can't
compete effectively against large competitors. 

D.
no target market exists
for high-quality baby shoes. 

E.
All of these are true. 



206. The text's
Toddler University example shows that TU's marketing plan included:

A.
A detailed description
of the marketing mix to be offered. 



B.
A description of the
resources required to carry out the plan. 

C.
Expected results of the
plan. 

D.
Control procedures. 

E.
All of these. 



207. The main
difference between a "marketing strategy" and a "marketing
plan" is that:

A.
time-related details are
included in a marketing plan. 

B.
a marketing plan
includes several marketing strategies. 

C.
a marketing strategy
provides more detail. 

D.
a marketing strategy
omits pricing plans. 

E.
a marketing plan does
not include a target market. 



208. A
"marketing plan" is:

A.
a marketing program. 



B.
a marketing strategy. 

C.
a marketing
strategy--plus the time-related details for carrying it out. 

D.
a target market and a
related marketing mix. 

E.
a plan that contains the
necessary operational decisions. 



209. A
"marketing plan":

A.
is just another terms
for "marketing strategy." 

B.
consists of several
"marketing programs." 

C.
includes the
time-related details for carrying out a marketing strategy. 

D.
is a strategy without
all the operational decisions. 

E.
ignores implementation
and control details. 



210. A
"marketing plan" should include:

A.
some control procedures.




B.
what company resources
will be needed--at what rate. 

C.
what marketing mix is to
be offered to whom--and for how long. 

D.
what sales and profit
results are expected. 

E.
all of these are
included in a marketing plan. 



211. Which of
the following is part of a complete marketing plan?

A.
Competitors' marketing
strategies. 



B.
What company resources
(costs) are required and at what rate. 

C.
How different marketing
mixes (for different target markets) relate to each other. 

D.
All of these are parts
of a complete marketing plan. 



212. Which of
the following would probably NOT be in a proposed marketing plan?

A.
A list of what company
resources (costs) would be required. 



B.
A statement of how
frequently the design of the website will be changed. 

C.
Expected sales and
profit results. 

D.
A description of the
target market and marketing mix. 

E.
All of these would
normally be part of a marketing plan. 
	

accounts help!!!!!!!!

Question
	Scenario: You are the Accountant for WanneBee Corporation WannaBee Corporation has $1,500,000 of Receivables on December 31, 2000. WannaBee uses the Allowance Method and historical data indicates that 7% of receivables become uncollectible. The end of year balance in the ADA is 0. The following are the 2000 end of year receivables. AR- Goodboy $25,000 AR-NannyNancy $250,000 AR-BusyBody $75,000 AR-AlphaBetCo $130,000 AR-DippyDo $55,000 AR-TipsyTurvy $98,000 AR-MerryMen $145,000 AR-HappyHart $289,000 AR-CurlyCues $211,000 AR-MityMan $47,000 AR-PrettyPenny $109,000 AR-JumpingJax $66,000 During 2001 the following events occurred: Goodboy defaulted. BusyBody declared bankruptcy but paid $19,000. DippyDo paid the account in full. MerryMen still owes $48,000. CurlyCues has not answered the phone for 8 months. PrettyPenny paid its account. NannyNancy paid $150,000 and on November 21 made a 120 note at 4% APR for the remainder. AlphaBetCo paid its account in full. TipsyTurvy has closed its business. HappyHart paid its bill. MityMan still owes its account. JumpingJax paid ½ its bill and will not pay the rest. The Receivables balance at the end of the year is $2,235,000 Assignments: (1) Prepare the Required AJE for December 31, 2000. (2) Prepare the Required AJE for December 31, 2001.	

TCO D Which of the following performance measures will

Question
	
TCO D Which of the following performance measures will

1. (TCO D) Which of the following performance measures will decrease if there is an increase in the accounts receivable? 

Return on Investment Residual Income 
(A) 
Yes
Yes

(B)
No
Yes

(C)
Yes
No

(D)
No
No

(Points : 5) 
Choice A
Choice B
Choice C
Choice D


Question 2. 2. (TCO D) For which of the following decisions are opportunity costs relevant? 


The decision to make or buy a needed part
The desision to keep or drop a product line

(A)
Yes
Yes

(B)
Yes
No

(C)
No
Yes

(D)
No
No


(Points : 5) 
Choice A
Choice B
Choice C
Choice D 


Question 3. 3. (TCO D) For which of the following decisions are sunk costs relevant? (Points : 5) 
The decision to keep an old machine or buy a new one
The decision to sell a product at the split-off point or after further processing
The decision to accept or reject a special order offer
All of the above
None of the above

1. (TCO D) Seebach Corporation has two major business segments—Apparel and Accessories. Data concerning those segments for June appear below.

Sales revenues, Apparel 
$700,000

Variable expenses, Apparel
$406,000

Traceable fixed expenses, Apparel
$98,000

Sales revenues, Accessories
$710,000

Variable expenses, Accessories
$312,000

Traceable fixed expenses, Accessories 
$107,000


Common fixed expenses totaled $292,000 and were allocated as follows: $155,000 to the Apparel business segment and $137,000 to the Accessories business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. (Points : 15) 



Question 2. 2. (TCO D) Ferro Wares is a division of a major corporation. The following data are for the latest year of operations.

Sales $33,040,000 
Net Operating Income $1,453,760 
Average Operating Assets $8,000,000 
The company's minimum required rate of return 18% 

Required:

i. What is the division's ROI?

ii. What is the division's residual income? (Points : 15) 



Question 3. 3. (TCOD) The management of Thews Corporation is considering dropping product E28I. Data from the company's accounting system appear below.

Sales $480,000 
Variable Expenses $202,000 
Fixed Manufacturing Expenses $158,000 
Fixed Selling and Administrative Expenses $130,000 

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $86,000 of the fixed manufacturing expenses and $67,000 of the fixed selling and administrative expenses are avoidable if product E28I is discontinued.

Required:

i. What is the net operating income earned by product E28I according to the company's accounting system? Show your work!

ii. What would be the effect on the company's overall net operating income of dropping product E28I? Should the product be dropped? Show your work! (Points : 15) 



Question 4. 4. (TCO D) Rosiek Corporation uses part A55 in one of its products. The company's accounting department reports the following costs of producing the 4,000 units of the part that are needed every year. 


Per Unit 
Direct Materials $2.80 
Direct Labor $6.30 
Variable Overhead $8.50 
Supervisor's Salary $2.60 
Depreciation of Special Equipment $6.80 
Allocated General Overhead $6.10 

An outside supplier has offered to make the part and sell it to the company for $32.30 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part A55 could be used to make more of one of the company's other products, generating an additional segment margin of $26,000 per year for that product.

Required:

i. Prepare a report that shows the effect on the company's total net operating income of buying part A55 from the supplier rather than continuing to make it inside the company.

ii. Which alternative should the company choose? (Points : 15) 



Question 5. 5. (TCO D) A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows.


Direct Materials $18.50 
Direct Labor $1.20 
Variable manufacturing overhead $8.40 
Fixed manufacturing overhead $3.90 
Unit product cost $32.00 

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturinSubmitted:8 hours ago.	

450 words with five references

Question
	
you are the office manager at a primary care practice that recently aquired extra funds that you believe should be used to upgrade its rudimentary health information technology system to better manage its electronic records. You have decided to write a proposal to the practice owner and staff justifung your recommendations for purchasing a current cutting-edge health information management system setting cost aside and using internet research to support argument include in the following: What are the potential benefits of an upgraded system to the practice? what are the potential benefits of an upgraded system to the staff? who will need to be trained to use the system/technologies?
what challenge will you face implementing the new system
	

Designing and Managing Integrated Marketing Communications GENERAL CONCEPT QUESTIONS

Question
	
Designing and Managing

Integrated Marketing Communications







GENERAL CONCEPT
QUESTIONS





Multiple Choice




 
Modern marketing calls for more
 than developing a good product, pricing it attractively, and making it
 accessible. Companies must also ________.
 

 
attract popular celebrities to
 endorse their brands in order to appear credible
 
reach historically
 underrepresented markets with their products
 
relate to employees on a more
 personal level
 
advertise exclusively to
 current users to cement their commitment to the brand
 
communicate with present and
 potential stakeholders and the general public




 
Marketing communications are
 the means by which firms attempt to ________, persuade, and remind
 consumers about the products and brands that they sell.
 

 
inform
 
reach
 
attract
 
interest
 
none of the above




 
Marketing communications can
 contribute to brand equity by establishing the brand in memory and
 ________.
 

 
creating interest
 
communicating quality
 
creating demand
 
creating a brand image
 
introducing new products to the
 market




 
Dramatic changes in consumer
 technologies and media habits have ________.
 

 
eroded the effectiveness of
 the mass media
 
increased the effectiveness of
 the mass media
 
expanded the appeal of
 mass-media marketing
 
reduced the cost of mass-media
 marketing
 
all of the above




 
Television
 advertising used to be the most powerful means of hitting the consumer
 marketing bull’s-eye. Its demise is attributed to ________ and to shifts
 in the media now used to reach consumers.
 

 
the aging of the baby boomer
 demographic
 
a shift in the proportion of
 radio listening to television viewing
 
increasing consumer cynicism
 toward advertising
 
the fragmentation of U.S.
 audiences
 
none of the above




 
The marketing communications
 mix consists of eight major modes of communications. Which of the
 following is NOT one of these modes?
 

 
Personal selling
 
Direct marketing
 
Sales promotions
 
Packaging
 
Advertising




 
Every ________ delivers an
 impression that can strengthen or weaken a customer’s view of the company.
 

 
brand equity
 
brand contact
 
salesman
 
featured ad
 
direct-mail piece




 
Marketing communications
 activities contribute to brand equity in all of the following ways EXCEPT
 ________.
 

 
by enhancing brand performance
 
by creating brand awareness
 
by eliciting positive brand
 judgments
 
by linking the right
 associations to the brand image in consumers’ memories
 
by facilitating a stronger
 consumer-brand connection






 
The starting point in planning
 marketing communications is an audit of all the potential ________ that
 customers in the target market may have with the brand and the company.
 

 
consumers
 
interests
 
interactions
 
usages
 
exposures




 
One
 implication of the concept of brand equity is that the manner in which
 brand associations are formed does not matter. In other words, if a
 consumer has an equally strong, favorable, and unique brand association
 between two media, then the impact in terms of brand equity should be
 ________.
 

 
prominent
 
identical
 
different
 
measurable
 
actionable




 
Blogs and chat rooms are
 examples of the ________ communication platform.
 

 
personal selling
 
events and experiences
 
public relations and publicity
 
word-of-mouth marketing
 
direct and interactive
 marketing




 
Marketers need to assess which
 experiences and impressions will have the most influence at each ________
 of the buying process.
 

 
stage
 
level
 
consumer
 
step
 
none of the above




 
Anything that causes the
 consumer to notice and pay attention to the brand can ________ brand
 awareness.
 

 
decrease
 
increase
 
effect
 
affect
 
influence




 
The macromodel of effective
 communications contains nine elements. Two elements represent the major
 parties in a communication. These two parties are called ________ and
 ________.
 

 
sender; subject
 
beginner; receiver
 
receiver; starter
 
initiator; receiver
 
sender; receiver




 
According
 to the macromodel of communication, the four major communication functions
 are decoding, response, feedback, and ________.
 

 
message
 
encoding
 
response
 
feedback
 
noise




 
In communicating, selective
 attention, selective distortion, and ________ may come into play.
 

 
selective listening
 
noise
 
selective retention
 
selective hearing
 
selective interest




 
In micromodels of marketing
 communications, the four classic response hierarchy models includes all of
 the following EXCEPT ________.
 

 
communications model
 
innovation-adoption model
 
hierarchy-of-effects model
 
AIDA
 
BAMT




 
The hierarchy-of-effects model
 contains awareness, knowledge, liking, ________, conviction, and purchase.
 

 
cognitive response
 
preference
 
interest
 
attitude
 
none of the above



19.
Senders know that to effectively communicate, they must encode
their messages so that the target audience can decode them; the must transmit
the message through the media that reach the target audience and develop
________ channels to monitor the responses.

1.
feedback

2.
interest

3.
response

4.
decoding

5.
none of the above


 
The
 eight steps in developing effective communications start with the basics:
 identifying the target audience, determining the objectives, designing the
 communications, ________ , and establishing the budget.
 

 
selecting the advertising copy
 
managing the process
 
choosing the media mix
 
selecting the channels
 
measuring results



21.
The ability to identify the brand within the category, in
sufficient detail to make a purchase, is known as ________.

1.
category need

2.
brand awareness

3.
brand attitude

4.
brand purchase intention

5.
brand conviction

22.
Formulating the communications to achieve the desired response
will require solving three problems: message strategy, creative strategy, and
________.

1.
market-specific advertising

2.
media sources

3.
advertising

4.
transformational appeal

5.
message source




 
Creative strategies are how
 marketers translate their messages into a specific communication. Creative
 strategies can be broadly classified as involving either informational or
 ________ appeals.
 

 
branded entertainment
 
point-of-purchase
 
advertorials
 
transformational
 
individualization



24.
John Maloney saw buyers as expecting one of four types of reward
from a product. These include rational, social, ego satisfying, and ________.

1.
exciting

2.
functional

3.
low costs

4.
sensory

5.
safety


 
A(n)
 ________ appeal elaborates on a non-product-related benefit or image when
 advertising a product or service.
 

 
informational
 
destructive
 
involving
 
creative
 
transformational




 
Communicators use ________
 appeals such as fear, guilt, and shame to get people to do things or stop
 doing things.
 

 
destructive
 
scary
 
attractive
 
emotional
 
negative



27.
Communicators use positive emotional appeals to attract consumer
attention and raise their ________ with an ad.

1.
emotions

2.
exposure

3.
involvement

4.
assessment

5.
interest

28.Messages delivered by attractive
or popular sources can potentially achieve higher attention and recall. What is
important is the spokesperson’s credibility. Source credibility consists of
trustworthiness, likability, and ________.

1.
celebrity status

2.
experience

3.
expertise

4.
age

5.
reputation

29.
________ is the specialized knowledge that the communicator
possesses to back the advertising claim.

1.
Likeability

2.
Source

3.
Expertise

4.
Trustworthiness

5.
Faith


 
A
 well-chosen celebrity can draw attention to a product or brand. The choice
 of the celebrity is critical. The celebrity should have high recognition,
 high positive affect, and high ________ to the product.
 

 
interest
 
attachment
 
relevancy
 
appropriateness
 
fit



	

Question_Lasher_12Dec_2nd

Question
	1. You're the newly hired CFO of a small construction company. The privately held firm is
capitalized with $2 million in owner's equity and $3 million in variable rate bank loans. The
construction business is quite risky, so returns of 20% to 25% are normally demanded on equity
investments. The bank is currently charging 14% on the firm's loans, but interest rates are expected to
rise in the near future. Your boss, the owner, started his career as a carpenter and has an excellent grasp
of day-to-day operations. However, he knows little about finance. Business has been good lately, and
several expansion projects are under consideration. A cash flow projection has been made for each.
You're satisfied that these estimates are reasonable.
 The owner has called you in and confessed to being confused about the projects. He instinctively
feels that some are financially marginal and may not be beneficial to the company, but he doesn't know
how to demonstrate this or to choose among the projects that are financially viable.
 Assuming the owner understands the concept of return on investment, write a brief memo explaining
the ideas of IRR and cost of capital and how they can solve his problem. Don't get into the detailed
mechanics of the calculations, but do use the figures given above to make a rough estimate of the
company's cost of capital, and use the result in your memo.

line.
2. You're the CFO of a small company that is considering a new venture. The president and
several other members of management are very excited about the idea for reasons related to engineering
and marketing rather than profitability. You've analyzed the proposal by using capital budgeting
techniques, and found that it fails both IRR and NPV tests using a cost of capital based on market
returns. The problem is that interest rates have risen steeply in the last year, so the cost of capital seems
unusually high.
 You've presented your results to the management team, who are very disappointed. In fact, they'd
like to find a way to discredit your analysis, so they can justify going ahead with the project. You've
explained your analysis, and everything seems well understood except for one point. The group insists
that the use of returns currently available to investors as a basis for the cost of capital components
doesn't make sense. The vice president of marketing put his objection as follows. "Two years ago
Chapter 13
we borrowed $1 million at 10%. We haven't paid it back, and we're still making interest payments of
$100,000 every year. Clearly, our cost of debt is 10% and not the 14% you want to use. If you'd use
our "real" cost of debt, as well as of equity and preferred stock, the project would easily qualify
financially." How do you respond?
 (The appropriate response is relatively short. It's worth noting that this kind of thing happens all the
time in corporations. Marketing and engineering people often get carried away with "neat" projects that
don't make sense financially. The CFO has to watch the bottom line and it's not unusual to be seen as a
wet blanket who wants to spoil the others' fun!)
3. The engineering department at Digitech Inc. wants to buy a new, state-of-the-art computer. The
proposed machine is faster than the one now being used, but whether the extra speed is worth the
expense is questionable, given the nature of the firm's applications. The Chief Engineer (who has an
MBA and a reasonable understanding of financial principles) has put together an enormously detailed
capital budgeting proposal for the acquisition of the new machine. The proposal concludes that it's a
great deal.
 You're a financial analyst for the firm, and have been assigned to review the engineering proposal.
Your review has highlighted two problems. First, the cost savings projected as a result of using the new
machine seem rather optimistic. Second, the analysis uses an unrealistically low cost of capital.
 With respect to the second point, the engineering proposal contains the following exhibit
documenting the development of the cost of capital used:
Digitech's capital structure is 60% debt and 40% equity
The manufacturer is offering financing at 8% as a sales incentive
Cost of capital = 8% × .6 = 4.8%
After tax this is 4.8% (1?T) = 4.8%(.6) = 2.9%
You've checked the market and found that Digitech's bonds are currently selling to yield 14%
and the stock is returning about 20%. How would you proceed? That is, explain the chief engineer's
error(s) and indicate the correct calculations.
4. Whitefish Inc. operates a fleet of 15 fishing boats in the North Atlantic Ocean. Fishing has been
good in the last few years, as has the market for product, so the firm can sell all the fish it can catch.
Charlie Bass, the vice president for operations, has worked up a capital budgeting proposal for the
acquisition of new boats. Each boat is viewed as an individual project identical to the others, and shows
an IRR of 22%. The firm's cost of capital has been correctly calculated at 14% before the retained
earnings break and 15% after that point. Charlie argues that the capital budgeting figures show that the
firm should acquire as many new boats as it possibly can, financing them with whatever means it finds
available. You are Whitefish's CFO. Support or criticize Charlie's position. How should the
appropriate number of new boats be determined? Does acquiring a large number of new boats present
any problems or risks that aren’t immediately apparent from the financial figures?
PROBLEMS
The Cost of Capital
WACC Calculations: Example 13-1 (page 561)
1. Blazingame Inc.'s capital components have the following market values:
 Debt $35,180,000
 Preferred Stock $17,500,000
 Common Equity $48,350,000
Calculate the firm's capital structure and show the weights that would be used for a weighted average
cost of capital (WACC) computation.
2. The Aztec Corporation has the following capital components and costs. Calculate Aztec's
WACC.
Component Value Cost
Debt $23,625 12.0%
Preferred Stock $ 4,350 13.5%
Common Equity $52,275 19.2%
3. Willerton Industries Inc. has the following balances in its capital accounts as of 12/31/x3:
Long Term Debt $65,000,000
Preferred Stock $15,000,000
Common Stock $40,000,000
Paid in Excess $15,000,000
Retained Earnings $37,500,000
Calculate Willerton’s capital structure based on book values.
Market Value Based Capital Structure: Example 13-2 (page 564)
4. Referring to Willerton Industries of the previous problem, the company’s long term debt is
comprised of 20-year $1,000 face value bonds issued seven years ago at an 8% coupon rate.
The bonds are now selling to yield 6%. Willerton’s preferred is from a single issue of $100 par
value, 9% preferred stock that is now selling to yield 8%. Willerton has four million shares of
common stock outstanding at a current market price of $31. Calculate Willerton’s
market value
based capital structure.
5. Again referring to Willerton of the two previous problems, assume the firm’s cost of retained
earnings is 11% and its marginal tax rate is 40%, calculate its WACC using its book value
based capital structure ignoring floatation costs. Make the same calculation using the market
value based capital structure. How significant is the difference?
Chapter 13
6. A relatively young firm has capital components valued at book and market and market
component costs as follows. No new securities have been issued since the firm was originally
capitalized.
Values Market
Component Market Book Cost
Debt $42,830 $40,000 8.5%
Preferred Stock $10,650 $10,000 10.6%
Common Equity $65,740 $32,000 25.3%
 a. Calculate the firm's capital structures and WACCs based on both book and market values, and
compare the two.
 b. What appears to have happened to interest rates since the company was started?
 c. Does the firm seem to be successful? Why?
 d. What would be the implication of using a WACC based on book as opposed to market values? In
other words, what kinds of mistakes might management make by using the book values?
7. Five years ago Hemingway Inc. issued 6,000 thirty-year bonds with par values of $1,000 at a
coupon rate of 8%. The bonds are now selling to yield 5%. The company also has 15,000 shares of
preferred stock outstanding that pay a dividend of $6.50 per share. These are currently selling to yield
10%. Its common stock is selling at $21, and 200,000 shares are outstanding. Calculate Hemingway’s
market value based capital structure.