Assignment:
Question 1. If a company disposes of old computers by selling them in a surplus property sale, this would be a USE of cash on the Statement of Cash Flows. a. True b. False
Question 2. The difference between your sales and your cost of goods sold is known as your _____. a. net profit b. cost of doing business c. owner's equity d. gross profit or gross margin
Question 3. An idea turns into a business opportunity when a. people like the product; b. it is a quality product; c. it can be made cheaply; d. it has commercial potential.
Question 4. Generation X members represent the single largest group of persons moving into retirement age. a. True b. False
Question 5. When a travel agency wanted to predict sales for a new travel adventure they wanted to begin marketing, they looked at sales figures and customer feedback of similar types of vacation packages they had offered in the past. This is an example of:
a. primary data gathering
b. secondary data gathering
c. scientific research
d. intermediate data gathering
Question 6. The process of developing an operating budget begins with the development of a(n):
a. sales budget.
b. income statement.
c. production schedule.
d. capital expenditure budget.
Question 7. In the decline stage of the product life cycle, competition:
a. is virtually nonexistent.
b. begins as competing firms introduce their own versions of the product.
c. has already become well-established, with many weaker firms already leaving the market.
d. will spur major price cuts that dramatically cut into profits.
Question 8. The consumer decision-making process involves need recognition, followed by:
a. information search, alternative evaluation, purchase decision, and post-purchase behavior.
b. information search, information learning, purchase evaluation, and post-purchase behavior.
c. product search, benefit analysis, price analysis, and value analysis.
d. cognitive dissonance, alternative evaluation, and post-purchase learning.