After several new product ideas have been generated, companies will most likely...
evaluate the ideas to determine which have the best opportunity to succeed
A key difference between advertising and publicity is that..
advertising is paid communication and publicity is non-paid
Gross margin is..
the difference between the selling price and the product costs
Businesses that take part in a channel of distribution are known as...
channel members
Which of the following scenarios will most likely result in comparatively low prices?
products are sold at a large large warehouse store offering little personal service located on the outskirts of town
Product costs + operating expenses + profit =
selling price
To plan effective promotions, marketers must first...
understand the communication process
Which of the following is a direct channel of distribution?
Farmer Jane grows tomatoes and sells them to customers at a roadside stand next to her farm
Which marketing function involves communicating directly with potential customers to determine their needs?
selling
Which of the following is a function of promotion?
advertising
The final step in the financial decision-making process is to...
make needed adjustments to the budget
An income statement usually covers...
six months or a year
The first step of the budgeting process is to...
prepare a list of each type of income and expense that will be part of the budget
Which type of budget is an estimate of the actual money received and paid out for a specific period?
a cash budget
Which of the following is NOT generally a goal of a business budget?
to convince employees to take a big pay cut so the business can avoid bankruptcy
An operating budget is usually planned for...
operating budgets are commonly prepared for all of the above time frames
This shows how much profit is being made by each dollar of sales for the period being analyzed...
net income ratio
Employers must make matching contributions to...
FICA (social security and medicare) taxes
For long-established businesses, the main source of budget information is...
the business's financial records
All of the following are private businesses that collect and publish financial information on similar businesses and industries EXCEPT...
the National Federation of Independent Business
What is a payroll record, and what information is included on a payroll record?
payroll records are documentation used to process earnings payments and record each employee's pay history. Payroll records contain information on all employees of the company, their compensation, and benefits.
Discuss what is included on an income statement and balance sheet and how they are arranged on the financial statements.
An income states is a report of revenue, expenses, and net income or loss from operations for a specific period. A balance sheet is where a company reports its assets, liabilities, and owner's equity. A balance sheet is arranged where the assets are on th
Discuss the two main purposes of a business budget.
The main goal of a business budget it to determine the sources and amounts of income, to identify the types and amounts of expenses, determine how income will cover expenses, and to reward investors if there is a profit.
Discuss the difference between final consumers and business consumers.
Final consumers are people who buy products and services mostly for their own use. Business consumers are people, companies, and organizations that buy products for the operation of a business, for incorporation into other products and services, or for re