Question 1

Which type of financial ratio measures the extent that a firm generates value for shareholders?&#10;A) debt ratio&#10;B) activity ratio&#10;C) liquidity ratio&#10;D) dividend ratio

Accepted Answer

The dividend ratio measures the amount of dividends paid to shareholders as a percentage of net income. Higher dividend ratios indicate that the company is generating more value for its shareholders by paying them a higher percentage of profits.

Question 2

Premise control should be used continuously to confirm the validity of any assumptions used to develop a marketing plan.

Accepted Answer

Premise control refers to the process of continuously monitoring and validating the assumptions or premises on which a marketing plan is based. This helps to ensure that the plan remains relevant and effective in the face of changing market conditions, customer preferences, and other variables. By using premise control, marketers can adjust their strategies as needed to stay ahead of the competition and deliver maximum value to their target audience. Therefore, it is important to use premise control continuously throughout the planning and execution phases of a marketing campaign.

Question 3

Financial ratios and marketing metrics should be the focus of premise control.

Accepted Answer

Premise control refers to the management of facilities and assets, and financial ratios and marketing metrics are more relevant in areas such as finance and marketing respectively, therefore they may not be the focus of premise control.

Question 4

A firm's ability to meet all interest payments and fixed-charge obligations would best be measured with a ________ ratio.&#10;A) debt&#10;B) activity&#10;C) liquidity&#10;D) profitability

Accepted Answer

Debt ratio measures a firm's ability to meet all interest payments and fixed-charge obligations.

Question 5

What is the broadest level that is analyzed in a premise control?&#10;A) industry&#10;B) competition&#10;C) market segment&#10;D) macro-environment

Accepted Answer

The broadest level analyzed in a premise control is the macro-environment, which includes factors such as political, economic, social, technological, environmental, and legal aspects. This level of analysis looks at the external environment as a whole and how it may impact the organization.

Question 6

Which type of financial ratio measures whether a firm is able to meet its current financial obligations?&#10;A) activity ratio&#10;B) liquidity ratio&#10;C) dividend ratio&#10;D) profitability ratio

Accepted Answer

Liquidity ratios measure a firm's ability to meet its current financial obligations. These ratios focus on a company's short-term assets and liabilities, such as cash, inventory, accounts payable, and current debt. Examples of liquidity ratios include the current ratio, quick ratio, and cash ratio. Activity ratios measure a firm's efficiency in managing its assets, dividend ratios measure the amount of dividends paid out to shareholders, and profitability ratios measure a firm's ability to generate profits in relation to its revenue, assets, or equity.

Question 7

Current ratios and acid-test ratios are types of liquidity ratios.

Accepted Answer

Current ratios and acid-test ratios are both examples of liquidity ratios, which are used to measure a company's ability to meet its short-term obligations. The current ratio measures a company's current assets relative to its current liabilities, while the acid-test ratio (also known as the quick ratio) measures a company's ability to pay off its short-term debts using only its most liquid assets (such as cash and accounts receivable).

Question 8

The primary purpose of using marketing metrics is to ________.&#10;A) identify the performance of a business unit&#10;B) correct problems with the marketing strategy&#10;C) determine what factors drive a firm's performance&#10;D) evaluate the assumptions underlying a marketing plan

Accepted Answer

Marketing metrics are primarily used to determine what factors drive a firm's performance by measuring and analyzing various aspects of marketing activities.

Question 9

What is a financial ratio? Why should marketers be pay close attention to financial ratios?

Accepted Answer

The answer of What is a financial ratio? Why should...

Question 10

Which type of financial ratio would be most appropriate for measuring how effectively a firm uses its plants,equipment,and assets?&#10;A) debt&#10;B) activity&#10;C) liquidity&#10;D) profitability

Accepted Answer

Activity ratios (also known as asset utilization ratios) are designed to measure how effectively a company uses its assets to generate revenue. This would include its plants, equipment, and other assets. Examples of activity ratios include inventory turnover, asset turnover, and accounts receivable turnover.

Question 11

A firm is most likely using ________ when it identifies and corrects a marketing problem in order to obtain forecasted results.&#10;A) progress control&#10;B) SWOT analysis&#10;C) premise control&#10;D) staircase analysis

Accepted Answer

The answer of A firm is most likely using ________...

Question 12

Which of the following involves testing and questioning the values,assumptions,policies,and strategies of a specific marketing mix?&#10;A) progress control&#10;B) staircase analysis&#10;C) premise control&#10;D) SWOT analysis

Accepted Answer

The answer of Which of the following involves testing and...

Question 13

What information would be provided by the following formula? actual market&#10;Market potential&#10;A) market growth&#10;B) customer demand&#10;C) market saturation&#10;D) total sales volume

Accepted Answer

The answer of What information would be provided by the...

Question 14

Which of the following formulas would be best for calculating the total contribution margin?&#10;A) sales revenue - total variable cost&#10;B)  &#10;C) price per unit - total cost per unit&#10;D)

Accepted Answer

The answer of Which of the following formulas would be...

Deck 38: Note : Assessment and Adjustment