BUS 475 Week 2 Knowledge Check
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BUS 475 Week 2 Knowledge Check

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1. Compared with other approaches to business, the marketing concept is distinct in that it 

2. A company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products. What type of statement is this? 

3. The sales analysis of a product revealed that profits were highest when it was initially introduced into the market with a high selling price. However, the price was gradually reduced as it started facing competition as substitutes entered the market. This is an example of a(n) 

4. Blending the firm's promotion efforts to convey a complete and consistent message is the goal of 

5. According to the concept of social responsibility, a firm has a duty to 

6. The principal participants in the financial markets are 

7. You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years? Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 

8. Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified straight line method over its 5-year depreciable life. Operating costs of the new machine are expected to be $1,100,000 per year. The existing assembly line has 5 years remaining before it will be fully depreciated and has a book value of $3,000,000. If sold today the company would receive $2,400,000 for the existing machine. Annual operating costs on the existing machine are $2,100,000 per year. Bull Gator is in the 46 percent marginal tax bracket and has a required rate of return of 12 percent. Calculate the net present value of replacing the existing machine. Note. Due to rounding and method of calculation, your answer might vary slightly. Choose the closest answer. 

9. A strong stock market and reasonably good earnings have caused the price of the firm's common stock to increase by 25%. 

10. Buying and selling in more than one market to make a riskless profit is called 

11. The United States imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely 

12. Keynes believed that an increase in savings would 

· raise aggregate demand by reducing investment 

13. Which of the following monetary policies reduces aggregate demand and output? 

14. Deficits may be desirable in the short run if they 

15. If for a country, the quantity of its currency demanded exceeds the quantity supplied, then there is a 

16. Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that 

17. Economic efficiency is achieved at a particular output level if 

18. A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above 

19. How are goods manufactured in other countries creating jobs in the United States? 

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