Marketing 1A: Unit 4 Quiz

Companies that fail to identify needs risk which of the following?

• loss of customers

• wasteful spending

• increasing interest

• increasing debt

What do smart companies do to account for depreciation?

• lower their prices

• locate cheaper vendors

• put money in savings

• purchase an insurance policy

An asset that is predicted to grow is referred to as

• an investment

• debt capital

• equity capital

• interest

A company must consider all of the following when purchasing items for resale EXCEPT

• target market

• sales forecast

• profit margin

• depreciation

The loss a company experiences when a service goes unused is referred to as

• depreciation

• perishability

• liability

• equity

Which of the following caused readership of The Boston Globe to plummet?

• poor journalism

• a competitor

• online news

• rising subscription costs

What is the first thing a company should do after determining a business need?

• locate a vendor

• fill out a purchase order

• submit an invoice

• choose a specific product

Which type of budget indicates more expenses than income?

• a deficit budget

• a balanced budget

• a debt budget

• an equity budget

Most companies lose money in their first years of business.

• True

• False

Shareholders are selfless benefactors who are interested only in the growth of the business.

• True

• False