NCSU MIE 201 Final questions with 100% correct answers rated A+

NCSU MIE 201 Finalretailer’s vs wholesalers - correct answer wholesalers sell to other organizations retailers sell for personal use third party logistics - correct answer an outsourcing trend where firms aid organizations with supply chain management (order fulfillment, product repair, customer service) effective social media strategies - correct answer combines word of mouth with communication technologies strategy must develop a cost effective media mix direct marketing advantages - correct answer main advantage: response measurability other advantages: personally addressable media, no purchase of time/space in other media, direct response aspect highly leveraged firms - correct answer firms who carry a lot of debt leverage is an investing technique where borrowed funds are used to finance an investment. if you win, you win big because you didn't put any of your own money down. If you lose, you lose big because you lost money you never had to begin with and you didn't gain anything marketing channel - correct answer aka distribution channel the practices and activities necessary to transfer goods from the point of production to the point of consumption distribution strategy - correct answer the overall plan for moving products through intermediaries and on to final customers financial management - correct answer planning for a firms money needs and managing the allocation and spending of funds financial plan definition - correct answer document that outlines funds needed for a certain period of time; includes the sources and potential uses of those funds three sources of input for the financial plan - correct answer strategic plan: establishes companies overall direction; identifies needs for major investments companies financial statements: income statement, statement of cash flows; tells the manager how much cash the company has now and how much it is likely to generate in the future external financial environment: interest rates and the overall health of the economy EOQ - correct answer economic order quantity; quantity of materials that when ordered provide lowest ordering and storage costs three budgeting challenges - correct answer limited amount of money revenue/costs are hard to predict hard to tell what needs to be spent hedging - correct answer protecting against cost increases by fixing future supply costs zero based budgeting - correct answer all departments start at $0 each year and justify every item in the budget four types of budgets - correct answer start up: get off the ground operating: master budget; all revenue sources capital: major investments; real estate, equipment, etc project: project costs debt vs equity financing - correct answer both ways of bringing in money; debt financing is pure borrowing, equity involves selling shares cost of capital - correct answer average rate of interest a firm pays on its debt and equity prime interest rate - correct answer best interest rate available to on short term bank loans (does not apply to commercial banks) short term debt financing - correct answer credit cards trade credit; open account purchasing secured loans; backed by assets/collateral unsecured loans; require good credit, no collateral commercial paper; promissory notes- contract to repay factoring; selling accounts receivable long term debt financing - correct answer long term loans leases; sell right to use an asset in exchange for regular payments