GEB EXAM 1 questions with complete
correct answers passed
An area on a perceptual map where there is a cluster of ideal points indicates a market
segment. - correct answer ✔✔ True
Strategy implementation affects top and middle managers but not lower-level employees. -
correct answer ✔✔ False
An example of a marketing decision is whether or not to limit the share of business done with a
single customer. - correct answer ✔✔ True
Editorial content and advertising content are increasingly being mixed on blogs. - correct answer
✔✔ True
Market penetration can be defined as the subdividing of a market into distinct subsets of
customers according to needs and buying habits. - correct answer ✔✔ False
There are five component variables in the marketing mix: product, place, promotion, price, and
people. - correct answer ✔✔ False
With market segmentation, a firm can better operate with limited resources. - correct answer
✔✔ True
The most common bases for segmenting markets are geographic and demographic. - correct
answer ✔✔ True
,Segmentation often reveals that large, random fluctuations in demand actually consist of
several small, predictable, and manageable patterns. - correct answer ✔✔ True
Segmenting industrial markets is generally simpler and easier than segmenting consumer
markets. - correct answer ✔✔ False
The most dramatic new market-segmentation strategy is the targeting of regional tastes. -
correct answer ✔✔ True
After segmenting markets so a firm can target particular customer groups, the next step is to
find out what customer groups want and expect. - correct answer ✔✔ True
In general, the Internet makes market segmentation easier. - correct answer ✔✔ True
Multidimensional scaling involves examining three or more criteria simultaneously in a product-
positioning analysis. - correct answer ✔✔ True
A firm can usually serve two or more market segments with the same strategy. - correct answer
✔✔ False
It is okay for firms to create expectations that exceed the service the firm can or will offer if it
will attract customers. - correct answer ✔✔ False
Return on assets is the most widely used technique for determining whether debt, stock, or a
combination of debt and stock is the best alternative for raising capital to implement strategies.
- correct answer ✔✔ False
Besides net profit from operations and the sale of assets, two basic sources of funds for an
ongoing enterprise are debt and equity. - correct answer ✔✔ True
,In low earning periods, too much debt in the capital structure of an organization can endanger
stockholders' returns and jeopardize company survival. - correct answer ✔✔ True
Additional capital is often required for successful strategy implementation. - correct answer ✔✔
True
An EPS/EBIT chart can be constructed to determine the break-even point, where one financing
alternative becomes more attractive than another. - correct answer ✔✔ True
A reason for concern over the dilution of company stock is a possible hostile takeover. - correct
answer ✔✔ True
When additional stock is issued to finance implementation of strategy, ownership and control of
the enterprise are strengthened. - correct answer ✔✔ False
Stock issuances are always better than debt for raising capital. - correct answer ✔✔ False
A projected financial analysis can be used to forecast the impact of various implementation
decisions. - correct answer ✔✔ True
When performing projected financial analysis, the balance sheet should be prepared before the
income statement. - correct answer ✔✔ False
The percentage-of-sales method should be used for projecting the cost of goods sold and the
expense items in the income statements. - correct answer ✔✔ True
The cash account is used as the plug figure in projected balance sheets. - correct answer ✔✔
True
, The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections,
so stakeholders need not worry about the financial projections of different companies. - correct
answer ✔✔ False
A financial budget is a document that details how funds will be obtained and spent for a
specified period of time. - correct answer ✔✔ True
Limiting an organization's expenditures is the primary purpose of financial budgets. - correct
answer ✔✔ False
The most common type of financial budget is the capital budget. - correct answer ✔✔ False
Although cash budgets can be a useful financial tool, publicly held companies are not required
to complete them. - correct answer ✔✔ False
A limitation of financial budgets is that they can hide inefficiencies if based solely on precedent
rather than on periodic evaluation of circumstances and standards. - correct answer ✔✔ True
All the methods for determining a business' worth can be grouped into three basic approaches:
what a firm earns, what a firm spends, and what a firm will bring in the market. - correct answer
✔✔ False
A conservative rule of thumb for measuring the value of a firm is to establish a business' worth
to be 10 times the firm's most current annual profit. - correct answer ✔✔ False
One of the four recommended approaches for determining a firm's worth is to base the analysis
on the selling price of a similar company. - correct answer ✔✔ False
correct answers passed
An area on a perceptual map where there is a cluster of ideal points indicates a market
segment. - correct answer ✔✔ True
Strategy implementation affects top and middle managers but not lower-level employees. -
correct answer ✔✔ False
An example of a marketing decision is whether or not to limit the share of business done with a
single customer. - correct answer ✔✔ True
Editorial content and advertising content are increasingly being mixed on blogs. - correct answer
✔✔ True
Market penetration can be defined as the subdividing of a market into distinct subsets of
customers according to needs and buying habits. - correct answer ✔✔ False
There are five component variables in the marketing mix: product, place, promotion, price, and
people. - correct answer ✔✔ False
With market segmentation, a firm can better operate with limited resources. - correct answer
✔✔ True
The most common bases for segmenting markets are geographic and demographic. - correct
answer ✔✔ True
,Segmentation often reveals that large, random fluctuations in demand actually consist of
several small, predictable, and manageable patterns. - correct answer ✔✔ True
Segmenting industrial markets is generally simpler and easier than segmenting consumer
markets. - correct answer ✔✔ False
The most dramatic new market-segmentation strategy is the targeting of regional tastes. -
correct answer ✔✔ True
After segmenting markets so a firm can target particular customer groups, the next step is to
find out what customer groups want and expect. - correct answer ✔✔ True
In general, the Internet makes market segmentation easier. - correct answer ✔✔ True
Multidimensional scaling involves examining three or more criteria simultaneously in a product-
positioning analysis. - correct answer ✔✔ True
A firm can usually serve two or more market segments with the same strategy. - correct answer
✔✔ False
It is okay for firms to create expectations that exceed the service the firm can or will offer if it
will attract customers. - correct answer ✔✔ False
Return on assets is the most widely used technique for determining whether debt, stock, or a
combination of debt and stock is the best alternative for raising capital to implement strategies.
- correct answer ✔✔ False
Besides net profit from operations and the sale of assets, two basic sources of funds for an
ongoing enterprise are debt and equity. - correct answer ✔✔ True
,In low earning periods, too much debt in the capital structure of an organization can endanger
stockholders' returns and jeopardize company survival. - correct answer ✔✔ True
Additional capital is often required for successful strategy implementation. - correct answer ✔✔
True
An EPS/EBIT chart can be constructed to determine the break-even point, where one financing
alternative becomes more attractive than another. - correct answer ✔✔ True
A reason for concern over the dilution of company stock is a possible hostile takeover. - correct
answer ✔✔ True
When additional stock is issued to finance implementation of strategy, ownership and control of
the enterprise are strengthened. - correct answer ✔✔ False
Stock issuances are always better than debt for raising capital. - correct answer ✔✔ False
A projected financial analysis can be used to forecast the impact of various implementation
decisions. - correct answer ✔✔ True
When performing projected financial analysis, the balance sheet should be prepared before the
income statement. - correct answer ✔✔ False
The percentage-of-sales method should be used for projecting the cost of goods sold and the
expense items in the income statements. - correct answer ✔✔ True
The cash account is used as the plug figure in projected balance sheets. - correct answer ✔✔
True
, The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections,
so stakeholders need not worry about the financial projections of different companies. - correct
answer ✔✔ False
A financial budget is a document that details how funds will be obtained and spent for a
specified period of time. - correct answer ✔✔ True
Limiting an organization's expenditures is the primary purpose of financial budgets. - correct
answer ✔✔ False
The most common type of financial budget is the capital budget. - correct answer ✔✔ False
Although cash budgets can be a useful financial tool, publicly held companies are not required
to complete them. - correct answer ✔✔ False
A limitation of financial budgets is that they can hide inefficiencies if based solely on precedent
rather than on periodic evaluation of circumstances and standards. - correct answer ✔✔ True
All the methods for determining a business' worth can be grouped into three basic approaches:
what a firm earns, what a firm spends, and what a firm will bring in the market. - correct answer
✔✔ False
A conservative rule of thumb for measuring the value of a firm is to establish a business' worth
to be 10 times the firm's most current annual profit. - correct answer ✔✔ False
One of the four recommended approaches for determining a firm's worth is to base the analysis
on the selling price of a similar company. - correct answer ✔✔ False
