BNAD 100 Final Exam Flash Cards

University of Arizona BNAD 100 Final Exam Flash Cards
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1. If the income statement indicates revenue of $150 and expenses of $120 then total assets are:
d. Can't tell
2. If the Balance Sheet indicates Liabilities of $200 and Equity of $100 then total assets are:
b. $300
3. Assets plus Liabilities must always equal:
d. None of the above
4. Cash and accrual net income are the same when:
b. There are no timing differences
5. Revenue is larger than expenses when:
c. Net income is positive
1. Where will you NOT find consumer products for sale in the United States?
d. Home improvement stores
2. A business model includes which of the following factors?
e. All of the above

(a. Pricing to retail customers
b. Method of manufacturing and distribution
c. Choice or target audience
d. Communication/marketing plan)
3. Which of the following industries (companies) are NOT considered consumer products?
e. All of the above

(a. Banking (eg - Chase)
b. Insurance (eg - Geico)
c. Steel Production (eg - US Steel)
d. Oil & Gas Production (eg - Shell)_
4. Which of the following are included in the business model for Pantene Shampoo for Colored Hair?
e. All of the above

(a. Consumers who color their hair
b. Premium pricing
c. In-house manufacturing
d. Distribution to select retailers)
5. Which of the following types of jobs is offered by a Consumer Products company like P&G?
c. Supply chain
1. If a firm will get paid $50K for a project and their cost is $30K then the margin is:
b. 40%
2. If you want to join a CPA firm you should be trained in:
c. Accounting
3. If I add two additional people to an Accenture job each with $80 billing rates the average rate will probably:
b. Go down
4. Which occupation does not require an independent exam?
c. Consulting
5. To command an $80 billing rate you must:
d. All of the above

(a. Know how to do something relevant
b. Get along well with people
c. Work really hard)
1. Scale of the US Financial Services Industry - Which of the following is false?
c. Represents 8.3% of US Gross Domestic Product
2. Basic functions of the US Financial Services Industry - Which of the following is false?
a. Safeguards our money and facilitates our transactions
3. Major private players - Which of the following is not one?
c. Securities Brokerages and Exchanges
4. Major Government players - Which of the following is not one?
c. Comcast
5. Best Eller Majors - Which of the following is the best for obtaining a job in the financial services industry?
d. Any of the above

(a. Finance & Accounting
b. Economics & MIS
c. Management & Marketing)
1. "Retailing" is defined as the sale of goods and services from individuals or businesses directly to:
e. None of the above
2. Which one of the following is included in the "10 Things You May Not Know About WM?"
b. Serves 200 million shoppers per week
3. Which of the following are included in W-M's Success Factors?
e. All of the above

(a. Integrated supply chain that lowers product costs
b. EDLC and EDLP
c. Focus on training/strong work ethic
d. Global operations)
4. Which one of the following is NOT a key contributor to W-M's revenue and profit generation?
a. No merchandising on off-shelf displays
5. Is Amazon.com a competitor to Walmart?
a. Yes
1. Which of the following is True ABOUT Supply Chains?
e. All are true

(a. Everything you purchase passes through a supply chain
b. Without skillful management supply chains often fail
c. When supply chains fail, product shortages occur
d. When shortages occur, prices can increase dramatically)
2. Which of the following is false about the field of supply chain management?
e. All are correct. None are false.

(a. Most people hired into the field have BA degrees
b. Recruiters prefer those candidates who are certified in supply chain management.
c. Median salaries are about $75,000 per year
d. Employment is forecast to grow by 20% in the next 10 years.)
3. Which is false - sellers must have or do the following to be paid:
e. All are correct. None are False.

(a. They must have a P.O. number
b. They must submit an invoice
c. They must be an approved vendor
d. Their goods have to be received in good condition)
4. Which of the following will not 'break' a supply chain?

a. Damage or destruction of supplier's factory
b. Loss of the container ship carrying your inputs
c. Failure to pay customs duties for international shipments
d. Bankruptcy of one of several suppliers of the same inputs
e. All can break the supply chain
e. All can break the supply chain

(a. Damage or destruction of supplier's factory
b. Loss of the container ship carrying your inputs
c. Failure to pay customs duties for international shipments
d. Bankruptcy of one of several suppliers of the same inputs)
5. Which statement is false?

a. A producer of outputs often sells them as inputs to other companies
b. If a company buys inputs for less money than it receives for its outputs, it should make a profit
c. A 'supply chain' should be a 'value chain,' as well
d. Labor and equipment are inputs
e. Debt and equity capital are not inputs
e. Debt and equity capital are not inputs
1. The CFO is responsible for which of the following:
d. All of the above

(a. Keeping "the books"
b. Filing taxes
c. Forecasting profits)
2. The Treasurers organization is responsible for filing which tax returns:

a. Federal
b. State
c. Both
d. Neither
d. Neither
3. Variance analysis includes:

a. Comparison of actual to budget
b. Comparison of actual to last year
c. Neither of the above
d. Both A and B
d. Both A and B
4. Cash management includes:
c. Reconciling bank statements
5. Audits (either internal or external) seek to validate:
c. that financial processes and procedures are adequate
1. Which choice is incorrect?

a. A 'closing rate' is the ratio of the # of prospects who purchase divided by the number of qualified prospects.
b. The highest closing rates come from satisfied prior customers.
c. The lowest closing rates come from introduced referrals.
d. The lowest closing rates come from 'cold calls.'
c. The lowest closing rates come from introduced referrals
2. Which choice is incorrect?

a. You don't need a college degree to succeed in those B2C sales not related to professional services.
b. The 'Red Team' insures that your written proposals are responsive, accurate and persuasive.
c. The number of prospects in each phase of a sale increases from the first phase of the sale to the last.
d. The primary job of 'Hunters' is to find new customers.
d. The primary job of "Hunters" is to find new customers.
3. Which choice is correct
"Many People get a bad impression of sales as a profession because ..."

a. They have experienced pressure to buy something from a B2C sales person.
b. They don't like being pressured or manipulated.
c. They are afraid that they will be forced to buy something they don't want or need.
d. All of the above
d. All of the above
4. Which choice is correct
"If you use B2C methods in a B2c / G sale..."

a. B2C one-call-close methods are ineffective in multiple stage, multiple sales call settings.
b. Trained and sophisticated buyers will immediately recognize and discount them.
c. Sellers who attempt to use the ABC method ('Always be Closing') will close very few, if any, B2C/G sales and will 'Always be Crying,' instead.
d. All of the above
d. All of the above
5. Which choice is INCORRECT
"The best ways to acquire the skills Needed for B2c / G sales are to..."
a. Obtain a college degree and work in B2B sales internships;
b. Participate in the Eller Professional Sales Club;
c. Explore earning an 'Eller Sales Certificate,' launching in the Spring of 2015
d. None is incorrect. All are correct.
d. None are incorrect. All are correct.
1. A global economy is characterized by which of the following?

a. Country-by-country business decisions
b. A common global currency
c. Limited exports or imports
d. None of the above
d. None of the above
2. The global economy was created by which of the following shifts in market conditions?

a. The expansion of the internet
b. Growth opportunities in emerging markets
c. Both a and b
d. None of the above
c. Both A and B
3. What were a few of the implications for BP as a result of the Deepwater Horizon Oil Spill?

a. A pay raise for its serving CEO
b. Payment of over $1 billion in fines, in addition to other settlements
c. Implementation of new safety and communication procedures
d. Both b and c
d. Both B and C
4. Why should you care about the global economy?
d. All of the above

(a. It has an impact on my personal finances and well-being
b. It creates increased job opportunities in the US
c. It increases competition for jobs)
5. How does BP achieve "economies of scale"?

a. By standardizing its equipment and processes worldwide
b. By purchasing raw materials country-by-country
c. By implementing a global brand for its core products
d. Both a and c
d. Both A and C
Historic Financial Statements
- Looks at actual results
- Allows period to period comparison
- Explanation of Variances (difference from forecast)
- Financial Statements
Forecast Financial Statements
- Tries to predict outcomes
- Allows sharper test of understanding the business in the form of adjustments to plan as actual performance becomes known
- Opportunity for simulation
- "Pro Forma" or projected Financial Statements
Assets
Liabilities + Equity
Balance Sheet
- Represents a summary of the assets and liabilities of the business
- Contains a life-to-date view of business
Income Statement
- Reports revenues and expenses and shows accounting profit
- Consists of a month-to-date, quarter-to-date or year-to-date view of business activity
- Uses the "accrual" method (matches the timing of recognition of revenue and expense)
Cash Flow Statement
It describes the way cash has flowed through the enterprise
Asset
Something that an entity has acquired or purchased, and that has money value.
Liability
Accounts and wages payable, accrued rent and taxes, trade debt, and short and long-term loans.
Equity
Net worth of a person or company computed by liabilities - assets = Equity
Global Economy
A global economy means that the changes in economic conditions/policies or decisions by one country can have a significant impact on the economic system of other countries.
Currency Changes
The value of a foreign currency relative to the US dollar (or reverse)
Developed Nations
Countries (such as the US, Germany, and Japan) which have above-world average Gross Domestic Product per person
Emerging Markets
Countries (such as Brazil, Russia, India, and China) which have growing economies, but with Gross Domestic Product per capita below the world average
Global Brands
Brands (products or services) which have a common global name, visual identity and positioning.
Economies of Scale
The reduction in the cost per unit of an item based on large-scale, standardized production.
Corporate Reputation
The perceived image of a company (positive or negative) based on its public "words and actions".
Characteristics of Business-to-Consumer Sales
- 1 to 2 sales calls or interactions
- 1 to 2 decision makers (couples)
- Value is low
- Length of sales cycle: minutes to a couple weeks
- Risk of purchase is low
- Must trust the product, not the sales person
- Limited # of features and benefits
- sales person often paid with 100% commission
- Buyers not highly knowledgeable
What ISN'T an attribute of most B2C sales?

a. They have short sales cycle
b. There may be 0-2 sales people involved
c. There may be 5 or more decision makers
d. There is little risk to the buyer in low cost transactional sales
c. There may be 5 or more decision makers
Characteristics of Business-To-Business/Government sales
- 5 to 15 sales calls, meetings
- 2 to 10 decision makers and influencers
- 2-5 person sales teams
- Sales cycle times of 3 to 18 months
- Closing rates range from 30%-70%
- Sales team often paid with base + commission
- risk is higher for the buyer
What is INCORRECT about most B2B/B2G sales teams?

a. A 'Hunter' opens the doors to new prospects
b. A 'Farmer' maintains, defends and expands the relationship
c. 'Farmers' generate most of their companies' revenues
d. 'Farmers' usually make more money for themselves than Hunters.
d. Farmers usually make more money for themselves than hunters.
Accounting
The process of systematically collecting, analyzing, and reporting financial information
Account
Chronological record of changes in the value of an entity's assets, liabilities, and the owners' equity.
Treasury
Someone who is officially in charge of the money that is taken in and paid out by a government, business organization, etc.
Disbursement
payment by an agent or professional on behalf of a principal or client who is presented with a bill for its reimbursement.
Tax Compliance
Degree to which a taxpayer complies (or fails to comply) with the tax rules of his country, for example by declaring income, filing a return, and paying the tax due in a timely manner.
Reconciliation
Item by item examination of 2 related sets of figures obtained from different sources. Most commonly, this term is applied to bank reconciliation.
Variance
The difference between an expected and actual result, such as between a budget and actual expenditure.
Retail Industry
Sales of goods or services from individuals or businesses to end-users
Success Factors
Unique elements of a company's business model which allow it to achieve its financial objectives on a consistent basis
Everyday Low Costs
Wal-Mart utilizes an integrated supply chain to lower the unit costs of products they sell at retail
Everyday Low Price
Wal-Mart's retail strategy, which is to price its items at or below its competition, and to keep that price steady.
Bricks and Mortar Retail Outlets
A four-sided, cove rent building which houses products sold by retailers directly to consumers who shop in the store
Professional Services
Accounting, legal, medical and other such services prodded by a formally certified member of a professional body
CPA
Professional accountant who has passed the uniform CPA examination administered by the American Institute of Certified Public Accountants, and has fulfilled the educational and work related experience requirements for certification.
Actuary
Qualified statistician who uses experience tables (such as mortality tables and morbidity tables) to assess life expectancy of different age groups.
Chargeability Ratio
The percentage of time the consultants are used in revenue generating activities, meaning the amount of time they spend working in consulting projects for clients.
Bar Exam
A written test that an individual must pass before becoming licensed to practice law as an attorney.
Society of Actuaries
An educational, research and professional membership organization for actuaries in the US and Canada
Consultant
Experienced professional who provides expert knowledge for a fee
Big 4 Accounting Firms
The four largest accounting firms that handle accounting services for a number of public and private companies. They are:
- Deloitte Touche Tohmatsu
- Pricewaterhousecoopers
- Ernst & Young
- KPMG
Consumer Products
Products purchased by consumers for personal use
Consumer Needs
Physical and emotional needs of people related to the use of specific consumer product
Target Audience
A group of people with common characteristics/needs who represent the primary audience of a particular consumer product, targeted by the product manufacturer
Business Model
How a company creates, delivers and captures value
Brands
Products which are represented by a specific/ownable name an equity
Supply Chain
A business system which includes procurement of the raw materials/ingredients, manufacturing, packaging, and distribution of products
Research and Development
The scientific process of creating and improving products via design and engineering
Market Share
A commercial measure of the percentage of a specific market volume held by one consumer product
Profitability
A financial measure of the percentage represented by a company's profit divided by a company's revenue
British Petroleum
- BP is the world's leading global oil and gas company with sales of $388 billion
- BP operates in over 80 countries, with 86000 employees
- It has 21,000 retail sites, mostly in the US and Europe
- Its Business model is to be fully integrated across the "supply chain"
How did BP emerge as a Global Company?
It's global strategy was to standardize its equipment and processes to gain "economies of scale"
BP DeepWater Horizon Oil Spill - Impact on Corporate Reputation
- Fine exceeding $1 billion
- Countless settlements with Gulf states, businesses and individuals
- Diminishes trust among key stakeholders: customs, shareholders, and employees
- Overhaul of safety and communication procedures
- Proactive public relations efforts in US
Controller
- Compliance - Financial statement preparation and reporting
- Tax Compliance and analysis
- Budgeting, planning, and variance analysis
- Decision support
- transaction processing