SBM II Exam 1

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SBM II Exam 1
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2013-03-11 00:28:28
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SBM II Exam 1
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  1. The art of making the public aware of the services or commodity that the business has for sale.
    Advertising
  2. The impersonal presentation of an idea which is identified with a business sponsor and projected through mass media.
    Advertising
  3. Method of determining how long an account has been on the books.
    Aging of accounts receivable
  4. Should be done monthly by owner.
    Aging of accounts receivable
  5. Focuses attention on those accounts that have become past due.
    Aging of accounts receivable
  6. The longer an account is carried on books, the less likely it will be collected.
    Aging of accounts receivable
  7. A process of creating in your customers mind, the perception that your product or service being offered is of premium value.
    Branding
  8. A written description of a new idea that projects marketing, operational, and financial aspects of proposed business.
    Business Plan (New Venture Plan)
  9. Credit that's extended to the final consumer for the purpose of facilitating the sale of consumption goods.
    Consumer credit
  10. Credit that's extended by one business firm to another to facilitate the sale of commercial production goods.
    Trade credit
  11. The consistent projection of the companies selected image in all promotions.
    Continuity
  12. Inexpensive goods that customers expect readily available at handy locations.
    Staple of convenience goods
  13. The goods appeal rests upon design, appearance, or style; seasonal goods.
    Fashion goods
  14. Goods that consumers shop around for before they buy.
    Shopping goods
  15. New or unusual goods, that are intended mainly for personal or household adornment.
    Novelty goods
  16. Customer satisfaction is not a means to achieve a certain goal rather, it is the goal
    customer service
  17. can provide a competitive edge
    customer service
  18. small firms are usually in a much better position to achieve ___________ __________ than a large firm
    customer satisfaction

    customer service
  19. change in dollar value sales that accompanies price change
    Elasticity of demand
  20. the increase in sales of a product at a given price as a result of advertising
    Expansibility of demand
  21. The consumer paying in installments for durable goods of high unit value and they may be repossessed.
    Installment Credit
  22. payments are due when bill is sent to customer
    Ordinary charge accounts
  23. customers paying a specified % of the outstanding balance
    revolving charge accounts

    open-end credit
  24. conveys an idea regarding the business establishment
    institutional advertising
  25. to make customers aware of a particular product or service and of their need for it
    Product advertising
  26. This is the pricing of some merchandise at close to or below cost to attract customer who will purchase other goods while there.
    Loss leader pricing
  27. to price something higher than justified by the cost of production
    Prestige pricing
  28. the difference of COGS & selling price
    markup
  29. promotion delivered in a one on one environment
    Personal selling
  30. repeating of promotions
    repetition
  31. The applicants are thoroughly investigated
    a sound credit system
  32. Limits are placed on the amount of credit granted
    a sound credit system
  33. charge accounts are systematically monitored
    a sound credit system
  34. delinquent accounts are followed up on promptly
    a sound credit system
  35. sponsor youth projects
    continuously successful sales promotion must be based upon good customer relations
  36. free use of window space for announcements and community projects or events
    continuously successful sales promotion must be based upon good customer relations
  37. your truck drivers/employee drivers on the streets
    continuously successful sales promotion must be based upon good customer relations
  38. support given to charity campaigns
    continuously successful sales promotion must be based upon good customer relations
  39. proper disposa; of refuse
    continuously successful sales promotion must be based upon good customer relations
  40. newspaper reports on owners and employees of business in newspaper/radio
    continuously successful sales promotion must be based upon good customer relations
  41. experience shows that, in retailing, credit-granting stores are more profitable and do a larger volume of business than do strictly cash stores
    sales increased

    advantages of extending credit
  42. can be maintained with credit customers who feel a bond with the firm
    personal relationship

    advantages of extending credit
  43. customers more regular than cash customers, who tend to go where bargains are greatest.
    advantages of extending credit
  44. Credit customers more likely to be interested in quality and service than in price
    advantages of extending credit
  45. Goodwill is built up and maintained more easily.
    advantages of extending credit
  46. goods can be exchanged with greater ease.
    adjustments

    advantages of extending credit
  47. goods can also be sent out on approval
    adjustments

    advantages of extending credit
  48. Capital tied up in merchandise bought by charge customers.
    disadvantages of extending credit
  49. If the firm has borrowed the extra money required when credit is granted, the interest must be added to the cost of goods sold.
    borrowed money

    disadvantages of extending credit
  50. Some losses from bad debts and customers with fraudulent intentions are bound to occur.
    Losses

    disadvantages of extending credit
  51. some credit customers ____ _______ because they overestimate their ability to pay in the future
    pay slowly

    disadvantages of extending credit
  52. Credit customers are more likely to ______ the privileges of returning goods and having goods sent out on approval.
    abuse

    disadvantages of extending credit
  53. Credit increases operation and overhead costs by adding the expenses of investigation and bookkeeping entailed in keeping accounts, sending out statements, and collecting payments.
    increases overhead costs

    disadvantages of extending credit
  54. product knowledge
    good personal selling characteristics
  55. good sales presentation
    good personal selling characteristics
  56. practice
    good personal selling characteristics
  57. prospecting, networking, referrals
    good personal selling characteristics
  58. 2/10,N30
    common business sales terms
  59. MOM - middle of the month
    common business sales terms
  60. EOM - end of the month
    common business sales terms
  61. CWO - cash with order
    common business sales terms
  62. CBD - cash before delivery
    common business sales terms
  63. COD - cash on delivery
    common business sales terms
  64. perceived need
    consumer buying motives
  65. comfort
    consumer buying motives
  66. convenience
    consumer buying motives
  67. security
    consumer buying motives
  68. prestige
    consumer buying motives
  69. health
    consumer buying motives
  70. economical
    consumer buying motives
  71. "what do you want to say about business"
    Determination of advertising plan
  72. always make sure that the media used reaches your customer efficiently and are appropriate for your image
    Determination of advertising plan
  73. A reduction in price of table salt would have little effect upon sales because the demand is ___________
    inelastic
  74. an advertised 50% reduction in the price of a major brand of color TV would increase sales because demand is ______
    elastic
  75. if lower price alone increases total revenue, demand is __________
    elastic
  76. if lower price decreases total revenue, even though the number of units sold increases, it is ___________
    inelastic
  77. Radio
    Examples of electronic media
  78. TV
    Examples of electronic media
  79. internet
    Examples of electronic media
  80. newspapers
    Examples of printed media
  81. trade magazine
    Examples of printed media
  82. competition in price policies in funeral homes
    Factors associated with correct pricing policies in addition to cost of goods sold.
  83. fair trade laws
    Factors associated with correct pricing policies in addition to cost of goods sold.
  84. economic fluctuations
    Factors associated with correct pricing policies in addition to cost of goods sold.
  85. types of merchandise
    Factors associated with correct pricing policies in addition to cost of goods sold.
  86. credit application
    Factors associated with evaluating a credit risk
  87. investigation
    Factors associated with evaluating a credit risk
  88. setting a credit limit
    Factors associated with evaluating a credit risk
  89. establishing payment terms
    Factors associated with evaluating a credit risk
  90. controlling the account
    Factors associated with evaluating a credit risk
  91. the follow up of delinquent accounts
    Factors associated with evaluating a credit risk
  92. COGS
    Factors associated with price
  93. markup

    gross margin
    Factors associated with price
  94. components of selling price
    Factors associated with price
  95. nature of product
    Factors associated with price
  96. competition
    Factors associated with price
  97. business conditions
    Factors associated with price
  98. marketing strategy
    Factors associated with price
  99. distribution methods
    Factors associated with price
  100. to get the money
    Goals of collecting past due accounts
  101. retaining patronage and goodwill of the customer
    Goals of collecting past due accounts
  102. Truth in Lending Act "to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him/her and to avoid the uninformed use of credit
    The Consumer Protection Act

    Legislation regarding consumer credit
  103. Guarantees equal credit opportunities to all applicants for credit and it prohibits credit discrimination
    The Equal Credit Opportunity Act

    Legislation regarding consumer credit
  104. Under this law, if consumers credit application (for a job, loan, or insurance policy) is rejected because of an unfavorable credit report, he or she must be told so by creditor/grantor who denied credit privileges
    the Fair Credit Reporting Act

    Legislation regarding consumer credit
  105. requires lenders to clearly disclose in a set, predetermined way, the total amount of interest to be charged. This disclosure must be made prior to the extension of credit.
    The Truth in Lending Act

    Legislation regarding consumer credit
  106. printed
    type of media
  107. electronic
    type of media

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