Which of the following is incorrect regarding the balance sheet?

Which of the following is incorrect regarding the balance sheet?
 a. Net worth is the difference between what the company owns and what the company owes.
 b. Prepaid expenses, part of current assets, can be liquidated within a year.
 c. Depreciation of current assets should be avoided to maintain asset value.
 d. Net worth is the sum of owner's investments and the reinvested profits.
 e. Goodwill is included mainly when the retailer purchases an existing business.

Question 2

In the statement: If we add 1.5 million of cable TV ads to our promotion strategy for this product line, we will increase the number of units sold by 10 percent next year, what is the independent variable?
 a. Units sold
 b. Percent change
 c. Product line
 d. Cable TV ad dollars

Question 3

International marketing is less complicated than domestic marketing.
 
 Indicate whether the statement is true or false

Question 4

A retailer intends to find out the amount on which he needs to pay his taxes. Which of the following formulae would give him the correct data?
 a. The difference between gross sales and returns and allowances.
 b. The difference between gross margin and operating expenses.
 c. The difference between net sales and cost of goods sold.
 d. The difference between cost of goods sold and returns and allowances.
 e. The difference between operating profit and other income.

Question 5

In the statement: If we add Kmart to our distribution system, our dollar sales will go up by 2 million next year, what is the dependent variable?
 a. Dollar sales
 b. Kmart
 c. Distribution system
 d. Year

Question 6

Which of the following is incorrect regarding the income statement (profit and loss statement)?
 a. The IRS provides tax breaks for shrinkage.
 b. Promotional allowances come under other income for a grocery store.
 c. Operating expenses does not include cost of goods sold.
 d. Gross sales less returns and allowances represents the actual sales made.
 e. Net profit is known as line above the bottom.

Question 7

People who participate in a research experiment are called:
 a. modifiers.
 b. confounders.
 c. subjects.
 d. testing effects.

Question 8

Planned gross margin equals planned initial markup minus planned reductions.
 
 Indicate whether the statement is true or false

Question 9

When a researcher is developing a mail survey and tries it out on thirty potential respondents in the target market to see what the response rate will be, this is an example of:
 a. a dialog box.
 b. pretesting.
 c. a mixed-mode survey.
 d. a callback.

Question 10

Which of the following formulae is incorrect?
 a. Average BOM stock-to-sales ratio = 12 / Target turnover rate.
 b. BOM inventory for August = EOM inventory for July.
 c. Planned monthly retail reduction = Planned monthly reduction percentage Planned monthly sales.
 d. Markup percentage = Cost complement percentage + 100.
 e. Planned purchase = Planned sales + Planned retail reductions + Planned EOM inventory - Planned BOM inventory.

Question 11

When a potential respondent to a mail survey is contacted by phone three days before the survey is scheduled to arrive in the mail and is encouraged to complete the survey, this is an example of:
 a. a monetary incentive.
 b. survey sponsorship.
 c. keying the survey.
 d. advance notification.