A term-loan agreement requires a borrower to repay the loan
A) in monthly, quarterly, semiannual, or annual installments.
B) at the end of the second year.
C) at the end of the third year.
D) at the end of the fourth year.
E) at the end of the fifth to seventh year.
Question 2 - Furs Unlimited is using a combination of advertising and personal selling to increase the sales of its fur coats. This activity involves the ____ ingredient of the marketing mix.
A) distribution
B) promotion
C) pricing
D) timing
E) product
Question 3 - In the growth stage of the product life cycle, competition:
A) is virtually nonexistent.
B) begins as firms introduce their own versions of the product.
C) becomes well-established, with many weaker firms already leaving the market.
D) spurs major price cuts that dramatically cut into profits.
Question 4 - The disadvantages of small businesses include all of the following except
A) limited potential for growth.
B) a high risk of failure.
C) no opportunity to support your family.
D) limited ability to raise capital.
E) limited advancement opportunities for employees.
Question 5 - Which of the following statements is true?
A) Financial leverage should not be considered when a firm borrows money.
B) Under the right circumstances, the use of borrowed money can improve a firm's return on owners' equity.
C) There is no good reason for a firm to borrow money when it has cash to finance expansion.
D) The use of borrowed money always reduces a firm's return on owners' equity.
E) Return on owners' equity is not an important financial calculation.
Question 6 - When Target decides the number and locations of warehouses it needs to build and operate, it is addressing the ____ element of the marketing mix.
A) price
B) distribution
C) promotion
D) storage
E) product
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