Which of the following is NOT an example of a financial performance goal?
a. Increase return on assets from 8 percent to 9 percent.
b. Increase asset turnover from 2.5 to 2.8.
c. Increase market share by 20 percent.
d. Increase space productivity by 5 percent.
e. Reduce financial leverage from 2.1 to 2.0.
Question 2Manufacturers and retailers, but not wholesalers, are primary marketing institutions.
Indicate whether the statement is true or false
Question 3The shared cost effect holds that in product markets where the same person who pays for a product uses it, there is little price sensitivity.
Indicate whether the statement is true or false
Question 4When the manufacturer offers a retailer a percentage discount in exchange for performing certain wholesaling and retailing services, the manufacturer is offering a _____ discount.
a. cash rebate
b. Trade
c. performance incentive
d. Quantity
e. Cash
Question 5Retailers can only obtain a low degree of differentiation through their customer-service programs.
Indicate whether the statement is true or false
Question 6If net profit margin is 2.0 percent, the rate of asset turnover is 6.0x, and the financial leverage is 2.1, what is the return on assets?
a. 0.333 percent
b. 8.0 percent
c. 12.0 percent
d. 25.2 percent
e. 33.0 percent
Question 7The key difference between a primary and a facilitating marketing institution relates to whether the member takes title of goods.
Indicate whether the statement is true or false
Question 8Consumers are most price sensitive for items that make up a major percentage of their regular budget.
Indicate whether the statement is true or false
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