Harry owns a successful company, which he is looking to grow and expand. Instead of using his own money to expand the company, he has decided to invest his excess capital in various stocks and other small investments and borrow money to aid in company growth. By doing this, Harry believes he will obtain a large rate of return that will help him further expand his company. Harry's approach exemplifies which of the following?
A. Leverage
B. Debenture
C. Compensating balance
D. Collateral
E. Trade credit
Answer: A. Leverage
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Marketing Chapter 18
- Laelle Corp., a multinational company conducts a session on workplace issues such as gender discrimination, sexual harassment, and racism. Given this information, the session will most likely train the employees on _____.
- In the context of evaluative criteria, installing equipment and training its users is an example of _____.
- Gears, a motorcycle manufacturer, assembles 20 motorcycles each day. As the motorcycles roll down the assembly line, power tools are used by factory workers to tighten bolts wherever necessary on the product. In this scenario, power tools are examples of _____.
- Which of the following statements is true of major equipment?
- Ralone Corp. manufactures printers. When it launched a new line of laser printers, it also introduced laser toners. None of the other laser toners in the market were compatible with its laser printers. So, as long as its laser printers are in demand, its laser toners will also be in demand. In this scenario, Ralone Corp.'s laser printers and laser toners are products that exhibit _____.
- Which of the following statements is true of the multiplier effect?
- _____ demand means that an increase or decrease in the price of a product will not significantly affect demand for the product.
- According to the North American Industry Classification System (NAICS), which of the following goods- or service-producing firms are grouped together?
- Luis, a supply manager at Benson Corp., calls a sales representative at OffPro Distributors to place an order for 50 reams of copy paper for official purposes. OffPro Distributors purchases the required goods from Ranson Inc. and delivers the goods to Luis the next day. In this scenario, OffPro Distributors is an example of a(n) _____.
- In the context of business customers, which of the following statements is true of institutional purchasers?
- Which of the following statements is true of producers?
- Cakes and Flowers, a local café, sends out hand-written greeting cards along with a box of cupcakes to all its loyal customers during Christmas week. In this case, Cakes and Flowers is evidently implementing _____.
- In the context of business relationships in Japan, which of the following best describes a keiretsu?
- Milestones, a start-up job consultancy, takes the first step in the marketing funnel and decides to create a page on a social networking website that describes its services. Through this, it hopes to attract as many followers as possible. In the context of business-to-business (B-to-B) social media marketing, this first step is an example of the marketing metric of _____.
- Ben, a working professional, buys a car to travel to work every day. In this case, the car is an example of a(n) _____.
- Laelle Corp. is a supplier of various goods. It is engaged in business marketing if it sells
- An industrial product is bought for the purpose of
- The standard of behavior by which conduct is judged is known as _____.
- In the context of business products, which of the following statements is true of raw materials?
- _____ demand occurs when two or more items are used together in a final product.
- With the introduction of the internet, many people thought that all B-to-B shopping would be completed online and the need for distributors would be eliminated. However, distributors perform important functions for business customers including all of the following except:
- When considering interaction between companies and customers online, _______ is the attention that social media attracts while ______ is the interactions between the brand and the audience, such as retweets or comments.
- A product that is purchased to fulfill an individual's personal wants and needs is known as a(n) _____.
- Ortiz Inc., a nutritional drinks manufacturer, is perceived by many consumers as a producer of nutritional drinks meant only for children. In order to change this perception, Ortiz Inc. makes a few changes to its drinks and promotes them through television commercials featuring people of all age groups. This effectively changes people's opinion of Ortiz Inc.'s nutritional drinks, and the company's customer base increases. In this scenario, which of the following strategies does Ortiz Inc. use?
- Cruz Gray Inc. positions its beauty and skin care products as the only products in the market that are 100 percent natural and are not tested on animals. This gives the company a significant advantage over its competitors. In the given scenario, which of the following strategies does Cruz Gray Inc. use?