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business
marketing management

Questions and Answers of Marketing Management

Company E reported net income of $100,000 for 20X1. Assume the income was earned evenly throughout the year. Dividends of $10,000 were paid on December 31. What will Company R report as investment
Company R owns a 30% interest in Company E, which it acquired at book value. Company E reported net income of $50,000 for 20X1 (ignore taxes). There was an intercompany sale of equipment at a gain of
Company R paid $200,000 for a 30% interest in Company E on January 1, 20X1. Company E’s total stockholders’ equity on that date was $500,000. The excess price was attributed to equipment with a
Company S is an 80%-owned subsidiary of Company P. On January 1, 20X1, Company P sold equipment to Company S at a $50,000 profit. Assume a 30% corporate tax rate and an 80% dividend exclusion. The
Company S is an 80%-owned subsidiary of Company P. For 20X1, Company P reports internally generated income before tax of $100,000. Company S reports an income before tax of $40,000. A 30% tax rate
Company P had internally generated net income of $200,000 (excludes share of subsidiary income).Company P has 100,000 shares of outstanding common stock. Subsidiary Company S has a net income of
Company P had internally generated net income of $200,000 (excludes share of subsidiary income).Company P has 100,000 shares of outstanding common stock. Subsidiary Company S has a net income of
(Issue 1 with a noncontrolling interest). P Company acquired 80% of the common stock of the S Company for an agreed-upon price of $640,000. The book value of the net assets is$600,000, which includes
What will be the effect of the above purchase on cash flow statements prepared in periods after the year of the purchase?AppendxiLO1
P Company acquired 100% of the common stock of the S Company for an agreed-upon price of $800,000. The book value of the net assets is $600,000, which includes $50,000 of subsidiary cash equivalents.
appreciate contemporary developments in understanding and applying marketing ideas and their implications for strategic marketing.AppendxiLO1
be familiar with the steps in strategic marketing planning AppendxiLO1
appreciate the factors which have given rise to the need for a more strategic approach to marketing management AppendxiLO1
understand the meaning, importance and the evolution of the marketing concept AppendxiLO1
Apply consolidation-type procedures to influential investments.AppendxiLO1
Prepare a consolidated worksheet where the parent and subsidiary are separately taxed by employing tax allocation procedures.AppendxiLO1
Calculate and prepare a consolidated worksheet where the consolidated firm is an “affiliated group” and pays a single consolidated tax.AppendxiLO1
Compute earnings per share for a consolidated firm.AppendxiLO1
Demonstrate an understanding of the effect of a business combination on cash flow in and after the period of the purchase.AppendxiLO1
What is the difference between a permanent fund and a private-purpose trust fund?AppendixLO1
Describe the difference between accounting for governmental funds and proprietary funds.AppendixLO1
Explain the difference between expenses and expenditures in a state and a local government.AppendixLO1
What is the difference between an enterprise fund and an internal service fund?AppendixLO1
What is the difference between an agency fund and a trust fund?AppendixLO1
Describe two major types of interfund transfers. Under what circumstances is each used?AppendixLO1
What characteristic determines whether an activity should be accounted for in a special revenue fund or in a permanent fund?AppendixLO1
When a debt service fund receives resources, it might credit Revenues (control) or Other Financing Sources (control). Under what circumstances would each of these credits be used?AppendixLO1
The debt service fund does not use budgetary accounts. What is the logic for not doing so?AppendixLO1
Explain the necessity to introduce a deferred revenues account in the levy of capital special assessments.AppendixLO1
If a capital projects fund has authority to continue operations over several fiscal periods, why is it desirable to close its records at the end of each period?AppendixLO1
Why are fixed assets, acquired with proceeds from general obligation bond issues, not permanently accounted for in a capital projects fund?AppendixLO1
Identify and account for transactions that affect different funds and/or account groups.AppendixLO1
Explain the usefulness of and the accounting process for fiduciary funds and how these funds are reported.AppendixLO1
Account for and prepare financial statements of proprietary funds.AppendixLO1
Tell why governments use special revenue, permanent, capital projects, and debt service funds, and demonstrate how transactions are accounted for and reported using those funds.AppendixLO1
Scott has just received the latest figures from his market research agency regarding last year’s overall market position. He is pleased as this is the third year that the company in which he is
(Appendix) What is the source of the 13 basic governmental accounting principles, and what benefit is there to studying these principles?AppendixLO1
Why do some transactions require an entry in a fund and another in an account group? What impact would there be if a journal entry were made only in the fund or only in the account group?AppendixLO1
How does the use of an encumbrance system aid in accounting for governmental entities?AppendixLO1
What advantage is gained by categorizing unreserved fund balances as designated and undesignated?AppendixLO1
Why are budgets crucial in accounting for governmental entities? If appropriations were not included in fund accounting, what impact would this exclusion have on the financial statements?AppendixLO1
Name three advantages gained by government reporting through the use of the three different fund types and the account groups. Explain why this method of reporting is advantageous.AppendixLO1
GASB Statement No. 34 requires reporting using both the financial resources measurement focus and the economic resources measurement focus. How do these two focuses differ, and what impact do they
(Appendix) Demonstrate an understanding of the 13 basic governmental accounting principles.AppendixLO1
Complete schedules for general capital assets and long-term liabilities.AppendixLO1
Prepare fund financial statements for the general fund.AppendixLO1
Demonstrate how to account for encumbrances.AppendixLO1
Prepare journal entries for the general fund.AppendixLO1
Explain the purpose of budgets and how governments account for appropriations.AppendixLO1
Show how to account for transactions in governmental funds.AppendixLO1
Identify the types of funds and account groups in state and local government.AppendixLO1
State the difference between the financial resources measurement focus and the economic resources measurement focus, and indicate where each is reported under GASB Statement No. 34.AppendixLO1
Identify the role of the various authoritative bodies for state and local government accounting and financial reporting.AppendixLO1
Differentiate between the financial reporting needs of governmental entities and those of profit-seeking business enterprises.AppendixLO1
John Oldfield is feeling under pressure. His desk is covered with market research reports, data from the accounts department regarding sales and profits figures, sales representatives’records and
What does a partner’s maximum loss absorbable (MLA) suggest in terms of the order in which liquidating distributions will be made available to partners?AppendixLO1
The liquidation of a partnership can be a complex and time-consuming process. What basic guidelines should be followed in order to ensure that the process is proper?AppendixLO1
If an individual were to acquire an interest in a partnership from the partnership entity itself, how would one calculate the suggested value of the acquired interest?AppendixLO1
If consideration paid to acquire an interest in a partnership is based on the fair value of the net assets, why doesn’t the bonus method recognize all of the suggested values?AppendixLO1
Prepare an installment liquidation statement, a schedule of safe payments, and a predistribution plan.AppendixLO1
Calculate the assets to be distributed to a given partner in a lump-sum or installment liquidation.AppendixLO1
Explain the doctrine of marshaling of assets.AppendixLO1
Describe the order in which assets must be distributed upon liquidation of a partnership, and explain the right-of-offset concept.AppendixLO1
Explain the impact of a partner’s withdrawal from the partnership.AppendixLO1
Account for the admission of a new partner through direct contribution to an existing partner.AppendixLO1
Describe the conceptual differences between the bonus and goodwill methods.AppendixLO1
Account for the partners’ capital balances under the goodwill method.AppendixLO1
Account for the partners’ capital balances under the bonus method.AppendixLO1
Define partnership dissolution, and explain what accounting issues should be addressed upon dissolution.AppendixLO1
Karen Rees, director of marketing at Woodvale Products Limited, has called an urgent meeting with her fellow directors of the other func tional areas of the business. The over riding reason for
Assume there are two identical business entities; one is organized as a partnership and the other is organized as a corporation. How would the financial statements of the two entities differ with
When an individual partner contributes assets to a partnership, the partnership’s tax basis of the assets is generally not the fair value at the date of transfer. What is the logic underlying this
Under what circumstances might a salary or bonus be more appropriate than interest on capital balances as a means of allocating profits?AppendixLO1
A major issue faced by people who are starting their own business is the form of organization they should select. What are some major characteristics of a partnership that might influence their
(Appendix) Explain the concept of double taxation, and discuss how it may be minimized.AppendixLO1
(Appendix) Describe how a partner’s tax basis in a partnership is different from the book basis, and be able to calculate the tax basis.AppendixLO1
Demonstrate an understanding of the various bases that could be used to allocate profits or losses among partners.AppendixLO1
Describe the relationship between a partner’s drawing and capital accounts.AppendixLO1
Identify basic components that should be included in a partnership agreement.AppendixLO1
Explain the basic characteristics of a partnership.AppendixLO1
Infotech is a small engineering company producing quality engine components. The company’s management team are keen for the company to grow and have been exploring the possibility of becoming a
Define retailing and understand how retailing evolves. pp. 422–424 RETAILING, 21ST-CENTURY STYLE p. 422
Understand how we classify traditional retailers. pp. 424–432 TYPES OF RETAILERS p. 424
Describe businessto-consumer (B2C)e-commerce and the other common forms of nonstore retailing.pp. 432–437 B2C E-COMMERCE AND OTHER TYPES OF NONSTORE RETAILERS p. 432
Understand the ways that retailing will continue to evolve in the future.pp. 437–440 THE EVOLUTION CONTINUES:WHAT’S “IN STORE” FOR THE FUTURE? p. 437
Understand the problems retailers face with unethical behavior by consumers and employees. pp. 440–442 ETHICAL PROBLEMS IN RETAILING p. 440
Understand the marketing of services and other intangibles. pp. 443–450 SELLING WHAT ISN’T THERE:SERVICES AND OTHER INTANGIBLES p. 443
How to make every interview successful.pp. 451–454
Describe experiential merchandising, experiential shopping, destination retailing, and omnichannel marketing. Appendix
Detail the difference between the assortment of merchandise you would typically find in convenience stores, specialty stores, discount stores, and resale stores. Appendix
What is B2C e-commerce? What is m-commerce? What are some benefits of B2C e-commerce for consumers and for marketers? What are the limitations of B2C e-commerce? What are digitally influenced
What is a service? What are the important characteristics of services that make them different from goods?What are some ways marketers practice capacity management for services? Appendix
What do we mean by marketing people? Marketing places? Marketing ideas?Activities: Apply What You’ve Learned
Creative Homework/Short Project Assume you are an entrepreneur who is seeking funding to start up your new retail business specializing in handcrafted fair trade artisan goods from developing and
Creative Homework/Short Project Assume that you are the director of marketing for an international finance company that operates nearly 1,000 stores in 22 states and Mexico. You offer loans up to
For Further Research (Individual) One problem that traditional retailers face when they open online stores is cannibalization.Select a traditional retailer where you and your fellow students might
Creative Homework/Short Project Because of increased competition in its community, you have been hired as a marketing consultant by a local high-end hair salon.You know that the salon’s quality is
Creative Homework/Short Project Assume you are working as an intern for the city or town where your college is located. You have been asked to prepare a marketing plan with the objective of making
What is the reorder point for large cups for Sam’s gas station? Appendix
Ethics Shrinkage is a huge problem for retailers—they face challenges on the consumer side with shoplifting and retail borrowing, as well as on the employee side with theft. Assume you are the

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