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Principles of Business and Finance Answer Key

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To Market to Market
#1 A business plan for meeting slaes and profit goals Marketing strategy
#2 Group of people who have similar wants and needs Target Market
#3 Custom blend of product, price, promotion, and place (distribution) Marketing mix
#4 Building a CVS across the street from a Walgreens is an example of which P? Place
#5 Redisigning the formula for Coke is an example of which P? Product
Let's Go Shopping
#1 Type of store with multiple merchandise lines and product categories Department store
#2 Type of store with a wide assortment of goods and lower prices Discount Store
#3 Type of store that caters to one specific retail market Specialty Store
#4 Type of grocery store with a wide variety of food and hosehold merchandise Supermarket
#5 Small store that sells a limited variety of products, often at a higher price Convenience store
Financials
#1 Formula for current ratio Current assets divided by current liabilities
#2 Formula for debt to equity ratio Total liabilities divided by owner's equity
#3 Return on equity formula Net profit divided by owner's equity
#4 Formula for net income Total sales divided by net income
#5 Total assets minus liabilities is equal to Owner's equity
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It's in the Bank
#1 This allows the payee to cash, deposit, or transfer a check Endorsement
#2 Type of endorsement that includes only a signature Blank
#3 Example of full endorsement For Deposit Only, xx
#4 Example of restrictive endorsement Pay to the order of
#5 Another name for a full endorsement Full
Final Question
Which organization supervises banks and approves bank mergers? Federal Reserve System