A bank lends a firm $500,000 for one year at 8 percent and requires compensating balances of 10 percent of the face value of the loan. The effective annual interest rate associated with this loan is ________
A) 8.9 percent
B) 8 percent
C) 7.2 percent
D) 7.0 percent
A
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If one country is hit with a shock that increases the value of its currency and causes its net exports to decline and the net exports and income of other countries to rise, then the business cycle is being transmitted internationally through ____ effect.
A. a trade B. an interest-rate C. an exchange-rate D. an expected-inflation
Which of the following is most likely to be associated with selling of trademarked goods through channels of distribution that are not authorized by the holder of the trademark?
A) a gray market B) a multiple-channel system C) a black market D) a hybrid system
What is the first step in developing a customer benefit plan?
A. Choosing the features, advantages, and benefits to present to a prospect. B. Selecting a suggested purchase order for a prospect. C. Creating a detailed customer profile. D. Establish a marketing plan. E. Developing a business proposition that includes a value analysis.
Which of the following statements is incorrect in comparing activity-based management (ABM) and lean operations?
A) Both identify value-adding and nonvalue-adding activities B) ABM uses a simpler accounting system C) Both are activity-based systems D) Lean manufacturing reorganizes production activities into workcells