Financial Ratios
Balance Sheet Basics
Personal Selling
Advertising
Hodge Podge
100
This ratio measure the % share of assets owed to lenders
Debt to asset ratio
100
Name 3 items that would fall in the category of current assets
Cash

Checking account balance

Inventories

Savings account

100
The process of learning as much as possible about the prospect
Pre-approach
100
What are two objectives of advertising?
Shift demand

Change elasticity

100
If all assets were sold to pay off all liabilities, the result would be 
Owners Equity
200
This ratio compares lender financing to owner financing (smaller values imply less debt)
Debt to equity ratio
200
Name two items that would be classified as current liabilities
Accounts payable

Notes payable

200
The most important attribute of a salesperson
Listening
200
The four components of the Marketing Mix
Product Place Price Promotion
200
Which financial ratio measures liquidity
Current Ratio
300
This ratio compares current assets to current liabilities (values greater than 1 are preferred) larger values imply greater liquidity
Current Ratio
300
If assets are $10 and liabilities are $5, what is owner's equity?
Assets - Liability = OE

5

300
Confirming the amount of inventory and the agreed upon price is one way to accomplish this step in the personal selling process
Close
300
The three components of a good TV advertisement
Hook

Target

Emotion

300
The term that describes the ability to meet financial obligations as they come due without disturbing normal revenue generating activities
Liquidity
400
Margin of safety in a dollar value
Working Capital
400
Name 3 examples of non-current assets
Buildings

Land

Machinery

Equipment

400
This step in the personal selling process involves identifying good customers and screening out poor ones by looking at factors such as financial ability, volume of business and needs.
Qualifying
400
This concept measures the degree to which liabilities are backed up by assets
% of population reached

% that understands the message

% that has awareness

% with a favorable attitude

% of first time buyers

400
This concept measures the degree to which liabilities are backed up by assets
Solvency
500
If a company has a 70% debt to asset ratio, what does this mean for the company?
70% of the assets are owed to lenders
500
If Total (Owners) equity is $5 and contributed capital is $3, what is the value for retained earnings?
$2

RE=Equity-CC

500
This part of the personal selling process is where the salesperson meets and greets the buyer and gets the relationship off to a good start
Approach
500
Name the 5 stages in the product lifecycle
Product development

Introduction

Growth 

Maturity

Decline

500
The product that has the largest advertising budget when compared as a percent of sales
Breakfast Cereals
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