Deca Exam

Offering low-priced items that are unavailable to attract customers to a business that then tries to sell them high-priced items is an example of A. bait-and-switch advertising. C. price-ticket switching. B. high-pressure selling. D. loss-leader promotion.

A Bait-and-switch advertising. This is an illegal tactic that involves promoting a low-priced item to attract customers to whom the business then tries to sell a higher priced item. In many cases, the low-priced item is in limited supply or completely unavailable when customers try to buy it. The business then shows customers a more expensive item and encourages them to buy. A loss leader is a product that is sold below cost. High-pressure selling involves putting pressure on customers to buy. Price-ticket switching is a type of fraud by which a higher priced ticket is removed from merchandise and replaced by a lower priced ticket.

Which of the following questions do businesses ask when they evaluate the feasibility of a product idea: A. Do we have access to the resources to make this product? B. How can we come up with innovative ideas for more products? C. Does this product satisfy the company's needs? D. Will vendors buy or use the product if it is available?

A Do we have access to the resources to make this product? Product research and development is an expensive process for a business. Before a business invests time, personnel, and money to take an idea and turn it into a product, it must determine if it has the resources to make the product. If the product requires more resources than the company has access to, it may be impossible to make and market the product. The question about coming up with more product ideas is part of the idea generation process. Questions about needs' satisfaction and willingness to buy the product should relate to the customers rather than the business or its vendors.

What category of employees usually is exempt from the overtime pay requirement established by the Fair Labor Standards Act? A. Executive C. Union B. Civil service D. Clerical

A Executive. The Fair Labor Standards Act contains several provisions, one of which involves overtime pay. The act states that most employees who work more than 40 hours a week must be paid at least one-and-a-half times normal pay for those hours over 40. However, some categories of employees usually are exempt from that requirement. One of those categories is executive because executives have significantly more responsibilities than other employees, and they receive much higher salaries. Executive compensation is negotiated on the assumption that those employees will work as many hours as it takes to manage the business or a department in the business. Civil service, union, and clerical employees usually are covered by the provisions of the Fair Labor Standards Act and receive overtime pay.

One branch of a large automotive business complaining about the aggressive pricing tactics used by another of the automotive business's branches in the same community is an example of __________ channel conflict. A. horizontal C. external B. vertical D. functional

A Horizontal. Horizontal conflict occurs between businesses at the same level in the distribution channel. Two branches of a large automotive business operating in the same community are on the same level. If one branch complains about the aggressive pricing tactics used by the other branch, horizontal conflict exists. Vertical conflict occurs between different levels of the same channel, such as between the local branch and the corporate office. External and functional are not types of channel conflict.

Wilson Automotive Dealers sells new and used cars. Each car purchaser must complete an application that requires the customer to pay a finance charge and interest. Wilson's dealership holds a lien, or claim, on the title of the vehicle until all payments have been made by the customer. This type of credit is known as a(n) __________ credit account. A. installment C. budget B. regular D. revolving

A Installment. The form of credit that Wilson Automotive Dealers provides its customers is known as an installment. It is set up to handle one total amount of credit which is to be paid in regular installments. A regular credit account is a credit account that allows credit users to buy at any time during a set time period, usually 30 days. It is also called an open account. A budget account is a form of short-term credit often set up for 60- or 90-day periods with a payment due every 30 days. A revolving credit account is a type of credit account that limits the total amount of money that may be owed and charges interest on outstanding balances.

Grocery stores need a great deal of information in order to make effective decisions and solve specific problems. This information is usually obtained through A. marketing research. C. observation. B. financial management. D. data analysis.

A Marketing research. Marketing research is the systematic gathering, recording, and analyzing of data about a specific problem. Grocery stores use the information that is obtained through marketing research in decision making and problem-solving. Data analysis is usually a part of the research process that involves interpreting the information that has been collected. Observation is a marketing-research method that gathers data by watching consumers. Financial management is the decision making involved in allocating funds.

Carlton's Electrical Service sells highly technical and expensive computers that include additional, advanced features. What promotional mix element would most likely be used to promote the computer successfully? A. Personal selling C. Publicity B. Sales promotion D. Advertising

A Personal selling. Personal selling should be emphasized for products having any of the following characteristics: (1) highly technical, (2) require demonstration, (3) expensive, and (4) require installation. The computer has all of these characteristics. Advertising is appropriate for inexpensive and self-service merchandise. Sales promotion is appropriate for inexpensive merchandise. Publicity is appropriate for new or improved merchandise.

Brand or trade names are used primarily to identify a A. product. C. market. B. standard. D. trend.

A Product. The primary reasons that brands are used are for identification and differentiation. Brand names identify products and separate them from similar products. Standards are specifications or statements that are used as a basis for comparing or judging goods or services. A market is a customer or a potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. A trend is the general direction in which people or events are moving.

What do many businesses often use to promote products and increase awareness? A. Public-relations activities C. Marketing research B. Creative thinking D. Cause-related advertising

A Public-relations activities. Public relations is a function of business designed to establish good relations between the business and the public. One of the uses of public relations is to promote products and increase awareness of the products and of the business. To do this, businesses use a variety of public- relations activities to communicate with the public and provide positive information. Creative thinking is thinking in a creative way, using the creative-thinking process. Marketing research is the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services. The purpose of cause-related advertising is to create awareness about social causes (e.g., poverty) rather than to promote products.

One of the functions of certain types of taxes is to A. regulate business activity. C. control employee compensation. B. limit business profit. D. decrease employee liability.

A Regulate business activity. Governments levy taxes on businesses and individuals. One of the reasons for levying certain types of taxes on businesses is to regulate business activity. For example, governments often tax imports to control the amount of foreign products that enter the country. Governments also tax certain products, such as alcohol and tobacco, to discourage consumers from buying them. These taxes have an impact on the businesses that produce and sell these products. Although business profit is taxed, the function of the tax is not to limit profit. Employee compensation is taxed; however, the goal is not to control the compensation. Taxes do not decrease employee liability.

Automotive accessory stores often set up point-of-sale displays near the checkout counter to promote the sale of A. seasonal merchandise. C. staple goods. B. traditional products. D. expensive items.

A Seasonal merchandise. Point-of-sale displays are often used to promote the sale of additional products or seasonal merchandise that the automotive accessory store does not regularly stock. Point-of-sale displays are frequently provided by a vendor and are self-contained units stocked with merchandise. Stores often set up these displays near the checkout counter to remind customers of the seasonal goods. Customers often pick up these goods while they are waiting to pay. Most stores do not set up displays near checkout counters to promote the sale of expensive items. Traditional products and staple goods are the routine items that the store carries on a regular basis. These items usually are stocked on shelves rather than in point-of-sale displays.

Samples ,premiums, and advertising specialties are examples of__________used in sales promotion. A. publicity strategies C. marketing activities B. communications channels D. selling techniques

B Communications channels. A communications channel is a path or means used to provide information to others. In sales promotion, businesses use several means to provide information to customers or potential customers. These include giving away samples so customers can have firsthand experience with the product; giving away premiums which are free gifts that remind customers of the business; and giving away advertising specialties, such as key chains that include the name and phone number of the business. The reason for using these communications channels is to encourage customers to buy. Samples, premium, and advertising specialties are not examples of publicity strategies, marketing activities, or selling techniques used in sales promotion.

Co-branding works best when two brands are A. in the same industry segment. B. complementary and more or less equal in stature. C. owned by the same parent company. D. fierce competitors.

B Complementary and more or less equal in stature. Two brands join forces as "co-brands" for the purpose of increasing sales and market share for both. Each benefits from the other's brand equity. Co-branding works best when the two brands "go together," or are complementary, serve similar markets, and are essentially equal. The co-branding arrangement of Starbucks and Barnes & Noble exemplifies co- branding principles and has been extremely successful. Successful co-branding does not require that the brands be in the same industry segment. The two brands should actually not be competitors, nor must they be owned by the same parent company.

Jim works for a small department store. Each of the departments within the store is responsible for ordering its own merchandise. This is an example of A. dispersed buying strategy. C. concentrated buying strategy. B. decentralized purchasing structure. D. centralized purchasing structure.

B Decentralized purchasing structure. A decentralized structure is a way of organizing purchasing in which responsibility and authority are distributed among many departments and individuals. Centralized purchasing structure is a way of organizing purchasing in which responsibility and authority are held in one department and/or by a few individuals. Concentrated buying strategy is a tactic of purchasing from only a few suppliers that is used to gain more favorable prices and better relations. Dispersed buying strategy is a tactic of purchasing from many vendors, which can lead to merchandise variety, alternate sources of supply, and competition between sources.

In the automotive industry, moving or transferring the ownership of goods or services are __________ activities. A. selling C. shipping B. distribution D. transportation

B Distribution. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. Distribution activities serve as the link between and among automotive businesses by enabling goods to be moved from one place to another where they are needed. Selling is responding to consumer needs and wants through planned, personalized communications in order to influence purchase decisions and enhance future business opportunities. Shipping is one method of transportation. Transportation is the method used for moving goods from place to place.

The primary goal of a good orientation program for employees is to build a successful __________ relationship. A. employer-customer C. employee-customer B. employer-employee D. employer-community

B Employer-employee. An orientation program acquaints the new employee with the business. A good orientation program can be the first building block in a successful employer-employee relationship. This relationship can last for years and be very beneficial to both the employer and the employee. Orientation programs are not intended to build relationships with customers or the community.

An example of a country that has a socialist command economy is A. Japan. B. Great Britain. C. China. D. North Korea.

B Great Britain. A socialist command economy means that the government owns the major means of production and determines how products will be distributed, but there is private ownership of business. Japan has a market economic system. China and North Korea have communist command economic systems.

Which of the following is a type of product benefit that an automobile salesperson must explain to a customer: A. Obvious C. Limited B. Hidden D. Quantitative

B Hidden. A hidden benefit is an advantage of the automobile that is not recognizable unless a salesperson points it out. An obvious benefit is a product advantage that is apparent, plain to see, and easily recognizable. Limited and quantitative are not commonly used terms that describe a type of product benefit.

What is the second step in preparing a feature-benefit chart? A. Looking for specific features C. Organizing a list of related facts B. Knowing where to get information D. Identifying possible benefits

B Knowing where to get information. The second step in preparing a feature-benefit chart is knowing where to get facts about product features. Salespeople need to obtain information before they can prepare the chart. Possible sources of information include the product itself, customers manufacturer's brochures, other sales personnel, and promotional materials. Looking for, and finding, specific product features is the first step in preparing a feature-benefit chart. Identifying possible benefits and organizing a list of related facts are part of the third step, which is actually creating a feature-benefit chart.

Economies of scale is a concept often associated with A. private enterprise. C. international trade. B. mass production. D. consumer spending.

B Mass production. Economies of scale is the concept that increasing the scale of production will lead to a decrease in the cost of production while increasing the output. This concept is often associated with mass production because mass production usually involves a large manufacturing facility producing large quantities of specific items. As the facility becomes larger in scale and more product is produced, the less costly it is to produce the products. Economies of scale is an economic concept that is not necessarily associated with private enterprise, international trade, or consumer spending.

Advertisements, marketing plans, marketing-research reports, information sheets, and product manuals can all be used by salespeople to A. determine customer buying motives. C. overwhelm indecisive consumers. B. obtain product information. D. trick customers into buying a substandard product.

B Obtain product information. Informed salespeople need to have excellent product information in order to match customer needs and wants to the appropriate products. There are many ways in which salespeople can obtain information about products, such as advertisements, marketing plans, marketing-research reports, information sheets, and product manuals. Other sources of information could include (but are not limited to) labels, displays, other salespeople, trade journals, or personal experience. Studying these materials will help a salesperson be better prepared to assist customers and help them to make wise buying decisions. Salespeople do not use these materials to determine customer buying motives, overwhelm indecisive consumers, or trick customers into buying a substandard product.

One of the goals of marketing planning is to identify a business's A. strategies. C. guidelines. B. opportunities. D. requirements.

B Opportunities. An opportunity is a favorable situation in the environment surrounding a business. One of the goals of marketing planning is to identify a business's opportunities so it can plan ways to take advantage of those opportunities. Strategies are plans of action for achieving goals and objectives. The goal of marketing planning is not to identify guidelines or requirements.

What do auto-parts stores usually calculate first when developing a merchandise budget? A. Planned purchases C. Open-to-buy B. Planned sales D. Beginning-of-month stock

B Planned sales. A merchandise budget is an estimate of the amount of products expected to be sold to customers during a period of time, usually six months. Consequently, the first step that auto-parts stores take when developing a merchandise budget is to calculate planned sales. To do this, stores consider previous sales figures and adjust them based on current trends and future predictions. Once stores calculate planned sales, they can plan purchases to obtain the quantity of merchandise that they expect customers will buy. Open-to-buy is the amount of money available to spend on purchases. Beginning-of-month stock is the amount of goods in inventory at the beginning of the month.

Which of the following are internal factors that affect the way an oil-change shop uses promotional tools: A. Price and competition C. Demand and product B. Product and price D. Place and demand

B Product and price. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. Internal factors that affect a company's promotional efforts are product, price, and place. Demand and competition are external factors that affect promotion.

Taking web-based courses, attending marketing seminars, and pursuing a master's degree are forms of A. career advancement. C. remedial education. B. professional development. D. social networking.

B Professional development. When an individual takes steps to enhance or improve skills or traits that s/he needs to excel in her/his career or profession, the individual is engaging in professional development activities. Taking web-based courses, attending marketing seminars, and pursuing a master's degree are examples of professional development activities and forms of continuing education, not remedial education. Engaging in these activities often, but not always, helps marketing professionals advance their careers. Social relationships often form when people take classes and attend seminars; however, forming social relationships is not the primary reason for taking web-based courses, attending marketing seminars, and pursuing masters' degrees

Which of the following is a marketing activity that a supermarket should coordinate with distribution in order to successfully sell its product: A. Orientation C. Production B. Promotion D. Competition

B Promotion. Promotion is a marketing function that communicates information about goods, services, images, and/or ideas to achieve a desired outcome. In order to successfully sell its product, a supermarket needs to coordinate all the components of marketing, which include distribution, promotion, product, and price. For example, if a supermarket develops an effective distribution system but fails to promote the product, customers will not know about the product or want it although it is readily available. Orientation is job preparation or induction training for new employees. Production is the creation of goods and services from economic resources. Competition is the rivalry between two or more businesses to attract customer dollars.

Business policies that focus on meeting consumers' wants and needs while making a fair profit for the business are primarily intended to A. guide employees' actions. C. reduce misunderstandings. B. satisfy customers. D. keep operations running smoothly.

B Satisfy customers. Effective business policies are designed to satisfy customers by meeting their wants and needs. At the same time, the policies are meant to make a fair profit for the business. Business policies also are developed to keep operations running smoothly, to reduce misunderstandings, and to guide employees' actions.

When preparing a personal income tax form, parents report some of their child care expenses to receive A. capital gains. C. dividends. B. tax deductions. D. tax rebates.

B Tax deductions. Tax deductions are expenses that can be subtracted from gross income. For example, working parents can deduct or subtract a certain amount of their incomes for the childcare expenses they incur while at work. Other examples of tax deductible expenses include college tuition, home mortgage interest, and charitable donations. Capital gains are taxes on earnings from the appreciation of an investment. Dividends are a portion of a company's profits that are paid to shareholders. A rebate is a part of the price that a customer pays for a good or service, which is usually offered by the product's manufacturer.

Ron is a clerk in a bakery and his brother is a car dealer. As sales people, the brothers will A. spend a lot of time prospecting. C. need to qualify potential leads. B. use the selling process differently. D. sell to the same type of customer.

B Use the selling process differently. There is a difference in the use of the selling process, depending on the nature of the product and the type of customer. Salespeople who sell inexpensive, frequently purchased items, such as bakery goods, do not need to prospect or qualify potential leads. Salespeople who sell large, expensive items, such as cars, usually need to do a lot of prospecting and spend time determining exactly what their customers want. Bakery customers usually know what they want, whereas customers buying cars may need a lot of assistance.

Which of the following kinds of paid promotion is most likely to be used to promote the entire company: A. Publicity C. Advertising B. Sales promotion D. Personal selling

C Advertising. Advertising is any paid form of nonpersonal presentation of ideas, images, goods, or services. It can be used to promote products or any kind of business. Publicity is a nonpersonal form of promotion that is not paid for by the company or individual that receives it. Sales promotion is promotional activities other than advertising, personal selling, and publicity that communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Personal selling is the form of promotion that uses planned, personalized communication in order to influence purchase decisions and enhance future business opportunities. Both sales promotion and personal selling would be more likely to be used in promoting products.

Which of the following often is a legal consideration that involves the pricing function: A. Entertaining C. Advertising B. High-pressure selling D. Whistleblowing

C Advertising. The way businesses advertise their prices may be illegal in certain situations. For example, businesses may not advertise that their prices are lower than their competitors' prices unless there is proof. Also, bait-and-switch advertising is illegal. This involves promoting a low-priced item to attract customers to whom the business then tries to sell a higher priced item. High-pressure selling, entertaining, and whistleblowing are not legal considerations that involve the pricing function.

One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is because the leader has the A. ability to provide training. C. authority to demand cooperation. B. personality to develop friendships. D. capacity to regulate change.

C Authority to demand cooperation. Strong leaders have the authority and power to influence others and direct the actions of others. A channel of distribution that has strong leadership is often able to avoid conflict within the channel because the leader has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict. The leader's authority makes it possible for the leader to assign specific responsibilities to each channel member and persuade members to accomplish their individual tasks. When each member is cooperating and working for the good of the channel, there is less chance of conflict. It is not necessary for the leader to develop friendships. Channel leaders usually do not provide training. It is not possible to regulate change, although an effective leader will help channel members adjust to change.

A supermarket chain that loses items to theft includes those items in which category of the income statement? A. Capital goods C. Cost of goods sold/cost of sales B. Long-term liability D. Operating expenses

C Cost of goods sold/cost of sales. This element of the income statement includes all costs to obtain and/or produce the goods or services that a supermarket chain sells. Some of these costs include shoplifted or stolen items because the supermarket chain purchased those items even though they eventually were not available for sale due to theft. Operating expenses are all the expenses involved in running a supermarket chain and are a separate category on an income statement. Capital goods are manufactured resources used to produce goods and services. Long-term liabilities are debts that will take longer than a year to pay. Capital goods and long-term liabilities are not separate categories on an income statement.

Which of the following do businesses often consider when assessing their relationship with an outside advertising agency: A. Competitive advantage C. Creative performance B. Product development D. Positioning technique

C Creative performance. Businesses usually assess their relationship with an outside advertising agency on a regular basis to make sure they are satisfied with the agency's work. An important aspect to consider is the quality of the agency's creative performance. For example, do the print ads attract attention or do the television commercials generate interest? If the ads and commercials are routine and lack creativity, a business might decide that it is time to change agencies to give a new look to the business's advertising. Product development, competitive advantage, and positioning technique are issues that a business considers when evaluating its own performance in the marketplace rather than its relationship with an outside advertising agency.

Which of the following is a main factor that auto-parts stores consider when choosing vendors: A. Operating methods C. Credit terms B. Available displays D. Shipping containers

C Credit terms. When choosing vendors, auto-parts stores usually consider if the vendor offers credit and the terms of the credit. Most stores expect to be able to place orders, receive goods, and pay for them at a later date. If vendors want to be paid immediately, stores might decide not to use them. Also, stores often expect to receive some type of discount if they order large quantities or pay within a certain amount of time. As a result, they may choose vendors that offer favorable discounts because that enables the stores to save money. Displays are not a main factor, although stores often use point-of-purchase displays provided by vendors if available. Stores do not consider operating methods or shipping containers when choosing vendors.

When a group reaches consensus, it means that all of the members agree but they usually A. do not have equal power. C. do not vote. B. follow the leader. D. accept majority rule.

C Do not vote. Consensus building is the group's process of coming to an agreement. However, the members do not vote because voting involves being for or against a decision. The side with the greater number of votes wins. In consensus building, no one wins because all of the members come to an agreement. Each group member's opinion is of value and each member contributes to reaching an agreement. Therefore, each member has equal power. Consensus building does not involve following the leader or accepting majority rule.

Which of the following is the best way to handle suspicious customers: A. Serve them nonemotionally. B. Ask simple, polite questions with options. C. Explain and demonstrate good service as many times as you need to. D. Help them along by not overwhelming them.

C Explain and demonstrate good service as many times as you need to. The best way to deal with suspicious customers is to explain and demonstrate good service as many times as you need to. Some customers just "get it" more slowly than others. Asking simple, polite questions with options is the best way to deal with argumentative customers. Serving nonemotionally is the best way to deal with insulting customers. Helping them along by not overwhelming them is the best way to deal with slow/methodical customers.

Not allowing employees to bring personal belongings into the work area helps to prevent A. Burglary. B. Robbery. C. fraud. D. shoplifting.

C Fraud. Fraud is deceiving or cheating an individual or a business out of money or property. Not allowing employees to bring personal belongings into the work area reduces the possibility that employees will try to conceal goods and carry them out of the business. Robbery is theft that involves the use of force, violence, or fear. Burglary is any illegal entry into a building to commit a theft. Shoplifting is theft of goods by customers.

What is an advantage to a grocery store of using a perpetual control system that maintains a continuous record of what the store buys and sells? A. Predicts discrepancies C. Identifies overstocks B. Verifies inventory levels D. Estimates future sales

C Identifies overstocks. Perpetual inventory control is a method of inventory control that updates inventory information on a continuous basis as transactions occur. An advantage of using this system is that it identifies overstocked items so the grocery store does not order more of the items that are not currently selling. By reviewing the perpetual inventory records, store managers will be able to identify overstocks and make decisions about how to increase sales. It is important for stores to know which items are overstocked, because those items take up shelf space but are not generating a profit for the store. Stores usually conduct a physical count to verify inventory levels. A perpetual control system cannot predict discrepancies or estimate future sales. However, stores use the information provided by a perpetual system to identify sales patterns and trends.

High levels of investment in new plants and equipment indicate producers expect a(n) A. shortage of consumer goods. C. increase in retail sales. B. decrease in retail sales. D. decrease in sales-stock ratio.

C Increase in retail sales. Producers are not willing to build new plants or buy new equipment unless they feel the economy is growing and expanding. The expansion phase of a business cycle is a time of economic prosperity. When there is a shortage of consumer goods, demand has exceeded supply, and the business cycle has peaked. A decrease in retail sales and a decrease in sales-to-stock ratio occur in a period of economic contraction.

One way all automobile-dealership employees can demonstrate initiative is to A. take part in community activities. C. learn all they can about the company. B. find out the company's future plans. D. make sure they receive appropriate benefits.

C Learn all they can about the company. Learning about the company on your own initiative demonstrates your sincere interest in the automobile dealership. This might include, but is not limited to, learning about the company's future plans. Taking part in community activities is a personal choice, not initiative. Making sure they receive appropriate benefits is part of the employment process.

Which of the following is the best way to approach a coworker who has a vision impairment: A. Touch the person to make him/her aware of your presence B. Tap the person with a paper or other object C. Make a small amount of noise as you come near D. Say something in a loud voice when you reach the person

C Make a small amount of noise as you come near. Always let persons with vision impairment know that you are approaching so that you don't startle them. Coughing, clearing your throat, or making noise with your feet are all acceptable ways to announce your presence. Speaking loudly or touching people to get their attention could startle them if they aren't aware anyone is in the vicinity.

Are all products test marketed? A. No; it is usually an unnecessary step in new-product development B. Yes; it guarantees product success C. No; it can delay entry into the full market D. Yes; it gives an accurate picture of a product's performance

C No; it can delay entry into the full market. Test marketing involves introducing a product to a limited market to see what its acceptance will be. Test marketing serves to guide the planning of actual marketing strategies. The product may be tried out in specific locations to get customers' and retailers' reactions before starting a wider distribution. However, not all new products need test marketing. Test marketing may not be used for some products/services because it is costly, delays entry into the full market, provides no guarantee of actual success, may not give an accurate picture of performance, and gives competitors an opportunity to steal the idea while it is being tested.

Which of the following is a strategy that a business might use to position an existing product that is losing popularity: A. Increase sales C. Promote new uses B. Analyze attributes D. Identify competitors

C Promote new uses. When existing products start to lose popularity, businesses often try to develop new uses for those products and promote the new uses in order to position the product as current and worthwhile. Over the years, businesses have developed new ways to use many existing products and have positioned them as diverse and effective for several purposes. A good example is Arm & Hammer baking soda which the company promotes as also effective in eliminating odors in refrigerators. In the process of developing new uses to promote, a business would analyze the attributes of the product and identify possible competitors. Businesses use strategies, which are plans of action for achieving goals, to position existing products that are losing popularity in the hope of developing new markets and increasing sales. Increasing sales is a goal rather than a strategy.

Which of the following forms of direct mail is most likely to save money for a business: A. Sales packets C. Self-mailers B. Color catalogs D. Computer disks

C Self-mailers. Direct mail is a promotional medium that comes to consumers' homes and businesses. Self-mailers are forms of direct mail that do not require an envelope. Self-mailers are usually sealed or stapled and have a designated space for the mailing label, return address label, and postage. Businesses can save money by using self-mailers because they do not need to purchase envelopes. Color catalogs are expensive to produce. Sales packets and computer disks require envelopes or wrappers and often weigh a lot, which tends to increase postage amounts. Therefore, sales packets and computer disks are not options that are most likely to save money for businesses.

One principle on which the marketing concept is based is that a food marketing business should be able to meet its own goals when it A. achieves maximum production. C. sells products at fair and reasonable prices. B. focuses on the wants/needs of the business. D. uses promotion effectively.

C Sells products at fair and reasonable prices. The marketing concept is a philosophy of conducting business based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. When a food marketing business sets reasonable prices, customers want to buy the products, and the company meets its goal of making a profit. Achieving maximum production and using promotion effectively do not guarantee that the business will meet its goals. Focusing on the business's wants/needs is contrary to the marketing concept.

Which of the following is not a main function of distribution centers in the food marketing industry: A. Sorting C. Storage B. Delivery D. Consolidation

C Storage. A distribution center is basically a warehouse that receives products and quickly moves them to the intended destination. Many large supermarket chains operate distribution centers in order to move products to individual stores as quickly as possible. Therefore, one of the main functions is not to store products but to sort and deliver them. Distribution centers also consolidate orders and distribute them to individual stores.

People having job skills but being out of work because the jobs that require those skills do not currently exist is an example of __________ unemployment. A. organizational C. structural B. national D. industrial

C Structural. Structural unemployment results when people have job skills but the jobs that require those skills do not currently exist. For example, if new technology eliminates the need for certain types of jobs, the people who held those jobs may be terminated. These people have skills, but the structure of the jobs has changed and they are no longer needed. National unemployment affects workers throughout the country. If a business reorganizes, certain jobs may be eliminated or combined, which may result in unemployment. Industrial is not a type of unemployment.

Which of the following is a true statement concerning product/service management: A. Small businesses usually have their own new-product departments. B. Product-planning committees take up very little of company executives' time. C. The smaller a business, the less time that can be devoted to product planning. D. Venture teams are permanent departments that deal with product/service management.

C The smaller a business, the less time that can be devoted to product planning. In fact, most small firms have no formal system for planning new products. Management often conducts product planning while doing other things such as checking the competition, talking with salespersons or customers, or even by looking at catalogs from other companies. One drawback of product-planning committees is that a great deal of executive time is consumed. New-product departments are typically found in large companies and often answer directly to the president of the company. Venture teams are small, separate groups formed within a business. After a product has been developed, the venture team may be disbanded.

Which of the following is an example of a potential ethical issue in product packaging: A. A hair spray manufacturer packages its products in pump dispensers instead of aerosol cans. B. A pharmaceutical company adds a protective seal to its over-the-counter product line. C. A sports beverage manufacturer includes product discounts on the cap of the drink's bottle. D. A headlight manufacturer changes its packaging from cardboard boxes to Styrofoam containers.

D A headlight manufacturer changes its packaging from cardboard boxes to Styrofoam containers. Many consumers are very environmentally conscious. Styrofoam does not break down well when it is discarded and becomes waste. Many people feel that Styrofoam products can harm the environment since it does not break down well. Therefore, many environmentally conscious people might decide not to use a company's product if the business uses environmentally harmful products. Protective seals are used to reduce or eliminate the risk of product tampering and are not an ethical issue. Promotional discounting is common on product packaging and does not necessarily pose an ethical situation. Pump dispensers are better for the environment than aerosol cans. Therefore, packaging products in pump dispensers does not present an ethical issue.

One way that auto-parts stores maintain their displays is by making sure that the displays contain A. similar merchandise. C. seasonal goods. B. nonperishable items. D. abundant product.

D Abundant product. Maintaining displays involves making sure that the displays contain abundant product. Auto-parts stores often add product to displays because customers remove items throughout the day. Displays that contain a small amount of product often appear unattractive and disorganized to customers. Also, customers may think that the items have been on display too long if they are in disarray and limited in number. Not all store displays contain seasonal goods, nonperishable items, or similar merchandise.

Supervisors might best increase morale and maintain company operations by scheduling employee working hours A. around the needs of a majority of the employees. B. in terms of supervisory needs. C. as each employee's needs dictate. D. according to the traffic flow of customers.

D According to the traffic flow of customers. Employees should be told during orientation to expect this because the business needs employee to be available to serve customers. Also, employees appreciate knowing what is expected of them. Neither supervisors nor employees should expect to be able to set working hour schedules to suit their personal convenience. A democratic scheduling policy would not be effective or efficient.

An existing business might determine the appropriate services to add to its product mix by A. developing sales forecasts. C. identifying its target markets. B. surveying its vendors. D. asking its customers.

D Asking its customers. To improve or expand its product mix, a business might ask its existing customer base about its needs, wants, and level of current satisfaction with the products. The information can be used to identify additional services that can satisfy the customers' needs and enhance their experiences with the business. A company buys the supplies (e.g., goods, services) that it needs to run the business from its vendors. Obtaining information or feedback from its vendors does not necessarily help the business in determining which service options it should provide its customers. A target market is a particular group of customers that a business seeks to attract. An existing business has already identified its target markets and, therefore, does not need to go through the process again. A sales forecast is a prediction of future sales over a specific period of time. Although sales forecasts can influence the types and levels of services a business offers, they are not developed for the purpose of determining the services.

What is the legal issue involved if an automobile manufacturer recalls a vehicle for repair, a customer has every opportunity to have the repair work done but does not, and the customer is injured while operating the vehicle? A. Product negligence C. Manufacturing risk B. Misuse of a product D. Assumption of risk

D Assumption of risk. Product liability is an important legal issue that affects many businesses involved in vehicle and petroleum marketing, such as automobile manufacturers. However, in certain situations the manufacturer is usually not considered legally responsible if a customer is injured while operating a vehicle that is defective. One situation is if the manufacturer has issued a recall for repair on a vehicle, the customer is aware of the recall and has every opportunity to have the repair work done, but the customer fails to do so. In that case, the customer has assumed the risk of driving the vehicle while knowing that the problem exists. The customer is not misusing the product but is driving the vehicle even though there is a defect. This is an example of a customer assuming risk rather than a manufacturing risk. It is not an example of product negligence because the manufacturer is making every attempt to repair a defect.

One way that technology has enhanced a business's ability to administer telephone surveys in a time- efficient manner is by making it possible to use A. digital presentation software. C. mechanical database networks. B. interpersonal fax interviews. D. automated computer systems.

D Automated computer systems. Technological advancements, such as computerized telephone number selection systems, have made it possible for businesses to solicit survey responses quicker than by using manual methods. In addition, digital or electronic voice devices often expedite the survey process in a more time-efficient manner than staff interviewers. Interpersonal fax interviews and mechanical database networks are not terms that are commonly used to describe marketing-information research technological resources. Presentation software refers to computer applications that generate multimedia or slide shows.

Which of the following is an important aspect to consider when a business begins to assess its marketing information needs: A. Technology C. Production B. Government D. Competition

D Competition. Businesses need to understand their competitors and analyze their competitors' products in order to remain successful. Therefore, part of assessing marketing needs involves deciding what would be important to know about the competition. For example, a business might decide to obtain information about a competitor's advertising or special sales activities. Then, a business might use this information to develop similar strategies to reach the target market. Businesses usually do not consider the government, production, or technology when assessing its marketing information needs.

To assist and support another channel member's sales promotion in a particular area, a producer might work with the channel member to A. develop a reliable accounting system. C. identify trends and market shifts. B. research and develop innovative products. D. coordinate a regional advertising campaign.

D Coordinate a regional advertising campaign. Channel members are all of the businesses and individuals that assist in moving goods and services from the producer to the consumer. In many situations, producers will assist other channel members (e.g., dealers, distributors, retailers) in sales promotions. One way to assist channel members planning a sales promotion in a certain area is by providing resources (e.g., money, product samples) to develop an advertising campaign. The goal of the advertising campaign is to communicate information about the sales promotion to consumers in order to stimulate interest and sales. The producer may provide assistance by developing new products and identifying market trends, but these activities do not relate to a specific sales promotion. An accounting system refers to the methods and procedures a business uses in handling its financial information.

An automotive-parts retailer holding an end-of-the-season clearance sale might arrange small items of sale merchandise on a A. display ledge. C. gondola. B. pipe rack. D. dump table.

D Dump table. Automotive parts retailers holding end-of-the-season clearance sales might arrange the sale merchandise on dump tables. Dump tables are easy to stock because they don't require specific organization. Merchandise usually is haphazardly arranged on dump tables, giving the impression of economy and bargains. Dump tables often appeal to customers who enjoy shopping for a good deal and don't mind looking through piles of goods. A pipe rack holds a large quantity of goods on hangers. A gondola is a two-sided, multi-shelved fixture. A display ledge holds orderly stacks of identical merchandise.

A direct benefit to the company of using coaching techniques in the workplace is that A. the company's sales and profit margins increase. B. employee productivity rates usually double. C. the coach's morale usually increases. D. employee turnover rates often decrease.

D Employee turnover rates often decrease. A coach is a person who enables other people to reach their true potential by helping them to overcome the barriers that are keeping them from doing something they want to achieve. Managers often take on the role of a coach to help their subordinates reach their career goals, increase their productivity, and solve problems. Managers who coach their employees often supervise happy, motivated workers who enjoy their work, which often results in fewer employees leaving the company. Since hiring and training new employees can be expensive for a business, lower employer turnover is a benefit to the company. Employee productivity rates may increase, but it cannot be assumed that the productivity rates usually double. The coach's morale may increase, but this is not necessarily a direct benefit to the company. If its employees' productivity levels increase, a company's sales and profit margins may increase.

David and Ella are in business together and each of them has unlimited liability. David and Ella's business is an example of a A. franchise. C. joint venture. B. corporation. D. general partnership.

D General partnership. A general partnership is a type of partnership agreement in which all partners are liable for a business's losses. A corporation is a form of business ownership that is owned by stockholders who have purchased units or shares in the company. A joint venture is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources for the benefit of all parties. The joint-venture relationship is usually for a short term or for a single project. A franchise is a contractual agreement between a parent company and a franchisee and allows the franchisee to distribute the parent company's goods and services for a certain amount of money.

During which stage of the product's life cycle is a business likely to increase promotional efforts in order to protect its market share from increasing competition: A. Contraction C. Maturity B. Decline D. Growth

D Growth. A product life cycle refers to the stages through which goods and services move from the time they are introduced on the market until they are taken off the market. During the growth stage of the product life cycle, sales tend to increase, and the number of competitors entering the marketplace tends to increase. To maintain market share and remain competitive, the business may increase promotion, hoping to maintain and grow the consumers' brand awareness. Sales peak and then they increase at a slower rate during the maturity stage of the product's life cycle. During the decline stage, sales and profits fall rapidly. Contraction is a phase of the business life cycle.

When a business considers the feasibility of a product idea, it should determine if the product idea is consistent with the company's A. policies. B. advertising. C. warranties. D. image.

D Image. Product research and development is an expensive process for a business. Before a business invests time, personnel, and money to take an idea and turn it into a product, it must determine if the product is feasible or practical to make and market successfully. One aspect that the business must consider is if the product idea is compatible with the company's image or brand. A business addresses advertising, warranties, and policies after the product idea is deemed feasible.

An automotive business's primary purpose in developing a promotional plan is to A. even out sales throughout the year. C. attract new customers. B. create a specific image. D. increase its sales and profits.

D Increase its sales and profits. This is the automotive business's ultimate goal—what it hopes the promotional plan will help it to accomplish. The other alternatives are objectives that may be part of the overall plan. The automotive business may use promotion to bring customers into the business for special sales as well as to encourage them to patronize the automotive business throughout the year. It may also use promotion to create or to maintain a specific image attractive to its target market. All of these are part of the effort to increase sales and profits.

One of the benefits to a customer of doing business with an automobile dealership that properly maintains its facilities is the reduced possibility of A. liability. C. robbery. B. fraud. D. injury.

D Injury. Injury to customers may result if automobile dealerships do not properly maintain their facilities. Proper maintenance helps to eliminate hazards such as torn carpeting, damaged floors, broken stairs, and protruding counters that may cause accidents and injure customers. Accidents that result in injury to customers may occur at any time, but automobile dealerships can reduce the risk by properly maintaining their physical facilities. Fraud is deceiving or cheating an individual or a business out of money or property. Robbery is theft that involves the use of force, violence, or fear. Liabilities are debts that the automobile dealership owes.

Building trust among team members is often a challenge when A. initiating a performance evaluation. C. establishing a daily work routine. B. setting professional goals. D. managing cross-functional projects.

D Managing cross-functional projects. Cross-functional projects involve working with employees from other departments to accomplish a common goal or task. Because a variety of skills and knowledge are often necessary to complete a cross-functional project, several people may become a work group or team for the duration of the project. When employees come from different departments, they have different experiences and backgrounds, so it often takes time to build trust and a sense of teamwork. Teamwork is not usually necessary when a person is setting his/her professional goals, establishing a daily work routine, and initiating a performance evaluation for one other person.

The first factor that a business should consider when it is deciding if it should sell a product is the A. promotional strategy. C. storage space. B. taxation rate. D. market demand.

D Market demand. Often, a business must change its product offerings to accommodate its customers' changing wants and needs. To determine if a product change, addition, or deletion should be made, the business must evaluate the market demand for the product. If customer demand for certain goods or services is high, the business is likely to add new products or change existing products. Businesses do not usually consider taxation rates as a first or primary factor when identifying products to sell their customers. Storage space and promotional strategy are considerations after the business evaluates the market demand for a product.

Which of the following promotional methods is used by many apparel retailers because it shows consumers the latest fashions at minimum expense to the business: A. Radio commercial C. Fashion show B. Magazine advertising D. Newspaper advertising

D Newspaper advertising. Apparel and accessories are regularly advertised in newspapers for many reasons. The ads can be illustrated, they have a short lead time, they cost less than some other forms of promotion, and they are seen by great numbers of consumers. Magazine advertising and fashions shows are more expensive than newspaper advertising. Radio commercials cannot show consumers what fashions look like.

When negotiating maintenance contracts, which of the following should businesses consider that often adds to the overall cost: A. Additional supplies C. Training sessions B. Installment requirements D. Optional features

D Optional features. Many maintenance contracts are available with a variety of optional features that usually add to the overall cost of the contract. For example, a basic contract might include a certain number of repairs per month. If the business wants unlimited repairs or wants the maintenance company to make a house call, it often adds to the cost. These are examples of optional features that a business might decide to add to the basic contract. However, businesses should analyze the extra cost involved to decide if the options are worth the price. Maintenance companies usually do not install equipment, provide training, or sell supplies because their function is to maintain and repair equipment and facilities.

Which of the following marketing functions often helps a business create an image: A. Selling C. Public relations B. Advertising D. Promotion

D Promotion. The promotion function helps to create an image or impression of a business. For example, a business might want to change its image to attract a different or expanded target market. Coordinated promotional activities will get the message across. Advertising and public relations are promotional methods that businesses might use to create an image. Selling involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

1. Which of the following is a characteristic of debtor-creditor relationships: A. Designed to monitor accounts C. Intended to increase competition B. Controlled by industry standards D. Regulated by various laws

D Regulated by various laws. There are several laws that regulate the use of credit. These laws are intended to guarantee that credit is managed fairly. The laws tend to improve the debtor-creditor relationship because there are rules in place that apply to both parties. Debtor-creditor relationships are not controlled by industry standards, intended to increase competition, or designed to monitor accounts.

Which of the following is a factor that businesses often consider when conducting a market analysis: A. Design of the questionnaire C. Safety of the research process B. Location of the test market D. Size of the market next year

D Size of the market next year. An important factor to consider when conducting a market analysis is the size of the market next year. Businesses need to know if the market is growing or decreasing. For example, if a business sells primarily to senior citizens, it needs to determine the size of that market next year and for several years to come in order to be prepared to meet the needs of that market. If a business's market is decreasing, it needs to know that so it can make changes and try to identify a new market. When conducting a market analysis, businesses do not consider the location of the test market, the safety of the research process, or the design of the questionnaire.

To increase efficiency among channel members, which type of software allows for the secure transfer of information via the Internet: A. Client network C. Internet service provider B. Intranet system D. Virtual private network

D Virtual private network. Software refers to the programs that instruct computers to perform specific operations. Software that instructs the computer to transfer certain information to specific computer systems through a secure Internet exchange is a virtual private network (VPN). When channel members' computer systems are linked together by this type of software, the necessary information (e.g., purchase orders) can be transferred quickly from one channel member to another, which increases the efficiency of the entire distribution process. An Intranet software system allows information flow among a company's employees. An Internet service provider (ISP) is a company that provides access to the Internet, usually for a fee. A client network refers to a client, usually a business, which has its own Intranet.

Jamie is an accountant at a furniture store. As soon as customers pay cash for their purchases, he records the sales in the accounting books but not if they charge their purchases. What type of accounting method is Jamie using? A. Systematic C. Accrual B. Cash D. Automatic

B Cash. With the cash accounting method, income and expenditures are recorded at the time the money changes hands. Because Jamie is recording the sale of purchases as the customers pay cash for them, he is using the cash accounting method. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. Systematic and automatic methods are not types of accounting methods.

Since Penelope is having difficulty paying the bills for her start-up business, she wants to calculate her current ratio. Which information will she need to do this successfully? A. Current assets and current liabilities B. Total assets and total liabilities C. Total accounts receivable and total cash D. Current inventory and current expenses payable

A Current assets and current liabilities. To calculate the current ratio for her business, Penelope will need the current assets and current liabilities. In fact, she will need to divide current assets by current liabilities. The current assets figure is the sum of cash, accounts receivable, inventory, and prepaid insurance. The current liabilities figure is the sum of accounts payable and accrued expenses payable.

What kind of conversion process is being used in an assembly line that produces soft drinks? A. Unit B. Labor-intensive C. Capital-intensive D. Batch

C Capital-intensive. Capital-intensive conversion processes depend upon the use of equipment. The mass production of soft drinks depends on the use of equipment. Labor-intensive conversion processes rely on the skills of workers. The amount of product that is produced depends on a business's method of production. Batch and unit are two of the methods of production. Unit produces one item at a time or items in small quantities. Batch is the production of items in specific amounts.

The type of copy that provides facts about a good or service is the A. feature. B. endorsement. C. tag line. D. claim.

A Feature. Copy is the text of an advertisement that provides readers with information about a good or service, such as its characteristics. Feature copy is a type of advertising copy that provides the reader with detailed facts about the product. An endorsement is statement of approval by a reputable external source. A tag line is an advertisement's slogan. A claim is a brief, simple declaration about a business or product, which may include a statement about benefits.

Which of the following usually is a characteristic of a trade show: A. Features specialized category of goods C. Promotes community charitable events B. Supports wide variety of exhibitors D. Attracts limited number of visitors

A Features specialized category of goods. Most trade shows concentrate on displaying a particular type of good or related goods. An example of a trade show would be an exhibition that featured manufacturers of computers and computer equipment and software. All of the equipment on display relates to computers and is of interest to any business that uses or wants to purchase computer systems. Trade shows are intended to attract a large number of visitors. Trade shows usually support a limited variety of exhibitors, only those related to the featured category. Trade shows do not promote community charitable events.

Which of the following is a businesslike way for employees to handle a situation in which they must obtain information requested by customers and call the customers back: A. Ask the customers when it would be convenient to call them B. Tell the customers exactly when they will be called C. Explain how much effort will be required to get the requested information D. Ask the customers to call back if they don't receive a call within 24 hours

A Ask the customers when it would be convenient to call them. When employees must gather information requested by customers and call them later, the employees should ask the customers when the customers would like to be called. The call should be scheduled to suit the customers' convenience, not that of the business. The employees should explain that the information is not available at the moment but will be obtained. Explaining how much effort will be required to obtain the information sounds like a complaint about the customers' request. Employees should make sure that they follow through on their promise of a return call, rather than asking customers to call back if they don't receive a call.

An important reason why businesses set clear marketing goals and objectives is to A. state what the business hopes to achieve. C. establish a time frame to succeed in the market. B. decide the amount of profit to forecast. D. find out how to appeal to the right customer base.

A State what the business hopes to achieve. Clear marketing goals and objectives state what the business hopes to achieve. If businesses do not know what they want to achieve, they cannot develop marketing strategies, which are the plans of action for achieving those goals and objectives. For example, by setting a goal of increasing sales by 5% next year, a business can focus on doing what is necessary to accomplish that goal. Businesses do not set clear marketing goals and objectives to decide the amount of profit to forecast or to find out how to appeal to the right customer base. One aspect of an effective marketing goal is establishing a time frame to achieve the goal.

Of the following ownership investments, which allows access to an "expert" manager: A. Stock mutual funds C. Real estate B. Collectibles D. Stocks

A Stock mutual funds. Stock mutual funds are ownership investments that allow access to an "expert" manager—called a fund manager. Collecting popular items may or may not involve a manager. You can collect on your own, if you want to. The same with purchasing real estate: You are not given access to any expert, in particular. And, stock purchases do not provide an "expert" to help you.

Which of the following is a reason why businesses track their operating costs: A. To determine selling price C. To estimate property value B. To calculate inventory needs D. To develop commission rates

A To determine selling price. One reason why businesses track their operating costs is to determine selling price. Since overhead costs are a part of the cost of doing business, they must eventually find their way back to the product. Businesses must include in the selling price all the costs involved in making and selling the product in order to realize a profit. Businesses do not track their operating costs in order to calculate inventory needs, estimate property value, or develop commission rates.

What trait is being demonstrated when grocery store employees treat customers with respect and without prejudice? A. Honesty C. Consideration B. Integrity D. Empathy

C Consideration. Grocery store employees should treat others, whether they are customers, coworkers, or supervisors, with consideration. This means being helpful and respectful and not being prejudiced. Business image, work environment, and employees' personal images are all reflected in the manner in which people are addressed. Empathy is the ability to put oneself in another's place. Honesty and integrity refer to a person's truthfulness and ethics.

What amount will a bakery deposit in its bank account at the end of the day based on the following information: $536.40 in cash sales, $128.75 in checks, $276.20 in credit-card sales, and opening change fund of $50? A. $715.15 C. $891.35 B. $665.15 D. $941.35

B $665.15. Bakeries usually deposit the money received from customers after the bakery closes for the day. To do this, they fill out a deposit slip and indicate the type of funds received, such as cash or check. Then, they total the two figures to determine the deposit amount ($536.40 in cash + $128.75 in checks = $665.15). Credit-card sales are not deposited in bank accounts at the end of the day because the bakery will receive those funds from the credit-card company at a later date. The opening change fund is not deposited, but usually held over to open the cash register the next day.

A local dealership purchased 100 blue pickup trucks but has only been able to sell three in the past five months. Because of the low demand for these trucks, the dealer has been forced to lower the sticker prices, creating a(n) __________ market for blue pickup trucks. A. discount C. seller's B. buyer's D. automotive

B Buyer's. A buyer's market was established because there was a large supply of trucks and a small demand for them, resulting in a lower price. A seller's market was not established because there was a low demand for the trucks. An automotive market is made up of the buyers and sellers of automobiles; it is already established and wouldn't be created by a fluctuation in supply and demand. Discount market is not an economic term.

What type of accounting method is being used by an auto-repair shop that uses a computerized check-writing program that automatically posts each check into an expense category or ledger? A. Accrual method C. COD method B. Cash method D. Check method

B Cash method. With the cash accounting method, income and expenditures are recorded at the time the money changes hands. Expenses are not recorded when they are incurred but on the date that the bills for them are paid. The accrual method would have recorded the expense at the time it was incurred, regardless of when the check was written to pay the bill. COD and check are methods of payment but not accounting methods.

Which of the following is a good source of detailed information about specific career opportunities in business: A. Classified ads in urban newspaper C. Community-college student centers B. Web sites of professional organizations D. Corporate human-resource departments

B Web sites of professional organizations. Most business specialties have a professional organization, such as the National Association of Business Economics. Today, many professional organizations also have a web site that includes information about the type of jobs in the profession. Many web sites also provide information about the training necessary for jobs in the profession and a listing of members who may have positions available. Classified ads in urban newspapers and community-college student centers are not good sources of detailed information about specific careers. Corporate human-resource departments only provide information about careers in their businesses.

What channel strategy would provide the best market coverage for a producer that wants to distribute its new product? A. Exclusive distribution C. Intensive distribution B. Selective distribution D. Inclusive distribution

C Intensive distribution. Intensive distribution allows for the broadest market coverage because it involves selling to every intermediary that will carry and sell the new product. Selective distribution narrows the distribution channel to a portion of the area similar to franchises. Exclusive distribution limits the distribution to a single retail outlet in a specific geographic area. This strategy is usually limited to prestigious products and would not be very effective for most types of new products. Inclusive distribution not a form of distribution.

A commercial bank's deposit ticket has space on the reverse side for the auto-repair business to provide what information? A. Itemized list of customers' purchases C. Itemized list of customers' checks B. Names of individual customers D. Addresses of individual customers

C Itemized list of customers' checks. Auto-repair businesses often deposit many personal checks, and the commercial deposit ticket provides space to list each one. The itemized listing makes it easier for both the merchant and the bank teller to record and deposit each check accurately. Information about customers' names, addresses, and purchases is not a factor in depositing checks.

Calculate the planned purchases for We've Got It Auto Parts based on the following figures: planned sales of $5,000, EOM stock of $20,000, planned reductions of $500, and BOM stock of $15,000. A. $10,000 C. $10,500 B. $5,500 D. $5,000

C $10,500. To calculate planned purchases, add the planned sales, the end of month (EOM) stock, and the planned reductions ($5,000 + $20,000 + $500 = $25,500). From this amount, subtract the beginning of the month (BOM) stock to determine the planned purchases ($25,500 - $15,000 = $10,500).

A grocery store has opening stock value of $75,380, stock purchases of $21,925, net sales transactions of $89,150, and periodic stock count of $7,875. What is the store's dollar amount of inventory shrinkage? A. $265 C. $280 B. $270 D. $295

C $280. To calculate the grocery store's dollar amount of inventory shrinkage, begin with the dollar figure from the opening stock value and add the purchases made since then ($75,380 + $21,925 = $97,305). This will indicate the total dollar value of inventory that should be on hand. Then, subtract the total sales transactions from this figure ($97,305 - $89,150 = $8,155). This figure is then compared with the periodic stock count, and if the current stock value is lower than the figure from inventory records, inventory shrinkage has occurred ($8,155 - $7,875 = $280).

A business wanting to determine the quality of potential vendors' products might request A. credit histories. C. samples. B. primary data. D. premiums.

C Samples. If a business is considering buying a product from a supplier, it might request that the supplier send the business a product sample. By having an actual sample of the product, the business can examine it to determine if the product meets the business's quality standards. Primary data, the supplier's credit history, and premiums will not help a business determine the quality of a particular product.

Which of the following is a benefit of promotional activities: A. They are all immediate and measurable. C. They help support the mass media. B. They are deceiving. D. They are the foundation of the economy.

C They help support the mass media. Support of the mass media is a benefit of promotional activities. The mass communication media—radio, television, newspapers, and magazines—are either partially or completely supported by promotional dollars. Without this money, financial support of the media would probably be passed along to consumers. Promotional activities can be deceiving, and they are not all immediate and measurable. These are disadvantages of promotion, rather than advantages. While promotional activities contribute to the economy, they are not the foundation of the economy.

Which of the following is a reason for a business to offer a deep product mix: A. To ensure similar methods of distribution C. To compete effectively B. To specialize in a product line D. To control costs

C To compete effectively. The business with a deep product mix offers a great many items in the product line. This allows the business to meet the needs of a variety of consumers, use a range of prices, and compete effectively. A shallow product mix helps a business to control its costs. The use of a narrow product mix enables a business to specialize in a product line. The use of similar methods of distribution relates to the consistency of a company's product lines.

A business that wants to buy goods for resale without paying for them at the time of purchase may ask the vendor for A. a line of credit. C. trade credit. B. an unsecured loan. D. a promissory note.

C Trade credit. Trade credit allows purchasers to buy goods for resale with a promise of payment within a certain time period. This may allow the purchaser time to sell the goods before the bill must be paid and, in effect, provides the purchaser with a short-term loan. A line of credit is an agreement between a borrower and a lender that the borrower can obtain a certain amount of money within a specified time period. An unsecured loan is one that is made without requiring the borrower to provide collateral. A promissory note is a signed agreement to repay money that has been borrowed, plus interest.

Which of the following is a true statement about time management: A. Employees' time is a minor business expense. B. Most people use time in the same ways. C. Use of time describes who a person is. D. People have different amounts of time to use.

C Use of time describes who a person is. The ways in which people use time can indicate whether they are children or adults, students or employees, and what their position is in a company. We all have an equal amount of time. Time is used differently by different people. In business, labor is one of the major expenses.

An auto-parts store has planned purchases for the month of $62,500. If the store has already committed $27,250 of that amount and expects sales to increase by 5%, what is open-to-buy for the month? A. $37,125 C. $26,500 B. $28,612 D. $35,250

D $35,250. Open-to-buy is the difference between planned purchases and the amount that has already been committed for purchases that month. In this situation, the auto-parts store has allocated $62,500 for purchases for the month. However, the store has already committed to spend $27,250 of that amount. The difference between those two figures is the amount remaining for the store to spend ($62,500 - $27,250 = $35,250). The expected increase in sales does not affect open-to-buy for the month. However, the store might decide to increase planned purchases in the future if sales increase.

In which phase of the product life cycle is an auto-parts business most likely to experience a negative profit: A. Maturity C. Growth B. Decline D. Introduction

D Introduction. During the introduction phase of a product, an auto-parts business is more likely to lose money than to make it. This is because the business tends to aggressively promote the product in order to generate product awareness and to get consumers to try the product. Sometimes, businesses use pricing strategies that generate low profit margins to encourage product trial and create product awareness. During the growth and maturity phases, a business tends to see increases in sales, which increases profits. During the decline phase, the product's sales are often very low and businesses tend to phase out the product before it starts to negatively impact profits.

The car salesperson explained to the customer who was purchasing a truck and financing it over a period of time that s/he had three days to change his/her mind before the sale was final. What was the car salesperson explaining? A. Federal Trade Commission Act C. Terms-of-sale policies B. Fair Packaging and Labeling Act D. State cooling-off laws

D State cooling-off laws. States have regulations that allow consumers to cancel contracts within a certain number of days. The cooling-off laws prevent salespeople from talking customers into purchasing products (e.g., trucks) that they don't really want. These are regulatory factors that affect businesses and their sales policies. The Fair Packaging and Labeling Act is a federal law that makes it illegal to use unfair or deceptive packaging or labeling for certain consumer products. Terms-of-sale policies are guidelines covering the aspects of a sale with which customers are usually most concerned, through price, delivery, credit, discount, and guarantee policies. The Federal Trade Commission Act is a federal law that declares competition illegal that is deemed unfair by the Commission, such as making false product claims.

Which of the following is a way that businesses can use financial information: A. To create an economic system C. To conduct focus groups B. To select selling strategies D. To identify trends

D To identify trends. Through financial-information analysis, businesses can recognize what products are selling well and in what colors, styles, models, and sizes. Over time, this helps businesses spot trends in customer buying habits so that the businesses provide more of the products customers are buying and less of those that are not selling well. Selling strategies are largely determined by the nature of the product being sold rather than by financial information. Focus groups are used to collect customer reactions to and opinions about product features or company image. Businesses function in economic systems rather than creating them.

When processing survey results, a marketing researcher may decide to discard the questionnaires that contain errors if the number of A. unsatisfactory responses is more than 25 percent. B. satisfactory responses is low. C. satisfactory responses is more than 40 percent. D. unsatisfactory responses is low.

D Unsatisfactory responses is low. Before a marketing researcher can analyze survey results, the raw data must be converted into a usable format, which often involves assigning numerical values to the responses. The researcher must review the raw data for errors, which occur when respondents do not answer all of the questions. If the number of error-filled questionnaires is low, the marketing researcher may decide to discard all questionnaires with errors. The number of or percentage of questionnaires that a researcher discards due to errors depends on many factors; however, a generally accepted figure is below 10 percent of all questionnaires that respondents fill out.

The use of dual distribution is legal only if it is intended to A. reduce inventory. C. eliminate warehousing. B. improve transportation. D. promote competition.

Promote competition. Using more than one channel to reach consumers is known as dual distribution. Dual distribution is legal as long as it promotes competition. If dual distribution is used to discourage or eliminate competition, the practice is illegal. Dual distribution is not used to improve transportation, eliminate warehousing, or reduce inventory.

What does a business need to develop so that it collects the appropriate marketing information to resolve a particular problem? A. Organizational chart C. Exploratory inquiry B. Marketing objectives D. Research plan

Research plan. So that the business does not waste time and money gathering information it doesn't need, it should develop a research plan. The research plan outlines the types of information the business needs to address the problem, as well as how and where to obtain the data. Marketing objectives are the goals that a business seeks to reach with its marketing plan. An organizational chart is a graphic representation of the relationships among a business's departments/personnel that shows how the business is structured. Exploratory inquiry is a fictitious term.

Setting a time limit for achieving a goal is a technique that A. helps to achieve the goal. C. is not usually recommended. B. reminds you of your goal. D. hinders progress toward the goal.

Setting a time limit for achieving a goal is a technique that A. helps to achieve the goal. C. is not usually recommended. B. reminds you of your goal. D. hinders progress toward the goal.

Which of the following usually has an additional tax placed on it, beyond the regular sales tax: A. Candy C. Clothing B. Gasoline D. Small appliances

Which of the following usually has an additional tax placed on it, beyond the regular sales tax: A. Candy C. Clothing B. Gasoline D. Small appliances