Global Manager Ch 1, 3, 5, 8, 9, and 10
This week, Jodi's salon had sales of $5,000. Employees were paid $1,000, food costs were $1,500, and rent was $500. Profit for the week was:
$2,000
A supermarket that is open 24 hours a day, 7 days a week is providing customers with _______________ utility. A) time B) place C) ownership D) form E) price
a
A supply curve shows the relationship between _______________. A) the quantity of a product that sellers would be willing to sell at different prices, regardless of demand. B) the quantity of a product that will be demanded at different prices. C) the quantity of a product that consumers are willing to buy from all sellers regardless of the selling price. D) the total quantity of a product available from a particular seller. E) the point at which buyers' demand for a product and sellers' supply of the product is in equilibrium.
a
About _______ percent of small businesses in the United States are in the goods producing sector. A) 20% B) 30% C) 40% D) 50% E) 60%
a
At Nike, new shoe designs are developed using a __________________. A) project team B) work group C) design team D) virtual team E) design person and someone from marketing
a
Do you remember being bombarded by calls from telemarketers? This stopped (or at least slowed down) with the establishment of "do-not-call" registries. Which of the following external environment factors brought about the change? A) Political and regularity B) Economic C) Technological D) Social and cultural E) Competitive
a
If the Federal Reserve is concerned about rising inflation, it will__________________. A) use monetary policy to decrease the money supply and raise interest rates B) decrease income taxes C) use monetary policy to bring about a decrease in interest rates D) increase spending E) increase income taxes
a
If the number of new claims for unemployment insurance goes down, which of the following is TRUE? A) The economy will likely expand in the future. B) Factory production will decrease. C) There could be trouble ahead because unemployed consumers can't buy as many goods and services as they could if they had paychecks. D) The economy had been strong. E) The economy will likely contract in the future.
a
If you want to start a new business, you probably should avoid setting up a new company that: manufacturers aluminum A) builds homes B) provides accounting services C) sells building materials D) sells children's games online E) repairs computers
a
There are more than twenty-eight million small businesses in this country. Relative to large businesses, small businesses ___________________. A) hire more frequently and fire more frequently than do large companies B) develop fewer patents per employee than do larger companies C) are less innovative D) generate a much higher percentage of our GDP than do large companies E) are slower to make decisions
a
There are several ownership options available for those who want to become business owners. The most common and the riskiest option is___________. A) starting a business from scratch B) buying an existing business C) getting a franchise D) becoming a limited partner in a limited partnership E) working from home for someone else
a
When the United States wants to raise the price of foreign goods and make them less competitive with domestic goods, the most likely way to accomplish this is by: A) imposing a tariff on the foreign goods. B) setting a quota on the quantity of goods that can be imported over a period of time. C) banning the import or export of certain goods to and from a specific country. D) engaging in dumping (selling the goods below product costs.) E) adding a tariff to goods made in the United States.
a
When the government takes in more money in a given year (through taxes) than it spends, the result is a: A) budget surplus. B) budget deficit. C) increase in the national debt. D) budget excess. E) excess tax reserve.
a
Businesses fail for any number of reasons, but many experts agree that the vast majority of failures result from some combination of the following problems with one exception: A) Bad business idea B) Too little or ineffective advertising C) Managerial inexperience or incompetence D) Cash problems E) Inability to handle growth
b
You are a product designer for Built New York, a NY company that designs fashionable and functional bags, totes, and cases (including one-bottle and two-bottle wine tote). You just finished designing a laptop backpack and it is now time to work with the team to decide how to price it. After reviewing the competition, you decide that the laptop backpack could be sold to customers for $50 and to retailers for $25 (who will mark it up to $50). The company's accountant reminds you that each product must generate a profit of $10. This means that you can spend $15 ($25 selling price to retailer less $10 profit) to make each laptop backpack. You are using which pricing method? A) Target costing B) Cost-based pricing C) Prestige pricing D) Penetration pricing E) Skimming pricing
a
You are the chief executive officer (CEO) of a medium-size company that makes jellybeans and other candies. Recently you noticed that the jellybean production line has been disrupted frequently. You decided to put a team in charge of solving the problem. What do you see as the primary advantage of using teams in organizations? A) Improve overall organizational performance B) Increase job satisfaction C) Encourage diversity of ideas D) Reward employees E) Cross-train employees
a
You plan to open a store in Oregon close to Smith Rock State Park. Your store will sell hiking and rock climbing equipment and supplies to frequent visitors. You read that the park has about 500,000 visitors each year. You estimate that about 40 percent of the visitors are hikers or rock climbers. You expect that about 30 percent of these individuals will need to buy some type of equipment or other supplies. You hope to attract 5 percent of these individuals to your store during its first year of operations. How many customers do you predict will come into your store in the first year? A) 12,000 B) 40,000 C) 60,000 D) 100,000 E) 200,000
a
You recently opened a shop in Los Angeles that sells European baby equipment. You purchased the equipment from a supplier in Sweden and had it shipped directly to your shop. You are a(n) ________________________. A) importer B) exporter C) franchisee D) multinational corporation E) global supplier
a
You sell Legos, which are made in Denmark, in your toy shop. You just learned that Denmark's currency, the Danish Krone, just went up relative to the U.S. dollar. You would expect that the cost of the Legos: A) will go up. B) will go down. C) will stay the same. D) will be higher than the Euro. E) cannot be determined
a
You want your company to get into an international market quickly while taking only limited financial risks so you enter into a ____________________. This allows a foreign company to sell your products in exchange for a royalty fee. A) international licensing agreement B) outsourcing contract C) international franchise D) strategic alliance E) joint venture
a
A business plan serves all of the following purposes EXCEPT: A) An indispensable tool in attracting investors, obtaining loans, or both B) A document which can be shared with others outside your organization, such as suppliers and competitors C) A plan or blueprint for the company D) A yardstick by which you can measure your performance E) An ongoing guide to your business and its operations
b
An advantage of starting a new business is that it gives you a chance to make more money than if you were employed by someone else. You have to take on all of the following financial risks EXCEPT: A) There might be times, especially in the first few years, when the business isn't generating enough cash for you to live on. B) You will need to have enough cash on hand to pay yourself a salary that is equal to what you were earning when you were employed by someone else. C) If the business does not do well, you may face substantial financial loss. D) You may need to commit most of your savings or even go into debt to get started. E) You may have to commit personal financial resources to grow your business.
b
Approximately how many patents has Microsoft obtained? A) 1,000 B) 10,000 C) 50,000 D) 1 million E) 50 million
b
Brooke Collins decided to build a small factory and start a business that manufactures scooters designed for toddlers. Which of the following is NOT a factor of production for her business? A) Workers' salaries. B) Finished scooters. C) Entrepreneurship. D) Painting equipment. E) Equipment used to affix the wheels to the scooters.
b
Every company has an informal communication network, which goes to work whenever two or more employees get together and start talking about the company and their jobs. Which of the following statements about the information communication network is FALSE? A) Informal communication can take place by just about any means (phone, e-mail, instant messaging, face-to-face conversation). B) Information on the informal communication network travels at a slower pace than formal communication. C) The informal communication network is sometimes called the grapevine. D) The informal communication network is typically widespread and can rarely be prevented, even if the company tries to discourage it. E) Because much of the informal communication is communicated orally, it's likely to get distorted and often degenerates into outright misinformation.
b
For the 15-year period, 1996—2011, there was ____________ in the number of workers employed by small businesses. A) a net decrease B) a net increase C) no change D) a rebound E) could not be determined
b
If the quantity demanded for 52-inch television sets is lower than the quantity supplied, we can expect that __________________. A) the price of 52-inch television will increase. B) the price of 52-inch television will decrease. C) the price of 52-inch television will stay the same. D) television manufacturers will increase their production of 52-inch televisions. E) television manufacturers will produce the same number of 52-inch televisions as in the past.
b
In calculating GDP, the United States government does NOT include the following: A) goods and services produced in the United States. B) intermediate goods that will become components in other products. C) goods that are produced to be sold to final users. D) goods and services produced in the United States by non-U.S companies. E) goods produced domestically to be used by final users.
b
Last Minute Broadway Tickets sells tickets for Broadway plays at prices considerably below the prices printed on the tickets. This situation is an example of which of the following conditions? A) Market in equilibrium. B) Surplus causing a decrease in market price. C) Shortage causing a decrease in market price. D) A market in which the quantity demanded is greater than the quantity supplied. E) Shortage causing an increase in market price.
b
Marriott International offers 14 hotel and resort brands from the luxury Marriott Marquis to the economy Fairfield Inn's. Which branding approach is Marriott using? A) Private branding B) Multibranding C) Multi-product branding D) Generic branding E) Customer-targeted branding
b
Nestle, a well-known candy company, has come out with a limited edition of Nestle Crunch Candy Bars based on classic Girl Scout cookies: thin mints, caramel coconut, and peanut butter crème. For Girl Scouts of America, the cookies are which type of product development? A) Extension of product line B) New-to-the-company C) Improvement of existing product D) New-to-the-market E) New product innovation
b
Poag and McEwen Lifestyle Center is the industry leader in "lifestyle centers", neighborhood shopping centers that are reminiscent of downtown-style shopping of yesteryear. The company is considering developing a "Promenade Lifestyle Center" in Center Valley, Pennsylvania. To aid in its decision, the company will review census data to determine income levels of possible shoppers and assess the likelihood that the surrounding area will grow in the near future. This is an example of ______________. A) use of primary data B) use of secondary data C) use of survey data D) scientific research E) exploratory research
b
Suppose your business idea is to offer hot air balloon rides for those graduating from college giving them a bird's eye view of the campus. Your "market" is: A) The entertainment / celebration industry B) College students C) College students who are graduating D) Graduating students who want to celebrate by taking a hot air balloon ride over campus E) Those graduating who made the top 75 percent of the class
b
The forty-plus countries of Europe have long shown an interest in integrating their economies. This was accomplished in the late 1990s when the European Union (EU), a group of twenty-seven countries that have eliminated trade barriers among themselves, was formed. Which of the following statements about the EU is NOT true? A) The rules of the EU allow unrestricted trade among member nations. B) All EU members agreed to abandon their own currencies and adopt a joint currency called the Euro. C) The EU is more than a trading organization; it also enhances political and social cooperation and binds its members into a single entity with authority that requires them to follow common rules and regulations. D) The EU also allows people to come and go freely among the member countries as long as you possess an EU passport. E) The EU allows individuals from the member countries to work in any EU nation.
b
The major advantage of buying a franchise is: A) You get advice and guidance on starting an operating a business. B) You get a prepackaged, ready-to-go business that is proven successful elsewhere. C) You receive help in picking a location from the franchiser. D) You benefit from the franchiser's advertising. E) You get the right to use a company's brand name and sell its products.
b
The next time you eat a Marshmallow Peep, think about the steps in Just Born's Supply Chain. The company's supply chain includes all of the following members EXCEPT: A) The suppliers who provide sugar and other ingredients used to make the Peeps B) Just Born's Marketing Department which creates ads for the Peeps C) Customers who buy the Peeps D) Retail stores that sell the Peeps E) Just Born's manufacturing facilities
b
Under ____________, industries that provide essential services may be government owned. A) communism B) socialism C) capitalism D) mixed market system E) free market system
b
Wal-Mart and Toyota all have operations around the world. They are called _________________. A) International corporations B) Multinational corporations C) Foreign subsidiaries D) Foreign direct investments E) Global businesses
b
When the PowerSki was invented and made available for sale, it was considered a new-to-the-market product. Which of the following statements is NOT true about new-to-the-market products? A) They are very risky. B) About 70 percent of products fall into this category. C) They can be very profitable. D) They can enjoy a temporary monopolistic position. E) They are generally innovative.
b
The individuals or organizations that need a product and are able to buy it are called your ________________. A) consumer market B) customers C) industrial market D) target market E) market segment
d
Which of the following has to be true for a company to break even (have no profit or loss)? A) You must price your product above your variable costs B) Total sales revenue must exactly equal all of your expenses (both fixed and variable) C) Total sales revenue must equal your fixed costs D) Fixed costs much equal variable costs E) Contribution margin per unit must be greater than zero
b
Which of the following is NOT a characteristic of a business? A) It provides goods or services to consumers for the purpose of making a profit. B) It provides social or educational services without concern for making a profit. C) It has at least one owner. D) It often hires employees to work for the company. E) It sets goals and objectives.
b
Which of the following is NOT a step in the product development process? A) Get feedback to refine the product concept that describes what the product might look like and how it might work B) Design an advertising campaign to promote the product C) Design with manufacturing in mind to build both quality and efficiency into the manufacturing process D) Build and test prototypes, or physical models of the product E) Run market tests and enter the ramp-up stage during which employees are trained in the production process
b
Which of the following is NOT one of the five characteristics of teams? A) Work teams are accountable for achieving specific common goals. B) Each member of a team can function independently. C) Teams are stable; they remain intact long enough to finish their assignment/tasks. D) Teams have authority; each team has decision-making power to pursue its goals E) Teams are assembled to do specific work and are able to access resources from other areas of their organizations.
b
Which of the following statements about a monopolistic competition market is NOT true? A) Under monopolistic competition, sellers offer differentiated products—products that differ slightly but serve similar purposes. B) There are few sellers in a monopolistic competition market. C) Products can be differentiated in a number of ways, including quality, style, convenience, location, and brand name. D) Sellers in a monopolistic competition market have only limited control over price. E) Product differences in a monopolistic competition market can be either actual or perceived.
b
Why does the United States government institute various trade restrictions, such as subsidies, tariffs, and quotas? A) To promote free trade. B) To help the United States produce goods to compete more favorably with foreign goods (called protectionism). C) To help developing countries move up the economic ladder. D) To encourage dumping. E) To ensure that a minimum quantity of specific goods are imported into the United States.
b
_____________ costs vary, in total, as the quantity of goods sold changes but they stay constant on a per unit basis. A) Fixed B) Variable C) Break-even D) Rent E) Insurance
b
___________________ is an example of an individual who would be considered a serial entrepreneur. A) Pierre Omidyar, founder of eBay B) Marcia Kilgore, founder of Bliss Spa, Soap & Glory, and Fitflops C) Sergey Brin, co-founder of Google D) David Mareks, founder of a company that trains dogs to chase geese E) Mark Zuckerberg, founder of Facebook
b
A College Board survey of 120 major companies in the United States concludes that writing is a "threshold skill" for both employment and promotion. When commenting on the results of the survey, a human resource director stated that, "in many cases, writing ability could be your ticket in—or your ticket out." What did the human resource director mean by this statement? A) If you don't major in English, you are unlikely to get hired by a major company in the United States. B) If you do get hired by a major company in the United States and your writing is not that good, you will certainly get fired. C) Applicants and employers who cannot write and communicate clearly will not be hired by major companies in the United States and are unlikely to last long enough in an organization to be considered for promotion. D) If you write well but otherwise have poor communication skills, you will likely succeed in a major company in the United States. E) If you have poor communication skills, you should not apply for a job.
c
A small business is acting as a ____________ when it sells desserts to a restaurant. A) retailer B) franchiser C) wholesaler D) distributor E) not-for-profit organization
c
A take-over threat by Mattel Toy Company forced the CEO of LEGO into action. The changes he made include downsizing the number of employees and cutting unprofitable product lines. This moved LEGO from the decline stage to the _______________________. A) introduction stage B) growth stage C) reinvention stage D) maturity stage E) repeat stage
c
After identifying a target market, your next step is developing and implementing a marketing program designed to reach it. This program involves a combination of tools called the marketing mix, often referred to as the "four Ps" of marketing. Which of the following is not a part of the marketing mix? A) Developing a product that meets the needs of the target market B) Setting a price for the product C) Producing the product D) Distributing the product—getting it to a place where customers can buy it E) Promoting the product—informing potential buyers about it
c
Although hula-hooping has been a form of play and exercise from as early as 500 B.C., it wasn't until the late 1950's that a plastic version of the hula hoop was marketed by Wham-O Toy Company. A fad was started and 25 million plastic hoops were sold in less than four months. A decision by Wham-O to initially charge a high price for its hula hoop but later drop the price as others entered the market suggests that the company was practicing: A) cost-based pricing B) target costing C) skimming pricing D) odd-even pricing E) penetration pricing
c
As a functional area of business, ___________ involves obtaining funds for the company. A) accounting B) marketing C) finance D) operations E) management
c
As this chapter emphasizes, learning to work in teams is a skill you should develop while in college. Two students who have worked on a lot of team-based projects in college provide advice that includes which one of the following? A) Attend as many meetings as you can, but don't attend the night before an exam as you will be unable to focus on the group's discussions. B) In a pinch, temporarily take over the project yourself. It is better to do all the work yourself than to receive a poor grade on a project. C) At the beginning of the project, draw up a team charter (contract) that includes the goals of the group, ways to ensure each member's ideas are respected, when your meetings will be held, and so on. D) Divide up the work among the team members evenly. Put each assignment (list of tasks) on a small piece of paper and put the papers into a hat. Have each team member pick a piece of paper out of the hat to learn what his or her assignment is. E) Before sharing an idea, ask yourself if everyone will like the idea. If not, do not put the suggestion forward.
c
At some point in your career, you might be asked (or assigned) to lead a team. All of the following are skills you will need to be an effective team leader EXCEPT: A) Be clear and consistent B) Demonstrate integrity C) Give commands and control decision-making so decisions are made quickly and work gets done D) Manage agreement and disagreement E) Encourage and coach team members
c
Brooke is able to motivate the members of her team to share the workload. She does this in part by helping each member of her team understand and appreciate the importance of his or her role on the team. In using her strong interpersonal skills to improve team "chemistry", she is taking on a: A) Task facilitating role B) Blocking role C) Relationship-building role D) Team leader role E) Monitoring role
c
Developing countries can look to two organizations to help them become active participants in the global marketplace. These two organizations are: A) The World Trade Organization (WTO) and the World Bank. B) The European Union and the International Monetary Fund (IMF). C) The International Monetary Fund (IMF) and the World Bank. D) The North American Free Trade Association (NAFTA) and the European Union. E) The General Agreement on Tariffs and Trade and the World Trade Organization (WTO).
c
During the introduction stage of a product's life cycle most companies focus on __________________. A) sales B) profits C) advertising D) costs E) quality improvements
c
Having a great business idea is not sufficient; you need to make the jump and actually start a business to sell your product or services. ___________________ often prevents a would-be owner from starting a business. A) Reluctance to give up the steady income that a paid job provides B) Inability to raise the funds needed to start the business and operate it until it generates a profit C) Unwillingness to be their own boss D) Inability to distinguish their business idea from similar ideas E) Unable to decide what sort of business they want to get into
c
In planning a presentation, you need to ask yourself all of the following questions EXCEPT: A) What am I trying to accomplish? B) Am I trying to educate, inform, motivate, or persuade my audience? C) What do I know about the topic? D) What do I want them to know? E) How can I best convey this information to them?
c
In preparing PowerPoint slides for a business presentation, you should do all of the following EXCEPT: A) Don't crowd your slide: include at most four to five points per slide (anything more than this make the slide difficult to read). B) Wherever possible, use graphs rather than words. C) Use complete sentences rather than just key words. It will make the slides easier to read. D) Proofread your slides and use spell check. E) Use at least an eighteen-point font (so that it can be seen from the back of the room).
c
Jack Collins presented his business plan to his banker. He was particularly careful in writing the ________________ section because he knew that if it did not capture the bankers' attention, it might be the only thing the banker would read. A) financial plan B) marketing plan C) executive summary D) goods, services, and the production process E) management plan
c
Jayden Collins discusses advertising for his proposed store under the heading ____________ in the "Marketing" section of his business plan. A) Pricing B) Distribution C) Promotion D) Target Market E) Placement
c
Most monopolies fall into one of two categories: A) geographical and national B) government sanctioned and illegal C) legal and natural D) single seller and multi-seller E) global and local
c
People often start businesses to have more time to spend with their families. Unfortunately, running a business can be extremely time-consuming. Approximately what percentage of small business owners work 60 or more hours a week? A) 60% B) 50% C) 40% D) 30% E) 20%
c
Suppose your business idea is to offer hot air balloon rides for those graduating from college giving them a bird's eye view of the campus. Your "market segment" is A) The entertainment / celebration industry B) College students C) College students who are graduating D) Graduating students who want to celebrate by taking a hot air balloon ride over campus E) Those graduating who made the top 75 percent of the class
c
The North American Free Trade Agreement (NAFTA) is an agreement among the governments of the United States, Canada, and Mexico to open its borders to unrestricted trade. Which statement about the NAFTA is NOT true? A) Many believe NAFTA has been an enormous success, although it has its critics. B) NAFTA results in three countries (the United States, Canada, and Mexico) being combined into one economic zone with almost no trade barriers. C) NAFTA restricts the type of goods that can be exported within the NAFTA zone by each of the three countries: the United States, Canada, and Mexico. D) Since NAFTA went into effect, Canada and Mexico are now the United States' top trading partners. E) Many feared that NAFTA's elimination of tariffs on Mexican goods would result in the loss of numerous United States jobs due to low labor rates in Mexico.
c
The World Bank, which lends money for improvements in underdeveloped nations, divides countries into four income categories: high income, upper-middle income, lower-middle income and low income. Which of the following statements is NOT true? A) Germany is in the high-income category. B) Mexico is in the upper-middle income category. C) India is in the lower-middle income category. D) China is in the low-income category. E) Japan is in the upper-middle income category.
d
The government payments that are given to farmers to offset some of their costs of production are called subsidies. Which of the following is NOT true about these subsidies? A) The subsidies allow farmers to lower the price of their goods to a point below that of imported goods. B) The lower costs (that come about through subsidies) allow farmers to export their goods at attractive, competitive prices. C) Subsidy programs guarantee payments to only those farmers who operate small or medium-size farms. D) Many believe that providing subsidies to farmers can have a negative impact on the world economy. E) Subsidies guarantee farmers a certain price for their crops, regardless of the market price.
c
The team assembled by Motorola to design the original RAZR is classified as a: A) Manager-led team B) Self-managing team C) Cross-functional team D) Virtual team E) Group
c
There are two countries - Country 1 and Country 2 - and the citizens of both countries know how to make only two products: necklaces and fishing poles. Each of the countries spends 50 percent of its resources. The following shows the output from each country: Country 1: Necklaces: 6 Fishing poles: 18 Country 2: Necklaces: 4 Fishing poles: 2 Using the information contained in the table, which of the following is true? A) Country 2 has an absolute advantage in making both products. B) Country 1 has an absolute advantage in making necklaces but not in making fishing poles. C) Country 1 has an absolute advantage in making both products (necklaces and fishing poles). D) Country 2 has an absolute advantage in making fishing poles but not in making necklaces. E) Neither Country 1 nor Country 2 has an absolute advantage in making either necklaces or fishing poles.
c
To come up with a great business idea, which of the following questions must be asked? A) What do I want to sell? B) Do my friends and relatives like the product? C) What does the customer want to buy? D) Has the idea worked for others in the past? E) Do I like the product?
c
What communication methods did Chris Arnholt use to effectively communicate his ideas and practical specifications for the Razr? A) Verbal communication B) E-mails C) Drawings and models sculpted out of cornstarch D) PowerPoint presentations E) Text messages
c
Which of the following statements about small businesses is true? A) Large companies develop more patents per employee than do small companies B) Small companies are less innovative than large companies C) The majority of U.S. workers first entered the business world working for small businesses D) Large companies hire more frequently and fire more frequently than do small companies E) The survival rate for small companies is excellent
c
Which of the following statements best describes the purpose of marketing? A) Marketing focuses on advertising goods or services. B) Marketing emphasizes customer relationships. C) Marketing includes everything that organizations do to satisfy customers. D) Marketing is getting people to buy your product and getting the product to the people who buy it. E) Marketing is coming up with a product, defining its features, setting its price and identifying its target market.
c
Which one of the following services is NOT offered to current and prospective small business owners by the Small Business Administration (SBA)? A) Help with the preparation and review of your business plan B) Advice and guidance to help you start up your business C) Loans to small business owners and those starting a business D) Assistance to current and prospective small business owners with business problems and free training and technical information on all aspects of small business management E) Individualized advice from experienced executives through the Service Corps of Retired Executives (SCORE)
c
Which promotional tool would be most appropriate for each of these types of businesses: insurance agency, take-out Chinese restaurant, accounting firm, and energy drink manufacturer. A) Publicity, advertising, personal selling, and sales promotion B) Personal selling, advertising, publicity, and sales promotion C) Personal selling, sales promotion, publicity, and advertising D) Publicity, sales promotion, advertising, and personal selling E) Advertising, publicity, sales promotion, and personal selling
c
You are thinking of opening a pet grooming business in your city. In a conversation with an individual who runs a small pet grooming business, she was willing to share information on all your topics EXCEPT _____________, which she explained was proprietary information. A) best means of advertising B) services you could offer C) sales volume D) pricing E) advantages and disadvantages of working out of your home
c
You just invented a super light, but highly effective, snow shovel that appeals to older people. Which two segmenting variables would be most important in identifying your target market? A) Demographic and behavioral B) Geographic and behavioral C) Geographic and demographic D) Psychographic and geographic E) Demographic and psychographic
c
You own a boutique in an upscale section of Manhattan. You believe your success as a merchant comes from your ability to set prices artificially high on fairly inexpensive items to give customers the impression that they are buying a high quality product. This type of pricing is called ____________. A) cost-based pricing B) demand-based pricing C) prestige pricing D) skimming E) penetration pricing
c
Your boss' request for a sales report is an example of ____________ communication. Showing a draft of the report to a co-worker is an example of ____________ communication. Sending the finished report to your boss is an example of ____________ communication. A) downward; lateral (or horizontal); downward B) upward; lateral (or horizontal); downward C) downward; lateral (or horizontal); upward D) lateral (or horizontal); downward; upward E) upward; downward; upward
c
A patent from the U.S. Patent and Trademark Office grants you "the right to exclude others from making, using, offering for sale, or selling" the invention in the United States for twenty years. Which of the following statements about applying for a patent is NOT true? A) Your invention must be new (no one else can know about it, use it, or write about it before you file your patent application.) B) Your invention cannot be obvious (it must be sufficiently different from everything that's been used for the purpose in the past). C) Your invention must have utility (it cannot be useless; it must have some value). D) The number of patents issued over the past decade has decreased by more than 50 percent because of the decline in the number of new high-tech companies. E) If you plan to export your product outside the United States, you will need patent protection in each country in which you plan to do business.
d
An idea turns into a business opportunity when you can answer "yes" to which of the following questions? A) How will my customers benefit from my product? B) How will my customers buy the product from me? C) Who would my customers be? D) Does the product have commercial potential? E) Does this product satisfy the essential need of customers?
d
Both you and your roommate are accounting majors, but she is one year ahead of you. You feel bad for her when you see her heading off to class carrying a huge bound Intermediate Accounting text. You were pleased to learn that the publisher has come out with an electronic version of the text because it means you won't have to carry a heavy accounting book around. The e-textbook is considered what type of product development? A) New-to-the-market B) New-to-the-company C) Improvement in existing product D) Extension of existing product E) Combination of two existing products
d
Business people outside the United States often approach business meetings in ways that differ from those practiced in the U.S. Which of the following describes a way in which U.S. business people differ from other people around the world? In other words, which of the following statements is true? A) Business people from Eastern European countries tend to "get down to business" as soon as the meeting starts (rather than talk about personal issues first). B) Those from Middle Eastern countries use only limited body language, whereas those from the U.S. are quite animated when they talk. C) Those from Japan prefer to deliver direct, clear messages in contrast with U.S. business people who tend to be indirect in their conversations. D) Those from the U.S. tend to start and end their business meetings on time in contrast with business people from the Middle East and Latin American regions who are very casual about time. E) Those from the U.S. tend to raise their voices in contrast with Middle Easterners who speak softly.
d
Colleges promote their benefits to encourage students to attend. Which of the following would schools be LEAST likely to include in their promotion mix? A) Personal selling B) Public relations C) Advertising D) Sales promotion E) Publicity
d
Communication can be defined as, "the process of transferring information from a sender to a receiver." You participate in dozens of information transfers every day. In fact, transferring information takes up: A) 35 percent of your waking hours B) 50 percent of your waking hours C) 60 percent of your waking hours D) 70 percent of your waking hours E) 90 percent of your waking hours
d
Companies that ask customers for permission to contact them are using: A) mass marketing B) interruption marketing C) personal selling D) permission marketing E) Customer-relationship marketing
d
Dennis Jerz and Jessica Bauer created a list of tips for writing effective e-mail messages. All of the following are included on their list EXCEPT: A) Keep the message focused (avoid including multiple messages or requests in one e-mail). B) Avoid attachments (extract relevant text from large files and ask the recipient if he or she wants to see the full document). C) Be kind, don't flame (avoid writing emails when you are upset - think before you hit the send button). D) Be sure you have the correct e-mail address so that the e-mail goes to the intended recipient. Otherwise, assume privacy. E) Distinguish between formal and information situations: When writing to a coworker with whom you are friends, you can be less formal than when you are writing to your manager or a client.
d
If you want to assess whether inflation is going down or going up, you should look at changes in: A) consumer confidence. B) GDP. C) the unemployment rate. D) the consumer price index - CPI. E) building permits.
d
Jack McLaughlin secured a U.S. patent for a new type of greeting card called a furl (because the message is on a long slip of paper that you unfurl (roll out) to read). He decided to sell his new product in England and Australia. To be protected against someone copying his product in these two countries, Jack must do which of the following? A) Apply for an international patent that will protect him anywhere in the world B) Apply for a patent in England only as Australia is a patent-free country C) Do nothing - the U.S. patent protects his product outside the United States D) Apply for a patent in both England and Australia E) Do not apply for any non-U.S. patents and take his chances that no one will steal his product idea
d
Selling price per unit less variable cost per unit is called _____________________. A) break-even point in units B) break-even point in sales dollars C) variable cost per unit D) contribution margin per unit E) break-even sales level
d
Seth Godin, marketing consultant and author, calls truly remarkable products: A) Creative works B) Revolutionary products C) Home runs D) Purple cows E) Novel products
d
Starting a business - small or large - is risky and though many businesses succeed, a large proportion of them don't. In fact: A) 90 percent of small businesses do no make it past their seventh year. B) 85 percent of small businesses make it through their second year. C) 50 percent of small businesses go out of business within the first two years. D) If you want to have a better survival rate than the average start-up, do not open a restaurant. E) 81 percent of small businesses make it through their first year.
d
Suppose your business idea is to offer hot air balloon rides for those graduating from college giving them a bird's eye view of the campus. Your "niche" is: A) The entertainment / celebration industry B) College students C) College students who are graduating D) Graduating students who want to celebrate by taking a hot air balloon ride over campus E) Those graduating who made the top 75 percent of the class
d
The term laissez-faire means that: A) the government should control selected major industries. B) the government should exert control over the allocation and distribution of all or some goods and services. C) goods and services should be produced to meet consumers' needs. D) the government should leave business activities to function according to the laws of economics. E) the government should control essential industries, such as transportation.
d
The text defines an entrepreneur as someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. According to this definition, entrepreneurs are individuals who __________________. A) start companies to create new or improved products, or apply new technologies or techniques B) strive to meet a need that's not being met C) open new markets and plan to grow the business and eventually expand into other markets. D) operate a business, such as a beauty shop or pizza parlor, for the sole purpose of providing an income for themselves and their families. E) take risks and work under uncertainty without knowing the outcome of their decisions
d
Those born between 1976 and 2001 are sometimes called Generation Y or "echo boomers" because their population boom came about when the baby boomers became parents. Which of the following is an attribute that has been assigned to this group? A) Self-absorbed B) Savvy C) Successful D) Accepting of differences E) Slackers
d
When Apple Inc. and Starbucks partner to promote the iTunes experience by giving away free iTunes products, including a "Pick of the Week" music download, apps, book samples from the iBookstore, TV shows, and games, the companies are using which form of promotion? A) Personal selling B) Advertising C) Publicity D) Sales promotion E) Public realtions
d
Which of the following is a disadvantage of being a small business owner? A) You will gain personal satisfaction from implementing your ideas and watching the business succeed. B) You can decide when and where you want to work. C) As a business owner you will be involved in all aspects of the business, which will give you numerous learning opportunities. D) As the owner, you're responsible for the well-being of your employees. E) As a business owner, you're your own boss.
d
Which of the following statement is NOT true about an oligopolistic market? A) Few sellers supply a sizable portion of the products in the market. B) The number of firms entering an oligopolistic market is low. C) Oligopolies have some control over the prices they charge. D) When one seller in an oligopolistic market lowers prices, others do not have to follow to remain competitive. E) Companies in oligopolistic industries include such large-scale enterprises as automobile companies and airlines.
d
Which one of the following factors contributes to team cohesiveness (the attractiveness of a team to its members)? A) The bigger the team the more satisfied members tend to be. B) The more varied the team members' attitudes and experiences, the more satisfied members tend to be. C) Team members value membership less when their team is expected to outperform other teams. D) The harder it is to get on a team, the happier the people who are already on it. E) When teams are challenged (and unable to achieve success) others are attracted to the team.
d
You were rushing to meet an old friend at his office when all the members of a team stormed out of a conference room. You could not hear everything that was said but you heard enough to know that the team was disintegrating. All of the following reasons might have caused the conflict among team members EXCEPT: A) Unwillingness of members to cooperate B) Lack of managerial support C) Failure of managers to delegate authority D) Strong group cohesiveness E) Lack of agreement among team members on goals
d
Your company produces one of the most popular games for the Wii. Sales for the game are increasing, but at a decreasing rate. Your advertising costs have gone up as you need to spend more to differentiate your game from competition. You recently dropped your selling price, but this did not harm profits as your high sales volume is high. Which product life-cycle stage is your product in? A) Growth B) Introduction C) Decline D) Maturity E) Peak
d
Your parents were bugging you (again) about finding a job to take after graduation, so you finally took the time to go to the Career Center on campus. You picked up a brochure that described an interesting field - logistics. The brochure explained that those working in logistics management handle the physical distribution of goods. You recall reading some material in this chapter on modes of transportation. You jot down the following pieces of information. You think one piece of information is incorrect - which one is it? A) Planes are faster, but cost more than other modes of transportation. B) Sending goods by cargo ship or barge is inexpensive, but very slow. C) Railroads are moderately priced, faster than ships, but slower than planes. D) Trucks, though fairly inexpensive, work for most goods and can go just about anywhere in a reasonable amount of time. E) Pipelines are fine if your product happens to be petroleum or natural gas.
d
_________________ is the tendency to conform to group pressure in making decisions, while failing to think critically or to consider outside influences. A) Collaboration B) Group cohesiveness C) Group conformity D) Groupthink E) Group similarity
d
A vendor selling hotdogs and soda outside your dorm provides ____________ utility. A) time B) place C) ownership D) form E) price
e
According to a well-known writer and American linguist, Deborah Tannen, men and women in the workplace don't communicate in the same way. All of the following statements about gender differences in communication are true EXCEPT: A) Men tend to assert their status; women tend to foster positive interrelationships. B) Men exert confidence; women restrain expressions of confidence. C) Men regard asking questions as a sign of weakness; females ask questions with no trouble. D) The different communication styles used by males and females to express themselves might present a barrier to their reaching an agreement. E) All of the statements are true.
e
All of the following are examples of topics investigated by those studying macroeconomic issues EXCEPT: A) changes in the rate of inflation. B) increases in deflation. C) trends in the volume and price of imports and exports. D) an increase in gross domestic product. E) the price that college students are willing to pay for concert tickets.
e
Country 1 Opportunity cost to make one more necklace: 3 fishing poles Opportunity cost to make one more fishing pole: 1/3 necklaces Country 2: Opportunity cost to make one more necklace: 1/3 fishing poles Opportunity cost to make one more fishing pole: 2 necklaces Using the information presented above, indicate which of the following statements is NOT true. A) Because Country 1 has a higher opportunity cost to make each necklace - it has to give up more to make each extra necklace (3 vs. 1/3 fishing poles) - it does not have a comparative advantage in making necklaces. B) Because Country 2 has a lower opportunity cost to make each necklace - it has to give up less to make each extra necklace poles (1/3 vs. 3 fishing poles) - it has a comparative advantage in making necklaces. C) Because Country 1 has a lower opportunity cost of make each fishing pole - it has to give up less to make each extra fishing pole (1/3 vs.2 necklaces) - it has a comparative advantage in making fishing poles. D) Because Country 2 has a higher opportunity cost to make each fishing pole - it has to give up more to make each extra fishing pole (2 vs. 1/3 necklaces) - it does not have a comparative advantage in making fishing poles. E) Country 1 should specialize in making necklaces and Country 2 should specialize in making fishing poles.
e
Every year companies launch about thirty thousand new food, beverage, and beauty products. Up to ___________ percent of these newly launched product fail. A) 15 B) 40 C) 60 D) 75 E) 90
e
Retaining customers is the purpose of customer-relationship management (CRM). Which of the following statements is NOT true about CRM? A) CRM is a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them. B) The underlying theory of CRM is to keep customers, treat them well, give them what they want, listen to them, reward them with discounts and other loyalty incentives, and deal effectively with their complaints. C) Repeat customers are more likely to recommend a business to other people. D) Repeat customers are more profitable than new customers. E) CRM advocates recognize that the cost to sell to an existing customer is about the same as the cost to attract and sell to a new customer.
e
The popularity of social media marketing has exploded in the last five years. Despite its popularity, it faces several challenges. Which of the following is NOT one of its challenges? A) It can be very time consuming for companies. B) It takes determination and resources to succeed with social media marketing. C) Many marketing officers from large companies are overwhelmed by the volume of data available on social sites. D) Small companies often lack the staff to initiate and manage social media marketing campaigns. E) It is difficult to build brand loyalty through social media marketing.
e
There are several possible approaches that can be used to forecast demand for a product. Which of the following is NOT one of these approaches? A) Examine published data on your industry B) Estimate your market share based on available data C) Talk with potential customers D) Talk with people in similar businesses E) Obtain objective information on the number of customers served by each of your competitors from the Small Business Administration
e
There are two countries - Country 1 and Country 2 and the citizens of both countries know how to make only two products: necklaces and fishing poles. Each of the countries spends 50 percent of its resources. The following shows the output from each country: Country 1: Necklaces: 6 Fishing poles: 18 Country 2: Necklaces: 4 Fishing poles: 2 Using the information from the table, which of the following statement is true? A) If Country 1 makes 6 more necklaces but gives up the opportunity to make the 18 fishing poles, the opportunity cost of making each necklace is 3 fishing poles (18 divided by 6). B) If Country 2 makes 4 more necklaces but gives up the opportunity to make 2 fishing poles, the opportunity cost of making each necklace is ½ fishing pole (2 divided by 4). C) If Country 1 makes 18 more fishing poles but gives up the opportunity to make 6 necklaces, the opportunity cost of making each fishing pole is 1/3 of a necklace (6 divided by 18). D) If Country 2 makes 2 more fishing poles but gives up the opportunity to make 4 necklaces, the opportunity cost of making each fishing pole is 2 (4 divided by 2). E) All of these statements are true.
e
To remain competitive, medium and large companies identify product development opportunities using the following approaches EXCEPT: A) Solicit product ideas from people inside the organization B) Establish internal "entrepreneurial" units whose members generate product ideas C) Seek product ideas from outside the organization by talking with potential customers D) Pay attention to what the competition is doing E) All of these are actions medium and large companies should do to identify product development opportunities.
e
Which of the following is NOT a risk a business person takes when developing a new product? A) There is a high failure rate for new products; for every success there are 12 failures. B) There are many trade-offs that need to be made in the development process. C) Numerous decisions must be made under time pressure. D) The need to be "first to market" adds pressure. E) It is difficult to develop a product without knowing who your primary customer will be and whether they need the product.
e
Which of the following is NOT a step in the buying process? A) Need recognition B) Information search C) Evaluation D) Purchase E) All are steps in the buying process
e
You are the purchasing manager for a chain of discount stores. Each store carries hundreds of low-priced items. You purchase most of these goods from a ______________________. A) producer B) retailer C) distribution center D) central warehouse E) wholesaler (distributor)
e
