FOB Frequently Missed Q's

Volkswagen owns several automobile divisions including Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda. This constitutes Volkswagen's ________.

A) Product line B) Product cluster C) Product mix D) Distribution strategy CA: C

Rachael is developing a new product and is working with specialists from her organization to eliminate ideas that cannot be developed within the company's resources. Rachael is in what stage of product development?

A) Test marketing B) Product initialization C) Screening D) Commercialization CA: C

Which of the following is NOT a reason for outsourcing?

A) avoiding long-term resource costs B) enabling a firm to focus on functions it does best C) improving internal management controls D) gaining flexibility to change vendors at the end of contract periods CA: C

Persuasive advertising is used in the ___________ stages of the product life cycle.

A) introduction and growth B) growth and maturity C) maturity and decline D) introduction and decline CA: B

Which of the following groups is likely to be hurt economically if the value of the U.S. dollar rises relative to the euro?

a) American tourists visiting Europe b) European firms exporting goods to the U.S. c) American farmers exporting goods to Europe d) American firms with euro dominated loans CA: C

Which of the following statements is correct regarding stock option plans?

a) They are offered only to top-level executives and members of the board of directors. b) If the stock price increases, employees are likely to exercise their option to purchase the stock. c) The company holds the stock for the benefit of the employees. d) Stock options are provided as a retirement benefit CA: B

Anita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Anita own?

a) foreign corporation b) domestic corporation c) alien corporation d) national corporation CA: A

Grep buys a McDonald's franchise. Greg is the __________ and ___________ for McDonald's.

a) franchisor; works b) franchisee; does not work c) franchisee; works d) franchisor; does not work CA: B

When a firm strives to have each individual personally committed to the company's core values and be willing to base their actions on the, this is ethical _______________.

a) leadership b) awareness c) action d) education CA: A

All of the following statements are correct EXCEPT:

a) successful businesses seek to meet their social and ethical responsibilities b) business is the economic pulse of a nation c) Business includes nonprofit organizations that provide services to the public. d) Business provides goods and services necessary to an economic system Correct answer C