FMS-Food Marketing Exam

It is most appropriate for businesspeople to use complex, technical jargon when they are: A. speaking with coworkers. B. greeting new customers. C. introducing a friend to a business associate. D. informally conversing with an acquaintance.

A Speaking with coworkers. Jargon is a specialized language known only to a certain group of people. Industries and companies often use jargon that is meaningful to their businesses and may not be easily understood by people outside their industries or companies. Coworkers are more likely to use jargon because they are familiar with the terms and their meanings or applications. New customers, friends, business associates, and acquaintances may not be familiar with a specific industry's jargon

A business that effectively coordinates channel management with marketing activities is more likely to provide: A. good customer service. B. attractive product displays. C. free delivery. D. flexible credit terms.

A. Good customer service. Channel management is one of the marketing functions that must work with the other marketing activities to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy those needs and provide quality customer service unless all the marketing activities work together. For example, businesses are only able to serve customers when they have the advertised items on hand and at the right price. Not all businesses need or use product displays, provide free delivery, or offer flexible credit terms.

Most marketers cannot expect to maintain their profit rates unless they: A. introduce new products from time to time. B. test-market new products. C. allow products to move through the product life cycle. D. form venture teams to assist with product/service management.

A. Introduce new products from time to time. A certain percent of all industry profits come from successful new products. Product/Service management lets the business know what funds will be needed for research, testing, modifying, and producing products. Inadequate product/service management can result in product/service mistakes that may cost the company a large sum of money. Marketers do not allow products to move through the product life cycle; products do that naturally. Venture teams are small groups composed of representatives from different areas of a company for the purpose of seeking new ventures, or opportunities, for the business. They are usually used by large businesses. Not all products need to be test-marketed because it is costly, delays entry into the full market, may not give an accurate picture of performance, provides no guarantee of actual success, and the idea may be stolen by competitors while it is being tested.

A memorandum is typically used for communication that takes place: A. within a business. B. among competitors. C. infrequently. D. between friends.

A. Within a business. Memorandums are a frequently used form of brief, written communication exchanged by people within an organization. Memorandums are rarely used among competitors or between friends.

What does a business's customers recommending the business to their friends exemplify? A.Word-of-mouth communication B. Providing a testimonial C. Verbal assertiveness D. One-on-one selling

A. Word-of-mouth communication. This is promotion and publicity for a business provided by customers who tell others of their satisfaction with the business. Therefore, customers recommending the business to their friends is an example of word-of-mouth communication. In many cases, these recommendations lead to additional sales because people tend to believe their friends and take their advice. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product. Verbal assertiveness is a confident attitude that involves the use of words. Recommending a business to friends is not an example of one-on-one selling.

Which of the following is a true statement about the benefit of having a safe workplace: A. Financial expense is increased. B. Bodily injuries are decreased. C. Insurance claims are increased. D. Productivity is decreased.

B. Bodily injuries are decreased. A safe workplace reduces the possibility of additional financial expense and bodily injury. Because employees miss fewer workdays, productivity is increased. Insurance claims are increased when a workplace is considered risky because of a high rate of worker accidents or injuries.

An important public relations activity in business involves giving public relations advice to: A. the media. B. management. C. government. D. the public.

B. Management. Some businesses maintain a public relations department while others use the services of a public relations agency. One of the functions of the department or agency is to advise management on public relations issues, such as taking a position on public issues or preparing business employees to make public appearances. Giving advice is a public relations activity intended to help management make the best decisions regarding the business's relations with the public. An important public relations activity in business does not involve giving public relations advice to the media, the government, or the public.

Coca-Cola, General Mills, and Pillsbury are examples of __________ brands: A. generic B. national C. private D. unprotected

B. National. National brands are those for which the manufacturer assumes all the responsibility of branding. They are also called manufacturers' brands. Private brands are owned by middlemen. Generics are unbranded items that are plainly packaged, have standard or lower quality, are sold at lower prices than branded products, and receive little or no promotion. All of the brands listed are protected by trademark laws.

The entrepreneurs best equipped to work long hours and overcome obstacles are ones who possess: A. financial knowledge. B. passion for their work. C. technological skills. D. confidence.

B. Passion for their work. Entrepreneurs who are passionate about their work find it easier to work the long hours required. They are also more likely to overcome obstacles out of a desire to continue doing what they love. Confidence can help an entrepreneur overcome challenges, but it does not necessarily help him/her work long hours. Financial knowledge can help an entrepreneur overcome financial obstacles, but it may not help an entrepreneur solve other problems or deal with long work hours. Technological skills are very useful in solving some problems, but they don't help an entrepreneur personally work for long periods of time.

Business ethics involve considering issues about what is: A. legal and illegal. B. right and wrong. C. safe and unsafe. D. positive and negative.

B. Right and wrong. Ethics are the basic principles that govern an individual's behavior. In business, ethics involves how a business behaves in its dealing with other businesses, customers, and employees. Businesses consider issues about what is right and wrong when they decide how to operate and how to treat others. To be ethical, they need to consider how their actions affect the welfare of others. It is a matter of considering what is the right way to act and what is the wrong way to act. It does not involve considering what is legal or illegal, although some actions that are unethical are also illegal. Business ethics does not involve considering issues about what is safe and unsafe, or what is positive and negative.

What information could a salesperson obtain by examining a product? A. Care B. Texture C. Value D. Price

B. Texture. A lot of information is found by examining the product itself. A salesperson can determine a product's texture by holding and touching the item. Through careful examination and observation, a salesperson should be able to acquire product knowledge about any item. Information about price, care, and value cannot always be obtained by examining a product.

Why do businesses want to meet quality standards? A. To determine how much work must be done B. To reduce costs C. To decrease profit D. To examine how long it takes to get a job done

B. To reduce costs. Businesses want to meet quality standards to reduce costs. Managers have recognized that if employees do their jobs right the first time, they can minimize costs. Time isn't wasted redoing work, and fewer products end up as scrap. Time standards relate to how long it takes to get a job done. Quantity standards specify how much work must be done. Managers use standards to increase, rather than decrease, profit.

Which of the following is a way in which technology has changed the way businesses operate: A. Productivity has decreased, and costs have increased. B. Employees are sometimes able to do their work from home. C. Entering new and foreign markets has become more complex. D. The nature of marketing has remained relatively the same

B. Employees are sometimes able to do their work from home. The nature of work has changed due to the increase in telecommuting (working from home or a remote location) opportunities. The Internet and remote networking give many employees the ability to do their jobs without ever stepping foot into the office. Technology has actually helped productivity increase, not decrease, and costs are lower. Technology makes entering new and foreign markets easier. The nature of marketing has changed because of technological innovations.

Which of the following types of business organizations reduces or limits the risk of its stockholders: A. Franchise B. Sole proprietorship C. Corporation D. Partnership

C. Corporation. A corporation, which is owned by its stockholders, limits the losses or risks to the amount each individual owner has invested in the corporation. The other types of business organizations are not owned by stockholders. A partnership usually divides the risk among two or three partners. In a sole proprietorship, the owner generally assumes all of the risk. A franchise is a contractual agreement between a parent company and a franchisee to distribute goods and services

One of the benefits of setting goals that will help you in your relationships with others is that setting goals: A. helps you stay on task. B. gives you a way to measure your progress. C. helps you understand yourself. D. raises your level of self-esteem.

C. Helps you understand yourself. Goal setting helps you understand yourself, and understanding yourself helps you understand other people. Goal setting helps you stay on task, raises your level of self-esteem, and gives you a way to measure your progress, but these benefits do not necessarily help you in your relationships

Income from sales, cost of goods sold, gross profit on sales, operating expenses, and net profit or loss are all part of a(n): A. sales budget. B. balance sheet. C. income statement. D. marketing plan.

C. Income statement. An income statement is a financial summary that shows how much money the business has made or lost. It is also called a profit-and-loss statement. A balance sheet shows a firm's assets, liabilities, and owner's equity. A marketing plan is a set of procedures or strategies for attracting the target customer to the business. A sales budget is an estimate of expenditures related to sales.

The following appeared on a recent survey: "Do you agree that the government wastes taxpayers' money by supporting unnecessary programs?" This is an example of a(n): A. open-ended inquiry. B. indifferent statement. C. leading question. D. unstated alternative

C. Leading question. Leading questions tend to influence the respondents' answers and create bias, which skews results. Because words such as "wastes" and "unnecessary programs" tend to generate strong emotional reactions and overall negative views about the topic, the survey question is biased. The question is a closed-ended question because it requires a "yes" or "no" answer. The situation does not exemplify an indifferent statement, an open-ended inquiry, or an unstated alternative.

Businesses that carry a considerable assortment of goods but only one or a few related product lines are __________ businesses: A. specialty B. discount C. service D. limited-line

D. Limited-line. Limited-line businesses specialize in the products that they offer for sale. They usually carry an excellent assortment of those goods. Service businesses perform intangible activities that satisfy the wants of consumers or industrial users. Specialty businesses typically carry a very limited variety of products. Discount businesses sell products at reduced prices and usually carry a variety of items.

What does a business need in order to understand why a successful product is suddenly losing popularity?: A. Purchasing documents B. Sales records C. Secondary data D. Marketing information

D. Marketing information. Marketing information is all of the marketing-related data available inside and outside the business. This includes information about customers, competitors, demographics, etc. Businesses need marketing information in order to understand why a product that has been successful is suddenly losing popularity. For example, marketing information might tell a business that the target market for the product is decreasing in size because of age, or that a competitor has introduced a similar product that sells for less. Once the business understands the reason for the loss in popularity, it can take steps to correct the problem. Sales records are a type of marketing information, but they usually indicate only the decrease in sales rather than the reason for the decrease. Secondary data is a type of marketing information that has been collected for purposes other than the project at hand. It may not be useful in determining why a product is now losing popularity. Purchasing documents are documents a business uses to purchase goods and services.

Jamie is constantly running from obligation to obligation, without a second of free time, and feels like he is behind on all of his work. Jamie is most likely to be: A. a procrastinator. B. a perfectionist. C. bad at time management. D. overcommitted.

D. Overcommitted. Being overcommitted means committing to more than what is possible, necessary, or desirable. People who are overcommitted, like Jamie, have countless obligations, events, and tasks each day. There is no indication that Jamie is a perfectionist, bad at time management, or a procrastinator, though these could all be potential causes of his overcommitment.