Marketing Final Exam
In the context of planned economies, countries that adopted communism in 1900s developed:
crippling shortages and surpluses.
Ashlee, a human resource manager in a company, wants to introduce some changes in the leave policy of the company. However, the board of directors is reluctant to accept the changes as it feels that the changes will increase the attrition rate of the company. Which of the following communication barriers is Ashlee facing in the given scenario?
A perceptual barrier
In the context of mixed economies, which of the following statements is true of the U.S. federal government?
It is part owner in a number of financial institutions.
A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____.
corporate philanthropy
In the context of business communication, one should:
not use slang in either written or verbal communication.
When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product.
opportunity cost
Peter, the CEO of a multinational company, has a deep understanding of other people's needs and behaviors. He easily relates to another's situation, feelings, and motives—all qualities that strongly predict a high level of ethical leadership. Given this information, Peter most likely possesses _____.
personal empathy
In the context of the stakeholder approach to business, the federal government is a key stakeholder in:
pharmaceutical companies.
The economic situation in Lanceberg, an African country, slowly picks up after a severe financial downturn. Over a period of 12 months, businesses expand and employment levels rise. Consumers begin to engage in normal buying behavior. In this scenario, the economy of Lanceberg is currently in the _____.
recovery phase
In the context of key economic considerations when entering a foreign market, the transportation infrastructure in a country most likely includes _____.
roads
In the context of international trade restrictions, governments tend to use protective _____ to shelter industries that are crucial to the domestic economy.
tariffs
In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the _____.
technological environment
Which of the following can be considered a business?
Davent, an online shopping portal that offers discounted prices on clothes
In the context of American culture, which of the following is one of the don'ts for better listening?
Don't get overly comfortable.
Samuel is struggling to run his start-up in his locality because local trade associations have established strict codes of conduct regarding certification, accreditation, and insurance obligation for businesses. In the context of economic freedom in a business environment, which of the following is adversely affecting Samuel's start-up?
Excessive regulation
In the context of the social environment of business, which of the following statements is true of workers?
Firms encourage a great level of mutual respect between employees and employers through open communication.
In the context of factors of production, which of the following is most likely to result in a decrease in entrepreneurial activities?
High taxation
Sloimekia can manufacture more of a certain kind of cloth than its neighboring countries, although they all have the same amount of resources for the cloth's production. In this scenario, which of the following statements is true of Sloimekia?
It enjoys an absolute advantage in terms of the particular cloth it produces.
Which of the following statements best defines the producer price index (PPI)?
It measures the change over time in the prices that businesses pay each other for goods and services.
Therefore, Regency Placade decides to abandon the idea. In this scenario, which of the following most likely affected Regency Placade's plan?
Limited access to factors of production
_____ is a market structure with only a handful of competitors selling products that can be similar or different and has high barriers to entry.
Oligopoly
Leading-edge companies have focused on customer satisfaction, with a goal to develop long-term, mutually beneficial relationships with customers. Which of the following dimensions of a business environment does this illustrate?
The competitive environment
Lint Port, an apparel company, offers personalized customer service in all its stores and engages in post-purchase communication to take feedback from its customers.
The competitive environment
Which of the following factors acts as a motivator for business owners in a capitalist economy?
The right to spend after-tax income however one sees fit
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
The social environment
Judith plans to start a prosthetic company to help physically challenged people avail prosthetics at affordable prices. She researches and develops a cost-effective way of crafting durable prosthetics. In the context of factors of production, the given scenario exemplifies the concept of _____.
entrepreneurship
Normander Corp. is a large media corporation that owns all the media outlets in Liecheben and a few news agencies internationally. Any new media company that tries to establish itself in Liecheben soon runs out of business because of the overpowering presence of Normander Corp. This scenario exemplifies _____.
monopoly
Gregory was a typist at a corporate firm. When the company adopted a special voice recognition software for the purpose of documentation, Gregory's job became redundant. Therefore, he was laid off. The increased use of technology in most companies has made Gregory's skills inessential, and he remained unemployed for a long time. In the given scenario, Gregory is facing _____.
structural unemployment
In the context of international trade restrictions, _____ are taxes levied against imports.
tariffs
Which of the following dimensions of the business environment covers the measurable characteristics of a population?
The social environment
Onyi Muro, a boutique restaurant, has dining tables with interactive screens on them. The customers can place their orders, watch their food being prepared, and provide feedback to the chefs using these screens. In this context, which dimension of the business environment is affected the most?
The technological environment
Which of the following statements is true of communication barriers?
They can arise in a number of different forms.
Which of the following is a recent advancement in the Western European countries that developed powerful socialist economies in the decades after World War II?
They have imposed stiff austerity measures to control government spending.
Susan, the Human Resources Director at Trangend Cosmetics, is responsible for recruiting, hiring, and training employees. In the context of the given scenario, Susan is a _____.
factor of production
Denise submits her resignation. She knows that her résumé is strong and feels confident that she will find another job. In this scenario, Denise is facing _____.
frictional unemployment
In the context of active listening, one of the dos for better listening is the use of _____.
nonverbal communication
Walid, an IT professional, is known for his perseverance, his self-discipline, and taking accountability for his actions. In the context of universal ethical standards, Walid most likely possesses the core value of _____.
responsibility
With an increasing number of workers facing challenges such as raising kids and caring for elderly parents, responsible companies are stepping in with programs such as on-site day care, company-sponsored day camp, and referral services for elder care. These actions show that these companies are fulfilling their _____.
social responsibility
FreshBean is an online grocery delivery service. Its employees and customers, the farmers from whom the company obtains its products, and the people who live in the community where the company operates are FreshBean's _____.
stakeholders
In the context of international trade, India, China, and the Philippines attract multibillion-dollar investments because:
they have a large cohort of technically skilled university graduates who work for about one-fifth the pay of comparable American workers.
Which of the following companies is involved in foreign licensing?
A European company that grants a company in Asia the rights to produce and sell its products
Which of the following statements is true of ethics?
Actions that are completely legal can still be unethical.
_____ means buying products domestically that have been produced or grown in foreign nations.
Importing
Which of the following is the most costly form of foreign direct investment?
Offshoring
Which of the following factors is most likely to be covered by the social environment of business?
Population size
Which of the following is an example of a natural monopoly?
Public utilities
In the context of the competitive environment of business, which of the following can be a key source of competitive advantage?
Speed-to-market
Which of the following is a difference between the millennial generation and Generation Z?
Unlike the millennial generation, Generation Z approaches adulthood planning to work for success.
The gross domestic product (GDP) of Trelinberg, a South American nation, has been decreasing for the past eight years. The long period of consecutive decreases in the GDP has led to high unemployment rates in Trelinberg. In the given scenario, the economy of Trelinberg is most likely experiencing _____.
a depression
When companies promoting corporate social responsibility measure their success by evaluating a double bottom line, they:
account for social-responsibility indicators, such as community involvement.
Jordon, a senior executive at a marketing firm, used to regularly meet international clients to discuss future projects. After one of his recent meetings went wrong, Jordan, in a fit of rage, threw a paper weight at his junior associate. The firm's management immediately terminated Jordan for this act. In the context of business ethics, Jordon was guilty of _____ in this scenario.
an ethical lapse
A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____.
capital
The economic system of the United States is called _____.
capitalism
In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it:
carefully refrains from overpromising financial rewards.
Five individuals get food poisoning after consuming aerated drinks of a well-known company. Following this incident, the public demands an inquiry into the company's manufacturing processes. This demand by the public represents _____.
consumerism
If this was to happen in the United States, it could be said that this is because the government has hit the _____.
debt ceiling
In the context of the competitive environment of business, customer satisfaction comes in large part from:
delivering unsurpassed value.
In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations.
exchange rate
In the context of the strategies for reaching global markets, a(n) _____ is a firm that is offered the right to produce and market another firm's products if it agrees to specific operating requirements.
franchisee
The situation becomes more serious when average prices increase more than 50% per month. In the given scenario, Irkholm is experiencing _____.
hyperinflation
In the context of the barriers to international trade, the term _____ refers to a country's physical facilities that support economic activity.
infrastructure
Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.
legal but unethical
In the United States, people come from such diverse backgrounds that establishing broad agreement on specific ethical standards can be daunting. In this situation, a given country's _____ provides a solid starting point for examining ethical standards.
legal system
In the context of global trade, a balance of payments deficit means that:
more money flows out than in.
In the context of codes of ethics, the Johnson & Johnson Credo refrains from:
overpromising financial rewards.
The obligation of a business to contribute to society is referred to as _____.
social responsibility
Companies that step in with on-site day care programs for employees facing challenges such as caring for elderly parents are fulfilling their:
social responsibility.
However, he was able to secure a loan despite his reduced ability to repay the loan. Timothy most likely applied for a _____.
subprime mortgage loan
Despite having a small population and severely limited natural resources, Hong Kong has consistently ranked among the richest regions in Asia. The prime reason behind this is:
the active encouragement of entrepreneurship by the government.
Romernia, an Asian country, imported goods and services worth $700 million in the last fiscal year. It exported goods worth $400 million in the same year. The difference in the value of Romernia's imports and exports is known as _____.
the balance of trade
In the context of the business cycle, the economy of Keltica was in _____ during the 1980s.
the expansion phase
Which of the following companies is engaged in importing?
A company that buys electronic goods that are domestically manufactured by other countries
Which of the following approaches, which emerged during the marketing era, continues to influence business decisions today as global competition heats up to unprecedented heights?
A consumer focus that permeates successful companies in every department, at every level
The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.
illegal and unethical
In the context of monetary policy, the Fed is most likely to reduce the discount rate during:
recessions.
Which of the following is most likely to have influenced Elision Inc.'s decision to outsource its support operations to Luzenza?
Access to factors of production
In the context of globalization, which of the following is the most challenging issue faced by companies and individuals that are involved in international business?
Bribery
In the context of monitoring ethics and social responsibility, which of the following is the starting point of a social audit?
Establishing goals
In the context of the economic environment of business, which of the following will most likely increase the cost of doing business for everyone involved?
Ethical lapses
In the context of emerging economies, which of the following statements is true of the BRIC countries?
India's subscriber base for cell phones has grown explosively over the past five years.
In the context of monetary policy, which of the following is a result of an increase in the reserve requirement?
Interest rates begin to rise.
In the context of the free market system, which of the following market structures has a low barrier to entry?
Pure competitions
Which of the following statements is true of organizational barriers to communication?
They are hard to change.
The _____ is an international cooperative of 188 member countries, working together to reduce poverty in the developing world.
World Bank
Michael has excellent oratory skills. He is well-spoken and very innovative. However, people are often distracted by his odd mannerisms while speaking, such as his constant foot movement, his slouched posture, and his habit of biting nails. In the given scenario, people get distracted because of _____ to communication.
body language barriers
In the context of the legal and ethical dimensions of business conduct, it is illegal and unethical to:
engage in sexual harassment.
Rene's boss asks her to perform a social audit of the company following mass media's harsh criticism of the company's ethical standards. In this case, Rene will first:
establish the goals required to conduct the social audit.
In the context of the economic differences among nations in international trade, effectively serving less-developed markets requires:
innovation.
The Fed:
performs banking services for commercial banks in districts where it operates.
Uncomfortable chairs at a conference can create a(n) _____ to communication.
physical barrier
To bring inflation under control, the Fed:
reduces the money supply.
Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?
Access to factors of production
Jim, the CEO of a management firm, needs to deliver a presentation on work ethics to his employees. He has a thorough knowledge of his employees' educational backgrounds. He uses this knowledge to create a presentation that would convey the message to his employees. In the given scenario, which of the following communication guidelines is Jim following?
Analyze your audience
Identify a true statement about foreign licensing.
It is especially common in the food and beverage industry.
Which of the following statements avoids gender bias?
A manager who does not lead by example is a poor manager.
In the context of challenges to effective communication, the term _____ refers to any interference that causes the message you send to be different from the message your audience understands.
noise
Fiola is undergoing a special training session to understand the theory of relativity. Mark, Fiola's tutor, conducts the training sessions for her. Mark uses jargon, and this makes it difficult for Fiola to comprehend the theory. In this scenario, which of the following communication barriers is most likely interfering with Fiola's understanding of the theory?
A language barrier
Flickczar, a film production company in the United States, sells the distribution rights of a film to its distributors in underserved areas at rock-bottom prices, while it sells the rights of the same film to distributors in other areas at normal prices. In the context of business behavior, Flickczar's business practice is _____.
illegal but ethical
Preston, a luthier, used to own a workshop in the 1750s where he produced handmade musical instruments of high quality. However, due to technological advances, musical instruments started being mass-produced in factories, and Preston's business began to decline. Given this information, it can be assumed that Preston belonged to the _____.
industrial revolution era
Tornio, a steel company, imports iron ore from Marquette iron range in Michigan. In this scenario, the iron ore obtained by Tornio can be classified as _____.
natural resources
