25) Tanika is planning to open a consulting practice based in a shared office facility. Her
monthly fixed costs will total $2,500 plus she must earn at least $7,500 per month to replace her
salary and benefits. She plans to charge $65 per hour for her consulting services and will have
direct costs of $15 per hour for a gross profit of $50 per hour. How many hours of consulting
must she bill per month?
A) 200 hours
B) 50 hours
C) 150 hours
D) None of the above
Learning Obj.: LO 7
AACSB: Application of knowledge
26) With a breakeven level of sales at 3,330 sandwiches per month, how many sandwiches per
day must Pedro sell on average to breakeven?
A) 111
B) 100
C) 110
D) 333
Learning Obj.: LO 7
AACSB: Application of knowledge
27) Wholesale businesses requiring a great deal of storage space are most concerned about
________ when choosing a location.
A) Foot traffic
B) Internet traffic
C) Proximity to similar companies
D) Easy access to roads and highways
Learning Obj.: LO 2
AACSB: Analytical thinking
28) What attributes should your business name have?
A) Creative and funny
B) Distinctive and easy to remember
C) Similar to your main competitor and short
D) None of the above
Learning Obj.: LO 2
AACSB: Analytical thinking
7
29) A product is defined by its ________.
A) Physical attributes
B) Performance characteristics
C) Pricing
D) All of the above
Learning Obj.: LO 1
AACSB: Analytical thinking
30) What should a company do to build and maintain its brand?
A) Maintain high ethical standards
B) Define the product or service clearly
C) Treat its employees well
D) All of the above
Learning Obj.: LO 2
AACSB: Analytical thinking
31) Which of the following is a promotion method that may assist a retail business?
A) Coupons
B) Signs
C) Samples or demonstrations
D) All of the above
Learning Obj.: LO 3
AACSB: Analytical thinking
32) Which of the following is a promotion method that could be expected to assist a wholesale
business?
A) Billboards
B) Web sites
C) Both A and B
D) Neither A or B
Learning Obj.: LO 3
AACSB: Analytical thinking
8
33) A foundation is a ________ organization.
A) For-profit
B) Not-for-profit
C) Both A and B
D) Neither A or B
Learning Obj.: LO 3
AACSB: Analytical thinking
34) ________ is the use of advertising and publicity to get your market message out to your
customers.
A) Marketing
B) Promotion
C) Sales
D) Philanthropy
Learning Obj.: LO 3
AACSB: Analytical thinking
35) In the 4 “Ps” of marketing, ________ refers to the location where you choose to market your
product.
A) Price
B) Place
C) Promotion
D) Product
Learning Obj.: LO 1
AACSB: Analytical thinking
36) A product is intangible.
Learning Obj.: LO 2
AACSB: Analytical thinking
37) The packaging is not part of the product.
Learning Obj.: LO 2
AACSB: Analytical thinking
9
38) The key to building a successful brand is to broadly summarize many benefits you want to
deliver to customers.
Learning Obj.: LO 2
AACSB: Analytical thinking
39) Promotion is the development of the popularity and sales of a product or service through
advertising, publicity, and other marketing devices.
Learning Obj.: LO 3
AACSB: Analytical thinking
40) Philanthropy is the fifth “P” of marketing.
Learning Obj.: LO 3
AACSB: Analytical thinking
41) Many philanthropic organizations in the United States were established by entrepreneurs.
Learning Obj.: LO 3
AACSB: Analytical thinking
42) Advertising is free mention of a company, person, event, product, or service in media such as
newspapers and magazines or on radio or television.
Learning Obj.: LO 3
AACSB: Analytical thinking
43) Providing a high-quality product or service will not contribute to your brand.
Learning Obj.: LO 2
AACSB: Analytical thinking
44) Price should reflect your marketing vision.
Learning Obj.: LO 2
AACSB: Analytical thinking
10
45) Customers will not respond to brand personality or develop a relationship with it.
Learning Obj.: LO 2
AACSB: Analytical thinking
46) Define promotion, advertising and publicity.
Learning Obj.: LO 3
AACSB: Analytical thinking
47) Explain why a business should focus on its brand.
Learning Obj.: LO 2
AACSB: Analytical thinking
48) Define philanthropy and explain why some marketing experts call philanthropy “the fifth P”,
and why it is important to entrepreneurs.
Learning Obj.: LO 3
AACSB: Analytical thinking
11
49) Jenny is concerned because when she calculates her breakeven for her business, the number
of products she much produce and sell is greater than what she can handle. Explain whether or
not she could improve her breakeven by finding lower costs. Which, if any, types of cost
reductions could lower her breakeven? Why?
Learning Obj.: LO 7
AACSB: Application of knowledge
50) Discuss the concept of fixed costs and the types of fixed costs. Can fixed costs vary?
Learning Obj.: LO 7
AACSB: Analytical thinking
12