95) Netiquette:
A) does not change because it is based on common sense.
B) is the term used for etiquette on the Internet.
C) is based on the principle, “Don’t put all of your eggs in one basket.”
D) advises e-mail senders to use flaming when implementing the AIDA process.
E) is based on the iceberg principle.
96) According to some experts, what has been an effect of the increased use of technology for
communication with customers?
A) More personal interactions
B) Less communication
C) More competition
D) Less productivity
E) More rudeness
97) When communicating with e-mail messages, you should never:
A) use friendly closings.
B) be too brief.
C) use salutations.
D) use all capital letters.
E) include subject headings.
98) Which of the following is appropriate when e-mailing customers?
A) Do not be afraid to send bad news via e-mail.
B) Use flaming when appropriate in e-mails.
C) If you want to make sure that a message is understood, write it in all capital letters.
D) Use dates, salutations, and friendly closes in e-mails.
E) Send the same message several times to make sure that it reaches the intended receiver(s).
99) Which of the following is an appropriate guideline to follow when communicating with a
cell phone?
A) Remember the person you are with should be the most important person for you to be
communicating with.
B) Speak louder into a cell phone than you would in other types of phones.
C) Never ignore a cell phone call.
D) Never let your voice mail take the call.
E) Always keep your phone in message mode.
100) Which of the following is NOT a guideline to follow when communicating with a cell
phone?
A) If you are expecting an important call during a presentation, make sure to silence your ringer.
B) Use the caller ID feature as a screening method.
C) Turn off the phone during meetings and sales calls.
D) Return messages as soon as possible.
E) Speak extra loudly into the phone.
101) The only time a salesperson should use a speakerphone in an office setting is when he or
she is:
A) inputting data into a laptop computer.
B) participating in a conference call.
C) part of a regional sales team.
D) talking to someone in an office.
E) getting ready to leave an office.
102) ________ is the standard amount charged to customers for a product.
A) List price
B) Transactional value
C) Net price
D) Contribution margin
E) Net worth
103) Cottage in a Teapot is a small retailer of decorative merchandise. The price charged by its
suppliers after allowance for all discounts is the ________ price.
A) discretionary
B) zone
C) list
D) net
E) marginal
104) A manufacturer that bases its charge to customers on the customer’s location or the
customer’s distance from the shipping point is using a ________ price.
A) marginal
B) list
C) zone
D) net
E) FOB shipping point
105) A product is priced FOB destination, which means:
A) title of goods passes to customer when they are loaded on the shipping vehicles.
B) the buyer pays the shipping costs.
C) the seller pays the shipping costs.
D) the buyer and seller share the shipping costs equally.
E) freight over a basic fee is paid at the destination.
106) Which of the following is a quantity discount that involves a one-time reduction in price?
A) Cash discount
B) Noncumulative quantity discount
C) Trade discount
D) Cumulative quantity discount
E) Consumer discount
107) If one case of Winston brand chocolate molds costs $10.00, but a single order for 10 cases
costs a total of $94.00, it is MOST accurate to say that:
A) someone in the manufacturer’s book keeping department made an error.
B) the manufacturer offers a cash discount.
C) the manufacturer offers a cumulative quantity discount.
D) the manufacturer offers a noncumulative quantity discount.
E) the manufacturer offers a trade discount.
108) A salesperson tells a hardware retailer, “Buy 10 sprayers today and get one free.” The
retailer is being offered a ________ discount.
A) trade
B) cash
C) noncumulative quantity
D) consumer
E) cumulative quantity
109) When the salesperson told the owner of Pet World, “If you purchase a minimum of 700
pounds of my company’s brand of dog treats over the next 12 months, you’ll receive a discount of
10 percent,” the pet storeowner knew she was getting a ________ discount.
A) trade
B) cash
C) noncumulative quantity
D) consumer
E) cumulative quantity
110) The customer receives this type of discount for buying a certain amount of a product over a
stated period of time.
A) Cash discount
B) Noncumulative quantity discount
C) Trade discount
D) Cumulative quantity discount
E) Consumer discount
111) Which is the type of discount that would most likely be given to a customer who pays bills
within a stated period?
A) Cash discount
B) Noncumulative quantity discount
C) Trade discount
D) Cumulative quantity discount
E) Consumer discount
112) When the book salesperson told the bookstore manager, “3/15 net 60,” the manager knew
that he was receiving a ________ discount.
A) trade
B) cash
C) noncumulative quantity
D) consumer
E) cumulative quantity
113) The Storage Bin Warehouse has reported a number of break-ins in the past few weeks. As a
salesperson for No-Doubt Security Products, you believe your extensive line of alarm systems
and locks could greatly benefit the retailer. You make an appointment with the Storage Bin
manager for early next week. During your preparation for the sales call you learn the warehouse
currently uses poor quality locks and has no security system. You plan to offer the manager a
security package consisting of 150 Sure-Bolt locks at a price of $10 each and a new alarm
system costing $5,000. The terms of the sale are 2/10 net 30. Assuming the Storage Bin manager
purchases your suggested order and pays for it in one week, what would be the total cost?
A) $6,237
B) $6,370
C) $6,500
D) $6,630
E) $6,776
130).
114) Knight’s Catering Service receives a May 19th invoice for $150 with terms of 3/10 net 30. If
Knight’s pays the invoice on May 28th, how much is due?
A) $120.00
B) $145.50
C) $147.00
D) $150.00
E) $153.00
115) The Kentucky Grass Seed Company gives a 33 percent reduction off the retail list price of
its best-selling grass seed mix to retailers. This practice is an example of a ________ discount.
A) cash
B) trade
C) cumulative quantity
D) noncumulative quantity
E) consumer
116) When the manufacturer reduces prices to channel members to compensate them for the
services they perform, it is known as a:
A) cash discount.
B) noncumulative quantity discount.
C) cumulative quantity discount.
D) consumer discount.
E) trade discount.
117) While in the supermarket, you notice the label on a jar of Heinz pickle relish is marked, “30
cents off regular price.” This is an example of a ________ discount.
A) loyalty
B) cash
C) noncumulative quantity
D) consumer
E) trade
118) Which of the following is a one-time price reduction the manufacturer passes on to channel
members or directly to customers?
A) Cash discounts
B) Noncumulative quantity discounts
C) Cumulative quantity discounts
D) Consumer discounts
E) Trade discounts
119) The ________ is the dollar amount added to the cost of a product to determine its selling
price.
A) markup
B) profit factor
C) consumer add-on
D) gross profit
E) net profit
120) All of the following are true about markup EXCEPT that it is:
A) based on a product’s selling price or cost.
B) intended to allow wholesalers to profit.
C) usually expressed as a percentage.
D) representative of gross profit.
E) representative of net profit.
121) ________ is the money available to a firm to cover the costs of marketing its products,
operating the business, and profit.
A) Operating factor
B) Price factor
C) Final discount
D) Gross profit
E) Net profit
122) ________ is the money that remains after the costs of marketing and operating the business
are paid.
A) Account receivable
B) Contribution margin
C) Consumer residual
D) Net profit
E) Dividend
123) Markup is:
A) the money available to cover only the costs of marketing the product.
B) based on the product’s selling price.
C) based on the product’s discount price.
D) often expressed as a fraction.
E) represented by net profit.
124) Assume a product costs $3 and a retailer sells it for $6. What is the percentage markup on
selling price and cost?
A) Markup on selling price = 33%; Markup on cost = 50%
B) Markup on selling price = 40%; Markup on cost = 66.6%
C) Markup on selling price = 50%; Markup on cost = 100%
D) Markup on selling price = 100%; Markup on cost = 100%
E) Markup on selling price = 120%; Markup on cost = 150%