When getting a good or service to market, who is most powerful in determining the
roles and rewards of others in the system?
A) Channel captain
B) Exclusive distributer
C) Selective distributer
D) Merchant wholesaler
E) Sales agent
Under which of the following treaties are Canada, the United States, and Mexico
gradually eliminating tariffs and all other trade barriers?
A) The EURO Agreement
B) The Pan-American Agreement
C) The North American Free Trade Agreement
D) The General Agreement on Tariffs and Trade
E) The G-3 Free Trade Agreement
How are federal and state projects, such as roads and schools, typically financed?
A) Municipal bonds
B) Common stock
C) Angel investors
D) Corporate bonds
E) TARP loans
What do salespeople do to determine if a potential buyer has the authority to buy and
ability to pay?
A) Prospecting
B) Present and demonstrate products
C) Qualify the potential buyer
D) Close the sale
E) Encourage sales promotions
When can a bondholder file a bondholders’ claim?
A) When purchasing an initial issue of the bond
B) When buying a bond from a brokerage service
C) When the borrower is filing for bankruptcy
D) When selling a bond before maturity
E) When the borrower fails to make a payment that is due
Which of the following assumptions is the strategy of pricing above the market based
on?
A) Higher price implies higher quality.
B) Higher price means higher customer support.
C) Higher prices mean higher customer satisfaction.
D) Higher price creates higher demand.
E) Higher price means easier distribution.
What is the MOST important advantage of general partnerships?
A) The unlimited liability of the partnership
B) The ability to grow with the addition of new talent and money
C) The ease of implementing an effective control system
D) The increased role of luck
E) The need for minority partners
Which of the following indicates the critical path needed for the completion of large
projects?
A) Master schedule
B) Coordination schedule
C) Gantt chart
D) Detailed schedule
E) PERT chart
Material management requires the negation of terms of service and maintaining the
relationship between the buyer and those who sell the firm goods. Which process
supports this activity?
A) Supplier selection
B) Purchasing
C) Inventory control
D) Production
E) Materials management
Which of the following is considered the starting point of effective human resource
management?
A) External staffing
B) Recruitment
C) Planning
D) Financing
E) Compensation
What is the main advantage of using a PERT chart on a large scale project?
A) It aids in the ordering of supplies and materials.
B) It shows the most time-consuming path for project completion.
C) It allows managers to plan for delays.
D) It allows managers to monitor performance by comparing results with detailed
schedules.
E) It identifies which tasks can be performed at the same time as others.
If an employee needs to feel that she is a part of a team and yet her position involves
working alone, which of the following may NOT be right?
A) The pay scale
B) The person-job fit
C) The employee’s attitude
D) The organization’s plan
E) The team structure
Which of the following models of leadership is based on the expectancy theory of
motivation and suggests that the function of a leader is to make rewards available to the
workplace?
A) Supportive
B) Path-goal
C) Decision tree
D) Employee-focused
E) Leader-member exchange
Which organization created the classification of countries based on per capita income?
A) The World Bank
B) The World Trade Organization
C) The International Monetary Fund
D) The European Union
E) The North American Free Trade Agreement
Which of the following is the MOST likely pricing approach for a monopoly?
A) Charge customers whatever you please.
B) Give customers a real bargain on price.
C) Charge a price that will not cause consumer demand to drop.
D) Undercut the prices of the competition.
E) Give customers a fair price that cannot be matched by competitors.
Why does a government lower interest rates to affect the value of the currency?
A) To strengthen the value of the currency in the world market
B) To make goods cheaper and more attractive in the world market
C) To stimulate inflation
D) To increase the number of foreign imports, thereby increasing trade
E) To offset the price of must-have commodities, such as oil
Why does the government take an active role in the regulation of the U.S. financial
system?
A) Commercial banks are essential in paying for international trade.
B) To generate fees in addition to those paid to the FDIC.
C) To help commercial banks dispose of assets.
D) Commercial banks are essential to the creation of money and to the protection of
American citizens.
E) To allow commercial banks to settle debt.
What must every corporation do in maintaining and reporting its financial status?
A) Purchase stocks on margin
B) Use creative accounting practices
C) Support increased stock prices
D) Aim to maximize predicted profit margins
E) Conform to generally accepted accounting principles
When a firm produces goods for mass consumption, what type of goods production
method is generally used?
A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock
During what step of the product development stage does the firm consider how well a
product or idea supports the firm’s objectives?
A) Screening
B) Concept testing
C) Prototype development
D) Benefits analysis
E) Product idea
What type of intermediary buys the product from the manufacturer then resells it to
other businesses?
A) Drop shippers
B) Merchant wholesalers
C) Agents
D) E-intermediaries
E) Brokers
What type of organization seeks to integrate continuous improvements with continuous
employee development?
A) Team
B) Virtual
C) Learning
D) Flexible
E) Evolving
Which of the following indicates a firm will be able to pay its bills in a satisfactory
manner?
A) A debt to equity ratio of 1:1 or higher
B) An activity ratio of 5:1 or less
C) A net income to common shares outstanding ratio of 1:1 or less
D) A current ratio of 2:1 or higher
E) A profitability ratio of 5:1 or higher
Which of the following are groups of small investors seeking to make profits on
companies with rapid growth potential?
A) Community banks
B) Venture capital companies
C) Equity managers
D) Government securities dealers
E) Stock brokers
When conducting a SWOT analysis of an organization, which question can help
management brainstorm for the threats section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
Which of the following terms refers to the comprehensive system for collecting,
analyzing, and communicating financial information?
A) Bookkeeping
B) Accounting
C) Controlling
D) Auditing
E) Budgeting
What can be utilized to ensure a company’s marketing and nonmarketing efforts are
compatible?
A) Market segmentation
B) Integrated marketing strategies
C) Target marketing
D) Public relations
E) Personal selling
If a firm is more interested in promoting a product and less interested in making a sale,
what type of selling should be used?
A) Industrial selling
B) Missionary selling
C) Creative selling
D) Personal selling
E) Retail selling
Which index focuses specifically on the smallest U.S. companies, based on market
capitalization?
A) S&P 500
B) Dow Jones Industrial Average
C) TradeStation
D) Russell 2000
E) NASDAQ Composite
What type of ownership is created when a firm buys another outright?
A) Merger
B) Acquisition
C) Spin-off
D) Divestiture
E) Institutional
Which of the following bodies enforces accounting and auditing rules and procedures?
A) Accounting Disclosure Board
B) Financial Accounting Standards Board
C) Association of Certified Fraud Examiners
D) Securities and Exchange Commission
E) American Institute of Certified Public Accountants
What does a company need to operate so that it has total control over its
communications without dependence on other companies?
A) Its own Web site
B) Its own VSAT system
C) An extranet
D) Its own groupware site
E) Enterprise planning
What is one of the key benefits to successful branding?
A) Brand extension
B) Brand loyalty
C) Preferred product placement
D) Ease of licensing
E) Ease in adaptation
Explain limited liability in a corporation.
Explain the elements that comprise the marketing environment.
How do companies use intranets to improve productivity and performance?
Discuss the five dimensions of social behavior that differ across cultures.
How do expense items differ from capital items?
Describe three disadvantages of operating a business as a sole proprietorship.
What are two specific reasons why a company might decide NOT to conduct business
internationally?
What are the components of the M-2 money supply?
Describe the elements of the marketing mix. What is their collective role?
Describe a situation in which a leader would choose a more transactional approach to
her leadership over a more transformational one.
In what three ways is job redesign typically implemented?
Why is new product development expensive?
Why is product development a challenge for marketers?
List and describe the three personal selling tasks.
Explain the need for restricting banks to lending out only 90 percent of their deposit
funds.