Archives: Quiz

Using a competitive advantage strategy based on _____, a firm seeks to be unique in its industry or market segment along particular dimensions that the customers value. A. market penetration B. cost leadership C. market development D. product differentiation Answer: […]

A project team that comprises of members from different departments who work together toward jointly establishing new product development goals and priorities is known as a _____ team. A. intra-departmental B. global virtual C. task force D. cross-functional Answer: One […]

Which of the following is true about missionary salespeople? A. They are used to focus exclusively on promotion of existing products and introduction of new products. B. They are used when a product is extremely high priced and is being […]

Which of the following statements is true about organizing the multinational company? A. The integration of markets is forcing companies that wish to stay successful to remain domestic. B. In determining whether or not to globalize a particular business, managers […]

The research and development division of Anchor Inc., a manufacturing firm, has a sizeable number of engineers for its employees. The buying decisions related to the equipment to be used in the research and development of new technologies is primarily […]

Franklin Inc., an apparel manufacturer based in Scotland, opened a new store in the United States. Franklin’s designs were well received by consumers in the host country. However, the firm incurred very high expenses due to the expensive rents and […]

_____ refers to the consistency and dependability of the service performance. A. Responsiveness B. Empathy C. Reliability D. Assurance Answer: After a long run, Libby feels like buying something cool and refreshing to drink. Libby is currently in which stage […]

In the context of the diffusion of innovation, _____ refer to the buyers who are the first to purchase a product. A. innovators B. early adopters C. laggards D. late adopters Answer: Hari is a results-oriented individual who believes in […]

Which of the following is a disadvantage of using direct mail as an advertising medium? A. Lack of flexibility B. Relatively high costs C. Long closing periods D. Nonselectivity of audience Answer: Which of the following is a demographic factor […]

When buying clothes, consumers may shop at several stores and compare a number of different brands and styles before purchasing an item without resorting to a complex analysis of the pros and cons of each brand and style. Identify the […]

Today, you are borrowing $13,800 to purchase a car. What will be your monthly payment amount if the loan is for four years at 7.5 percent interest? A. $298.40 B. $321.150 C. $333.67 D. $380.24 E. $400.10 Answer: The standard […]

A firm that uses its weighted average cost of capital as the required return for all of its investments will: A. maintain a constant value for its shareholders. B. increase the risk level of the firm over time. C. make […]

Kim placed an order with her broker to purchase 400 shares of each of three IPOs that are being released this month. Each IPO has an offer price of $23 a share. The number of shares allocated to Kim, along […]

For the year, Movers United has net income of $31,800, net new equity of $7,500, and an addition to retained earnings of $24,200. What is the amount of the dividends paid? A. $100 B. $7,500 C. $7,600 D. $15,100 E. […]

Which one of the following portfolios will have a beta of zero? A. A portfolio that is equally as risky as the overall market B. A portfolio that consists of a single stock C. A portfolio comprised solely of U. […]

Sugar and Spice stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? A. 7.89 percent B. 8.56 percent C. 9.43 percent D. 10.05 percent E. 10.50 […]

Which one of the following is evidence of indebtedness? A. Terms of sale B. Credit cost curve C. Credit instrument D. Concentration policy E. Credit policy Answer: Which one of the following statements is correct? A. A prepack is a […]

Which one of the following statements is correct? A. The net present value is a measure of profits expressed in today’s dollars. B. The net present value is positive when the required return exceeds the internal rate of return. C. […]

Granger Corp. stock currently sells for $48.29 per share. The market requires a 13 percent return on the firm’s stock. If the company maintains a constant 5.5 percent growth rate in dividends, what was the most recent annual dividend per […]

Your parents spent $6,200 to buy 500 shares of stock in a new company 13 years ago. The stock has appreciated 9 percent per year on average. What is the current value of those 500 shares? A. $18,824.17 B. $19,007.99 […]

Todd and Cathy created a firm that is a separate legal entity and will share ownership of that firm on a 50-50 basis. Which type of entity did they create if they have no personal liability for the firm’s debts? […]

You are comparing two possible capital structures for a firm. The first option is an all-equity firm. The second option involves the use of $3.8 million of debt. The break-even point between these two financing options occurs when the earnings […]

Consider a portfolio comprised of four risky securities. Assume the economy has three states with varying probabilities of occurrence. Which one of the following will guarantee that the portfolio variance will equal zero? A. The portfolio beta must be 1.0. […]

The Nifty Fifty is considering opening a new store at a start-up cost of $720,000. The initial investment will be depreciated straight-line to zero over the 15-year life of the project. What is the average accounting rate of return? A. […]

Given the following information, what is the standard deviation of the returns on this stock? A. 19.90 percent B. 20.52 percent C. 22.41 percent D. 23.79 percent E. 25.52 percent Answer: The Bird Cage has the following estimated sales. Purchases […]

Gee Whiz Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called? A. Markup B. Commission C. Rights price D. Spread E. Offer Answer: An American Depositary Receipt is defined […]

LOG, Inc. currently has 300,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax effects exist, what will the share price be after LOG has a 5-for-3 stock split? A. $43.80 B. $45.60 […]

Kelsey International declared a dividend on Friday, November 13, that is payable on Friday, December 4, to holders of record on Monday, November 30. What is the latest date that you can purchase this stock if you wish to receive […]

A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 30 percent dividend payout ratio. What is the sustainable growth rate? A. 5.72 percent B. 6.84 percent C. 7.12 percent D. […]

Which one of the following is the primary determinant of an investment’s cost of capital? A. Life of investment B. Initial cash outlay C. Level of risk D. Source of funds used for the investment E. Investment’s net present value […]

Richardson Marina has 18,000 shares of stock outstanding that were sold to the general public last year. The firm has just decided to issue an additional 6,000 shares of common stock and has also decided to make the shares available […]

Glazetech Inc., a software giant, is involved in the production of a technologically complex product that is the first of its kind in the market and is slated to be sold to the entire organization. Considering its uniqueness, its manufacturers […]

Venus Inc. is a telecommunications firm that has been functioning for a number of years with the same kind of tariffs and offers. The firm still implements off-peak pricing and works according to the traditional management system. It has not […]

Which of the following organizational growth strategies involves the creation of new products? A. Diversification strategy B. Cost leadership strategy C. Market development strategy D. Market penetration strategy Answer: Which of the following organizational growth strategies aims to find new […]

While making purchase decisions, which of the following products is most likely to elicit the greatest reference group influence? A. A car B. A medicine C. An award-winning novel D. A toothbrush Answer: Alison receives a phone call from an […]

According to the VALSâ„¢ framework, consumers categorized as Experiencers and Makers are motivated primarily by _____. A. ideals B. achievement C. role models D. self-expression Answer: Which of the following refers to responsiveness? A. The willingness or readiness of employees […]

Which of the following is true of a marketing decision support system? A. It is a coordinated collection of data, tools, and techniques to gather and interpret information for decision making. B. It requires search engine software and a word […]

Which of the following marketing research data collection methods allows respondents to answer surveys at their convenience and facilitate the evaluation of visual stimuli? A. Telephone surveys B. Internet surveys C. Face-to-face surveys D. Mall intercepts Answer: Joshua is an […]

When Lucile visited a stationery store to buy tape, she noticed that each roll of tape was priced at $1.99. In fact, most of the prices at the store were set a few dollars or a few cents below a […]

Which of the following is an ethical and legal concern associated with personal selling? A. Misrepresenting product health B. Encouraging materialism and excessive consumption C. Reinforcing unfavorable ethnic or racial stereotypes D. Using unauthorized mailing lists to reach consumers Answer: […]

While shopping for grocery, Marissa is unsure about which brand of ready-to-serve pumpkin pies to purchase for the Thanksgiving dinner she has planned. To make the final decision, she calls her mother and buys the brand that she recommends. In […]

In the context of new product development, the inability of a firm to satisfy customer needs can be attributed to: A. upfront intelligence efforts that prevent further development. B. failure on the part of the firm to stick close to […]

Anchor Inc. is a retailer that acts as an intermediary for buyers and sellers. As a marketing intermediary, it serves several functions that include buying, selling, and assuming title risks for a manufacturer’s products. Apart from them, it has to […]

The _____ of sales forecasting combines and averages the views of top management representing marketing, production, finance, purchasing, and administration. A. sales force composite method B. customer expectations method C. time-series analysis D. jury of executive opinion method Answer: Identify […]

A bonus is a type of incentive given to the sales force that is most likely to result in a potential performance outcome of: A. increased attention on selling new products. B. increased customer turnover. C. increased selling costs. D. […]

With regard to global marketing research, which of the following is true of using census data for in-depth demographic information? A. Some countries publish census reports only in their native language. B. Data contained in a census are uniform across […]

An organizational purchase that involves extensive research, large investments, and happens occasionally is typically a _____. A. modified rebuy B. new task purchase C. just-in-time purchase D. straight rebuy Answer: The CEO of Jaquar Consultancy Corp. informs Amy’s supervisor that […]

As a determinant of service quality, reliability involves the: A. consistency and dependability of the service performance. B. physical evidence of the service. C. levels of creativity of the services provided. D. knowledge and competence of service providers and the […]

Fred is a marketing manager consultant working in tandem with members from other functional areas that include engineering, production, and administrative staff. While evaluating a new product proposal, Fred and his team members from other functional areas work simultaneously toward […]

Which of the following is true of sales promotion? A. Sales promotion can be an effective means for reaching people living in rural locations. B. Sales promotion is not effective in areas where media support for advertising is virtually nonexistent. […]