Archives: Quiz

Firms are organized to keep their costs as low as possible by A) comparing external transactions costs with internal operating cost. B) analyzing supply and demand conditions. C) minimizing their use of borrowed funds. D) utilizing the latest technology. The […]

The certainty equivalent approach to accounting for risk in capital budgeting involves A) adjusting the discount rate used to calculate net present values. B) adjusting the expected cash flows. C) estimating the coefficient of variation. D) estimating the standard deviation […]

The “law” of demand can be best described by A) people will buy things that they enjoy. B) if incomes rise, people will buy more. C) a rise in price will cause shortages. D) a fall in price will increase […]

A firm in an oligopolistic industry has the following demand and total cost equations: P = 600 – 20Q and TC = 700 + 160Q + 15Q2 Calculate: a. quantity at which profit is maximized b. maximum profit c. quantity […]

Which of the following is the exponential trend equation to forecast sales (S)? A) S = a + b(t) B) S = a + bt C) S = a + b(t) + c(t)2 D) None of the above Which of […]

Prices under an ideal cartel situation will be equal to A) monopoly prices. B) competitive prices. C) prices under monopolistic competition. D) marginal cost. The demand for products that provide benefit externalities is generally ________ the demand for products that […]

A cartel price will be established at the quantity where A) total cost equals the industry total revenue. B) average cost equals the industry revenue. C) the sum of the members’ marginal costs equals industry marginal revenue. D) marginal cost […]

“Tying” is a form of price discrimination which involves a buyer A) agreeing to purchase a product at a fixed price regardless of the amount purchased. B) paying different prices based on the amounts of a product purchased. C) required […]

If the demand for a product is said to be relatively inelastic, the “absolute” value of the elasticity coefficient will be A) less than one. B) greater than one. C) equal to one. D) zero. In order for price discrimination […]

A stock whose rate of return fluctuates less than the rate of return of a market portfolio will have a beta that equals A) 1. B) less than 1. C) more than 1. D) Either A or C above Given […]

In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to A) continue its efforts to differentiate its product. B) raise its price. C) lower its price. D) do […]

Gasoline and heating oil are examples of products which are A) joint products in fixed proportions. B) joint products in variable proportions. C) joint products that are complements. D) unrelated to each other. When a government imposes a price floor […]

Which of the following cost relationships is not true? A) AFC = AC – MC B) TVC = TC – TFC C) The change in TVC/the change in Q = MC D) The change in TC/ the change in Q […]

In perfect competition, if firms enter the market in the long run A) total supply will increase causing market price to increase. B) total supply will decrease causing market price to decrease. C) total supply will decrease causing market price […]

Which of the following is a test of the statistical significance of a particular regression coefficient? A) t-test B) R2 C) F-test D) Durbin-Watson test Other things remaining the same, an increase in the price of butter can be expected […]

Which of the following is the best example of how the question of “what goods and services to produce?” is answered by the command process? A) government subsidies for windmill energy production B) laws regarding equal opportunity in employment C) […]

A good’s Demand Curve is QD = 25 – P, and its Supply Curve is QS = 10 + 2P. a. When P = $20, what is the difference, if any, between QD and QS? b. When P = $3, […]

When a firm sets a price relatively low in order to increase the market share, it is referred as A) price skimming. B) limit pricing. C) penetration pricing. D) predatory pricing. Assuming mustard and burgers are complements, a decline in […]

If MRP > MLC, it means that a firm should A) use less labor. B) use more labor. C) increase its fixed capacity. D) decrease its fixed capacity. If $1,000 is placed in an account earning 8% annually, the balance […]

The Trend Projection approach to forecasting is represented by A) time-series regressions. B) exponential smoothing. C) opinion polls. D) All of the above The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is A) […]

Typically, transfer pricing audits by the IRS are concentrated in the case of A) tangible goods. B) intangible property transactions. C) services. D) inputs. Which of the following is a Lagging Economic Indicator? A) change in average labor costs in […]

A proposed project should be accepted if the net present value is A) positive. B) negative. C) larger than the internal rate of return. D) smaller than the internal rate of return. An isoquant indicates different combinations of A) two […]

True, false, or uncertain? Any firm that is not covering fixed costs should shut down in the short run. True, false, or uncertain? Any firm that is not covering fixed costs should shut down in the short run. False. Fixed […]

An adhocracy is the opposite of a bureaucracy. The principles of organizational behavior are universal in their application across cultures. FALSE Horizontal communication refers to the information that flows laterally from members of one organization to their peers in another. […]

A Permissive Democrat combines a high degree of subordinate participation in decisions with close supervision. Social scientists consider two people to be a dyad, three people a triad, and four or more people a group. FALSE Charisma, self-confidence, vision, inspiration, […]

Joe wants to work for a company that requires him to have a broad knowledge of many different jobs, where he can be trusted to exercise self-control, and encouraged to participate in decision-making. Joe needs to look for an organization […]

Organizational citizenship behavior is less likely to occur in organizations where there is job dissatisfaction and a lack of organizational commitment. Time management training typically includes such techniques as meditation and relaxation. FALSE Professor Goldstein required his laboratory assistant to […]

When performing complex problems, groups are superior to individuals, as long as members have heterogeneous and complementary skills. An organizationʹs structure refers to the formal configuration of individuals and groups with respect to the allocation of tasks, responsibilities, and authority […]

A leaderʹs legitimate power flows from the expertise that the individual possesses. Research indicates that people who always are happy are less productive at work. FALSE Ten volunteers had been working separately folding thousands of letters and stuffing envelopes for […]

Groups where members dislike each other and where they work at cross-purposes are identified as uncohesive groups. In establishing a cross-functional team, an organization would assign members to work together all the time and to limit their special knowledge to […]

Non-verbal language, such as touching and body language, often has different meanings when communicating cross-culturally. The Big Five personality dimensions are strongly related to job performance. TRUE Value theory focuses on the discrepancies between what people have and what they […]

ʺDo your bestʺ will not motivate performance as affectively as ʺincrease sales by fifteen percent.ʺ Innovation, the successful implementation of creative ideas within an organization, occurs gradually through a series of stages. TRUE Whistle-blowers serve a valuable function by protecting […]

One consequence of the trend from traditional work groups to teams is that leaders must adapt their style. Instead of telling people what to do, the leader must ask people what they think and share responsibility for organizing and doing […]

Communication is simply a matter of two individuals discussing something and reaching a consensus. Transactional contracts are characterized as open-ended, dynamic, and highly subjective. FALSE Classical organizational theory focuses on the effective organization of the work of individuals. FALSE Decision […]

Net marketing contribution equals ________. A) (volume/margin per unit) – marketing and sales expenses B) volume x margin per unit x marketing and sales expenses C) (volume x margin per unit) – marketing and sales expenses D) (volume x marketing […]

Customers with ________ customer satisfaction ratings are profitable but are below the average customer profitability. A) Very satisfied B) Dissatisfied C) Somewhat dissatisfied D) Satisfied E) Somewhat satisfied A company’s return on capital is ________. A) invested capital divided by […]

AVB Inc. is a business that produces automobile parts. The plan and the actual performance of the business are shown in the table. Mini-Case Question. Calculate the margin variance of the business. A) -$72,000 B) $72,000 C) $80,000 D) -$80,000 […]

The end result of underwhelming customers and shareholders is ________. A) an unfocused value proposition B) a higher pressure for short-run results C) an above-average profit performance D) a low rate of customer turnover E) a high level of customer […]

Offensive strategic market plans are strategies that ________. A) have a 1-year time horizon B) are ineffective at growing sales revenue C) reduce the long-run share position D) limit short-run profit performance E) result in short-term profits without any additional […]

Within the dimensions of service quality, which of the following is a “quality enhancer”? A) service reliability B) performance C) customer empathy D) appearance E) reputation A large-segment strategy differs from a mass-market strategy in that a large-segment strategy ________. […]

Which of the following is considered an external performance benchmark for a product’s performance in the market? A) sales revenues B) net profits C) return on sales D) relative product quality E) assets as a percentage of sales The net […]

Calculate the sales effect in period 15 if the advertising expense for that period is $30 million. A) $45 million B) $450 million C) $2 million D) $30 million E) $540 million Organic Harvest Inc. is an American manufacturing firm […]

A(n) ________ strategy involves the sale of two or more products at an overall price that is lower than the total price that a customer would pay to purchase the products separately. A) pure product bundling B) impure product bundling […]

When differences in customer needs are small or demographics are not distinctive, a business may elect to use a ________ strategy. A) small-segment B) vertical integration C) horizontal integration D) mass-market E) niche-segment Crowdsourcing differs from mass collaboration in that […]

Vermont Home Builders conducted a study of the customers in the housing sector, which revealed that there are seven kinds of buyers, each a little different and each differently profitable. Vermont Home Builders decided to focus their attention on the […]

Which of the following factors determines that a marketing channel is an indirect channel rather than a direct channel? A) The products are complex and require extensive after-sales service. B) The products are intended for business-to-business markets rather than consumer […]

Dow Corning has been a market leader in silicon technology applications for over 50 years. Its products span many market applications in electronics, construction, health care, and a multitude of industrial applications. However, as some of its product-market applications reached […]

When sales figures for one of the products of Silkskin Cosmetics, a moisturizer, began to fall with low margins and declining volumes, the company decided to raise the price of the moisturizer. As volumes fell further, the company continued to […]

The ________ index is calculated using the formula based on hierarchical set of customer response effects: Exposed to Ad X Aware of Ad X Comprehend the Ad X Intend to Buy X Buy the Product. A) customer response B) marketing […]

Which of the following statements is true? A) Offensive strategic market plans require investment for growth, which limits long-run profit performance, but does not limit sales revenue. B) Defensive strategic market plans promote short-run profit performance but are not that […]