Fundamentals of Management
1. The purpose of the marketing concept is to rivet the attention of marketing managers on serving broad classes of __________ needs.
a. supplier
b. employee
c. partner
d. customer
2. In the research plan, the marketing researcher must define and delimit the problem that will be researched. Which of the following statements describes the type of information that should be included in this section?
a. A justification of the marketing research is unprofessional in this section or anywhere in the research plan.
b. The scope, that is, the limits of the research effort, should be described in this section.
c. This section should explain in detail the type of marketing information that will be gathered.
d. All of the above statements accurately define this section.
3. For the marketing manager, social class offers some insights into consumer behavior and is potentially useful as a:
a. market research information.
b. market segmentation variable.
c. source of understanding competition's strategy.
d. source to predict future trends.
4. ______ is the type of organizational purchase associated with just-in-time inventory.
a. Modified rebuy
b. Just-in-time purchase
c. Straight task buy
d. Straight rebuy
5. Products are generally classed according to two basic criteria. What are they?
a. New products and old products
b. Small products and new products
c. End use and degree of processing
d. Value pricing and quality discounts
6. An integrated approach to marketing communications:
a. focuses on mass marketing and customer acquisition.
b. is most interested in making transactions.
c. strives to create brand messages with strategic consistency.
d. uses a stable of promotional agencies.
7. Personal selling is an integral part of the __________ system.
a. marketing
b. financing
c. advertising
d. test market
8. Prestige pricing, odd pricing and __________ pricing are three types of psychological pricing strategy.
a. organizational
b. strategic
c. bundle
d. assured
9. Over the course of the past 40 years, the fastest growing segment of the American economy has been the:
a. management of major accounts.
b. production of tangible products.
c. performance of services.
d. production of consumer electronics.
10. Tariffs, import quotas, and other types of import restrictions hinder global business. These are usually established to promote __________, and these can be a huge road block for multinational firms.
a. trade relations
b. self-sufficiency
c. dependency
d. conflicting interests
11. Companies may approach social responsibility through formal and informal dimensions such as:
a. strategic alliance, licensing, and direct investments.
b. legal compliance, philanthropic giving, and whistle blowing.
c. ethics, regulators, and rules for behavior.
d. committees, training, and common sense.
12. A firm operates multiple businesses that are not logically associated with one another. The firm is practicing:
a. multiple-product strategy.
b. single-product strategy.
c. related diversification.
d. unrelated diversification.
13. In the rational decision-making process, when a manager is considering the decision's feasibility, satisfactoriness, and consequences, the manager is:
a. evaluating alternatives.
b. selecting an alternative.
c. recognizing and defining the decision situation.
d. identifying alternatives.
14. According to your textbook, the most common reasons that new business fail include:
a. lack of planning and unrealistic expectations for success. (Can be Option 3 as well)
b. bad luck, poor investments, and untrained personnel.
c. inexperience, neglect, weak control, and insufficient capital.
d. wasteful expenditures, indecisiveness in leadership, unethical behavior, and social irresponsibility.
15. A firm systematically delegates power and authority throughout the organization to middle- and lower-level managers. This firm is practicing:
a. delegation.
b. authority replacement.
c. responsibility coordination.
d. decentralization.
16. The set of organizational activities directed at attracting, developing, and maintaining the effective workforce is called:
a. occupational relations and investment management.
b. human resource management.
c. labor relations management.
d. human capital investment.
17. An employee who says, "I feel very angry that I have been passed over for this promotion" is exhibiting which component of an attitude?
a. Affective component
b. Cognitive component
c. Intentional component
d. Cognitive dissonance component
18. A firm has decided to use alternative forms of work arrangements. These arrangements could include:
a. empowerment, participation, and recognition.
b. merit pay, incentive pay, and additional time off.
c. job sharing, telecommuting, and flexible work schedules.
d. stock options, gain sharing, and collective bargaining.
19. In a particular organization, the operations manager communicates with other managers in the organization, for example the marketing manager. This is an example of __________ communication in which communication occurs more among managers than among non-managers.
a. subordinate
b. departmental
c. vertical
d. horizontal
20. Sometimes conflict is used by management to force change on an organization. Conflict can be stimulated by:
a. matching work habits of employees.
b. hiring outsiders to shake things up.
c. compromise.
d. expanding the resource base.
Marketing Priciples
21. Supply chain management involves __________ the efforts of suppliers, manufacturers, warehouses and stores.
a. separating
b. distinguishing
c. creating back-up systems for
d. integrating
22. The goal of customer relationship management is to:
a. manage every customer relationship differently.
b. manage every customer relationship to maximum potential profitability.
c. reduce inefficient relationships through customer care.
d. identify and build loyalty among a firm's customers.
23. Using profit as the sole guide for corporate action can lead to short term profits but:
a. increased corporate social responsibility options.
b. long-term loss of customers.
c. more complicated measurement challenges.
d. increased tax liabilities.
24. Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are:
a. centrally planned.
b. less focused on customer value creation.
c. identical.
d. more formal and structured.
25. After defining objectives and research needs, the next step in the marketing research process involves:
a. evaluation.
b. processing.
c. analysis.
d. design.
26. Between concept testing and market testing, a firm should engage in which stage of the product development process?
a. Product development
b. Marketing research
c. Brainstorming
d. Determining potential ROI
27. A static demand curve assumes:
a. income is derived from demand.
b. price is constant and fixed costs change.
c. everything except price remains constant.
d. a change in quantity demanded causes a change in price.
28. When electronic data interchanges (EDIs) are used to describe new products and provide pictures and information they support the __________ function in the four P's of marketing.
a. product
b. price
c. promotion
d. place
29. The three elements in any IMC strategy are the consumer, the channels, and:
a. direct marketing feedback.
b. the Web track-software.
c. the results.
d. event sponsorship.
30. The "Got Milk?" ads are an extremely effective __________ campaign.
a. brand focused
b. consumer generated
c. primary demand
d. selective demand
Managerial Finance
31. What is the primary goal of financial management?
a. Increased earnings
b. Maximizing cash flow
c. Maximizing shareholder wealth
d. Minimizing risk of the firm
32. Reinvested funds from retained earnings theoretically belong to:
a. bond holders.
b. common stockholders.
c. employees.
d. All of the above
33. Industries most sensitive to inflation-induced profits are those with:
a. seasonal products.
b. cyclical products.
c. consumer products.
d. high-profit products.
34. The key initial element in developing pro forma statements is:
a. a cash budget.
b. an income statement.
c. a sales forecast.
d. a collections schedule.
35. At the break-even point, a firm's profits are:
a. greater than zero.
b. less than zero.
c. equal to zero.
d. Not enough information to tell
36. Under what conditions must a distinction be made between money to be received today and money to be received in the future?
a. A period of recession.
b. When idle money can earn a positive return.
c. When there is no risk of nonpayment in the future.
37. If in determining the yield to maturity on a bond at a given interest rate, you get a value below the current market price, in the next calculation you should use:
a. a higher interest rate.
b. a lower interest rate.
c. a longer maturity.
d. a higher coupon payment.
38. The after-tax cost of preferred stock to the issuing corporation:
a. is the same as the before-tax cost.
b. is usually lower than the cost of debt.
c. is dependent on the firm's tax bracket.
d. None of the above
39. Cash flow can be said to equal:
a. income before depreciation and taxes minus taxes.
b. income before depreciation and taxes plus taxes.
c. income before depreciation and taxes plus depreciation.
d. income after taxes minus depreciation.
40. If three investment alternatives all have some degree of risk and different expected returns, which of the following measures could best be used to rank the risk levels of the projects?
a. Coefficient of correlation
b. Coefficient of variation
c. Standard deviation of returns
d. Net present value
41. ABC Company hangs signs on its walls saying, "Trust is one of our guiding principles." This is an example of a(n):
a. exposed-value.
b. enacted value.
c. cultural norm.
d. observable artifact.
42. Societal culture is shaped by all of these environmental factors except:
a. ethnic background.
b. religion.
c. assumptions and expectations.
d. political; legal setting.
43. According to a survey of students from 31 countries worldwide, a __________ correlation was found between self-esteem and self-satisfaction.
a. moderate positive
b. strong positive
c. low negative
d. moderate negative
44. Marjorie has no tolerance for negative inequity. She can be described as a(n):
a. benevolent.
b. a comparison other.
c. sensitive.
d. entitled.
45. Graduating from high school, Susan needs to apply for college admission. To determine which colleges to apply to, Susan requested information from 64 universities, compared them on six criteria important to her, and chose to apply to seven universities. This process can be described as a:
a. decision making process.
b. brainstorming process.
c. Delphi technique process.
d. representative heuristics.
46. Which of the following believed that all conflict ultimately threatens management's authority and thus had to be avoided or quickly resolved?
a. OB specialists
b. Human relationists
c. Scientific Management experts
d. TQM advocates
47. Alex is to inform her subordinates that the expense reimbursement policy for travel has been significantly modified. Alex would be considered which of these?
a. Decoder
b. Medium
c. Sender
d. Noise
48. Which of these influence tactics is the LEAST used in the workplace?
a. Inspirational appeal
b. Ingratiation
c. Pressure
d. Consultation
49. Which of these is NOT a common denominator of all organizations?
a. Division of labor
b. Centralized decision making
c. A common goal
d. A hierarchy of authority
50. ABC Trucking, conducted an analysis of employee job satisfaction and turnover, and concluded that its turnover rate was 48%. This was primarily attributed to job dissatisfaction by employees. This represents a(n) __________ for ABC.
a. external force for change
b. social and political pressure
c. technological advancements
d. internal force for change