Marketing
What are the four Ps of marketing?
A. Product, Price, Place, Promotion
B. People, Profit, Planning, Production
C. Price, Profit, Publicity, Planning
D. Product, People, Profit, Performance
A — Product, Price, Place, and Promotion.
What is revenue?
A. Money earned from sales before expenses
B. Money remaining after all expenses
C. Total debt
D. The value of equipment only
A — Revenue is the income generated by sales before expenses.
What usually happens to demand when the price of a normal product falls, all else equal?
A. Quantity demanded decreases
B. Quantity demanded increases
C. Supply disappears
D. Demand always becomes zero
B — Quantity demanded generally increases as price falls.
What is a conflict of interest?
A. A disagreement over office temperature
B. A situation where personal interests could interfere with professional duties
C. A company's advertising plan
D. A customer returning an item
B — Personal interests could compromise objective professional decisions.
What does delegation mean?
A. Assigning tasks or responsibilities to others
B. Avoiding all decisions
C. Eliminating communication
D. Transferring company ownership
A — Assigning tasks or responsibilities to others.
What is a target market?
A. A business's competitors
B. A specific group of customers a business wants to reach
C. Every person in a country
D. A company's employees
B — The specific group of customers a business aims to serve.
A business earns $900 in revenue and spends $650. What is its profit?
A. $250
B. $650
C. $900
D. $1,550
A — $900 − $650 = $250.
What is inflation?
A. A sustained increase in the general price level
B. A decrease in every company's profit
C. An increase in the value of every currency
D. A decrease in consumer spending only
A — Inflation is a sustained rise in the overall price level.
What is the purpose of a contract?
A. To establish enforceable obligations between parties when legal requirements are met
B. To guarantee a business makes a profit
C. To eliminate all business risks
D. To replace every workplace policy
A — A valid contract establishes legally enforceable obligations.
A customer complains about a delayed order. What should an employee generally do first?
A. Blame the delivery company
B. Ignore the complaint
C. Listen and clarify the customer's concern
D. Promise compensation without authorization
C — Listen carefully and understand the problem before deciding on a solution.
A company divides customers into groups based on age and income. What is this called?
A. Geographic segmentation
B. Psychographic segmentation
C. Demographic segmentation
D. Behavioral segmentation
C — Demographic segmentation.
A business sells a product for $80. Its variable cost is $30 per unit and its fixed costs total $5,000. How many units must it sell to break even?
A. 50
B. 62.5
C. 100
D. 167
C — $5,000 ÷ ($80 − $30) = 100 units.
If consumer incomes rise, what may happen to demand for a normal good?
A. Demand may increase
B. Supply must decrease
C. Demand must disappear
D. Price must fall
A — Demand for a normal good generally increases as income rises.
A business knowingly makes a false claim about a product's capabilities. What is the main concern?
A. Market segmentation
B. Inventory turnover
C. Deceptive advertising
D. Employee delegation
C — Deceptive advertising can mislead consumers and violate consumer-protection laws.
Question: A manager notices that productivity has decreased even though employees are meeting their scheduled hours. What should the manager do first?
A. Require all employees to work overtime.
B. Investigate workflow issues and gather employee feedback.
C. Reduce everyone's wages.
D. Replace the entire team.
B: Effective managers identify the underlying cause of a performance problem before choosing a solution.
A product costs $40 and sells for $60. What is its markup as a percentage of cost?
A. 20%
B. 33.3%
C. 50%
D. 60%
C — ($60 − $40) ÷ $40 × 100 = 50%.
A business has current assets of $24,000 and current liabilities of $12,000. What is its current ratio?
A. 0.5:1
B. 1:1
C. 2:1
D. 12:1
C — $24,000 ÷ $12,000 = 2:1.
A market has many sellers offering nearly identical products. Which market structure is most closely associated with this description?
A. Monopoly
B. Oligopoly
C. Perfect competition
D. Monopsony
C — Perfect competition is characterized by many sellers and similar or identical products.
An employee receives confidential customer data they are not authorized to access. What is the most appropriate response?
A. Share it with friends
B. Save a personal copy
C. Publish it to warn others
D. Avoid unauthorized use and report the access through appropriate channels
D — Protect confidential information and follow company security procedures.
A team repeatedly misses deadlines because responsibilities are unclear. What should its manager do?
A. Add more meetings without an agenda
B. Clarify task ownership, deadlines, and accountability
C. Remove all deadlines
D. Blame the newest employee
B — Clearly assign responsibilities and deadlines.
A brand has strong awareness but low repeat purchases. Which strategy best targets the underlying problem?
A. Increase awareness without researching customers
B. Stop collecting customer feedback
C. Focus exclusively on attracting new customers
D. Investigate satisfaction and improve the product or customer experience
D — Research retention problems and address their causes.
A company has sales of $200,000, cost of goods sold of $120,000, and operating expenses of $50,000. What is its operating income before interest and taxes?
A. $30,000
B. $50,000
C. $80,000
D. $150,000
A — $200,000 − $120,000 − $50,000 = $30,000.
The price of a key production input rises across an industry. Assuming other factors stay constant, what is the likely effect on the market supply curve?
A. It shifts right because production is cheaper
B. It shifts left because production is more expensive
C. Demand shifts right automatically
D. The equilibrium price must fall
B — Higher production costs generally reduce supply, shifting the supply curve left.
A supplier offers a purchasing manager an expensive personal gift while bidding for a major contract. What is the best action?
A. Accept it because the company pays the bill
B. Follow company gift and conflict-of-interest policies and disclose the offer
C. Award the contract immediately
D. Hide the gift from the employer
B — Disclose the offer and follow policies designed to preserve impartiality.
A business receives repeated complaints about the same service failure. Which management response is most effective long term?
A. Offer apologies but leave the process unchanged
B. Stop recording complaints
C. Identify the root cause, improve the process, and track whether complaints decline
D. Blame individual customers
C — Root-cause analysis and ongoing measurement help prevent recurring problems