Marketing
Sales commissions are a __________ expense.
A. fixed
B. variable
C. one-time
D. capital
B. variable
The Milton Ladder Corporation, which is publicly traded, is in the process of acquiring the Bradley Chute
Company. What type of document is Milton Ladder required to file within 15 days of the acquisition?
A. Form 4
B. Form 10-K
C. Form 10-Q
D. Form 8-K
D. Form 8-K
Dallas and Edisyn are in business together and each of them has unlimited liability. Dallas and Edisyn's
business is an example of a
A. joint venture.
B. general partnership.
C. corporation.
D. franchise.
B. general partnership.
One of the roles of ethics in information management involves an individual's right to
A. equity.
B. safety.
C. privacy.
D. dignity.
C. privacy.
The economic basis for the private enterprise economic system is
A. competition.
B. the marketplace.
C. the profit motive.
D. supply and demand.
C. the profit motive.
Making required textbooks available at a campus bookstore is an example of creating __________ utility.
A. time
B. form
C. place
D. possession
C. place
Price indicates how much value is placed on a good, service, or resource by the
A. seller.
B. merchant.
C. consumer.
D. sales manager.
C. consumer.
According to the law of diminishing returns, what usually decreases at some point with the addition of more
employees if all other factors stay the same?
A. Depreciation
B. Inequality
C. Productivity
D. Consumption
C. Productivity
Which of the following is one of the biggest expenses that employees can help a business to control:
A. Taxes
B. Advertising
C. Rent
D. Payroll
D. Payroll
When a business makes changes in the type and amount of services it offers, it is making strategy changes in
its
A. promotional mix.
B. product mix.
C. product line.
D. product item.
B. product mix
Which of the following areas of management and administration is often referred to as “support staff”:
A. Human resource management
B. Business information management
C. General management
D. Administrative services
D. Administrative services
What function of money enables a person to save their wealth until it is needed?
A. Incentive
B. Unit of measure
C. Store of value
D. Medium of exchange
C. Store of value
Which promotional medium would be most appropriate for a low profit-margin product?
A. Novels
B. Email
C. Magazine
D. TV
B. Email
What occurs during the first stage of the change management life cycle?
A. Organizations identify and communicate the need for change to employees.
B. Organizations carry out a strategic plan for implementing desired change.
C. Organizations agree on a strategic plan for implementing the desired change.
D. Organizations engage in dialogue to determine how to best implement change.
A. Organizations identify and communicate the need for change to employees.
Calculate a business's cash flow if it has cash receipts of $345,675; operating expenses of $312,480; and taxes
of $7,500.
A. $33,195
B. $34,570
C. $31,240
D. $25,695
A. 33,195
What requirement of a legally enforceable contract requires that both of the parties who are entering into the
contract are sane, sober, and of legal age?
A. Capacity
B. Genuineness of assent
C. Consideration
D. Legality of purpose
A. Capacity
Chris purchased 500 shares of microcap HRR stock. Then, he posted false information about HRR on several
investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his
stock in the company and earned a large profit. The price of the stock then fell, leaving HRR investors with
worthless stock. What type of investment scam did Chris commit?
A. Ponzi scheme
B. Pump and dump
C. Phishing
D. Pyramid scheme
B. Pump and dump
To reconcile cash, which of the following should businesses do:
A. Total up the money in each of the company's cash registers.
B. Multiply the cash received by the total number of receipts.
C. Compare cash received with receipts or transaction records.
D. Divide the transaction total by the amount of cash received
C. Compare cash revived with receipts or transaction records.
What is the first part of the litigation process?
A. Appealing the decision
B. Appearing in court
C. Filing a motion to dismiss
D. Investigating the complaint
D. Investigating the complaint
Businesses often use direct advertising strategies because
A. it reduces the need to include other elements in the promotional mix.
B. direct advertising is less expensive than other forms of promotion.
C. they can select and reach qualified prospects.
D. the promotional message reaches a larger group of people.
C. they select and reach qualified prospects.
You are the marketing director of a new ice cream shop. Sales have declined after the first month because customers tried the shop once but haven't returned.
What marketing strategy would you recommend to increase repeat business?
Possible answers:
Loyalty rewards program.
Social media promotions.
Seasonal flavors.
Email or text promotions.
Community partnerships.
Measure results through customer retention and sales.
You manage a small business. Sales are increasing, but your company doesn't have enough cash to purchase inventory for next month.
What financial recommendations would you make?
Possible answers:
Improve cash flow.
Negotiate supplier payment terms.
Reduce unnecessary expenses.
Secure short-term financing if appropriate.
Forecast future cash needs.
You manage a hotel. A wedding party arrives to discover several reserved rooms are unavailable because of an overbooking error.
What should you do to resolve the situation?
Possible answers:
Apologize sincerely.
Find comparable accommodations.
Provide transportation if necessary.
Offer compensation or upgrades.
Communicate throughout the process.
You are the manager of a retail store. Employee morale has dropped after several schedule changes, and customer service scores are falling.
How would you improve employee morale while maintaining business performance?
Possible answers:
Gather employee feedback.
Improve communication.
Create fair scheduling practices.
Recognize employee achievements.
Provide training and support.
You own a bakery. A national chain opens nearby and offers lower prices on similar products.
How would you compete without simply lowering all your prices?
Possible answers:
Differentiate products.
Highlight quality and local ingredients.
Improve customer service.
Create loyalty programs.
Offer specialty items.
Increase community involvement.