Strategic 1 to 100 MCQ

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A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.

A. intermediaries

B. sales force surrogates

C. external networks

D. advisory panels

E. customer feedback systems

2) A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment.

A. marketing information system

B. marketing research system

C. product management system

D. marketing intelligence system

E. vertical system

3) Most established companies focus on ________ when it comes to innovation.

A. continuous innovation

B. demand innovation

C. competitive innovation

D. everyday innovation

E. incremental innovation

4) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovation process.

A. joint- venture system

B. venture team

C. skunk works

D. new product “team”

E. stage-gate system

5) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

A. A marketing research system

B. A promotional campaign

C. A marketing database

D. A marketing intelligence system

E. A marketing information system

6) Total customer satisfaction is the general feeling of pleasure or disappointment that results from comparing perceived performance to expectations. To achieve total customer satisfaction, organizations need to_____________.

A. Spend more money

B. Lower expectations

C. Lower prices

D. Manage customer experiences

E. Develop marketing campaigns

7) The value proposition consists of a cluster of benefits the company promises to deliver; it is

A. customer experience with the company

B. customer expectations

C. business processes

D. total customer satisfaction

E. Customer loyalty to the company

8) In ________ marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.

A. mass
B. segmented
C. differentiated
D. general
E. group

9) Particularly when shopping for ego-sensitive products such as perfumes and expensive cars, many consumers use price as an indicator of ________.

A. quality
B. capability
C. size
D. ability
E. status

10) Purchase decisions are based on how consumers perceive prices and what they consider tobe the ________ price—not the marketer’s stated price.

A. last purchased price
B. current sale price
C. referent price
D. current actual

11) The following are considered to be advantages of online research EXCEPT ________.

A. online research is faster
B. online research is more versatile
C. people tend to be more honest online than in other interviewing methods
D. online research is relatively free of technological problems and inconsistencies
E. online research is inexpensive

12) ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

A. MIS (marketing information system)
B. Demographics
C. Marketing management
D. Marketing research
E. Marketing intelligence

13) Which of the following types of marketing research firms would best be described as one that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)?

A. Syndicated-service research firms
B. General-line marketing research firms
C. Non-profit marketing research firms
D. Specialty-line marketing research firms
E. Custom marketing research firms

14) Major retailer types include the following EXCEPT ________.

A. discount store
B. the Internet
C. superstore
D. catalog showroom
E. specialty store

15) “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom line.

A. abrasive
B. direct
C. soothing
D. leveraged
E. dramatic

16) A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ________ or _________ from another company.

A. license/receive permission
B. license/franchise
C. franchise/acquire rights
D. franchise/co-brand

17) To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-mail messages to members who “get the latest news, exclusive audio/video sneak previews, tons of chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family.” Which of the following techniques for reaching Generation Y are the Foo Fighters using?

A. Unconventional sports
B. Cool events
C. Online buzz
D. Student ambassadors
E. Computer games

18) The chief disadvantage to a firm that decides to follow a product specialization strategy in selecting target markets is ________.

A. logistics can become a nightmare
B. the product may be supplanted by an entirely new technology
C. e-commerce becomes difficult for the company
D. no synergy exists
E. competitors can easily copy any new product introductions

19) New-to-the- world products are ________.

A. new products that allow a company to enter an established market for the first time
B. new products that supplement established product lines (package sizes, flavors, and so on)
C. existing products that are targeted to new markets or market segments
D. new products that create an entirely new market
E. new products that provide improved performance or greater perceived value and replace existing products

20) Some intermediaries use the following: strategic planning, advanced information systems, sophisticated marketing tools, measure performance on a return-on-investment basis, segment their markets, improve their target marketing and positioning, and ________.

A. aggressively “squeeze” manufacturer margins
B. aggressively pursue take over strategies
C. aggressively pursue market expansion and diversification strategies
D. contend with dwindling customer bases
E. dominant the manufacturers they do business with

21) ________ communicates a company’s intended value positioning of its product or brand to the market.

A. Price
B. Place
C. Physical evidence
D. Packaging
E. Promotion

22) Following the ________ approach to target market selection encompasses a strong knowledge of the segment’s needs, a strong market presence, and operating economies through specializing in production, distribution, and promotion.

A. selective specialization
B. product specialization
C. full market coverage
D. single-segment concentration
E. market specialization

23) Marketing communications can contribute to brand equity by establishing the brand in memory and to________ (in)a brand image.

A. communicate
B. create interest
C. craft
D. create demand

24) Leadership is best defined as _____.

A. keeping order and consistency in the midst of change
B. implementing the vision and strategy provided by management
C. not a relevant variable in modern organizations
D. the ability to influence a group in goal achievement
E. coordinating and staffing the organization and handling day-to-day problems

25) Which of the following statements best defines a work group?

A. A work group interacts primarily to share information, rather than to engage in work that requires joint effort.
B. A work group consists of 3 or more people who take on self-supervising responsibilities.
C. A work group is a group comprised of 10 or more people
D. The performance of a work group is generally greater than the sum of its inputs from individual members.
E. A work group consists of 3 or more people from across departmental or functional lines.

26) Which level of Maslow’s hierarchy of needs deals with satisfying one’s hunger, thirst, and need for sex?

A. physiological
B. social
C. psychological
D. safety
E. esteem

27) The two general approaches to bargaining are known as ________.

A. affective and reflective
B. distributive and integrative
C. legal and restrictive
D. emotional and rational.
E. formal and informal.

28) Danielle wants to become a surgeon, not only because achieving this goal will give her self-respect and autonomy, but also because she wants a job with high status and recognition from others. Which of Maslow’s needs is Danielle trying to fill?

A. social
B. esteem
C. safety
D. self-actualization
E. psychological

29) The traditional view of conflict is the belief that conflict is _____.

A. natural
B. neutral
C. situationally-dependent
D. harmful
E. necessary

30) _____ bargaining is negotiation that seeks to divide a “fixed pie.”

A. Integrative
B. Conjunctive
C. Affective
D. Distributive
E. Reflective

31) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S. corporations receive ethics training.

A. 10
B. 75
C. 50
D. 25

32) Examples of off-the-job training include all of the following except _____.

A. apprenticeship programs
B. videotapes
C. public seminars
D. classroom lectures
E. Internet courses

33) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?

A. integrity evaluations
B. behavioral assessment
C. aptitude tests
D. intelligence tests
E. work sampling

34) _____ can be used to increase the perception that employees are treated fairly.

A. Due process
B. Focusing on subjective evaluations
C. Documenting with a journal
D. Selective evaluation
E. Multiple raters

35) Between the late 1960s and the mid-1980s, the use of written tests declined because they were characterized as _____.

A. discriminatory
B. mathematically flawed
C. invalid
D. unprofessional
E. unreliable

36) What term is used for the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors?

A. self-serving bias
B. stereotyping
C. selective perception
D. fundamental attribution error
E. consistency

37) _____ developed a Vocational Preference Inventory questionnaire that contains 160 occupational titles.

A. Holland
B. Surber
C. Herzberg
D. Maslow
E. Hofstede

38) Whenever Jane is successful she takes full credit for what has happened, but whenever she is unsuccessful she attributes her failure to bad luck or blames one of her fellow employees. She is guilty of _____.

A. attribution bias
B. self-serving bias
C. distinctiveness
D. fundamental attribution error
E. the halo effect

39) Phrases such as “more cultural diversity,” “many new entrants with inadequate skills,” and “increase in aging workers” are all examples of what force for change?

A. world politics
B. competition
C. social trends
D. technology
E. nature of the work force

40) Each of the six personality types developed in Holland’s personality-job fit theory has a ________.

A. congruent personality style
B. supplemental skill set
C. supplemental occupational environment
D. supplemental personality style
E. congruent occupational environment
41) If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.

A. capacity-constrained resource, bottleneck
B. bottleneck, capacity constrained resource
C. none of these answers
D. capacity-constrained resource, drum

42) The previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used?

A. 0.02
B. 0.04
C. 0.25
D. 0.4

43) The phenomenon of magnification of demand variability as we move from the customer to the producer in the supply-chain is referred to as the:

A. postponement effect
B. price deflator
C. bullwhip effect
D. Just-in-time approach
E. Elasticity of demand

44) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.

A. inventory turnover
B. quick ratio
C. dollar days
D. current ratio

45) Which of the following would NOT be classified as a time-series technique?

A. simple moving average
B. regression model
C. box Jenkins technique
D. trend projections
E. exponential smoothing

46) Which of the following statements is true?
A. The Principle of Capital Market Efficiency says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.
B. The Behavioral Principle suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.
C. The Signaling Principle says to consider any possible change in capital structure carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstood.
D. all of these

47) Which of the following statements is true?

A. The Principle of Incremental Benefits says to consider the possible ways to minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs.
B. The Principle of Valuable Ideas suggests to look for opportunities to create value by issuing securities that are in short supply, perhaps resulting from changes in tax law.
C. The Time Value of Money Principle advises to include any time-value-of-money tax benefits from capital structure choices.
D. all of these

48) __________ says to seek out investments that offer the greatest expected risk-adjusted real return.

A. The Principle of Incremental Benefits
B. The Principle of Self-Interested Behavior
C. The Principle of Valuable Ideas
D. The Signaling Principle

49) Under capital rationing, given the choice among several equally attractive investments, the best tool to use is the __________.

A. Internal Rate of Return method
B. Profitability Index method
C. Net Present Value method
D. Payback method

50) An investor’s risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?

A. Each stock in the portfolio has its own beta.
B. An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).
C. Each stock in the portfolio will have a beta greater than one.
D. Selling any stock in this portfolio will lower the beta of the portfolio.

51) __________ says to recognize the value of hidden options in a situation, such as the foreign exchange options in some derivative instruments.

A. The Options Principle
B. The Principle of Two-Sided Transactions
C. The Time Value of Money Principle
D. The Principle of Comparative Advantage

52) “Hard” capital rationing refers to the rationing __________.

A. imposed by external factors
B. always imposed by competitors
C. always imposed by debt holders
D. imposed internally by the shareholders

53) Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is _________.

A. undervalued
B. caught up in a bear market
C. being sold by insiders
D. overvalued

54) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets or to develop derivatives or design arrangements that enable firms to cope better with the risks they face in their foreign operations.

A. The Principle of Risk-Return Trade-off
B. The Principle of Diversification
C. The Principle of Capital Market Efficiency
D. The Principle of Valuable Ideas

55) An all-equity-financed firm would __________.

A. not pay any income taxes because interest would exactly offset its taxable income.
B. pay corporate income taxes because it would have interest expense.
C. not pay corporate income taxes because it would have no interest expense.
D. pay corporate income taxes if its taxable income is positive

56) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________.

A. lack of diversification
B. diversification
C. less risk
D. greater risk

57) The investment decision best addresses which of the following questions?

A. Should we buy new equipment?
B. Should debt be short-term?
C. Should we borrow in a foreign currency?
D. Should we increase our advertising budget?

58) The managerial decision best addresses which of the following questions?

A. How fast should we grow?
B. What size of firm do we want?
C. How should we compensate our managers?
D. all of these

59) The financing decision best addresses which of the following questions?

A. Should we buy this piece of land?
B. Should we issue common stock or convertible debt?
C. Should we increase our inventory?
D. Should we give employees stock options?

60) The conversion price (for a convertible security) is usually adjusted __________.

A. for a new debt offering.
B. for stock splits.
C. for cash dividends.
D. all of these

61) A key variable covered in our text for the Black-Scholes OPM is __________.

A. transaction costs.
B. EPS.
C. dividends.
D. the riskless APR with continuous compounding

62) You do a study and find out that, on average, stock prices for firms decrease 3% for every 5% decrease in inside ownership. You are watching the nightly business report and find out that Magic Tape’s stock has announced that insiders have sold 10% of their holdings. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. If markets are at least semi-strong form efficient, what would you expect?

A. You would expect Magic Tape to close at $28 the day of the announcement.
B. You would lose $4,000.
C. You would lose $1,800.
D. You would lose $2.00 per share

63) Which of the following is not an advantage of going public?

A. Going public makes the common stock negotiable and creates a visible market value.
B. Going public makes securities worth more because of their decreased liquidity.
C. Going public increase the firm’s equity financing flexibility.
D. Going public makes it easier for a firm to acquire other firms in exchange for shares of its stock.

64) Which of the following is (are) true?

A. The Principle of Capital Market Efficiency states that differences between financial assets are measured primarily in terms of risk and return. Investors choose the highest return for a given risk level.
B. The Principle of Comparative Advantage states that people apply the Principles of Self-Interested Behavior, Two-Sided Transactions, and Signaling to an environment characterized by similar financial assets, low transaction costs, and intense competition leads to capital market efficiency.
C. The Principle of Valuable Ideas states that new ideas can provide value when first introduced, even in an efficient capital market.
D. all of these answers are correct.

65) Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

A. Theory of constraints.
B. Just-in-time inventory.
C. Activity-based costing.
D. Total-quality management

66) Undertaker Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $25,000. Other relevant data are as follows:

Product Sales Value at Split-off Processing Costs after Split-off Sales Value at Completion
P $62,000 $5,000 $88,000
G 12,500 6,500 19,000
A 9,400 5,000 12,000
Product G _____.

A. should be processed further to increase profits by $6,500.
B. should be sold at split off since processing further would only reduce profits by $6,500.
C. should be processed further to increase profits by $19,000.
D. an be processed further or sold at split off; there is no difference in profit.

67) A transfer price exists when two segments of the same organization sell _____.

A. a product to the same customer
B. a service to each other
C. a product in a foreign country
D. the same service to competitors

68) Cena Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $25,000. Other relevant data are as follows:

Product Sales Value at Split-off Processing Costs after Split-off Sales Value at Completion
P $32,000 $5,000 $40,000
G 16,500 7,500 29,000
A 6,400 8,000 10,000
Once product P is produced, processing it further will cause profits to _____.

A. increase by $8,000
B. decrease by $5,000
C. decrease by $8,000
D. increase by $3,000

69) Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

A. Income would decrease by $4,000.
B. Income would increase by $4,000.
C. Income would increase by $70,000.
D. Income would increase by $20,000

70) Which of the following does not appear as a separate section on the cash budget?

A. Cash receipts
B. Cash disbursements
C. Capital expenditures
D. Financing

71) The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than:

A. the prior years.
B. the industry average.
C. management’s minimum required balance.
D. the amount needed to avoid a service charge at the bank.

72) Important factors considered by sales forecasters include all of the following except _____.

A. past patterns of sales
B. the desired level of sales
C. marketing research studies
D. competitors’ activities

73) Beginning cash balance plus total receipts

A. equals ending cash balance.
B. is the excess of available cash over disbursements.
C. must equal total disbursements.
D. equals total available cash.

74) At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit?

A. $43.50.
B. Not enough information
C. $11.50.
D. $16.00.

75) How much sales are required to earn a target net income of $128,000 if total fixed costs are $160,000 and the contribution margin ratio is 40%?

A. $400,000.
B. $320,000.
C. $648,000.
D. $720,000.

76) How much sales are required to earn a target income of $80,000 if total fixed costs are $100,000 and the contribution margin ratio is 40%?

A. $300,000.
B. $330,000.
C. $200,000.
D. $450,000.

77) At the break-even point of 2,500 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit?

A. $34.80.
B. $22.00.
C. $9.20.
D. $12.80.

78) A by-product _____.
A. is individually identifiable before the split-off point
B. has relatively insignificant total sales value
C. is treated like a joint product
D. receives a portion of allocated separable costs

79) There is no difference between variable-costing and absorption-costing income if there is no_____.

A. beginning inventory
B. change in inventory level
C. ending inventory
D. variable overhead cost

80) A process cost accounting system is most appropriate when

A. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.
B. similar products are mass-produced.
C. the focus of attention is on a particular job or order.
D. individual products are custom made to the specification of customers

81) Absorption costing assigns _____ to the product.

A. variable manufacturing costs
B. all variable costs
C. variable and fixed manufacturing costs
D. all fixed and variable costs

82) Financial statements are helpful to predict the future performance of a company for all of the following reasons except _____.

A. the evaluation of management’s past performance gives clues to its ability to generate future returns
B. financial statements are required to give formal projections of management’s assessment of the next period’s financial results
C. the assets and liabilities of a company provide clues to a company’s future prospects
D. past performance is often a good indicator of future performance

83) The proprietorship form of business organization

A. must have at least two owners in most states.
B. combines the records of the business with the personal records of the owner.
C. generally receives favorable tax treatment relative to a corporation.
D. is classified as a separate legal entity.

84) The _____ is also called the statement of financial position.

A. income statement
B. statement of retained earnings
C. balance sheet
D. statement of cash flow

85) Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii. During the time Jill is away from the business, Jack increases the debts of the business by $20,000. Which of the following statements is true regarding this debt?

A. Only Jack is personally liable for the debt, since he has been the managing partner during that time.
B. Both Jack and Jill are personally liable for the business debt.
C. Only Jill is personally liable for the debt of the business, since Jack has been working and she has not.
D. Neither Jack nor Jill is personally liable for the business debt, since the partnership is a separate legal entity.

86) Although the U.S. has had a longstanding agreement with ___________, after the passage of NAFTA, _________ became the United States’ second largest trading partner.

A. Canada, Venezuela
B. Canada, Mexico
C. Mexico, Canada
D. Mexico, Venezuela
E. Great Britain, Paraguay

87) Which social responsibility theory has been advocated by Novel Prizewinning economist Milton Friedman?

A. Maximizing profits
B. Corporate citizenship
C. Moral minimum
D. Stakeholder interest
E. Corporate social audit

88) Which of the following is not one of the Caux Round Table Principles for International Business?

A. Avoidance of Illicit Operations.
B. Respect for the Environment.
C. Support for Multilateral Trade.
D. Promotion of Multiculturalism.
E. Responsibility of Business Beyond Shareholders Toward Stakeholders.

89) One study found that manufacturing labor costs about ___ an hour in China, compared to ____ dollars in the United States.

A. Less than $1; about 15
B. $2; about 25
C. About $2; about 15
D. Less than $1; about 25
E. Less than $1; about 40

90) The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is:

A. The moral minimum theory.
B. The corporate citizenship theory.
C. The maximizing profits theory.
D. The stakeholder interest theory.
E. The social audit theory.
91) Which of the following is correct about litigating commercial disputes?

A. Nearly all states have specialized trial courts that hear commercial disputes.
B. Businesses generally dislike the concept of specialized trail courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against business.
C. Commercial disputes, because of their specialized nature, are first heard at the appellate court level.
D. A few states have established specialized trial courts for commercial disputes.
E. In all states, commercial disputes must be heard in a limited-jurisdiction court.

92) Which of the following statements is generally NOT true about state intermediate appellate courts?

A. The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial.
B. The appellate court reviews the record of the trial court.
C. The appellate court usually allows the parties to file briefs outlining support for their positions.
D. The appellate court allows the parties to make oral arguments outlining their position.

93) When movie ticket prices increase, families tend to spend less time watching movies and more time at home watching videos instead. This best reflects:

A. the substitution effect.
B. diminishing marginal utility.
C. the income effect.
D. the rationing function of markets.

94) If consumer incomes increase, the demand for product Y will _____________.

A. shift to the right if Y is a normal good
B. necessarily remain unchanged
C. shift to the right if Y is a complementary good

95) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.

A. physical, digital
B. digital, e-commerce
C. e-commerce, digital
D. physical, financial
E. digital, physical

96) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information technologies.

A. business environment
B. regionalization
C. nationalization
D. globalization

97) The Global, Web-Based Platform enables individuals to do which of the following?

A. all of these answers are correct
B. access information, services, and entertainment
C. connect, compute, communicate, collaborate, and compete everywhere and all the time
D. produce and sell goods and services
E. exchange knowledge

98) Which of the following statements is true concerning the applicability of attitudes in understanding behavior?

A. A single, global measure of attitude is necessary to predict behavior
B. General attitudes are the best predictors of behavior
C. Behavior is affected equally by those attitudes formed via social learning and those formed via behavioral learning
D. Cognitive attitudes influence behavior better than affective-based attitudes

99) When an experiment is conducted in actual environmental conditions, it is called a(n) _____ experiment.

A. Test market
B. Simulated
C. Replication
D. Extraneous
E. Field

100) ________ is a qualitative research approach for getting inside a consumer’s mind and finding out what they are thinking or feeling (e.g., a consumer says that the John Deere brand makes them think of a rugged Midwestern male who is hard-working and trustworthy).

A. Visualization
B. A projective technique
C. Word association
D. Laddering
E. Brand personification

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