A(n) ________ stock is issued by a young and expanding company and usually doesn't pay a dividend.
A) blue chip
B) income
C) defensive
D) growth
E) cyclical
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Answer
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D) A growth stock is from a younger company that is growing rapidly but is relatively unproven; its stock can increase rapidly, but it's also a risky investment. A blue chip stock is from a stable, older company with a good track record that pays dividends. A defensive stock is from a company that makes staples such as food and drugs that are not much affected by downturns or upturns in the economy.
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A corporate bond backed by collateral is called a ________.
A) debenture bond
B) secured bond
C) convertible bond
D) treasury bond
E) treasury note
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Answer
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B) A secured bond is a bond that is backed by collateral that can be sold to reimburse bondholders. A debenture bond is an unsecured bond with only the company's promise to pay behind it. A convertible bond is one that can be exchanged for a given number of shares of stock in the company. Treasury bonds are issued by the United States government and are thus not corporate bonds.
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A bear market is distinguished by ________.
A) a declining stock market and increasing investor confidence
B) a declining stock market and decreasing investor confidence
C) an increasing stock market and increasing investor confidence
D) an increasing stock market and decreasing investor confidence
E) an increasing stock market and no investor confidence
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A(n) ________ stock's price is greatly affected by the state of the economy because the company makes a product that can have highly variable demand.
A) growth
B) income
C) defensive
D) cyclical
E) blue chip
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Wholesalers are intermediaries that do NOT resell products to ________.
A) industrial users
B) final consumers
C) retailers
D) wholesalers
E) marketing intermediaries
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Answer
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B) Wholesalers are intermediaries that buy and resell products to other wholesalers, retailers, and industrial users. They are different from retailers, such as Target, because retailers sell products only to final consumers.
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What is the BEST source of new leads for good salespeople?
A) trade shows
B) current customers
C) responses from target mailings
D) website visitors
E) cold calling
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Answer
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B) Current customers have already shown an interest in the products offered and therefore there is a good chance they will become repeat customers. Current customers are also more likely than anyone else to act as salespeople themselves by recommending the products they are using or by referring potential customers to salespeople. People who come to trade shows, those who respond to target mailing, and people who have visited the company's website are all potential customers. None of these is as likely to purchase the products, though, as the current customer who purchases more products or the person that customer has spoken to on a one-on-one basis.
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Which of the following is NOT one of the common public relations tools?
A) globally integrated messages
B) controlled messages
C) publicity messages
D) semi-controlled messages
E) sponsorship of special events
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Answer
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A) Globally integrated communication messages are part of the promotional mix used to promote companies that are interested in informing a global audience about their products and persuading people in many parts of the world to purchase their products. Public relations uses controlled messages, semi-controlled messages, and publicity to create and maintain a positive business image. News about the business is transmitted in a controlled, semi-controlled, or uncontrolled way. Publicity is an uncontrolled means of transmitting information about a business through mass media at no charge.
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When the state of Montana runs an advertising campaign inviting the public to visit "Big Sky Country," it's an example of ________.
A) comparative advertising
B) public service advertising
C) interactive advertising
D) corporate advertising
E) advocacy advertising
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Answer
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D) Corporate or institutional advertising that focuses on creating a positive public response to an industry is also used by government entities such as states that want to promote the benefits of visiting their states or moving businesses there. These campaigns promote tourism and business growth for states and have similar marketing objectives to other corporate or institutional entities. Comparative advertising compares one brand to another and this is not the objective of the state of Montana in this example. Public service advertising is undertaken to promote a good cause; however, tourism and business growth are not causes that benefit the health and welfare of the public as public service advertisements do. Interactive advertising uses interactive media and this example does not specify whether interactive media is being used for this campaign.
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When different members of an organization's marketing team are each allowed to develop their own unique communication with customers, this MOST often promotes ________.
A) diversity in the workplace
B) consumer confusion
C) improved employee relations
D) improved customer relations
E) a clear, unified message
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Answer
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B) Promotional efforts should always be integrated. When different salespeople are communicating different objectives to the potential customers they come in contact with, those customers will ultimately become confused. This holds true for the different promotional tools used. When an advertisement promotes different aspects of a product from the aspects promoted by the press releases the company sends out, this will send mixed messages to the public. It is the marketing staff that must adapt to the promotional campaign, not the campaign that must adapt to the staff. Customer relations will certainly not be improved. And if there is greater diversity in the workplace or improved employee relations because employees have been given more autonomy in communicating promotional messages about products, it will be to the detriment of the promotional campaign, which is ultimately to the detriment of the objectives of the organization. Therefore, unique communication is not worth it.
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What type of wholesaler operates mainly in bulk industries like lumber, coal, and heavy equipment?
A) rack jobbers
B) truck wholesalers
C) drop shippers
D) cash-and-carry wholesalers
E) specialty distributors
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