In the introduction stage of the product life cycle, marketing efforts are primarily focused on:
A) building customer awareness of a product.
B) introducing new variations of existing products.
C) defending the franchise with competitive advertising, promotions, and price cuts.
D) protecting the market share of a product from competitors.
Question 2 - Your friend, Shonta, started a graphic design firm about a year ago. The business has done well, but it needs a lot more equipment, computers, and employees to continue expanding. Shonta does not see any problem because she thinks she can easily get all the money she will need from her local bank. What advice might you give her?
A) She is right, the bank is likely to lend her as much as she needs because banks primarily focus on supporting small businesses.
B) She is crazy, banks do not lend money to small businesses but only to well- known, well-established organizations.
C) She should sell her business immediately before it fails because most small businesses fail during the first five years.
D) She should not accept any new clients so that she can end the need to add additional equipment and employees.
E) She should consider alternative sources of financing because banks provide only about one-fourth of the total capital to small businesses.
Question 3 - Baxter Equipment earned 300,000 last year. Its owners' equity totaled 2,500,000. Based on these amounts, what is the firm's return on owners' equity?
A) 1.2 percent
B) 8.33 percent
C) 12 percent
D) 122 percent
E) It is impossible to calculate the return on owners' equity with this information.
Question 4 - Fern Motors is offering a rebate on cars purchased this month. This activity involves the ____ ingredient of the marketing mix.
A) distribution
B) promotion
C) pricing
D) timing
E) product
Question 5 - Which of the following can enhance a product's diffusion rate in the market?
A) Enhancing the benefits of the product compared to existing ones
B) Diversifying the product from the existing ones
C) Enhancing the complexity level of the product compared to the existing ones
D) Selling the product without putting it on trial
Question 6 - All of the following are advantages that small businesses have except
A) the ability to adapt to change.
B) personal relationships with their customers.
C) simplified record keeping.
D) independence.
E) greater potential for making a profit.
Question 7 - The managers at Bally Manufacturing decided to borrow money to finance a new production facility. The loan agreement they signed required that they pay 10 percent interest on the loan. Based on this information, which of the following statements is true?
A) Bally doesn't have to pay the 10 percent if the firm isn't profitable.
B) Bally can pay the 10 percent whenever its managers vote to pay it.
C) The company will make more money if the firm earns less than a 10 percent return on its investment in the new plant.
D) Bally is using financial leverage to increase profits as long as the firm earns more than the 10 percent it pays to borrow the money required to finance the new plant.
E) Even if the new plant is extremely profitable, Bally should have found another way to finance the new plant.
Quick Reply
