Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Tony is a person who likes to make his own decisions and act without influence
or direction from anyone else. Tony would be describe as
a. | independent | c. | insecure | b. | dependent | d. | egotistical |
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2.
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Which of the following is true based on Maslow’s theory of need
satisfaction:
a. | lower level needs must be satisfied before higher level needs can become
important | c. | all levels of needs are important and can be satisfied
simultaneously | b. | self-esteem needs must be satisfied before physical needs can become
important | d. | most people are
able to satisfy only lower level needs. |
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3.
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In order to decide which tasks are most important and the order in which the
tasks are to be completed, planners can use the
a. | ABC principle | c. | RH factor | b. | GDP factor | d. | XYZ principle |
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4.
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Jamie, a small-business owner, was frustrated over the new labor requirements
and didn’t know how to fight them. Jim, a fellow business owner, suggested that Jamie join
their trade association, What major benefit of trade associations does this illustrate?
a. | trade association members enjoy enhanced prestige and credibility through their
association with other community leaders | c. | trade associations provide group
health, dental, and accident insurance rates | b. | trade association members have the opportunity
to attend trade shows and seminars | d. | trade associations enable individuals to work together to solve problems that are
common to their occupations |
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5.
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A characteristic of effective prices is that they must be
a. | high | c. | competitive | b. | inflexible | d. | low |
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6.
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Which of the following is the unethical competitive strategy of putting high
prices on low-quality products to deceive the consumer who assumes that a positive relationship
between price and quality exists:
a. | going-rate pricing | c. | limit pricing | b. | penetration pricing | d. | price signaling |
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7.
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Why would the federal government invoke price controls, freeze prices at a
certain level, and determine rates at which prices can be increased?
a. | To encourage private enterprise | c. | To create
monopolies | b. | To fight big business | d. | To curb inflation |
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8.
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In what stage of a product’s life cycle might a business price goods very
low for the purpose of eliminating excess inventory?
a. | Obsolescence | c. | Maturity | b. | Introduction | d. | Initiation |
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9.
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Five years after a new product has been introduced, sales begin to level off
because customers are purchasing the competitors brand, What strategy would be most appropriate to
use in this situation?
a. | take the product off the market | c. | Modify the product to renew
customer interest | b. | Do nothing; fluctuations in sales are
common | d. | Triple the
advertising budget for the product |
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10.
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During which of the following stages in a product’s life cycle can
businesses expect to earn significant profits:
a. | Maturity | c. | Decline | b. | Introduction | d. | Growth |
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