Final Test Answers

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1
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The spoken version of your company's purpose is called _____________.

A
An elevator pitch
B
A vision statement
C
Your values
D
Differentiation
2
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Which of the following is an example of secondary data?

A
Your company observes the behavior of people who visit your Web site.
B
Your company conducts a customer profile survey.
C
Your company collects and analyzes data from the U.S. census.
D
Your company collects credit card information from customers.
3

Which two factors and their interaction regulate the market economy?

A
Goods and services
B
Producers and consumers
C
Product-based and service-based businesses
D
Public and private sectors
4

Which of the following types of ads is most likely to feel personal?

A
A newspaper advertisement that includes the company logo
B
A brightly colored magazine ad
C
A billboard with a photo of a celebrity
D
A radio ad that is read by a trusted radio host
5

If your company uses a nonprice competition strategy, what should you focus on?

A
Lower prices
B
Differentiation
C
Create direct competitors
D
Partner with the public sector
6

What is data mining?

A
A promotion strategy
B
Entering primary data into a CRM database software program
C
Collecting primary and secondary data
D
Analyzing data to detect patterns of shared characteristics
7

Which of the following describes a saturated market?

A
The prices of competitors are very high.
B
Many people want this product and haven't purchased it yet.
C
Most potential buyers have not heard of the product and don't know it exists.
D
Most potential buyers already have a product that satisfies this need or want.
8

Which of the following is a type of liability?

A
A revenue stream
B
A liquid asset
C
Accounts payable
D
Accounts receivable
9

Which type of tax provides income for retired and disabled people and their families?

A
Social Security tax
B
Medicare tax
C
Property tax
D
Income tax
11

As a unit of measure, money makes it easier for consumers to do what?

A
Compare prices of different products.
B
Make a bigger profit from their income.
C
Have a better exchange rate with other currencies.
D
Get more unearned income.
12

Which of the following is likely to increase the value of a country's currency?

A
The country's imports are higher than its exports.
B
The country has high inflation.
C
The country has a lot of debt.
D
The country has a high interest rate.
13

What does a wholesaling company do?

A
Sell products to individual consumers
B
Sell products to companies that plan to resell them
C
Manufacture products and sell them to retail companies
D
Transform land into capital
14

What is the opportunity cost of an investment?

A
The combined values of the other opportunities available
B
The value of the next most valuable opportunity
C
The marginal benefit of the investment
D
The volatility of the investment
16

Which of the following describes a saturated market?

A
The prices of competitors are very high.
B
Many people want this product and haven't purchased it yet.
C
Most potential buyers have not heard of the product and don't know it exists.
D
Most potential buyers already have a product that satisfies this need or want.
17

If productivity increases significantly and demand is not very elastic, what is likely to happen?

A
The number of consumers will increase.
B
Fewer workers will be needed.
C
Division of labor will decrease.
D
Demand will increase.
18

Which of the following types of promotion is usually the least expensive for a company?

A
Personal selling
B
Publicity
C
Direct marketing
D
Advertising
19

If you use credit, what are you creating?

A
A line of credit
B
Debt
C
Collateral
D
A default
20

Which of the following types of advertising is most likely to help establish your company's credibility?

A
Word of mouth promotion
B
Internet advertising
C
Radio advertising
D
TV advertising

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