BUSINESS 1301 EXAM 4 PRACTICE
QUESTIONS WITH VERIFIED ANSWERS
Joanne works in the marketing department of a toy manufacturing company. Her
company offers discounts for soft toys but sells electronic toys at a price higher than
that of its competitors. In this scenario, Joanne's company has adopted the _____
strategy. - Answers - high/low pricing
TrinkCan is a soda manufacturing company. People can buy the company's soda from
grocery stores, restaurants, vending machines, and online. In this scenario, it is evident
that TrinkCan has adopted _____. - Answers - multichannel retailing
_____ remain constant regardless of how many products are sold. - Answers - Fixed
costs
Which of the following statements is true of cost-based pricing? - Answers - It
determines the price by adding a fixed margin to the per-unit cost of a product.
Which of the following are the elements of distribution strategy? - Answers - Channels
of distribution and physical distribution
Mars is an independent distributer that distributes goods, such as keyboards, monitors,
and computer cabinets to various business users. The company takes legal possession
of the goods it distributes. The company warehouses the products, ships them to its
customers, provides promotional assistance to the manufacturers, provides product
repairs, and credit to customers. It is evident that Mars Inc. is a _____. - Answers - full-
service merchant wholesaler
_____ means establishing only one retail outlet in a given area. - Answers - Exclusive
distribution
Lynk Corp. drives perishable goods, such as eggs, bread, and muffins to small grocery
stores. In addition to taking legal title of the goods it distributes, Lynk Corp. also checks
the stock and suggests reorder quantities to the grocery stores. It is evident that Lynk
Corp. is a(n) _____. - Answers - truck jobber
Kiddiecon is a company that makes stationery products for children. The company relies
on door-to-door sales strategy to sell its products. It is evident that Kiddiecon is
engaged in _____. - Answers - direct selling
, Crystal Corp. is an independent distributor that distributes cosmetics, apparels, shoes,
and bags to other business customers on a large scale. It does not take legal title to the
goods it distributes. In this scenario, it can be said that Crystal Corp. is a(n) _____. -
Answers - broker
Amanda, a primary school teacher, puts in extra effort in her teaching in a particular
term. She is aware that if her class performs well, she will be nominated for the award
that is received by the teacher whose class scores the highest in the state. This
scenario is reflective of the assumptions of the _____ theory. - Answers - expectancy
Which of the following is a difference between strategic planning and tactical planning? -
Answers - Strategic planning is done by top-level managers, whereas tactical planning
is done by middle managers.
The management of a telecommunications company informs the members of its sales
team that if they continue to underperform, the management will have no other option
but to downsize the team. In this scenario, the approach adopted by the management
reflects the assumptions of _____. - Answers - Theory X
Lawrence, the CEO of a media company, treats employees from all the levels of the
organization in the same manner. The fair treatment is not just limited to his conduct
with his employees, but it is also visible in the kind of perks and benefits they receive.
Lawrence is strictly against discriminating in the workplace, and this motto of his keeps
his employees greatly motivated. In this scenario, Lawrence follows _____. - Answers -
the equity theory
As one of the senior HR managers, Ramona is responsible for conducting orientation
sessions for new employees in her company. In her sessions, Ramona uses a visual
representation to explain the composition and structure of the company to the new
employees. In this scenario, Ramona uses a(n) _____. - Answers - organization chart
Paul is an employee at a marketing firm. He is someone who prefers to be instructed by
his seniors and avoids taking major responsibilities. He rarely uses his own judgment or
creativity while doing a task in fear of putting things at risk. Paul's conduct in the
workplace is consistent with the assumptions of _____. - Answers - Theory X
Barry is the branch manager of a large toy store. He has been given the responsibility to
communicate with, coach, and motivate supervising managers. In this scenario, Barry
most likely requires _____ to perform his role efficiently. - Answers - human skills
Glubert Corp., an adhesive manufacturing company, makes a deal with an insurance
company to provide its employees with life insurances that come with low monthly
premiums. In the context of Maslow's hierarchy of needs theory, the company is fulfilling
the _____ needs of its employees. - Answers - safety
QUESTIONS WITH VERIFIED ANSWERS
Joanne works in the marketing department of a toy manufacturing company. Her
company offers discounts for soft toys but sells electronic toys at a price higher than
that of its competitors. In this scenario, Joanne's company has adopted the _____
strategy. - Answers - high/low pricing
TrinkCan is a soda manufacturing company. People can buy the company's soda from
grocery stores, restaurants, vending machines, and online. In this scenario, it is evident
that TrinkCan has adopted _____. - Answers - multichannel retailing
_____ remain constant regardless of how many products are sold. - Answers - Fixed
costs
Which of the following statements is true of cost-based pricing? - Answers - It
determines the price by adding a fixed margin to the per-unit cost of a product.
Which of the following are the elements of distribution strategy? - Answers - Channels
of distribution and physical distribution
Mars is an independent distributer that distributes goods, such as keyboards, monitors,
and computer cabinets to various business users. The company takes legal possession
of the goods it distributes. The company warehouses the products, ships them to its
customers, provides promotional assistance to the manufacturers, provides product
repairs, and credit to customers. It is evident that Mars Inc. is a _____. - Answers - full-
service merchant wholesaler
_____ means establishing only one retail outlet in a given area. - Answers - Exclusive
distribution
Lynk Corp. drives perishable goods, such as eggs, bread, and muffins to small grocery
stores. In addition to taking legal title of the goods it distributes, Lynk Corp. also checks
the stock and suggests reorder quantities to the grocery stores. It is evident that Lynk
Corp. is a(n) _____. - Answers - truck jobber
Kiddiecon is a company that makes stationery products for children. The company relies
on door-to-door sales strategy to sell its products. It is evident that Kiddiecon is
engaged in _____. - Answers - direct selling
, Crystal Corp. is an independent distributor that distributes cosmetics, apparels, shoes,
and bags to other business customers on a large scale. It does not take legal title to the
goods it distributes. In this scenario, it can be said that Crystal Corp. is a(n) _____. -
Answers - broker
Amanda, a primary school teacher, puts in extra effort in her teaching in a particular
term. She is aware that if her class performs well, she will be nominated for the award
that is received by the teacher whose class scores the highest in the state. This
scenario is reflective of the assumptions of the _____ theory. - Answers - expectancy
Which of the following is a difference between strategic planning and tactical planning? -
Answers - Strategic planning is done by top-level managers, whereas tactical planning
is done by middle managers.
The management of a telecommunications company informs the members of its sales
team that if they continue to underperform, the management will have no other option
but to downsize the team. In this scenario, the approach adopted by the management
reflects the assumptions of _____. - Answers - Theory X
Lawrence, the CEO of a media company, treats employees from all the levels of the
organization in the same manner. The fair treatment is not just limited to his conduct
with his employees, but it is also visible in the kind of perks and benefits they receive.
Lawrence is strictly against discriminating in the workplace, and this motto of his keeps
his employees greatly motivated. In this scenario, Lawrence follows _____. - Answers -
the equity theory
As one of the senior HR managers, Ramona is responsible for conducting orientation
sessions for new employees in her company. In her sessions, Ramona uses a visual
representation to explain the composition and structure of the company to the new
employees. In this scenario, Ramona uses a(n) _____. - Answers - organization chart
Paul is an employee at a marketing firm. He is someone who prefers to be instructed by
his seniors and avoids taking major responsibilities. He rarely uses his own judgment or
creativity while doing a task in fear of putting things at risk. Paul's conduct in the
workplace is consistent with the assumptions of _____. - Answers - Theory X
Barry is the branch manager of a large toy store. He has been given the responsibility to
communicate with, coach, and motivate supervising managers. In this scenario, Barry
most likely requires _____ to perform his role efficiently. - Answers - human skills
Glubert Corp., an adhesive manufacturing company, makes a deal with an insurance
company to provide its employees with life insurances that come with low monthly
premiums. In the context of Maslow's hierarchy of needs theory, the company is fulfilling
the _____ needs of its employees. - Answers - safety
