C201 ACTUAL EXAM QUESTIONS (400) AND
VERIFIED ANSWERS
Which part of the organizing process aids in effective and efficient progress toward planned
goals and often results in changes within the organization? - ANS Evaluating results
What is the result of a company increasing the delegation of authority and the span of
control? - ANS Increased decision-making authority given to employees
Which two key elements does an effective organization include? Human interaction,
Compensation, Safety, or Structure - ANS Human interaction and Structure
Why does a line organizational structure function most effectively in a crisis situation? - ANS
It establishes a direct flow of authority.
A company might divide itself into smaller groups that best match the types of customers it
serves. What is this is an example of? - ANS Organization
Which primary driver does management use for an organization's structure? - ANS
Achievement of company goals
Which step in the organizing process results in management grouping work activities into
units within the organization? - ANS Departmentalization
A high-tech startup company is launching a marketing campaign for its new social media
portal by highlighting how the portal exceeds the connectivity and collaboration capabilities
of all other social media sites.
Which type of competitive advantage is this company leveraging? - ANS Product
,Which marketing strategy is devoted to maintaining continuous bottom line prices rather
than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and
special sales? - ANS Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? - ANS When demand for the product is driven by the
end user.
Which marketing tool is often used to build effective relationship marketing campaigns? -
ANS Affinity programs
Which element of the promotional mix has the advantage of messaging that can be tailored
for each customer, but the disadvantage of a high cost per contact? - ANS Personal selling
What three factors should be addressed in a successful marketing plan?
Target market, Product gross margin target, Sales revenue goals, Product specifications, or
Plan implementation timeline - ANS Target market, Sales revenue goals, and Plan
implementation timeline
Which three characteristics are measured in demographic segmentation? Race and
ethnicity, Geographic location, Income, Purchase history, or Household size - ANS Race and
ethnicity, Income, and Household size
In which three ways does business-buying behavior differ from consumer-buying behavior?
- ANS A group or committee often makes decisions. Purchasers often invite selected
providers to bid on a purchase. Buyers face organizational influences that affect their own
preferences.
Which three factors suggest a product should be marketed as a specialty product? - ANS
Priced high, Purchased infrequently, Available from a small number of retail outlets
,With which two types of products does a marketing strategy rely on advertising more than
personal selling? - ANS Accessories to primary products, Consumable supplies
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as
an insect repellent as well.
In which three product life cycle extension strategies did this company engage? - ANS
Adding new users, Increasing frequency of use, Finding new uses for the product
What are three qualities of strong brand equity? - ANS It depicts trademark protection.
Awareness, It conveys an image. Loyalty, It is new and distinctive. Favorable images
A customer intends to purchase her favorite cereal. It is out of stock, so she purchases an
alternative brand of cereal instead. Which stage of brand loyalty is this customer in? - ANS
Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - ANS Direct
Which three tasks are key responsibilities of operations managers? - ANS Planning the
overall production process, Determining the best layout for the firm's facilities,
Implementing the production plan
Which two characteristics does a Just-In-Time (JIT) System have? - ANS Production using JIT
reduces a firm's inventory costs. A JIT system seeks to eliminate anything that does not add
value in operations activities.
Which aspect of operations management do the ISO 9000 standards address? - ANS
Establishment of effective quality systems
, Which manufacturing model uses technology to produce small runs of customized products
cost effectively? - ANS Flexible
Which two of the following distribution channels would take title of the products they
handle? - ANS Limited-function merchant wholesaler, Full-function merchant wholesaler
Which economic graph is used by organizations to regulate production by predicting the
amount of product buyers will purchase at different prices? - ANS Demand curve
Which two factors drive demand in a microeconomic system? - ANS Price of substitute
goods and Customer preference
How does a sudden shortage of a commodity product affect the immediate demand for the
product at its current price? - ANS Demand increases
Which two impacts result from a nation's increase in productivity? - ANS Economy expands
and Personal wealth increases
For which two purposes will the U.S. Federal Reserve System follow an expansionary
monetary policy? - ANS To encourage bankers to make loans and To cut the cost of
borrowing
Which two economic impacts should a manager anticipate when the U.S. government
reduces the number of Treasury bills, Treasury Notes, and Treasury bonds it sells? - ANS A
rise of interest rates on these securities and An increase in overall cost of debt to private
borrowers
What is one role of a financial manager? - ANS Analyzing major investment decisions
VERIFIED ANSWERS
Which part of the organizing process aids in effective and efficient progress toward planned
goals and often results in changes within the organization? - ANS Evaluating results
What is the result of a company increasing the delegation of authority and the span of
control? - ANS Increased decision-making authority given to employees
Which two key elements does an effective organization include? Human interaction,
Compensation, Safety, or Structure - ANS Human interaction and Structure
Why does a line organizational structure function most effectively in a crisis situation? - ANS
It establishes a direct flow of authority.
A company might divide itself into smaller groups that best match the types of customers it
serves. What is this is an example of? - ANS Organization
Which primary driver does management use for an organization's structure? - ANS
Achievement of company goals
Which step in the organizing process results in management grouping work activities into
units within the organization? - ANS Departmentalization
A high-tech startup company is launching a marketing campaign for its new social media
portal by highlighting how the portal exceeds the connectivity and collaboration capabilities
of all other social media sites.
Which type of competitive advantage is this company leveraging? - ANS Product
,Which marketing strategy is devoted to maintaining continuous bottom line prices rather
than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and
special sales? - ANS Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a
product better than a push strategy? - ANS When demand for the product is driven by the
end user.
Which marketing tool is often used to build effective relationship marketing campaigns? -
ANS Affinity programs
Which element of the promotional mix has the advantage of messaging that can be tailored
for each customer, but the disadvantage of a high cost per contact? - ANS Personal selling
What three factors should be addressed in a successful marketing plan?
Target market, Product gross margin target, Sales revenue goals, Product specifications, or
Plan implementation timeline - ANS Target market, Sales revenue goals, and Plan
implementation timeline
Which three characteristics are measured in demographic segmentation? Race and
ethnicity, Geographic location, Income, Purchase history, or Household size - ANS Race and
ethnicity, Income, and Household size
In which three ways does business-buying behavior differ from consumer-buying behavior?
- ANS A group or committee often makes decisions. Purchasers often invite selected
providers to bid on a purchase. Buyers face organizational influences that affect their own
preferences.
Which three factors suggest a product should be marketed as a specialty product? - ANS
Priced high, Purchased infrequently, Available from a small number of retail outlets
,With which two types of products does a marketing strategy rely on advertising more than
personal selling? - ANS Accessories to primary products, Consumable supplies
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as
an insect repellent as well.
In which three product life cycle extension strategies did this company engage? - ANS
Adding new users, Increasing frequency of use, Finding new uses for the product
What are three qualities of strong brand equity? - ANS It depicts trademark protection.
Awareness, It conveys an image. Loyalty, It is new and distinctive. Favorable images
A customer intends to purchase her favorite cereal. It is out of stock, so she purchases an
alternative brand of cereal instead. Which stage of brand loyalty is this customer in? - ANS
Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking
capabilities of a global package delivery service? - ANS Direct
Which three tasks are key responsibilities of operations managers? - ANS Planning the
overall production process, Determining the best layout for the firm's facilities,
Implementing the production plan
Which two characteristics does a Just-In-Time (JIT) System have? - ANS Production using JIT
reduces a firm's inventory costs. A JIT system seeks to eliminate anything that does not add
value in operations activities.
Which aspect of operations management do the ISO 9000 standards address? - ANS
Establishment of effective quality systems
, Which manufacturing model uses technology to produce small runs of customized products
cost effectively? - ANS Flexible
Which two of the following distribution channels would take title of the products they
handle? - ANS Limited-function merchant wholesaler, Full-function merchant wholesaler
Which economic graph is used by organizations to regulate production by predicting the
amount of product buyers will purchase at different prices? - ANS Demand curve
Which two factors drive demand in a microeconomic system? - ANS Price of substitute
goods and Customer preference
How does a sudden shortage of a commodity product affect the immediate demand for the
product at its current price? - ANS Demand increases
Which two impacts result from a nation's increase in productivity? - ANS Economy expands
and Personal wealth increases
For which two purposes will the U.S. Federal Reserve System follow an expansionary
monetary policy? - ANS To encourage bankers to make loans and To cut the cost of
borrowing
Which two economic impacts should a manager anticipate when the U.S. government
reduces the number of Treasury bills, Treasury Notes, and Treasury bonds it sells? - ANS A
rise of interest rates on these securities and An increase in overall cost of debt to private
borrowers
What is one role of a financial manager? - ANS Analyzing major investment decisions
