BUAD 332 BUSINESS FINANCE (PDF) | 2026 EXAM
QUESTIONS AND ANSWERS + RATIONALES | STUDY GUIDE |
100% CORRECT
1. Which of the following best defines marketing?
A) The process of selling products to customers
B) A social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others
C) The activity of advertising products to increase brand awareness
D) The process of distributing goods from manufacturers to retailers
Correct Answer: B) A social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others
Rationale: Marketing is defined as a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging products and value with
others . It is not merely selling or advertising, but a broader process of creating value and
building customer relationships.
2. What are the two primary goals of marketing?
A) To maximize profits and minimize costs
B) To attract new customers by promising superior value and keep and grow current
customers by delivering customer satisfaction
C) To increase market share and reduce competition
D) To develop new products and enter new markets
Correct Answer: B) To attract new customers by promising superior value and keep and grow
current customers by delivering customer satisfaction
Rationale: The two primary goals of marketing are to attract new customers by promising
superior value and to keep and grow current customers by delivering customer satisfaction .
Satisfied customers are more likely to buy again and share their positive experiences with others.
3. What is a need, in the context of marketing?
A) A want backed by buying power
B) A form that a human need takes as shaped by culture and individual personality
C) A state of felt deprivation (physical, social, or individual)
D) A product that satisfies a desire
Correct Answer: C) A state of felt deprivation (physical, social, or individual)
Rationale: A need is a state of felt deprivation, which can be physical (e.g., food, clothing),
social (e.g., belonging), or individual (e.g., knowledge) . Needs are not created by marketers;
they are a basic part of human existence.
4. What is a want?
A) A state of felt deprivation
, B) A want backed by buying power
C) A form that a human need takes as shaped by culture, individual personality, and
marketers
D) A desire for a specific product that satisfies a need
Correct Answer: C) A form that a human need takes as shaped by culture, individual personality,
and marketers
Rationale: A want is a need that is shaped by culture, individual personality, and marketing
activity . For example, a person needs food, but they may want a specific type of food.
5. What is demand in a marketing context?
A) A state of felt deprivation
B) A want backed by buying power
C) A form that a human need takes as shaped by culture
D) A desire for a product that is not supported by the ability to purchase it
Correct Answer: B) A want backed by buying power
Rationale: Demand is defined as wants plus buying power . Consumers have many wants, but
they will only demand products that they have the resources to purchase.
6. A market is best described as:
A) A physical location where buyers and sellers meet
B) The set of all actual and potential buyers of a product or service
C) A group of consumers with similar needs and wants
D) The process of exchanging goods for money
Correct Answer: B) The set of all actual and potential buyers of a product or service
Rationale: A market is the set of all actual and potential buyers of a product or service . It is not
limited to a physical location but encompasses all individuals or organizations with the potential
to purchase.
7. Which of the following correctly orders the concepts of need, want, and demand?
A) Demand → Need → Want
B) Need → Want → Demand
C) Want → Need → Demand
D) Need → Demand → Want
Correct Answer: B) Need → Want → Demand
Rationale: The progression is: Need (state of felt deprivation), which becomes a Want (shaped
by culture and personality), which becomes Demand (wants backed by buying power) .
8. What is a value proposition?
A) The total cost of a product to the consumer
B) The set of benefits or values that a company promises to deliver to consumers to
satisfy their needs
, C) The price of a product compared to its competitors
D) The marketing activities used to promote a product
Correct Answer: B) The set of benefits or values that a company promises to deliver to
consumers to satisfy their needs
Rationale: A value proposition is the set of benefits or values that a company promises to deliver
to consumers to satisfy their needs . It is a solution to a problem that is different from
competitors and drives marketing decisions.
9. According to the course materials, what do customers truly buy?
A) Products
B) Ways to get what they want
C) Low prices
D) Brand names
Correct Answer: B) Ways to get what they want
Rationale: Customers do not simply buy products; they buy ways to get what they want . They
are seeking solutions to their problems or ways to achieve desired outcomes.
10. What is customer value?
A) The price of a product relative to its quality
B) The customer's perception of what they want to have happen in a specific use
situation, with the help of a product or service, in order to accomplish a desired purpose
or goal
C) The satisfaction a customer feels after purchasing a product
D) The amount of money a customer is willing to spend on a product
Correct Answer: B) The customer's perception of what they want to have happen in a specific
use situation, with the help of a product or service, in order to accomplish a desired purpose or
goal
Rationale: Customer value is defined from a customer perspective as the perception of what they
want to have happen in a specific use situation, with the help of a product or service, in order to
accomplish a desired purpose or goal .
11. Customer value is equal to:
A) Performance
B) Importance
C) Price
D) Satisfaction
Correct Answer: B) Importance
Rationale: Customer value is equal to importance . It represents the significance of the desired
outcome to the customer.
QUESTIONS AND ANSWERS + RATIONALES | STUDY GUIDE |
100% CORRECT
1. Which of the following best defines marketing?
A) The process of selling products to customers
B) A social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others
C) The activity of advertising products to increase brand awareness
D) The process of distributing goods from manufacturers to retailers
Correct Answer: B) A social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others
Rationale: Marketing is defined as a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging products and value with
others . It is not merely selling or advertising, but a broader process of creating value and
building customer relationships.
2. What are the two primary goals of marketing?
A) To maximize profits and minimize costs
B) To attract new customers by promising superior value and keep and grow current
customers by delivering customer satisfaction
C) To increase market share and reduce competition
D) To develop new products and enter new markets
Correct Answer: B) To attract new customers by promising superior value and keep and grow
current customers by delivering customer satisfaction
Rationale: The two primary goals of marketing are to attract new customers by promising
superior value and to keep and grow current customers by delivering customer satisfaction .
Satisfied customers are more likely to buy again and share their positive experiences with others.
3. What is a need, in the context of marketing?
A) A want backed by buying power
B) A form that a human need takes as shaped by culture and individual personality
C) A state of felt deprivation (physical, social, or individual)
D) A product that satisfies a desire
Correct Answer: C) A state of felt deprivation (physical, social, or individual)
Rationale: A need is a state of felt deprivation, which can be physical (e.g., food, clothing),
social (e.g., belonging), or individual (e.g., knowledge) . Needs are not created by marketers;
they are a basic part of human existence.
4. What is a want?
A) A state of felt deprivation
, B) A want backed by buying power
C) A form that a human need takes as shaped by culture, individual personality, and
marketers
D) A desire for a specific product that satisfies a need
Correct Answer: C) A form that a human need takes as shaped by culture, individual personality,
and marketers
Rationale: A want is a need that is shaped by culture, individual personality, and marketing
activity . For example, a person needs food, but they may want a specific type of food.
5. What is demand in a marketing context?
A) A state of felt deprivation
B) A want backed by buying power
C) A form that a human need takes as shaped by culture
D) A desire for a product that is not supported by the ability to purchase it
Correct Answer: B) A want backed by buying power
Rationale: Demand is defined as wants plus buying power . Consumers have many wants, but
they will only demand products that they have the resources to purchase.
6. A market is best described as:
A) A physical location where buyers and sellers meet
B) The set of all actual and potential buyers of a product or service
C) A group of consumers with similar needs and wants
D) The process of exchanging goods for money
Correct Answer: B) The set of all actual and potential buyers of a product or service
Rationale: A market is the set of all actual and potential buyers of a product or service . It is not
limited to a physical location but encompasses all individuals or organizations with the potential
to purchase.
7. Which of the following correctly orders the concepts of need, want, and demand?
A) Demand → Need → Want
B) Need → Want → Demand
C) Want → Need → Demand
D) Need → Demand → Want
Correct Answer: B) Need → Want → Demand
Rationale: The progression is: Need (state of felt deprivation), which becomes a Want (shaped
by culture and personality), which becomes Demand (wants backed by buying power) .
8. What is a value proposition?
A) The total cost of a product to the consumer
B) The set of benefits or values that a company promises to deliver to consumers to
satisfy their needs
, C) The price of a product compared to its competitors
D) The marketing activities used to promote a product
Correct Answer: B) The set of benefits or values that a company promises to deliver to
consumers to satisfy their needs
Rationale: A value proposition is the set of benefits or values that a company promises to deliver
to consumers to satisfy their needs . It is a solution to a problem that is different from
competitors and drives marketing decisions.
9. According to the course materials, what do customers truly buy?
A) Products
B) Ways to get what they want
C) Low prices
D) Brand names
Correct Answer: B) Ways to get what they want
Rationale: Customers do not simply buy products; they buy ways to get what they want . They
are seeking solutions to their problems or ways to achieve desired outcomes.
10. What is customer value?
A) The price of a product relative to its quality
B) The customer's perception of what they want to have happen in a specific use
situation, with the help of a product or service, in order to accomplish a desired purpose
or goal
C) The satisfaction a customer feels after purchasing a product
D) The amount of money a customer is willing to spend on a product
Correct Answer: B) The customer's perception of what they want to have happen in a specific
use situation, with the help of a product or service, in order to accomplish a desired purpose or
goal
Rationale: Customer value is defined from a customer perspective as the perception of what they
want to have happen in a specific use situation, with the help of a product or service, in order to
accomplish a desired purpose or goal .
11. Customer value is equal to:
A) Performance
B) Importance
C) Price
D) Satisfaction
Correct Answer: B) Importance
Rationale: Customer value is equal to importance . It represents the significance of the desired
outcome to the customer.
