C201 BUSINESS ACUMEN QUESTIONS AND ANSWERS
Which part of the organizing process aids in effective and efficient progress toward planned goals and
often results in changes within the organization?
CORRECT ANSWER Evaluating results
What is the result of a company increasing the delegation of authority and the span of control?
CORRECT ANSWER Increased number of direct reports per manager
Which two key elements does an effective organization include?
CORRECT ANSWER Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation?
CORRECT ANSWER It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last.
CORRECT ANSWER 1) Define job requirements, 2) Contact and visit colleges for applicants/interns,
3) Conduct employment tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up
interviews, 7) Hiring determination
Which primary driver does management use for an organization's structure?
CORRECT ANSWER Achievement of company goals
Which step in the organizing process results in management group work activities into units within the
organization?
CORRECT ANSWER 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 sits. Which type of competitive advantage is this company leveraging?
CORRECT ANSWER Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short
term price cutting tactics such as cents off coupons, rebates, and special sales?
CORRECT ANSWER Everyday low pricing
, When would a pull promotional strategy enhance a competitive advantage to market a product better
than a push strategy?
CORRECT ANSWER When demand for the product is driven by the end user
Which marketing tool is essential to building an effective relationship marketing campaign?
CORRECT ANSWER An affinity program
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?
CORRECT ANSWER Personal Selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers.
CORRECT ANSWER Target Market, Sales revenue goals, Plan implementation timeline (not on list,
marketing budget)
Which three characteristics are measured in demographic segmentation? Choose 3 answers
CORRECT ANSWER Race and ethnicity, Income, Household size
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
CORRECT ANSWER Buyers face organizational influences in addition to their own preferences,
purchasers often invite selected providers to bid on a purchase, a group or committee often makes
decisions
Which three conditions, in a global selling environment, should a small company leverage to create a
competitive advantage? Choose 3 answers
CORRECT ANSWER cultural homogeneity, mobility of labor, local labor costs
With which two types of products does a marketing strategy rely on advertising more than personal
selling? Choose 2 answers.
CORRECT ANSWER Consumable supplies, accessories to primary products
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the
lotion as an insect repellent as well. In which three product life cycle extension strategies did this company
engage? Choose 3 answers
CORRECT ANSWER Adding new users, finding new uses for the product, increasing frequency of use.
, What are three ways that an effective brand name can influence consumer product recognition? Choose
3 answers
CORRECT ANSWER It conveys an image, it depicts trademark protection, it reflects brand equity.
A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty
is this customer in?
CORRECT ANSWER Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a
global package delivery service?
CORRECT ANSWER retail
Which three tasks are key responsibilities of operations managers? Choose 3 answers
CORRECT ANSWER Planning the overall production process, implementing the production plan,
determine the best layout for the firm's facilities.
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
CORRECT ANSWER A JIT system seeks to eliminate anything that does not add value in operations
activities, production using JIT reduces a firm's inventory costs.
Which aspect of operations management do the ISO 9000 Standards address?
CORRECT ANSWER Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized products cost
effectively?
CORRECT ANSWER Flexible
Which two of the following distribution channels would take title of the products they handle? Choose
2 answers
CORRECT ANSWER 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?
CORRECT ANSWER Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers
Which part of the organizing process aids in effective and efficient progress toward planned goals and
often results in changes within the organization?
CORRECT ANSWER Evaluating results
What is the result of a company increasing the delegation of authority and the span of control?
CORRECT ANSWER Increased number of direct reports per manager
Which two key elements does an effective organization include?
CORRECT ANSWER Human interaction, structure
Why does a line organizational structure function most effectively in a crisis situation?
CORRECT ANSWER It established a direct flow of authority
Number the seven steps in the recruiting and interviewing process from first to last.
CORRECT ANSWER 1) Define job requirements, 2) Contact and visit colleges for applicants/interns,
3) Conduct employment tests, 4) Review resumes, 5) Conduct candidate interviews, 6) Follow up
interviews, 7) Hiring determination
Which primary driver does management use for an organization's structure?
CORRECT ANSWER Achievement of company goals
Which step in the organizing process results in management group work activities into units within the
organization?
CORRECT ANSWER 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 sits. Which type of competitive advantage is this company leveraging?
CORRECT ANSWER Customer loyalty
Which marketing strategy is devoted to maintaining continuous bottom line prices than relying on short
term price cutting tactics such as cents off coupons, rebates, and special sales?
CORRECT ANSWER Everyday low pricing
, When would a pull promotional strategy enhance a competitive advantage to market a product better
than a push strategy?
CORRECT ANSWER When demand for the product is driven by the end user
Which marketing tool is essential to building an effective relationship marketing campaign?
CORRECT ANSWER An affinity program
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?
CORRECT ANSWER Personal Selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers.
CORRECT ANSWER Target Market, Sales revenue goals, Plan implementation timeline (not on list,
marketing budget)
Which three characteristics are measured in demographic segmentation? Choose 3 answers
CORRECT ANSWER Race and ethnicity, Income, Household size
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
CORRECT ANSWER Buyers face organizational influences in addition to their own preferences,
purchasers often invite selected providers to bid on a purchase, a group or committee often makes
decisions
Which three conditions, in a global selling environment, should a small company leverage to create a
competitive advantage? Choose 3 answers
CORRECT ANSWER cultural homogeneity, mobility of labor, local labor costs
With which two types of products does a marketing strategy rely on advertising more than personal
selling? Choose 2 answers.
CORRECT ANSWER Consumable supplies, accessories to primary products
After years of marketing a body lotion, a cosmetics company begins promoting the lotion as an the
lotion as an insect repellent as well. In which three product life cycle extension strategies did this company
engage? Choose 3 answers
CORRECT ANSWER Adding new users, finding new uses for the product, increasing frequency of use.
, What are three ways that an effective brand name can influence consumer product recognition? Choose
3 answers
CORRECT ANSWER It conveys an image, it depicts trademark protection, it reflects brand equity.
A customer has purchased a product twice and intends to do so again. Which stage of brand loyalty
is this customer in?
CORRECT ANSWER Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a
global package delivery service?
CORRECT ANSWER retail
Which three tasks are key responsibilities of operations managers? Choose 3 answers
CORRECT ANSWER Planning the overall production process, implementing the production plan,
determine the best layout for the firm's facilities.
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
CORRECT ANSWER A JIT system seeks to eliminate anything that does not add value in operations
activities, production using JIT reduces a firm's inventory costs.
Which aspect of operations management do the ISO 9000 Standards address?
CORRECT ANSWER Establishment of effective quality systems?
Which manufacturing model uses technology to produce small runs of customized products cost
effectively?
CORRECT ANSWER Flexible
Which two of the following distribution channels would take title of the products they handle? Choose
2 answers
CORRECT ANSWER 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?
CORRECT ANSWER Demand curve
Which two factors drive demand in a microeconomics system? Choose 2 answers
