C201 BUSINESS ACUMEN EXAM QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS (UPDATED TO PASS)
Which part of the organizing process aids in effective and efficient progress toward planned goals
and often results in changes within the organization?
A. Promoting vision
B. Evaluating results
C. Turning strategy into action
D. Determining the specific activities Correct answer-B. Evaluating results
What is the result of a company increasing the delegation of authority and the span of control?
A. Centralized decision making
B. Increased number of managers at the upper management level
C. Increased number of direct reports per manager
D. Increased decision-making authority given to employees Correct answer-D. Increased decision-
making authority given to employees
Which two key elements does an effective organization include?Choose 2 answers
A. Human interaction
B. Compensation
C. Safety
D. Structure Correct answer-Human Interaction and Structure
Why does a line organizational structure function most effectively in a crisis situation?
A. It provides specialized expertise, advice, and guidance.
B. It draws on temporary resources needed in an emergency.
C. It establishes a direct flow of authority.
D. It places authority in the hands of a group of individuals rather than a single person. Correct
answer-C. 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?
A. Departmentalization
B. Organization
C. Strategic Planning
D. Decentralization Correct answer-A. Departmentalization
Which primary driver does management use for an organization's structure?
A. Ease of employee interaction
B. Hierarchical accountability
C. Company business processes
D. Achievement of company goals Correct answer-D. Achievement of company goals
Which step in the organizing process results in management grouping work activities into units
within the organization?
,A. Delegation
B. Centralization
C. Decentralization
D. Departmentalization Correct answer-D. 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?
A. Brand recognition
B. Customer loyalty
C. Price
D. Product Correct answer-D. 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?
A. Skimming pricing
B. Penetration pricing
C. Cost-based pricing
D. Everyday low pricing Correct answer-D. Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product
better than a push strategy?
A. When the product is best sold through personal selling activities.
B. When demand for the product is driven by marketing intermediaries.
C. When demand for the product is driven by the end user.
D. By combining messages of price-value, product differentiation, and prestige into a focused
campaign. Correct answer-C. When demand for the product is driven by the end user.
Which marketing tool is often used to build effective relationship marketing campaigns?
A. Affinity programs
B. Logistics
C. Distribution strategies
D. Product mix Correct answer-A. 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?
A. Advertising
B. Personal selling
C. Sales promotion
D. Sponsorships Correct answer-B. Personal selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers
A. Target market
B. Product gross margin target
,C. Sales revenue goals
D. Product specifications
E. Plan implementation timeline Correct answer-A. Target market
C. Sales revenue goals
E. Plan implementation timeline
Which three characteristics are measured in demographic segmentation? Choose 3 answers
A. Race and ethnicity
B. Geographic location
C. Income
D. Purchase history
E. Household size Correct answer-A. Race and ethnicity
C. Income
E. Household size
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
A. A group or committee often makes decisions.
B. Purchasers follow an ad hoc process.
C. Purchasers often invite selected providers to bid on a purchase.
D. Buyers treat each buying decision independently.
E. Buyers face organizational influences that affect their own preferences. Correct answer-A. A
group or committee often makes decisions.
C. Purchasers often invite selected providers to bid on a purchase.
E. Buyers face organizational influences that affect their own preferences.
Which three factors suggest a product should be marketed as a specialty product? Choose 3 answers
A. Priced high
B. Priced low
C. Purchased frequently
D. Purchased infrequently
E. Available from a large number of retailers
F. Available from a small number of retail outlets Correct answer-A. Priced high
D. Purchased infrequently
F. 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? Choose 2 answers
A. Capital products bought with budgeted funds
B. Accessories to primary products
C. Component parts of primary products
D. Consumable supplies Correct answer-B. Accessories to primary products
D. 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?
Choose 3 answers
, A. Increasing the frequency of shopper visits
B. Adding new users
C. Re-branding the product
D. Increasing frequency of use
E. Finding new uses for the product Correct answer-B. Adding new users
D. Increasing frequency of use
E. Finding new uses for the product
What are three qualities of strong brand equity? Choose 3 answers
A. Awareness
B. Loyalty
C. Favorable images
D. Trademark
E, Cost-based pricing Correct answer-A. Awareness
B. Loyalty
C. 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?
A. Brand equity
B. Brand insistence
C. Brand preference
D. Brand recognition Correct answer-C. Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a
global package delivery service?
A. Wholesale
B. Retail
C. Drop ship
D. Direct Correct answer-D. Direct
Which three tasks are key responsibilities of operations managers?Choose 3 answers
A. Selecting the goods to offer customers
B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
E. Monitoring product distribution Correct answer-B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
A. Production using JIT reduces a firm's inventory costs.
B. JIT production reduces the risk of a production shutdown.
C. A JIT system seeks to eliminate anything that does not add value in operations activities.
CORRECT & VERIFIED ANSWERS (UPDATED TO PASS)
Which part of the organizing process aids in effective and efficient progress toward planned goals
and often results in changes within the organization?
A. Promoting vision
B. Evaluating results
C. Turning strategy into action
D. Determining the specific activities Correct answer-B. Evaluating results
What is the result of a company increasing the delegation of authority and the span of control?
A. Centralized decision making
B. Increased number of managers at the upper management level
C. Increased number of direct reports per manager
D. Increased decision-making authority given to employees Correct answer-D. Increased decision-
making authority given to employees
Which two key elements does an effective organization include?Choose 2 answers
A. Human interaction
B. Compensation
C. Safety
D. Structure Correct answer-Human Interaction and Structure
Why does a line organizational structure function most effectively in a crisis situation?
A. It provides specialized expertise, advice, and guidance.
B. It draws on temporary resources needed in an emergency.
C. It establishes a direct flow of authority.
D. It places authority in the hands of a group of individuals rather than a single person. Correct
answer-C. 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?
A. Departmentalization
B. Organization
C. Strategic Planning
D. Decentralization Correct answer-A. Departmentalization
Which primary driver does management use for an organization's structure?
A. Ease of employee interaction
B. Hierarchical accountability
C. Company business processes
D. Achievement of company goals Correct answer-D. Achievement of company goals
Which step in the organizing process results in management grouping work activities into units
within the organization?
,A. Delegation
B. Centralization
C. Decentralization
D. Departmentalization Correct answer-D. 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?
A. Brand recognition
B. Customer loyalty
C. Price
D. Product Correct answer-D. 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?
A. Skimming pricing
B. Penetration pricing
C. Cost-based pricing
D. Everyday low pricing Correct answer-D. Everyday low pricing
When would a pull promotional strategy enhance a competitive advantage to market a product
better than a push strategy?
A. When the product is best sold through personal selling activities.
B. When demand for the product is driven by marketing intermediaries.
C. When demand for the product is driven by the end user.
D. By combining messages of price-value, product differentiation, and prestige into a focused
campaign. Correct answer-C. When demand for the product is driven by the end user.
Which marketing tool is often used to build effective relationship marketing campaigns?
A. Affinity programs
B. Logistics
C. Distribution strategies
D. Product mix Correct answer-A. 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?
A. Advertising
B. Personal selling
C. Sales promotion
D. Sponsorships Correct answer-B. Personal selling
What three factors should be addressed in a successful marketing plan? Choose 3 answers
A. Target market
B. Product gross margin target
,C. Sales revenue goals
D. Product specifications
E. Plan implementation timeline Correct answer-A. Target market
C. Sales revenue goals
E. Plan implementation timeline
Which three characteristics are measured in demographic segmentation? Choose 3 answers
A. Race and ethnicity
B. Geographic location
C. Income
D. Purchase history
E. Household size Correct answer-A. Race and ethnicity
C. Income
E. Household size
In which three ways does business-buying behavior differ from consumer-buying behavior? Choose 3
answers
A. A group or committee often makes decisions.
B. Purchasers follow an ad hoc process.
C. Purchasers often invite selected providers to bid on a purchase.
D. Buyers treat each buying decision independently.
E. Buyers face organizational influences that affect their own preferences. Correct answer-A. A
group or committee often makes decisions.
C. Purchasers often invite selected providers to bid on a purchase.
E. Buyers face organizational influences that affect their own preferences.
Which three factors suggest a product should be marketed as a specialty product? Choose 3 answers
A. Priced high
B. Priced low
C. Purchased frequently
D. Purchased infrequently
E. Available from a large number of retailers
F. Available from a small number of retail outlets Correct answer-A. Priced high
D. Purchased infrequently
F. 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? Choose 2 answers
A. Capital products bought with budgeted funds
B. Accessories to primary products
C. Component parts of primary products
D. Consumable supplies Correct answer-B. Accessories to primary products
D. 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?
Choose 3 answers
, A. Increasing the frequency of shopper visits
B. Adding new users
C. Re-branding the product
D. Increasing frequency of use
E. Finding new uses for the product Correct answer-B. Adding new users
D. Increasing frequency of use
E. Finding new uses for the product
What are three qualities of strong brand equity? Choose 3 answers
A. Awareness
B. Loyalty
C. Favorable images
D. Trademark
E, Cost-based pricing Correct answer-A. Awareness
B. Loyalty
C. 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?
A. Brand equity
B. Brand insistence
C. Brand preference
D. Brand recognition Correct answer-C. Brand preference
Which manufacturer distribution model is enhanced by the shipping and tracking capabilities of a
global package delivery service?
A. Wholesale
B. Retail
C. Drop ship
D. Direct Correct answer-D. Direct
Which three tasks are key responsibilities of operations managers?Choose 3 answers
A. Selecting the goods to offer customers
B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
E. Monitoring product distribution Correct answer-B. Planning the overall production process
C. Determining the best layout for the firm's facilities
D. Implementing the production plan
Which two characteristics does a Just-In-Time (JIT) System have? Choose 2 answers
A. Production using JIT reduces a firm's inventory costs.
B. JIT production reduces the risk of a production shutdown.
C. A JIT system seeks to eliminate anything that does not add value in operations activities.
