Are You Ready To Take The Marketing Cluster Exam Questions!

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What should researchers consider when evaluating the design of questionnaires?
- Size of paper
- Types of questions
- Names of developers
- Number of participants

About This Quiz

This quiz titled 'Are You Ready To Take The Marketing Cluster Exam Questions!' assesses key marketing concepts including data analysis, questionnaire design, and product decisions. It is designed to prepare learners for practical marketing applications and strategic decision-making in a business context.

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2.

Which of the following is a reason why a business might choose to expand its product mix:
- To increase sales
- To reduce costs
- To increase risks
- To reduce liability
Correct Answer

A. To increase sales

Explanation

A business might choose to expand its product mix in order to increase sales. By offering a wider range of products, the business can attract a larger customer base and appeal to different market segments. This can lead to increased revenue and profitability. Additionally, expanding the product mix can help the business stay competitive in the market and prevent customers from switching to competitors who offer a more diverse range of products. Overall, expanding the product mix is a strategic decision aimed at driving sales growth and improving the business's financial performance.

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3.

Businesses that display their goods and services at trade shows usually have representatives available whose major responsibilty is to
- Meet the potential customers
- Clean and stock the area
- Order replacement materials
- Negotiate with the set-up crew
Correct Answer

A. Meet the potential customers

Explanation

At trade shows, businesses set up booths to showcase their goods and services. The representatives present at these booths have the primary responsibility of meeting potential customers. This involves engaging with attendees, discussing the products or services offered, answering their queries, and building relationships. Meeting potential customers is crucial for businesses as it allows them to generate leads, gather feedback, and potentially convert prospects into paying customers. Therefore, representatives at trade shows focus on this task to maximize their chances of success.

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4.

What do customers often associate with high prices?
- Profit
- Demand
- Quality
- Economy
Correct Answer

A. Quality

Explanation

Customers often associate high prices with quality. When a product or service is priced higher than its competitors, customers assume that it is of superior quality. This is because they believe that higher prices reflect better materials, craftsmanship, and attention to detail. Customers are willing to pay more for a product or service if they believe it will meet or exceed their expectations in terms of performance, durability, and overall satisfaction. Therefore, quality becomes a key factor in customers' perception of value, and they associate high prices with better quality.

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5.

What is an important guideline to remember when establishing personal goals?
- Make sure your goals are vague.
- Focus on the negative.
- Disregard outside assistance.
- Set realistic goals.
Correct Answer

A. Set realistic goals.

Explanation

Setting realistic goals is an important guideline to remember when establishing personal goals because it allows for a greater chance of success. Realistic goals are ones that are attainable and aligned with one's abilities, resources, and circumstances. They provide a sense of direction and motivation, and help individuals stay focused and committed to their goals. By setting realistic goals, individuals can avoid feeling overwhelmed or discouraged, and instead experience a sense of accomplishment and progress as they work towards achieving their objectives.

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6.

Which of the following is an example of a security precaution to protect the business from credit-card fraud:
- Using a buzzer sy stem to notify the police.
- Checking the customer's signature.
- Installing closed-circuit TV.
- Hiring security personnel.
Correct Answer

A. Checking the customer's signature.

Explanation

Checking the customer's signature is an example of a security precaution to protect the business from credit-card fraud. By verifying the customer's signature, the business can ensure that the person using the credit card is the legitimate cardholder. This helps to prevent unauthorized use of stolen or counterfeit credit cards, reducing the risk of credit card fraud for the business.

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7.

What is an important quality that all resumes should possess?
- Neatness
- Length
- Creativity
- Complexity
Correct Answer

A. Neatness

Explanation

An important quality that all resumes should possess is neatness. A neat resume is visually appealing and easy to read, making it more likely to catch the attention of potential employers. It shows professionalism and attention to detail, indicating that the candidate is organized and takes their job search seriously. A neat resume also makes it easier for employers to find the information they are looking for, allowing them to quickly assess the candidate's qualifications. Overall, neatness is crucial in creating a positive first impression and increasing the chances of getting noticed by employers.

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8.

A common way for businesses to generate new product ideas is by reviewing
- Employee records
- Sales receipts
- Status reports
- Customer surveys
Correct Answer

A. Customer surveys

Explanation

Businesses often use customer surveys as a way to generate new product ideas because they provide direct feedback from the target market. By collecting information on customer preferences, needs, and pain points, businesses can identify potential gaps in the market and develop products that address those needs. Customer surveys allow businesses to gather insights and opinions directly from their target audience, helping them make informed decisions about product development and innovation. This approach helps ensure that the new product ideas align with customer preferences and have a higher chance of success in the market.

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9.

A legal issue associated with the use of information might involve the violation of ______________ laws.
- Copyright
- Patent
- Trademark
- Contract
Correct Answer

A. Copyright

Explanation

A legal issue associated with the use of information might involve the violation of copyright laws. Copyright laws protect original works of authorship, such as books, music, and artwork, giving the creator exclusive rights to reproduce, distribute, and display their work. If someone uses copyrighted material without permission, it can lead to legal consequences, including fines and injunctions.

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10.

Which of the following is an example of an internal source that Eli can use to develop a project that he needs to comlete for his supervisor:
- Sales reports
- Public library
- Competitors' advertisements
- Trade associations
Correct Answer

A. Sales reports

Explanation

Sales reports are an example of an internal source that Eli can use to develop his project. These reports provide information about the company's sales performance, customer preferences, and market trends. By analyzing sales reports, Eli can gain insights into the company's strengths and weaknesses, identify opportunities for improvement, and make informed decisions to complete his project successfully.

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11.

One way for marketing research to determine if online journals and articles are up-to-date is by
- Requesting a quotation
- Accessing the FAQ page
- Asking the team leader
- Locating the publication date
Correct Answer

A. Locating the publication date

Explanation

To determine if online journals and articles are up-to-date, marketing research can locate the publication date. By finding the publication date, researchers can assess the recency of the information and determine if it is current or outdated. This is an effective method as it allows researchers to evaluate the relevance and reliability of the content before using it for their research purposes.

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12.

What is the advantage to businesses of reviewing internal records to obtain information?
- Research techniques are complex.
- Statistics are expensive to compile.
- Employees have limited access.
- Data are specific to the company
Correct Answer

A. Data are specific to the company

Explanation

Reviewing internal records allows businesses to obtain information that is specific to their own company. This means that the data they gather will be relevant and tailored to their specific needs and goals. By analyzing internal records, businesses can gain insights into their own operations, identify trends, make informed decisions, and improve their overall performance. This advantage is not present in the other options provided, as research techniques may not be specific to the company, statistics may not be directly applicable, and employees may have limited access to external data sources.

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13.

When operating machinery in the workplace, emloyees can reduce the risk of injury to themselves and damage to the machinery by
- Reading the appropriate promotional materials.
- Following the manufacturer's operating instructions.
- Performing maintenance activities themselves.
- Requesting a trained supervisor to operate the machinery.
Correct Answer

A. Following the manufacturer's operating instructions.

Explanation

Following the manufacturer's operating instructions is important for reducing the risk of injury to employees and damage to machinery. These instructions provide specific guidelines on how to safely operate the machinery, including any necessary safety precautions and maintenance procedures. By following these instructions, employees can ensure that they are using the machinery correctly and minimizing the chances of accidents or damage. Reading promotional materials may provide general information about the machinery, but the manufacturer's operating instructions are specifically designed to ensure safe and proper operation. Performing maintenance activities themselves without proper training can be dangerous, and requesting a trained supervisor to operate the machinery may not always be necessary if employees are properly trained to do so.

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14.

Which of the following is a computer-based time-management tool that helps employees keep track of their appointments and actvities:
- Desktop-publishing software
- Spreadsheet calculator
- Instant-messaging program
- Electronic task organizer
Correct Answer

A. Electronic task organizer

Explanation

An electronic task organizer is a computer-based time-management tool that helps employees keep track of their appointments and activities. It allows users to schedule and prioritize tasks, set reminders, and allocate time for different activities. This tool helps individuals stay organized and ensures that they do not miss important deadlines or appointments. Unlike other options listed, such as desktop-publishing software, spreadsheet calculator, or instant-messaging program, an electronic task organizer specifically focuses on managing tasks and appointments efficiently.

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15.

A job applicant should be able to completely answer the interviewer's questions if s/he has been
- Listening
- Reading brochures
- Talking
- Taking notes
Correct Answer

A. Listening

Explanation

The job applicant should be able to completely answer the interviewer's questions if they have been listening. By actively listening to the interviewer's questions, the applicant can understand the requirements and expectations of the job. This allows them to provide relevant and accurate responses, demonstrating their understanding and suitability for the position. Listening also shows respect and attentiveness, which are important qualities in a potential employee.

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16.

When Ken Ditioner, owner of Shine Shampoo, considers how to package items he produces, he is making a ________________decision.
- Promotion
- Price
- Place
- Product
Correct Answer

A. Product

Explanation

When Ken Ditioner, owner of Shine Shampoo, considers how to package items he produces, he is making a product decision. This means that he is deciding on the specific characteristics, design, and packaging of the shampoo bottles. The packaging plays a crucial role in attracting customers and creating a positive perception of the product. Therefore, Ken's decision on how to package his shampoo is directly related to the product itself.

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17.

A women's clothing store that tells customers it will refund their money if they are not completely satisfied with an item they buy is providing a(n)
- Rebate
- Warranty
- Guarantee
- Explanation
Correct Answer

A. Guarantee

Explanation

The correct answer is guarantee. A guarantee is a promise made by a seller to a buyer that they will refund their money if the buyer is not completely satisfied with the purchased item. In this case, the women's clothing store is assuring their customers that if they are not happy with their purchase, they can return it and get a refund. This guarantee gives customers confidence in their purchase and shows that the store stands behind the quality and satisfaction of their products.

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18.

A company that makes ink pens claims that no other pen on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to what strategy?
- Relation to other products in a line
- Features and benefits
- Price and quality
- Unique characteristics
Correct Answer

A. Unique characteristics

Explanation

The company is positioning its product based on its unique characteristics. By claiming that no other pen on the market uses a type of ink that changes color when exposed to light, the company is emphasizing the distinctiveness of its product. This strategy aims to differentiate the company's pen from competitors and highlight its unique selling point to attract customers.

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19.

Corporate branding involves creating a specific image for a variety of products and product lines by focusing on
- Tangible services
- Different ethics
- A common vision
- One touch point
Correct Answer

A. A common vision

Explanation

Corporate branding involves creating a specific image for a variety of products and product lines. This is achieved by focusing on a common vision, which means that all the products and product lines under the corporate brand align with a shared purpose and direction. Having a common vision helps to create consistency and coherence in the brand's messaging and positioning, making it easier for consumers to understand and connect with the brand. It also helps to differentiate the brand from competitors and build a strong brand identity.

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20.

An auto-parts buyer evaluates a new vendor's performance and determines that the vendor didn't follow through on all of its promises and was late delivering the buyer's order. One of the first things that the buyer should do is:
- Inform others in the industry of the vendor's faults.
- Replace the vendor with a more reliable one.
- Demand that the vendor give the buyer a refund.
- Communicate his/her feedback to the vendor.
Correct Answer

A. Communicate his/her feedback to the vendor.

Explanation

The correct answer is to communicate his/her feedback to the vendor. This is the most appropriate action for the buyer to take as it allows them to address the issues directly with the vendor. By providing feedback, the buyer can express their concerns and give the vendor an opportunity to rectify the situation. This approach promotes open communication and gives the vendor a chance to improve their performance. Informing others in the industry, replacing the vendor, or demanding a refund may be considered after attempting to resolve the issue through communication.

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21.

A law is established to ensure that businesses include pricing terms in their advertisements. The law is designed to discourage businesses from practicing ______________________pricing strategies.
- Deceptive
- Inequitable
- Elastic
- Compliant
Correct Answer

A. Deceptive

Explanation

The law is established to discourage businesses from practicing deceptive pricing strategies. This means that businesses are not allowed to use misleading or false pricing information in their advertisements. The purpose of this law is to protect consumers from being deceived and ensure that businesses provide accurate and transparent pricing terms in their advertisements.

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22.

Which of the following is a positive outcome for a business when its salespeople consistently provide excellent customer service as part of the selling process:
- Increased commissions
- Improved quality
- Positive reputation
- Competitive disadvantage
Correct Answer

A. Positive reputation

Explanation

Consistently providing excellent customer service as part of the selling process can lead to a positive reputation for the business. When salespeople go above and beyond to meet customer needs and ensure their satisfaction, it creates a positive image of the business in the minds of customers. This, in turn, can lead to increased customer loyalty, positive word-of-mouth recommendations, and a stronger overall reputation in the market. A positive reputation can attract more customers, improve customer retention, and ultimately drive business growth and success.

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23.

A customer asks a specific product question that a new salesperson cannot answer. What should the new salesperson do?
- Ask an available, experienced employee
- Explain that s/he is new and doesn't know
- Try to serve the customer as best s/he can
- Tell the customer to contact the manufacturer
Correct Answer

A. Ask an available, experienced employee

Explanation

The new salesperson should ask an available, experienced employee for help because they have more knowledge and experience with the products. This will ensure that the customer receives accurate and helpful information.

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24.

Which of the following is a benefit of project planning:
- Setting an appropriate timeframe.
- Asking yourself important questions.
- Coordinating all of the parts of the project.
- Monitoring your project.
Correct Answer

A. Coordinating all of the parts of the project.

Explanation

Coordinating all of the parts of the project is a benefit of project planning because it helps ensure that all tasks and activities are organized and aligned. By coordinating the different parts of the project, project managers can ensure that all team members are on the same page, resources are allocated effectively, and potential conflicts or bottlenecks are identified and addressed. This helps improve efficiency, productivity, and overall project success.

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25.

One of the ways creativity is useful in marketing occupations is in accomplishing ___________________ activities.
- Immediate apparent
- Public relations
- Mathematical
- Routine
Correct Answer

A. Public relations

Explanation

Creativity is useful in marketing occupations in accomplishing public relations activities. Public relations involve building and maintaining a positive image and reputation for a company or brand. Creativity allows marketers to come up with innovative and attention-grabbing strategies to effectively communicate and engage with the public. Creative ideas and approaches can help in creating compelling press releases, organizing events, managing social media presence, and developing impactful advertising campaigns, all of which are crucial in establishing and maintaining a strong public image.

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26.

Technology is important to the product/service management function because it helps a business
- Monitor inventory
- Select advertising
- Finance expansions
- Increase revenue
Correct Answer

A. Monitor inventory

Explanation

Technology is important to the product/service management function because it allows businesses to monitor inventory efficiently. By utilizing technology, businesses can track their inventory levels in real-time, ensuring that they have the right amount of products available to meet customer demand. This helps prevent stockouts and overstock situations, leading to improved customer satisfaction and cost savings. Additionally, technology can provide valuable insights into inventory trends and patterns, enabling businesses to make data-driven decisions regarding purchasing, production, and supply chain management. Overall, technology plays a crucial role in optimizing inventory management and ensuring operational efficiency.

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27.

With the arrival of digital television, many customers have purchased new digital televisions. A marketer reconized that these customers would want to do something with their old TVs. This is an example of
- Opportunity recognition
- Individual development
- The need to purchase related items
- The availability of new information
Correct Answer

A. Opportunity recognition

Explanation

The marketer recognized the opportunity that arises from customers purchasing new digital televisions. They realized that these customers would have a need to do something with their old TVs, which presents a potential market for selling related products or services. This demonstrates the marketer's ability to identify and take advantage of opportunities in the market.

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28.

Businesses often participate in trade shows as a way of communicating with their
- Out-of-town employees
- Target audiences
- Investors
- Sales staff
Correct Answer

A. Target audiences

Explanation

Businesses often participate in trade shows as a way of communicating with their target audiences. Trade shows provide a platform for businesses to showcase their products or services directly to potential customers who are specifically interested in their industry. It allows businesses to interact with their target audience, understand their needs and preferences, and build relationships. Trade shows also offer an opportunity for businesses to generate leads, increase brand awareness, and gain valuable market insights. Therefore, participating in trade shows is an effective strategy for businesses to engage with their target audiences and promote their offerings.

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29.

The most immediate impact of the marketing function is its relation to
- Meeting government regulations for registration.
- Offering a vareity of goods and services.
- Limiting the number of products offered.
- Ensuring least-cost pricing.
Correct Answer

A. Offering a vareity of goods and services.

Explanation

The most immediate impact of the marketing function is offering a variety of goods and services. Marketing is responsible for promoting and advertising products and services to the target audience, creating awareness and generating demand. By offering a variety of goods and services, marketing ensures that the company caters to the diverse needs and preferences of customers, thereby increasing sales and profitability. This also helps in establishing a competitive advantage in the market by providing options and choices to customers, ultimately leading to customer satisfaction and loyalty.

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30.

Critics claim that promotion poses an ethical dilemma because it encourages __________________attitudes in society.
- Responsive
- Inflexible
- Resourceful
- Materialistic
Correct Answer

A. Materialistic

Explanation

Promotion, according to critics, poses an ethical dilemma because it encourages materialistic attitudes in society. This means that the act of promoting products or services often leads to a focus on material possessions and consumerism, rather than values such as personal fulfillment or social responsibility. Critics argue that this emphasis on materialism can have negative consequences for individuals and society as a whole, leading to increased greed, inequality, and environmental degradation.

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31.

What is a spreadsheet software program's calculation for next year's operating expenses based on the following information: an increase of 5% over current sales of $675,500 a year, and 3% increase in operating expenses that are currently 40% of sales.
- $290,456.00
- $304,988.25
- $283,710.00
- $312,326.25
Correct Answer

A. $304,988.25

Explanation

Based on the given information, the calculation for next year's operating expenses can be done as follows:

1. Calculate the increase in sales:
Increase in sales = 5% of $675,500 = $33,775
New sales = $675,500 + $33,775 = $709,275

2. Calculate the increase in operating expenses:
Increase in operating expenses = 3% of 40% of sales = 3% of (0.4 * $709,275) = $8,529.30
New operating expenses = 40% of new sales + increase in operating expenses = 0.4 * $709,275 + $8,529.30 = $304,988.25

Therefore, the spreadsheet software program's calculation for next year's operating expenses is $304,988.25.

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32.

What type of data do descriptive statistics summarize?
- Subjective
- Sample
- Synectic
- Solitary
Correct Answer

A. Sample

Explanation

Descriptive statistics summarize sample data. Descriptive statistics provide a summary of the main characteristics of a sample, such as measures of central tendency (mean, median, mode) and measures of dispersion (range, variance, standard deviation). This allows researchers to understand the distribution and patterns within the sample data, providing insights into the population from which the sample was drawn. Therefore, descriptive statistics are used to summarize and describe the characteristics of a sample, rather than subjective, synectic, or solitary data.

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33.

The way that business benefits directly from promotion is through
- Increased sales
- Better informed consumers
- Decreased competition
- Increased job opportunities
Correct Answer

A. Increased sales

Explanation

Promotion plays a crucial role in increasing sales for a business. By effectively promoting their products or services, businesses can attract more customers, generate interest, and ultimately drive more sales. Promotional activities such as advertising, discounts, and marketing campaigns can create awareness and persuade consumers to make a purchase. As a result, increased sales directly contribute to the success and profitability of a business.

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34.

One of the ways that salespeople can use selling to create desire for products is by
- Using product demonstrations
- Emphasizing high cost of a product
- Making a good impression
- monitoring the competition
Correct Answer

A. Using product demonstrations

Explanation

Product demonstrations are an effective way for salespeople to create desire for products because they allow potential customers to see the product in action and experience its benefits firsthand. By showcasing the features and capabilities of the product, salespeople can highlight its value and convince customers of its usefulness. This visual and interactive approach can be persuasive in generating interest and desire, ultimately leading to increased sales.

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35.

Which of the following should a business deduct from gross profit in order to arrive at a net profit:
- Operating expenses
- Quantity discounts
- Product rebates
- Cost of goods
Correct Answer

A. Operating expenses

Explanation

Operating expenses should be deducted from gross profit in order to arrive at a net profit. Operating expenses include all the costs incurred by a business in its day-to-day operations, such as rent, utilities, salaries, advertising, and office supplies. These expenses are necessary for running the business and generating revenue. By deducting operating expenses from gross profit, the business can determine its net profit, which is the final amount of money it has earned after accounting for all expenses. Quantity discounts, product rebates, and cost of goods are not deducted from gross profit to calculate net profit.

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36.

Harrison Stroller Company manufactures baby strollers. The business launched a new stroller line in hopes of increasing its market share. The new model featured neon, plastic, musical toys on the front bar of the stroller. By the middle of the first year, there were 50 reports of infant injuries. What legal action will Harrison Stroller Company have to face?
- Consumer Product Safety Act
- Product deletion
- Consumer protection
- Product liability
Correct Answer

A. Product liability

Explanation

Harrison Stroller Company will have to face legal action related to product liability. This is because there were 50 reports of infant injuries associated with their new stroller line. Product liability refers to the legal responsibility of a manufacturer or seller for any injuries or damages caused by their product. In this case, the company may be held liable for the injuries caused to infants due to the design or manufacturing defects of their strollers. They may have to compensate the affected consumers and take corrective measures to ensure the safety of their products.

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37.

If you were trying to convince someone to use quantitative sales forecasting, which of the following factors would you stress:
- Minimal cost
- Vareity of opinions
- Factual basis
- Ease with which findings are understood
Correct Answer

A. Factual basis

Explanation

When trying to convince someone to use quantitative sales forecasting, stressing the factual basis would be the most effective factor. Quantitative sales forecasting relies on data and numbers to make predictions, which provides a solid and objective foundation for decision-making. By emphasizing the factual basis, you can highlight the reliability and accuracy of this approach, making it more convincing and trustworthy.

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38.

Which of the following is a trend in information management
- Increased compliance laws and regulations
- Decreased competition
- Decreased number of electronic documents
- Increased number of workers in the office
Correct Answer

A. Increased compliance laws and regulations

Explanation

A trend in information management is the increased compliance laws and regulations. This means that there is a growing emphasis on organizations to adhere to specific laws and regulations regarding the management and protection of information. This trend is driven by factors such as the need to protect sensitive data, prevent data breaches, and ensure privacy. As a result, organizations are required to implement robust information management systems and processes to meet these compliance requirements.

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39.

What approach to record keeping is Dahlia's business using when it hires a data processing center to handle the record keeping for its accounting information?
- Keeping the records personally
- Establishing a department
- Hiring an employee
- Outsourcing the task
Correct Answer

A. Outsourcing the task

Explanation

Dahlia's business is using the approach of outsourcing the task of record keeping for its accounting information. This means that instead of keeping the records personally, establishing a department, or hiring an employee, Dahlia's business has chosen to hire a data processing center to handle the record keeping. By outsourcing the task, the business can delegate the responsibility to a specialized third-party organization, which can potentially provide more efficient and cost-effective record keeping services.

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40.

Effective product promotions can be used by businesses to
- Achieve immediate success for the businesses.
- Make consumers purchase goods or services.
- Substitute for talented, well-trained salespeople.
- Persuade consumers to buy goods or services.
Correct Answer

A. Persuade consumers to buy goods or services.

Explanation

Effective product promotions are a powerful tool for businesses to persuade consumers to buy goods or services. Promotions utilize various marketing strategies such as discounts, limited-time offers, or compelling advertisements to capture the attention and interest of potential customers. By highlighting the benefits, features, or unique selling points of a product or service, promotions aim to convince consumers that purchasing the offering will meet their needs or desires. Ultimately, the goal is to influence consumer behavior and drive sales, making persuasive promotions an essential aspect of marketing and business success.

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41.

One of the major functions of business maintenance is to
- Keep the business spotlessly clean.
- Createa favorable impression.
- Protect products from damage.
- Present products effectively.
Correct Answer

A. Createa favorable impression.

Explanation

The correct answer is "create a favorable impression." One of the major functions of business maintenance is to ensure that the business portrays a positive image to its customers and stakeholders. By keeping the business spotlessly clean, presenting products effectively, and protecting products from damage, the business can create a favorable impression that will attract customers and build trust.

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42.

Individuals often succeed in occupations that require the skills that match their
- Values
- Aptitudes
- Behaviors
- Attitudes
Correct Answer

A. Aptitudes

Explanation

Aptitudes refer to a person's natural abilities or talents in a specific area. When individuals have aptitudes that align with the requirements of a particular occupation, they are more likely to succeed in that field. This is because their natural abilities make it easier for them to acquire and apply the necessary skills, leading to better performance and outcomes. Therefore, the correct answer suggests that individuals are more likely to succeed in occupations that require the skills that match their innate aptitudes.

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43.

When a government requires a business to inform consumers about its product's limitations in its promotional materials, it is often referred to as
- Affirmative disclosure
- Ethical verification
- Honorable verification
- Assenting disclosure
Correct Answer

A. Affirmative disclosure

Explanation

Affirmative disclosure refers to the government's requirement for businesses to inform consumers about the limitations of their products in promotional materials. This ensures transparency and allows consumers to make informed decisions. It is an ethical practice that promotes consumer protection and prevents misleading advertising. Honorable verification and ethical verification are not commonly used terms in this context, and assenting disclosure is not a recognized term.

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44.

How do antitrust laws that prevent the formation of monopolies and promote competition affect businesses?
- Require extensive reporting to government
- Make certain selling activities illegal
- Establish a formal code of ethics
- Create a standard for employee rights
Correct Answer

A. Make certain selling activities illegal

Explanation

Antitrust laws that prevent the formation of monopolies and promote competition affect businesses by making certain selling activities illegal. These laws aim to ensure fair competition in the market by prohibiting practices such as price fixing, collusion, and predatory pricing. By making these activities illegal, antitrust laws create a level playing field for businesses, preventing dominant companies from unfairly stifling competition and allowing smaller businesses to thrive. This promotes a healthy and competitive business environment that benefits consumers and encourages innovation.

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45.

What type of promotional media might a chain of businesses use in order ot reach a large number of potential customers in a particular state or province?
- Regional magazines
- Suburban radio stations
- National television
- Transit advertising
Correct Answer

A. Regional magazines

Explanation

A chain of businesses might use regional magazines as a type of promotional media to reach a large number of potential customers in a particular state or province. Regional magazines typically have a wide readership within a specific geographic area, making them an effective tool for targeting customers in a specific location. By advertising in these magazines, the chain of businesses can effectively reach a large number of potential customers who are likely to be interested in their products or services.

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46.

An example of a lead that a salesperson might obtain from its sources within his/her own company is a lead
- Obtained from an industry trade show
- Obtained at a service club meeting
- Received from a personal friend
- Found through cold canvassing
Correct Answer

A. Obtained from an industry trade show

Explanation

A salesperson can obtain a lead from an industry trade show by networking and connecting with potential customers or clients who are attending the trade show. Trade shows often attract individuals and businesses from the same industry, making it a valuable source for leads. The salesperson can gather contact information, discuss their products or services, and follow up with these leads to convert them into customers. This type of lead is valuable as it is obtained through direct interaction with individuals who have shown interest in the industry and may have a higher likelihood of converting into a sale.

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47.

Why is it important to coordinate the elements in advertisements?
- To identify the message
- To analyze the objective
- To strengthen the theme
- To locate the audience
Correct Answer

A. To strengthen the theme

Explanation

Coordinating the elements in advertisements is important to strengthen the theme. When all the elements such as visuals, text, colors, and design are aligned with the theme, it creates a cohesive and impactful message. This helps in effectively communicating the intended message to the audience and reinforcing the overall theme of the advertisement. By coordinating the elements, the advertisement becomes more visually appealing, memorable, and persuasive, ultimately increasing its effectiveness in reaching and resonating with the target audience.

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48.

An important external factor that affects the type of promotional plan a business develops is the business
- Competition
- Image
- Available budget
- Sales objectives
Correct Answer

A. Competition

Explanation

Competition is an important external factor that affects the type of promotional plan a business develops. The level of competition in the market determines the strategies and tactics that a business needs to employ to stand out and attract customers. If the competition is intense, the business may need to invest more in advertising, discounts, or other promotional activities to differentiate itself. On the other hand, if the competition is low, the business may have more flexibility in choosing its promotional approach. Understanding the competitive landscape is crucial for businesses to develop an effective promotional plan.

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49.

Which of the following is a communications channel used in sales promotion:
- Discount coupons
- Package labels
- Newspaper ads
- Television commercials
Correct Answer

A. Discount coupons

Explanation

Discount coupons are a communications channel used in sales promotion because they are a form of incentive that encourages consumers to make a purchase. By offering discounts on products or services, companies can attract customers, increase sales, and promote brand loyalty. Discount coupons can be distributed through various channels, such as mail, newspapers, magazines, online platforms, or directly at the point of sale. They provide a tangible benefit to consumers, making them an effective tool for promoting products and driving sales.

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