TEST BANK FOR PRODUCT MANAGEMENT
Multiple Choices:
1. A business that effectively coordinates channel management with marketing activities ismore
likely to provide
A. good customer service.
B. attractive product displays.
C. free delivery.
D. flexible credit terms.
2. Which of the following types of business organizations reduces or limits the risk of its
stockholders:
A. Franchise
B. Sole proprietorship
C. Corporation
D. Partnership
3. Which of the following would probably use a longer channel of distribution than theothers:
A. A bag of oranges
B. A printing press
C. An airplane
D. A bottle of shampoo
4. Electronic billing, purchase-order verification, bar-code technology, and image
processing are examples of
A. functions of the finance department.
B. horizontal channel integration.
C. integrated data between channel members.
D. vertical channel integration.
5. When filing a tort against a business, the plaintiff must establish that the defendant
A. violated the doctrine of sovereign immunity.
B. damaged property intentionally.
C. conspired with a competitor.
D. breached the duty of care.
6. A producer can minimize channel conflict among its distributors and retailers by
A. selling its items directly to the end users.
B. offering different products through each channel.
C. establishing slotting fees for certain channels.
D. requesting that the channel members carry only its brand.
,7. What is an advantage of verbal communication?
A. You use passive listening skills to understand the message.
B. Tone of voice can be used to express emotions and thoughts.
C. It focuses attention on facial expressions rather than words to express enthusiasm.
D. People must see you to understand the intent of your message.
8. When Amber walked by Ryan's desk, she noticed that Ryan was raking his left hand through his
hair, that his face was red, and that he kept hitting the enter button on his keyboardwith his right hand,
while frowning at his computer screen. Based on his nonverbal cues, Amberwould probably assume that
Ryan was
A. patient.
B. frustrated.
C. bored.
D. enthusiastic.
9. You're giving directions to a group of coworkers, and you want to be sure they do exactlywhat
you say. You should
A. raise your voice.
B. give directions in the proper order.
C. make the directions challenging.
D. demonstrate the final steps of the directions.
10. It is most appropriate for businesspeople to use complex, technical jargon when they are
A. speaking with coworkers.
B. greeting new customers.
C. introducing a friend to a business associate.
D. informally conversing with an acquaintance.
11. The human resources manager sends an email to all employees stating that they will need to
park on the street on Tuesday because the maintenance department will be repairingthe company's
parking lot. This is an example of a(n)
A. informational message.
B. projection report.
C. business proposal.
D. formal inquiry.
12. A memorandum is typically used for communication that takes place
A. within a business.
B. among competitors.
C. infrequently.
D. between friends.
13. Jayson just learned his company wants to hire a new public relations assistant. He posts
,the job position information on his personal social media accounts and gives contact informationfor the
manager that will be conducting interviews. Why is this inappropriate use of social media?
A. It could give Jayson's friends an unfair advantage over other job candidates.
B. It is unprofessional to post company employment information on a personal site.
C. Jayson is using inside knowledge to appear more important on his social sites.
D. Jayson is using his company's image to increase his number of social contacts.
14. Which of the following is a common product-related complaint:
A. Pressure selling
B. Reduced price
C. Poor service
D. Incorrect size
15. Two similar brand promises may be carried out differently depending on their
A. business environments.
B. types of packaging.
C. logos.
D. slogans.
16. A company decides to spend $5,000 on new office furniture instead of putting thatmoney
toward the marketing budget. What is the opportunity cost of this decision?
A. Lost benefits of additional marketing
B. Office furniture
C. $5,000
D. Lost benefits of new furniture
17. Businesses that carry a considerable assortment of goods but only one or a few relatedproduct
lines are businesses.
A. specialty
B. discount
C. service
D. limited-line
18. Which of the following is a true statement about how technology affects the external
business environment:
A. Technology is the main way to compete with other businesses.
B. Not all businesses are affected by technology.
C. Businesses must look for updated technology all the time.
D. Certain target markets do not use technological products.
19. Business ethics involve considering issues about what is
, A. legal and illegal.
B. right and wrong.
C. safe and unsafe.
D. positive and negative.
20. Legal protection of an invention or a process granted by the government to its owners fora certain
number of years is a
A. license.
B. copyright.
C. patent.
D. trademark.
21. A depression is characterized by which of the following:
A. Fewer bankruptcies
B. Increased consumer spending
C. Rapidly rising GDP
D. High unemployment
22. Interest rates rising and falling by a wide range on a regular basis often are an indicationof
A. price equilibrium.
B. seasonal unemployment.
C. flexible capital.
D. economic instability.
23. George thinks his culture is superior to all other cultures. This is known as
A. collectivism.
B. ethnocentrism.
C. stereotyping.
D. individualism.
24. When your level of self-esteem is low, this causes you to have
A. confidence in your ability.
B. difficulty with visualization.
C. doubts about yourself.
D. appreciation of life.
25. Thinking of a time when you were happy and proud can help you
A. find gaps between your behavior and values.
B. avoid activities that do not make you happy.
C. determine what values made you feel that way.
D. accept others' feedback regarding your values.
26. Adhering to an established set of personal ethics is referred to as
Multiple Choices:
1. A business that effectively coordinates channel management with marketing activities ismore
likely to provide
A. good customer service.
B. attractive product displays.
C. free delivery.
D. flexible credit terms.
2. Which of the following types of business organizations reduces or limits the risk of its
stockholders:
A. Franchise
B. Sole proprietorship
C. Corporation
D. Partnership
3. Which of the following would probably use a longer channel of distribution than theothers:
A. A bag of oranges
B. A printing press
C. An airplane
D. A bottle of shampoo
4. Electronic billing, purchase-order verification, bar-code technology, and image
processing are examples of
A. functions of the finance department.
B. horizontal channel integration.
C. integrated data between channel members.
D. vertical channel integration.
5. When filing a tort against a business, the plaintiff must establish that the defendant
A. violated the doctrine of sovereign immunity.
B. damaged property intentionally.
C. conspired with a competitor.
D. breached the duty of care.
6. A producer can minimize channel conflict among its distributors and retailers by
A. selling its items directly to the end users.
B. offering different products through each channel.
C. establishing slotting fees for certain channels.
D. requesting that the channel members carry only its brand.
,7. What is an advantage of verbal communication?
A. You use passive listening skills to understand the message.
B. Tone of voice can be used to express emotions and thoughts.
C. It focuses attention on facial expressions rather than words to express enthusiasm.
D. People must see you to understand the intent of your message.
8. When Amber walked by Ryan's desk, she noticed that Ryan was raking his left hand through his
hair, that his face was red, and that he kept hitting the enter button on his keyboardwith his right hand,
while frowning at his computer screen. Based on his nonverbal cues, Amberwould probably assume that
Ryan was
A. patient.
B. frustrated.
C. bored.
D. enthusiastic.
9. You're giving directions to a group of coworkers, and you want to be sure they do exactlywhat
you say. You should
A. raise your voice.
B. give directions in the proper order.
C. make the directions challenging.
D. demonstrate the final steps of the directions.
10. It is most appropriate for businesspeople to use complex, technical jargon when they are
A. speaking with coworkers.
B. greeting new customers.
C. introducing a friend to a business associate.
D. informally conversing with an acquaintance.
11. The human resources manager sends an email to all employees stating that they will need to
park on the street on Tuesday because the maintenance department will be repairingthe company's
parking lot. This is an example of a(n)
A. informational message.
B. projection report.
C. business proposal.
D. formal inquiry.
12. A memorandum is typically used for communication that takes place
A. within a business.
B. among competitors.
C. infrequently.
D. between friends.
13. Jayson just learned his company wants to hire a new public relations assistant. He posts
,the job position information on his personal social media accounts and gives contact informationfor the
manager that will be conducting interviews. Why is this inappropriate use of social media?
A. It could give Jayson's friends an unfair advantage over other job candidates.
B. It is unprofessional to post company employment information on a personal site.
C. Jayson is using inside knowledge to appear more important on his social sites.
D. Jayson is using his company's image to increase his number of social contacts.
14. Which of the following is a common product-related complaint:
A. Pressure selling
B. Reduced price
C. Poor service
D. Incorrect size
15. Two similar brand promises may be carried out differently depending on their
A. business environments.
B. types of packaging.
C. logos.
D. slogans.
16. A company decides to spend $5,000 on new office furniture instead of putting thatmoney
toward the marketing budget. What is the opportunity cost of this decision?
A. Lost benefits of additional marketing
B. Office furniture
C. $5,000
D. Lost benefits of new furniture
17. Businesses that carry a considerable assortment of goods but only one or a few relatedproduct
lines are businesses.
A. specialty
B. discount
C. service
D. limited-line
18. Which of the following is a true statement about how technology affects the external
business environment:
A. Technology is the main way to compete with other businesses.
B. Not all businesses are affected by technology.
C. Businesses must look for updated technology all the time.
D. Certain target markets do not use technological products.
19. Business ethics involve considering issues about what is
, A. legal and illegal.
B. right and wrong.
C. safe and unsafe.
D. positive and negative.
20. Legal protection of an invention or a process granted by the government to its owners fora certain
number of years is a
A. license.
B. copyright.
C. patent.
D. trademark.
21. A depression is characterized by which of the following:
A. Fewer bankruptcies
B. Increased consumer spending
C. Rapidly rising GDP
D. High unemployment
22. Interest rates rising and falling by a wide range on a regular basis often are an indicationof
A. price equilibrium.
B. seasonal unemployment.
C. flexible capital.
D. economic instability.
23. George thinks his culture is superior to all other cultures. This is known as
A. collectivism.
B. ethnocentrism.
C. stereotyping.
D. individualism.
24. When your level of self-esteem is low, this causes you to have
A. confidence in your ability.
B. difficulty with visualization.
C. doubts about yourself.
D. appreciation of life.
25. Thinking of a time when you were happy and proud can help you
A. find gaps between your behavior and values.
B. avoid activities that do not make you happy.
C. determine what values made you feel that way.
D. accept others' feedback regarding your values.
26. Adhering to an established set of personal ethics is referred to as
