FINAL EXAM PRINCIPLES OF BUSINESS
ADMINISTRATION QUESTIONS AND
ANSWERS
/. Customers are not all the same and shall be divided into homogeneous groups called:
a. Families
b. Segment
c. Class
d. Sector - Answer-✅b. Segment
/.A strategy designed to supply a product/service that customer perceives as being
different in ways that are not relevant to them
a. Quality
b. Advantage
c. Differentiation
d. Planning - Answer-✅c. Differentiation
/.Differentiation shall not be
a. Significant
b. Distinctive
c. Superior
d. Unprofitable - Answer-✅d. Unprofitable
/.What strategy shall you avoid?
a. Higher price for more benefit
b. More benefits for the same price
c. Same price for the same benefit
d. The Same benefit for a higher price - Answer-✅d. The Same benefit for a higher
price
/.Your value proposition shall not:
a. Focus on what matters to the customer
b. Be easy to copy
c. Outperform the competition on at least one dimension
d. Differentiate from competition - Answer-✅b. Be easy to copy
, /.A unique selling proposition is:
a. what we do better than other competitors and customers want. - Answer-✅a. what
we do better than other competitors and customers want.
/.What are the 4 p's:
a. Product, purpose, place, promotion
b. Product, price, persons, promotion
c. Product, price, place, promotion
d. Product, price, place, profit - Answer-✅c. Product, price, place, promotion
/.What is the 15% rule at 3M:
a. 3Mspend 15% of its turnover on marketing expenses
b. 3M employees are encouraged to spend 15% of their time on developing new
projects
c. 3M employees are paid 15% of the profit generated by new products
d. 15% of the product portfolio is less than 5 years old - Answer-✅b. 3M employees are
encouraged to spend 15% of their time on developing new projects
/.Introduction, Growth, Maturity, and Decline define:
a. Branding process
b. Product Life cycle
c. Service business model
d. Marketing strategy - Answer-✅b. Product Life cycle
/.Please indicate the wrong description of the services:
a. Intangible
b. Variable
c. Can be stocked
d. Cannot be separated from the supplier - Answer-✅c. Can be stocked
/.The Break-even point is when:
a. Incomes become higher than fixed costs
b. Income equal variable + Fixed costs
c. Fixed costs are higher than variables costs
d. Variable costs equal incomes + fixed costs - Answer-✅b. Income equal variable +
Fixed costs
/.An oligopolistic market is when:
a. A limited number of suppliers dominate a market
b. There is only one supplier (normally a publicly owned company)
ADMINISTRATION QUESTIONS AND
ANSWERS
/. Customers are not all the same and shall be divided into homogeneous groups called:
a. Families
b. Segment
c. Class
d. Sector - Answer-✅b. Segment
/.A strategy designed to supply a product/service that customer perceives as being
different in ways that are not relevant to them
a. Quality
b. Advantage
c. Differentiation
d. Planning - Answer-✅c. Differentiation
/.Differentiation shall not be
a. Significant
b. Distinctive
c. Superior
d. Unprofitable - Answer-✅d. Unprofitable
/.What strategy shall you avoid?
a. Higher price for more benefit
b. More benefits for the same price
c. Same price for the same benefit
d. The Same benefit for a higher price - Answer-✅d. The Same benefit for a higher
price
/.Your value proposition shall not:
a. Focus on what matters to the customer
b. Be easy to copy
c. Outperform the competition on at least one dimension
d. Differentiate from competition - Answer-✅b. Be easy to copy
, /.A unique selling proposition is:
a. what we do better than other competitors and customers want. - Answer-✅a. what
we do better than other competitors and customers want.
/.What are the 4 p's:
a. Product, purpose, place, promotion
b. Product, price, persons, promotion
c. Product, price, place, promotion
d. Product, price, place, profit - Answer-✅c. Product, price, place, promotion
/.What is the 15% rule at 3M:
a. 3Mspend 15% of its turnover on marketing expenses
b. 3M employees are encouraged to spend 15% of their time on developing new
projects
c. 3M employees are paid 15% of the profit generated by new products
d. 15% of the product portfolio is less than 5 years old - Answer-✅b. 3M employees are
encouraged to spend 15% of their time on developing new projects
/.Introduction, Growth, Maturity, and Decline define:
a. Branding process
b. Product Life cycle
c. Service business model
d. Marketing strategy - Answer-✅b. Product Life cycle
/.Please indicate the wrong description of the services:
a. Intangible
b. Variable
c. Can be stocked
d. Cannot be separated from the supplier - Answer-✅c. Can be stocked
/.The Break-even point is when:
a. Incomes become higher than fixed costs
b. Income equal variable + Fixed costs
c. Fixed costs are higher than variables costs
d. Variable costs equal incomes + fixed costs - Answer-✅b. Income equal variable +
Fixed costs
/.An oligopolistic market is when:
a. A limited number of suppliers dominate a market
b. There is only one supplier (normally a publicly owned company)
