Multiple Choice Quiz


1	Which of the following are variables of the external market environment?
		A)	Economic and Technological environment
		B)	Political and legal environment
		C)	Cultural and social environment
		D)	All of the above


2	A mission statement can be used as a substitute for specific objectives that provide guidance in screening possible opportunities.
		A)	True
		B)	False


3	Which of the following is NOT a basic kind of market (competitive) situation?
		A)	Monopolistic competition
		B)	Monopoly
		C)	Oligopoly
		D)	Simplistic competition


4	An organized approach for evaluating the strengths and weaknesses of current or potential competitor's marketing strategies is called ______________________.
		A)	Competitive rivals
		B)	Competitor analysis
		C)	Target market analysis
		D)	Competitive barrier


5	Firms with a strong sentiment of nationalism place their emphasis on a country's interests before everything else.
		A)	True
		B)	False


6	In 1962, President Kennedy promoted the "Consumer Bill of Rights" which affirmed consumers' rights to ___________________.
		A)	Safety
		B)	Information
		C)	Choice
		D)	All of the above


7	Businesses, but not individual managers, are subject to both criminal and civil laws.
		A)	True
		B)	False


8	The Sherman Act (1890) prohibits _____________________.
		A)	Price discrimination by manufacturers
		B)	Deceptive pricing
		C)	Monopoly or conspiracy to fix or control prices
		D)	Quantity discounts


9	The ______________ enforces laws and develops guidelines regarding unfair methods of competition.
		A)	Food and Drug Administration (FDA)
		B)	Consumer Product Safety Commission (CPSC)
		C)	Office of Consumer Affairs (OCA)
		D)	Federal Trade Commission (FTC)


10	A Strategic Business Unit (SBU) is an organizational unit within a governmental agency that focuses on regulating specific areas of business.
		A)	True
		B)	False


11	Three basic business objectives that serve as guides for a firm's objectives include all of the following EXCEPT:
		A)	Engage in specific activities that will perform socially and economically useful functions.
		B)	Develop an organization to carry on business and implement its strategies.
		C)	Identify all of the firm's competitors according to their strengths and weaknesses.
		D)	Earn enough profit to survive.


12	When the dollar is strong, in terms of exchange rates, it makes U.S. products less expensive overseas and foreign products more expensive in the United States.
		A)	True
		B)	False


13	The application of science to convert an economy's resources to output is called ____________________:
		A)	Mass production
		B)	Product development
		C)	Technology
		D)	Industrialism


14	The Magnuson-Moss Act of 1975 focuses on which of the "Four Ps"?
		A)	Product
		B)	Place
		C)	Promotion
		D)	Price


15	The Consumer Product Safety Commission, set up by the Consumer Product Safety Act of 1972, has the power to force a product off the market -or to require expensive recalls to correct problems.
		A)	True
		B)	False


16	The saying "Let the _____________ beware" is appropriate in today's business environment.
		A)	Buyer
		B)	Seller
		C)	Manager
		D)	All of the above


17	Product-market screening criteria include ___________________.
		A)	Only quantitative components
		B)	Only qualitative components
		C)	Both quantitative and qualitative components
		D)	None of the above

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