Business Administration
Chapter Exam Questions
Course Introduction
Business Administration is a comprehensive course that equips students with foundational knowledge and practical skills necessary to manage, operate, and lead organizations across a variety of industries. The course covers essential business disciplines such as management, finance, marketing, operations, and human resources, emphasizing strategic decision-making and problem-solving in a business context. Students will learn about organizational structures, leadership theories, business ethics, and the impact of global and technological trends on modern enterprises. Through case studies, group projects, and interactive discussions, students develop analytical thinking, effective communication, and leadership abilities essential for successful careers in business management.
Recommended Textbook
Contemporary Marketing 16th Edition by
Louis E. Boone
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Page 2
Chapter 1: Marketing: The Art and Science of Satisfying Customers
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Q1) The Tour de Cure is a bicycle ride,not a race,to raise money for the American Diabetes Association and is held in 40 states nationwide. This is an example of:
A) event marketing.
B) organization marketing.
C) person marketing.
D) place marketing.
Answer: A
Q2) An organization creates a customer through a three-step approach: identifying needs in the marketplace,finding out which needs the organization can profitably serve,and developing goods and services to convert potential buyers into customers.
A)True
B)False
Answer: True
Q3) Wesley Pvt.Ltd.,can avoid marketing myopia by finding innovative ways to reach new markets with existing goods and services.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Strategic Planning in Contemporary Marketing
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Sample Questions
Q1) Each SBU pursues its own distinct mission and often develops its own plans independently.
A)True
B)False
Answer: True
Q2) The marketing mix decisions which are closely regulated and subject to public scrutiny usually relate to a company's _____ strategy.
A) short-term
B) resource
C) distribution
D) pricing
Answer: D
Q3) A SWOT analysis is designed to reveal,among other things,a firm's core competencies,which reflect its:
A) threats.
B) strengths.
C) opportunities.
D) vulnerabilities.
Answer: B
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Chapter 3: The Marketing Environment, Ethics, and Social Responsibility
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Q1) News reports from Zimbabwe indicate that a small pack of locally produced coffee beans costs approximately 1 billion Zimbabwean dollars,an amount that would have bought 60 new cars less than ten years ago in the same country.It can be surmised that Zimbabwe is experiencing extremely high levels of _____ which has spiraled out of control in the past ten years.
A) growth
B) stagflation
C) deflation
D) inflation
Answer: D
Q2) The Federal Food and Drug Act was designed to maintain a competitive environment in the food and drug industries.
A)True
B)False
Answer: False
Q3) Despite its many advantages,technology can seldom address social concerns.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Social Media: Living in the Connected World
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Q1) Who among the following is responsible for online public relations and management of the brand over social media sites?
A) An online community manager
B) A social media analytic
C) A brand analyst
D) A brand manager
Q2) Marketing efforts aimed at creating brand awareness will have a broader target audience compared to those aimed at strengthening relationships with existing customers.
A)True
B)False
Q3) The goal of content marketing is to drive the target audience toward a desired action.
A)True
B)False
Q4) QR codes can be scanned only with the help of a dedicated QR code reader.
A)True
B)False
Q5) Differentiate between social media platforms and social media tools.
Q6) Outline some tips for landing a job in social media marketing.
Page 6
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Chapter 5: E-Business: Managing the Customer Experience
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Q1) Companies can improve their positioning on the search list of search engines by paying a particular fee.
A)True
B)False
Q2) _____ is a technology that secures a website by encrypting information and providing authentication.
A) SMTP
B) HTTP
C) SSL
D) TCP/IP
Q3) In the early stages of B2B transactions,marketers believed that online trading was limited to only a few types of products.
A)True
B)False
Q4) Firewalls used by companies to prevent unauthorized users from tapping into private corporate data are impenetrable.
A)True
B)False
Q5) What benefits do B2C e-marketing efforts have to offer to consumers?
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Chapter 6: Consumer Behavior
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Q1) Joining a local bowling league for social interaction is an attempt to meet _____ needs.
A) self-actualization
B) belongingness
C) physiological
D) safety
Q2) Neuromarketing is defined as:
A) using the Internet to view products on informational websites.
B) selling products solely through the brick and mortar stores.
C) eliciting emotions to motivate people toward a purchase.
D) using data analysis techniques to project consumption data.
Q3) The understanding of the consumer decision process can be used by marketers to change consumers' attitudes about their products.
A)True
B)False
Q4) Brand loyalty is valued by marketers as it not only ensures that the consumer purchases the product but it also acts as a buffer against competitive messages getting to the consumer.
A)True
B)False
Page 8
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Chapter 7: Business-to-Business (B2B)Marketing
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Q1) Outsourcing and offshoring have the potential to slow a company's efforts in bringing new products to market.
A)True
B)False
Q2) Which of the following statements is true regarding the nature of the business market?
A) Distribution channels for business products are significantly longer than those for consumer products.
B) As compared to business markets, customer relationships in consumer markets tend to last for longer duration.
C) Personal selling plays a bigger role in business markets than in consumer markets.
D) As compared to consumer markets, purchase decisions in business markets are relatively simple because of relatively less number of decision makers.
Q3) If Product A is used primarily to manufacture Product B,then the demand for product A is said to be "derived" from the demand for Product B.
A)True B)False
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Chapter 8: Global Marketing
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Sample Questions
Q1) What is a multinational corporation? How have these organizations evolved?
Q2) The World Trade Organization oversees GATT agreements,serves as a forum for trade negotiations,and mediates trade disputes.
A)True
B)False
Q3) The product invention strategy helps a firm take advantage of unique foreign market opportunities.
A)True
B)False
Q4) ISO 9000 standards of the International Organization for Standardization sets requirements for:
A) quality in goods and services.
B) production operations.
C) worker compensation.
D) operations that minimize harm to the environment.
Q5) The recently ratified Treaty of Lisbon enables the EU to enter into international agreements as a political entity.
A)True
B)False
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Chapter 9: Market Segmentation, Targeting, and Positioning
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Q1) Which of the following is a psychographic category created by the VALS system that categorizes consumers by characteristics that correlate with purchase behavior?
A) Altruists
B) Achievers
C) Intimates
D) Devouts
Q2) The first stage in the market segmentation process,after identifying promising segments,is to produce a forecast of market potential within each segment.
A)True
B)False
Q3) The market segmentation that is based on the stages of the family lifecycle is a form of demographic segmentation.
A)True
B)False
Q4) The group born between 1968 and 1979,now generally in their early 30s to early 40s are referred to as Generation Y.
A)True
B)False
Page 11
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Chapter 10: Marketing Research and Sales Forecasting
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Q1) In which of the following nonprobability samples,the participants that are to be included in the study are handpicked by the researchers?
A) Cluster sample
B) Quota Sample
C) Stratified sample
D) Simple random sample
Q2) The choice between secondary and primary data is tied to cost,applicability,and effectiveness.
A)True
B)False
Q3) How has the marketing research function developed in the recent years?
Q4) Douglas Knowles & Howe,a marketing research firm,contracts with clients to conduct complete marketing research projects,including telephone and online interviews.DK&H is a _____.
A) syndicated service
B) limited service
C) full-service research supplier
D) customer relationship management firm
Q5) Describe the process of exploratory research.
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Chapter 11: Relationship Marketing and Customer Relationship Management (CRM)
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Q1) In the context of the relationship marketing continuum,the primary bond created by a second-level relationship marketing program is usually _____ in nature.
A) social
B) financial
C) structural
D) notional
Q2) A strategic alliance can be formed only between those firms that serve the same industry.
A)True
B)False
Q3) One of the motives that prompt firms to enter into partnerships is:
A) creating longer distribution channels.
B) raising barriers to entry.
C) promoting the use of technology to facilitate customer orientation.
D) avoiding vertical and horizontal integration.
Q4) What are the different methods employed by marketers to obtain customer feedback?
Q5) Identify the four types of B2B partnerships.
Q6) How can firms build customer loyalty?
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Chapter 12: Product and Service Strategies
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Q1) Marketers typically measure product mixes according to width,length,and depth.
A)True
B)False
Q2) Fad cycles are examples of traditional product lifecycles.
A)True
B)False
Q3) Sound systems,batteries,and tires that are included in the manufacturing of a car are examples of:
A) installations.
B) accessory equipment.
C) component parts and materials.
D) supplies.
Q4) Zara Inc.,a well-known cosmetics manufacturer,introduced its anti-wrinkle cream in the Asian market after its sales in the European market leveled out due to stiff competition from rival products.This is an attempt to extend product lifecycle by:
A) increasing the frequency of use.
B) increasing the number of users.
C) finding new uses.
D) changing product quality.
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Chapter 13: Developing and Managing Brand and Product Categories
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Q1) The term _____ is used by marketers to refer to the visual components that contribute to the overall look of a brand.
A) water mark
B) brand token
C) service mark
D) trade dress
Q2) Which of the following is a method for subjecting a product idea to additional study before actual development by involving consumers through focus groups,surveys,in-store polling,and similar strategies?
A) Line extension
B) Brainstorming
C) Sample distribution
D) Concept testing
Q3) The market shares for generic products increase during economic downturns but subside when the economy improves.
A)True
B)False
Q4) Differentiate between a manufacturer's brand and a private brand.Give examples for each.
Page 15
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Chapter 14: Marketing Channels and Supply Chain Management
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Q1) An arrangement that requires a marketing intermediary to carry items other than those they want to sell is known as a(n)_____.
A) contractual collusion
B) tying agreement
C) closed sales territorial restriction
D) exclusive dealership agreement
Q2) Which of the following is a condition that results when individual operations achieve their objectives but interfere with progress toward broader organizational goals?
A) Optimism bias
B) Suboptimization
C) Framing problem
D) Horizontal conflict
Q3) Describe the factors that influence a firm's choice of a marketing channel strategy.
Q4) Lands' End products are sold through catalogs,the Internet,and Sears retail stores.The Lands' End brand practices dual distribution.
A)True
B)False
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Chapter 15: Retailers, Wholesalers,
and Direct Marketers
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Q1) Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.
A)True
B)False
Q2) Direct-response retailing does not include home shopping that sells merchandise through telephone orders.
A)True
B)False
Q3) Through direct selling,manufacturers completely bypass retailers and wholesalers and set up their own channels to sell their products directly to consumers.
A)True
B)False
Q4) A manufacturer's representative can work only for a single manufacturer.
A)True
B)False
Q5) The term "atmospherics" exclusively refers to the interior décor of a store.
A)True
B)False
Q6) Discuss the pricing strategies used by retailers to attract consumers.
Page 17
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Chapter 16: Integrated Marketing Communications,
Advertising, and Public Relations
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Q1) In sponsored events,event organizers control the coverage,which typically focuses on the sponsor.
A)True
B)False
Q2) Which of the following is a disadvantage of using television as an advertising medium?
A) Ineffective impact of the promotional message on viewers
B) Loss of control of the promotional message to the telecaster
C) Inability to attain mass coverage
D) Inability to repeat messages
Q3) An IMC strategy sends product-focused messages.
A)True
B)False
Q4) Interactive advertising creates dialogue between marketers and individual shoppers,providing more materials at the user's request.
A)True
B)False
Q5) Discuss the three primary objectives of advertising.
Q6) Explain the AIDA concept.
Q7) Define nonpersonal selling.Discuss advertising as a type of nonpersonal selling. Page 18
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Chapter 17: Personal Selling and Sales Promotion
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Q1) _____ is a personal selling function that involves identifying potential customers.
A) Screening
B) Prospecting
C) Approaching
D) Processing
Q2) The Lands' End catalog provides a toll-free number for customers to call and place orders.The staff is pleasant and knowledgeable and will place orders and answer questions.This is an example of a(n):
A) marketing communications element.
B) promotional mix component.
C) inbound telemarketing effort.
D) customer-driven technology.
Q3) The use of technology in order-processing tasks can lead to an increase in:
A) the accuracy of processing an order.
B) the demand for the number of salespeople.
C) the time required to process an order accurately.
D) the sales quota to be fulfilled by each salesperson.
Q4) Define sales promotion.How does sales promotion support other promotional activities of a firm?
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Chapter 18: Pricing Concepts
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Q1) Countries that export value- oriented products,rather than commodities,tend to enjoy more stable prices.
A)True
B)False
Q2) Countries that export international commodities,such as wood,chemicals,and agricultural crops,suffer economically when their prices fluctuate.
A)True
B)False
Q3) Pricing objectives that focus on attaining a target return on investment are examples of _____ objectives.
A) profitability
B) volume
C) not-for-profit
D) prestige
Q4) A firm maximizes its profits when:
A) the marginal revenue curve runs much below the marginal cost curve.
B) marginal costs are more than marginal revenues.
C) the marginal revenue curve runs parallel to the marginal cost curve.
D) marginal costs equal marginal revenues.
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Chapter 19: Pricing Strategies
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Q1) _____ pricing refers to a pricing strategy in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and to earn a minimal return on promotional sales.
A) Competitive
B) Leader
C) Penetration
D) Psychological
Q2) Discuss the relationship between price and consumer perceptions of quality.
Q3) An internal transfer price is the price for moving goods between profit centers in large-scale organizations.
A)True
B)False
Q4) When the price of Cheerios cereal is displayed as 14.7 cents per ounce,this is an example of _____ pricing.
A) odd
B) commodity
C) unit
D) penetration
Q5) What is market-plus pricing? Why do companies practice a skimming strategy?
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Chapter 20: Your Career in Marketing
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Q1) The three basic formats used to prepare a résumé are the chronological résumé,the functional résumé,and the combined résumé.
A)True
B)False
Q2) A comprehensive review of job openings gives one a more balanced perspective of the overall employment opportunity,including both long- and short-run factors.
A)True
B)False
Q3) Cover letters should always be addressed as,"To whom it may concern."
A)True
B)False
Q4) Internships bridge the gap between theory and practice by providing an opportunity for learning how classroom theory is applied in real-world business environments.
A)True
B)False
Q5) Explain the three basic formats used in preparing a résumé.
Q6) List the elements of an effective letter of recommendation.
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Chapter 21: Developing an Effective Marketing Plan
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Q1) A marketing plan is a detailed description of the resources and actions needed to achieve stated marketing objectives.
A)True
B)False
Q2) Which of the following components of the marketing mix focuses on deciding the goods and services a firm should offer in order to meet the needs of its customers?
A) Product strategy
B) Distribution strategy
C) Promotional strategy
D) Pricing strategy
Q3) Which of the following focuses on the environment in which the marketing plan is to be implemented?
A) Production plan
B) Competitive analysis
C) Mission statement
D) Executive summary
Q4) A marketing plan is not reevaluated once it is completely implemented.
A)True
B)False
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Chapter 22: Financial Analysis in Marketing
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Q1) Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?
A) Inventory turnover
B) Gross profit margin
C) Return on assets
D) Net interest expense
Q2) In the context of financial statements,which of the following represents the systematic reduction over time in the value of certain company assets?
A) Depreciation
B) Attrition
C) Recession
D) Deduction
Q3) The difference between assets and liabilities of a company is referred to as owner's equity.
A)True
B)False
Q4) All successful organizations have the same inventory turnover ratio.
A)True
B)False
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