MINI TEST FOR NEW MEMBERS
MARKETING
1. What type of law is violated when a supplier requires intermediaries to enter into tying
agreements?
A. Zoning C. Antitrust
B. Probate D. Infringement
2. Business employees who participate in group discussions should present their ideas
and opinions in a(n)
A. argumentative way. C. assertive manner.
B. written format. D. nonverbal style
3. What might result if a business fails to maintain positive customer/client relations?
A. Decrease in sales C. Loss of advertisers
B. Reduction in assets D. Lowering of goals
4. Which of the following provides government protection of business property:
A. Revenues C. Economic incentives
B. Consumer-protection laws D. Patents
5. What tends to occur when a country is experiencing political instability?
A. Its currency loses value. C. Domestic trade improves.
B. Unemployment rates decrease. D. Commodity trade increases.
FINANCE
6. Which of the following quality management approaches is often used in the
finance industry to sustain regulatory compliance:
A. Crisis management C. Reassurance
B. Just-in-Time D. Six Sigma
7. Which of the following is a legitimate response for an employee to provide to a
customer regarding an inquiry about product pricing:
A. If you can wait a moment, I'll check for the price in the computer.
B. I'm not sure what the pricing is.
C. You'll need to contact the appropriate person to get the price.
D. I'm pretty sure that the item costs $39.65.
8. Employees who always keep their commitments to customers are building
positive relationships with those customers by being
A. dependable. C. creative.
B. assertive. D. sociable.
9. Items that are used to produce goods and services are
A. economic resources. C. capital goods.
B. natural resources. D. human resources.
10. Which of the following is most likely to reduce risk:
A. Dividends C. Insurance
B. Bonds D. Stocks
HOSPITALITY AND TOURISM
11) Basic torts relating to businesses often involve disputes concerning
A. emotional stress.
B. assaults.
C. defamation.
D. contracts
12) Products that go straight from producers to consumers are using __________
channels of distribution.
A. unsatisfactory
B. indirect
C. unusual
D. direct
13) An important guideline for effective listening is to
A. focus on details rather than key points.
B. practice active listening.
C. concentrate on the speaker's posture.
D. think about what you are going to say next.
14) When writing a business report, Thomas might check his writing and style
manual to determine the
A. synonyms for common words.
B. best way to set up tables using computer software.
C. formal definitions of important terms.
D. appropriate way to cite his resources.
15) Participating in community outreach activities might be considered a form of
A. institutional promotion.
C. target marketing.
B. customer service.
D. product promotion.
BUSINESS MANAGEMENT AND ADMINISTRATION
16) To enunciate when speaking to customers means to
A. talk fast.
C. run words together.
B. talk slowly.
D. pronounce words clearly.
17) In which of the following situations would a businessperson write a
persuasive inquiry using an indirect format:
A. A letter requesting the date and time of a professional development workshop
B. A direct-mail letter asking for financial support to help a charitable organization
C. A memo asking for a detailed sales report for the previous six-month period
D. An e-mail message requesting membership eligibility requirements in an
organization
18) Into what two categories can wants be divided?
A. Economic and noneconomic
C. Unlimited and limited
B. Unlimited and economic
D. Unlimited and noneconomic
19) Three primary factors that affect the organizational structure of a business
include interpersonal relationships, tasks, and
A. initiative.
C. authority.
B. injunction.
D. attrition.
20) A business manager realizes that the demand for his/her products now
exceeds producers' capabilities, and producers have raised their prices to offset
the high demand. Under these conditions, what phase of the business cycle
should the manager begin to prepare for?
A. Trough
B. Peak
C. Contraction
D. Expansion
Answer Key
1. C
Antitrust. A tying agreement is an illegal arrangement that occurs when a business
requires a customer to buy other products in order to obtain the goods and services that
the customer really wants. To protect individuals and businesses, many governments
develop regulations known as antitrust laws that protect individuals and businesses
from unfair practices that restrain trade and competition. Probate laws involves estate
issues. Zoning laws regulate property uses. Infringement laws address intellectual
property issues.
2. C
Assertive manner. Assertiveness is the ability to express yourself; communicate your
point of view; and stand up for your rights, principles, and beliefs. Business employees
who participate in group discussions should present their ideas and opinions in an
assertive manner so others will know exactly what they think. Being assertive is an
effective way to express your point of view in group discussions. Employees should not
be argumentative when participating in group discussions because the goal usually is to
reach some type of agreement. Employees usually do not present their ideas and
opinions in a written format or a nonverbal style when participating in group discussions.
3. A
Decrease in sales. Maintaining good customer/client relations is important to a business
because customers who receive poor treatment may never return to the business.
When customers fail to return, businesses often experience a decrease in sales. Also,
customers who are poorly treated may tell their friends and others about the treatment,
and these people may decide not to buy from the business, thereby adding to the
decrease in sales. Failing to maintain positive customer/client relations probably would
not result in a loss of advertisers, a reduction in assets, or a lowering of goals.
4. D
Patents. Patents are legal protection granted by government to the owners of inventions
or processes for a certain number of years. Patents prevent others from appropriating
the business's property. Economic incentives are monetary motivations for complying
with government regulation. Revenues are income. Consumer-protection laws are
government regulations intended to protect consumers.
5. A
Its currency loses value. Most countries have their own currency. A currency value can
change in relation to other countries' currency values. Many factors can affect a
currency's value. When a country experiences political instability, its currency value
decreases because the country's future is uncertain. High unemployment rates and
insufficient trade are factors that can lead to or result from political unrest.
6. D
Six Sigma. Aspects of the Six Sigma approach to quality management are applied in the
finance industry to sustain regulatory compliance. The other principles do not relate to
crisis management
7. A
If you can wait a moment, I'll check for the price in the computer. Businesses receive
inquiries from customers on a regular basis. In some situations, an employee may not
know the answer to a customer's question. To provide good customer service, the
employee should take the appropriate steps to obtain the requested information. This
may involve verifying the price in the computer system or transferring a customer's
telephone call to the sales department. Guessing the price, stating that s/he does not
know the price, and telling the customer to contact another person are not legitimate
responses to inquiries and do not provide customers with good customer service.
8. A
Dependable. Employees who are dependable do what they say they will do and keep
their commitments to customers. When employees offer to do something for customers,
they must live up to the terms of the commitment in order to build positive relationships.
Customers appreciate dependable employees and often return to a specific business
because of them. Assertive employees stand up for their rights. Sociable employees are
friendly. Creative employees develop unique ideas and solutions to problems. These
are good characteristics for employees to have, but they do not involve keeping
commitments.
9. A
Economic resources. An item becomes an economic resource when it is used to
produce a good or a service. Economic resources include natural resources, human
resources, and capital goods
10. C
Insurance. Businesses transfer the risk factor to some other person or business when
they purchase insurance. An insurance policy is a contract between a business and an
insurance company in which the insurance company agrees to provide protection
against insurable losses which may occur. Stocks are shares of ownership in a
business. Municipal bonds are sold by municipalities to raise funds for their use.
Dividends are monies paid to individuals or companies which own stock in a business.
11. D
Contracts. Business torts are wrongful actions against a business that cause it harm in
some way. Disputes concerning contracts are often the basis for businesses suing
individuals or other businesses. Many businesses have contractual arrangements with
employees or vendors. If these contracts are broken, the business might be harmed and
seek compensation through the legal system. Basic torts relating to businesses do not
involve disputes concerning assaults, defamation, or emotional stress.
12. D
Direct. In direct distribution, the marketing functions are performed by the producers
without the assistance of intermediaries. Indirect channels utilize intermediaries
between producers and consumers to aid in the movement of products. Both of these
types of channels are satisfactory and not unusual, but they are referred to as direct or
indirect.
13. B
Practice active listening. This means asking questions and restating what the speaker
has said in order to prevent any misunderstanding. A good listener concentrates on the
message being delivered, rather than on what s/he is going to say next or on the
speaker's posture. Also, by jotting down only key points, the listener can concentrate on
what is being said.
14. D
Appropriate way to cite his resources. To provide consistency throughout written
documents, certain businesses or industries often follow a specific writing style, such as
Associated Press (AP) or Chicago Manual. Because each style manual varies and often
follows different standards, a writer should check the appropriate style manual to ensure
that s/he is formatting a resource citation correctly. A computer-software manual, the
computer-software “help” function, or a computer-software website provides information
about setting up tables in documents. A dictionary or glossary provides formal
definitions of words. A thesaurus provides synonyms for words.
15. A
Institutional promotion. Promotion refers to the various types of communications that
businesses use to inform, persuade, or remind customers of their products. Institutional
promotion is a type of promotion that aims to create a certain image of the company in
the eyes of the consumer. Participating in community outreach activities often generates
publicity, which benefits the businesses. Businesses are often recognized by the media
for their participation, so people in the community become aware of the businesses and
their community involvement. This reminds people of the businesses and often
encourages them to become customers because the businesses are supportive of the
community. Participating in community outreach activities is not considered a form of
customer service or target marketing. Product promotion is a form of promotion that
aims to persuade consumers to buy a good or service.
16. D
Pronounce words clearly. To enunciate means to create clear sounds and to correctly
pronounce words. The speed at which words are pronounced may be fast or slow, but
words need to be spoken distinctly, not run together.
17. B
A direct-mail letter asking for financial support to help a charitable organization. When
asking for financial support, the writer is trying to persuade the recipient to give money.
When developing a persuasive message, the writer is trying to change the recipient's
behavior. The recipient might require information such as how the money will be used
and why the organization needs the money. In persuasive inquiries, it is usually best to
use the indirect format. When using the direct format, the writer has specific information
that is needed. Sales reports, the date and time of a workshop, or eligibility
requirements in an organization can usually be requested through the direct format.
18. A
Economic and noneconomic. Economic wants have monetary values attached to them,
while noneconomic wants are free. Economics is concerned with economic wants.
Wants are considered unlimited because everyone has them, they change, and people
are not able to obtain enough resources to satisfy all of their wants. Limited wants do
not exist.
19. C
Authority. The organizational structure is the way the business is set up (designed) to
carry out its work. Many factors influence the way that the business carries out its
work—the way it functions. The ways in which the employees relate to or communicate
with one another (interpersonal relationships) and the type of work (tasks) that needs to
be done affect the organizational structure. Authority, which also influences the
organizational structure, is the power a person has to influence or control other people's
behavior. Some organizational structures have centralized authority in which one
person or a few people make business decisions. Other businesses have decentralized
authority, a situation in which employees have the authority to make decisions and hold
a high degree of control over their work. An injunction is a court order forbidding an
action. Initiative is a personal trait that involves a willingness to act without being told to
do so. Attrition is the natural reduction in numbers of employees due to job changes,
death, etc.
20. C
Contraction. Contraction is the third phase of the business cycle characterized by
decreased demand for goods and services, rising unemployment, increased saving by
consumers, and reduced sales and profits for businesses. The business is presently in
the peak phase of the business cycle which is considered the high point of economic
activity. During this phase, demand for goods and services begins to exceed the
production capacities of producers. Expansion is the first stage of the business cycle,
characterized by increased spending and borrowing, increased demand for goods and
services, increased employment rates, and decreased interest rates or loans. Trough is
the fourth phase of the business cycle and is considered the low point of economic
activity. It is characterized by high rates of unemployment and business failures.