This document contains 100 multiple choice questions related to marketing, management, finance, and business topics. The questions cover concepts such as innovation processes, marketing intelligence, market segmentation, marketing communications, leadership, organizational behavior, accounting, finance, international business, and information systems.

1. STR 581 Final Exam
1) 3M, Hewlett-Packard, Lego, and other companies use the ________ to manage the innovation
process.
2) A ________ is a set of procedures and sources managers use to obtain everyday information about
developments in the marketing environment.
3) A(n) ________ is any good, service, or idea that is perceived by someone as new.
4) A company can take several steps to improve the quality of its marketing intelligence. If the company
purchases competitive products for study, attends open houses and trade shows, and reads competitors
published reports and stockholder information, the company is using ________ to improve the quality
of its marketing intelligence.
5) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision makers.
6) Most established companies focus on ________ when it comes to innovation.
7) ________ is the difference between the prospective customers evaluation of all the benefits and all
the costs of an offering and the perceived alternatives.
8) ________ is the result of a concentrated effort by designers, engineers, and purchasing agents to
reduce the products overall costs.
9) In ________ marketing, the seller engages in the mass production, mass distribution, and mass
promotion of one product for all buyers.
10) Marketers usually identify niches by ________.
11) Which of the following is generally considered to be the last step in the marketing research
process?
12) ________ is the systematic design, collection, analysis, and reporting of data and findings relevant
to a specific marketing situation facing the company.
13) With respect to the sampling plan, three decisions must be made. The decisions are: the sampling
unit�who is to be surveyed? Sample size�how many people should be surveyed? And ________.
14) The marketing communications mix consists of six major modes of communications. Which of the
following is NOT one of these modes?

2. 15) Marketing communications can contribute to brand equity by establishing the brand in memory and
to________ (in)a brand image.
16) ________ communicates a companys intended value positioning of its product or brand to the
market.
17) To reach Generation Y, rock band Foo Fighters created a digital street team that sends targeted e-
mail messages to members who "get the latest news, exclusive audio/video sneak previews, tons of
chances to win great Foo Fighters prizes, and become part of the Foo Fighters Family." Which of the
following techniques for reaching Generation Y are the Foo Fighters using?
18) New-to-the- world products are ________.
19) Following the ________ approach to target market selection encompasses a strong knowledge of
the segments needs, a strong market presence, and operating economies through specializing in
production, distribution, and promotion.
20) Price has operated as the major determinant of buyer choice among poorer nations, among poorer
groups, and with ________ products.
21) Some intermediaries use the following: strategic planning, advanced information systems,
sophisticated marketing tools, measure performance on a return-on-investment basis, segment their
markets, improve their target marketing and positioning, and ________.
22) "Power prices" use price as a key strategic tool. These "power prices" have discovered the highly
________ effect of price on the bottom line.
23) A company can add new products through acquisition or development. The acquisition route can
take three forms. The company can buy other companies, it can acquire patents from other companies,
or it can buy a ________ or _________ from another company.
24) John Kotters view argues that management focuses on coping with complexity, whereas leadership
focuses on coping with _____.
25) Leadership is best defined as _____.
26) Which of the following is NOT included in the definition of conflict?
27) Negotiation can be defined as a process in which two or more parties exchange goods or services
and attempt to agree upon _____.
28) _____ bargaining is negotiation that seeks to divide a "fixed pie."
29) Which of the following statements about leadership is true?
30) Danielle wants to become a surgeon, not only because achieving this goal will give her self-respect
and autonomy, but also because she wants a job with high status and recognition from others. Which of
Maslows needs is Danielle trying to fill?
31) _____ can be used to increase the perception that employees are treated fairly.
32) Examples of off-the-job training include all of the following except _____.

3. 33) Training employees how to be better listeners falls under which of the following training categories?
34) Which type of skill training has become increasingly important in organizations?
35) According to a recent survey, about ___ percent of employees working in the 1,000 largest U.S.
corporations receive ethics training.
36) Organizational structure has six key elements. Which of the following is not one of these elements?
37) Which of the following is not a primary force for change in organizations?
38) The "realistic" personality from Hollands typology of personality and congruent occupations would
be well suited for which of the following jobs?
39) What term is used for the tendency of an individual to attribute his own successes to internal
factors while putting the blame for failures on external factors?
40) A task that is subdivided into many separate jobs is considered to have _____.
41) Under exponential smoothing, if we want our forecast to be responsive to recent demand, the value
of alpha should be:
42) Which of the following would NOT be classified as a time-series technique?
43) According to David Maister, the most complex projects requiring innovation and creativity are called
_________.
45) If the system contains a bottleneck, the _______ is the best place for control. If there is no
bottleneck, the __________ is the best place for control.
46) "Hard" capital rationing refers to the rationing __________.
47) __________ says to look for opportunities to invest in positive-NPV projects in foreign markets or to
develop derivatives or design arrangements that enable firms to cope better with the risks they face in
their foreign operations.
48) __________ says to recognize the value of hidden options in a situation, such as the foreign
exchange options in some derivative instruments.
49) Under capital rationing, given the choice among several equally attractive investments, the best
tool to use is the __________.
50) An all-equity-financed firm would __________.
51) __________ says to seek out investments that offer the greatest expected risk-adjusted real return.
52) A checking account is __________.
53) Due to asymmetric information, the market fears that a firm issuing securities will do so when the
stock is _________.
54) Which of the following statements is true?
55) Which of the following statements is true?

4. 56) __________ says to recognize the value of options contained in derivatives.
57) __________ says to use derivatives to pay others to take risks.
58) The conversion price (for a convertible security) is usually adjusted __________.
59) The investment decision best addresses which of the following questions?
60) Dimensions of risk include __________.
61) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate
for __________.
62) You do a study and find out that, on average, stock prices for firms decrease 3% for every 5%
decrease in inside ownership. You are watching the nightly business report and find out that Magic
Tapes stock has announced that insiders have sold 10% of their holdings. You are concerned because
you own 1,000 shares of Magic Tape and it had closed the day before unchanged at $30 per share. If
markets are at least semi-strong form efficient, what would you expect?
63) Which of the following is not an advantage of going public?
64) Which of the following is not an advantage of going public?
65) Undertaker Corporation has a joint process that produces three products: P, G, and A. Each product
may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to
$25,000. Other relevant data are as follows: Product Sales Value at Split-off Processing Costs after Split-
off Sales Value at Completion P $62,000 $5,000 $88,000 G 12,500 6,500 19,000 A 9,400 5,000 12,000
Product G _____.
66) Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of
$88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The
company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market
which would not affect its present sales. If the company has sufficient capacity to produce the additional
units, acceptance of the special order would affect net income as follows:
67) Transfer-pricing systems exist to _____.
68) Which one of the following managerial accounting approaches attempts to allocate manufacturing
overhead in a more meaningful fashion?
69) The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is
70) Which of the following does not appear as a separate section on the cash budget?
71) Important factors considered by sales forecasters include all of the following except _____.
72) Effectiveness is indicated by _____.
73) Beginning cash balance plus total receipts
74) A cost which remains constant per unit at various levels of activity is a
75) A variable cost is a cost that

5. 76) A company has total fixed costs of $120,000 and a contribution margin ratio of 20%. The total sales
necessary to break even are
77) For an activity base to be useful in cost behavior analysis,
78) Identify which statement about "currently attainable standards" is NOT true.
79) Joint costs are incurred _____.
80) The last step in activity-based costing is to
81) In a process cost system,
82) The proprietorship form of business organization
83) Identify which one of the following statements is false.
84) A local retail shop has been operating as a sole proprietorship. The business is growing and now the
owner wants to incorporate. Which of the following is not a reason for this owner to incorporate?
85) _____ are sections of the balance sheet.
86) Although the U.S. has had a longstanding agreement with ___________, after the passage of
NAFTA, _________ became the United States second largest trading partner.
87) Diversity training programs are generally intended to provide a vehicle for _____.
88) Which country does the text describe as becoming the largest producer and consumer of many of
the worlds goods?
89) Which of the following is not one of the Caux Round Table Principles for International Business?
90) One study found that manufacturing labor costs about ___ an hour in China, compared to ____
dollars in the United States.
91) Which of the following is correct about litigating commercial disputes?
92) Which article of the United States Constitution deals with the judicial power of the federal
government?
93) When an economist says that the demand for a product has increased, this means that:
94) When movie ticket prices increase, families tend to spend less time watching movies and more time
at home watching videos instead. This best reflects:
95) The costs of delivering products in the _____ channel are much higher than delivering products in
the _____ channel.
96) Which of the following is NOT a function of functional area information systems?
97) The Global, Web-Based Platform enables individuals to do which of the following?
98) Companies normally budget marketing research at ________ percent of company sales.

6. 99) The assignment of numbers or symbols to a property of objects according to value or magnitude is
called _____.
100) A ________ has been defined as being a coordinated collection of data, systems, tools, and
techniques with supporting software and hardware by which an organization gathers and interprets
relevant information from business and environment and turns it into a basis for marketing action.