PRACTICE TEST

Q1. There is always a risk of obsolescence, theft, breakage, and so on

A. The consequences of insufficient capacity
B. The consequences of excess capacity
C. The advantages of having large inventory
D. The disadvantages of having large inventory

Q2. This is a group of closely related products, sold to the same customer groups.
A. Product mix
B. Product line
C. Product design
D. Product cycle

Q3. Standards of living refers to…..

A. someone who establishes a company
B. the state of being successful and having a lot of money
C. the quality of people’s lives
D. the value of a business activity

Q4. Pull strategies are based on

A. future demand B. safety stocks
C. current demand D. A and B are correct

Q5. Manufacturing supply chain work flow includes

A. marketing department  sale department  purchasing, logistics and transport
department  suppliers  warehouse  customers services  computer
B. marketing department  sale department  purchasing, logistics and transport
department  suppliers  customers services  warehouse  computer system
C .sale department  marketing department  purchasing, logistics and transport
department  warehouse  supplier  customers services  computer system
D. sale department  marketing department purchasing, logistics and transport
department  suppliers  warehouse  customers services  computer system

Q6. This is the sale of a compnay expressed as a percentage of total sales in the market.
A. Market value
B. Tangible assets
C. Market share
D. Revenue
Q7. Which of the following things are the pull strategy?
A. According to current demand
B. Out of stock -> replacements are automatically ordered from suppliers.
C. Lead times and safety stocks
D. Future demand

Q8. Which one is the correct process at Wal mart?

A. A Wal-Mart truck picks up merchandise at a supplier’s factory or warehouse -> the
boxes are placed on a conveyor belt -> the goods are unloaded at Wal-Mart’s distribution
centre -> The small conveyor belt joins a larger one -> a machine reads the bar codes on
each box
B. A Wal-Mart truck picks up merchandise at a supplier’s factory or warehouse ->the
goods are unloaded at Wal-Mart’s distribution centre -> the boxes are placed on a
conveyor belt -> The small conveyor belt joins a larger one -> a machine reads the bar
codes on each box
C. A Wal-Mart truck picks up merchandise at a supplier’s factory or warehouse ->the
goods are unloaded at Wal-Mart’s distribution centre -> the boxes are placed on a
conveyor belt -> The small conveyor belt joins a larger one -> Electric arms guide the
boxes off the main conveyor belt onto another smaller one
D. All are incorrect

Q9. The value of equipment will ……………. over time

A. depreciate B. utilize C. deteriorate D. rework

Q10. You ………… your equipment when full capacity is not achieved
A. over-utilize B. under-utilize C. fulfill D. insufficient

Q11. Choose one answer that best describes the stages in sales.
A. Public awareness about the product increased and sales volume rises significantly.
B. Sales volume peaks.
C. Sales volume begins to go down
D. The sales volume is low and customers have to be persuaded to try the product.
A. a-c-b-d B. d-a-b-c C. a-d-b-c D. b-a-c-d

Q12. Choose the best answer that is correct about supply chain management at Walmart
a. Electric arms guide the boxes off the main conveyor belt onto another smaller one
b. This belt leads to another bay where the boxes are loaded onto Wal-Mart trucks
c. A customer buys a product
d. The products are delivered to the stores that ordered them.
Your answer will be:
A. a-b-c-d B. a-b-d-c C. d-c-a-b D. b-a-d-c

Q13. Brand-switchers refer to

A. wrappers and containers used to enclose and protect a product
B. businesses that sell goods or merchandise to individual consumers
C. surfaces in a store on which goods are displayed
D. consumers who buy various competing products rather than being loyal to a particular
brand

Q14. In this stage of a product life cycle, the company can choose between high skim
pricing to recover development costs, or low penetration pricing to build market share
rapidly, if there are already competitors.
A. Introduction stage
B. Growth stage
C. Maturity stage
D. Decline stage

Q15. The degree to which customer’s demand responds to change in price is called
……….
A. price elasticity B. price sensitive C. price war D. consumer price index (CPI)

Q16. TQM stops when you have the perfect product.

A. True
B. False

Q17. ……………….. is a strategy which we use low price approach to reach most of
potential consumers.
A. market skimming
B. market penetration
C. cost-based pricing
D. value-based pricing

Q18. According to TQM, products and services should

A. have defects B. be perfect
C. be as close to perfect as possible D. All are correct
Q19. Customs officers at the port discovered a ………………. of pirated computer
games.
A. consignment B. order C. load D. transportation

Q20. Push strategies are based on

A. JIT B. current demand
C. estimated future demand D. zero inventories

Q21. The warehouse will have to ………….. its stock when it runs out of product
A. rework B. scrap C. replenish D. revive

Q22. What is the primary difference between individual branding and corporate
branding?
A. Individual branding is focused on promoting a specific product or service, while
corporate branding is focused on promoting the overall company.
B. Individual branding is only used by small businesses, while corporate branding is only
used by large corporations.
C. Individual branding is more expensive than corporate branding.
D. Individual branding is focused on promoting the CEO or top executives of the
company, while corporate branding is focused on the brand as a whole.

Q23. ……………….. is a strategy which we use high price approach to maximize

revenue before other competitors jump in the market.
A. market skimming B. market penetration
C. cost-based pricing D. value-based pricing

Q24. If products cannot be fixed any more, we will have to sell them for …………….
A. warranty B. reworking C. scrap D. recycle

Q25. _______________ is not an external source of recruitment

A. Campus selection B. Internal advertisement
C. Consultancy D. Walk-in

Q26. What is the role of advertising agencies?

A. To create advertisements and develop a media plan.
B. To inform consumers about product and service.
C. To create advertisements.
D. B and C are correct.
Q27. There are cost of storage, handling, insurance, depreciation, the opportunity cost of
capital and so on. This refers to…
A. An advantage of having large inventory
B. A disadvantage of having large inventory
C. An advantage of having large facilities
D. A disadvantage of having large facilities

Q28. What are the two functions of advertising?

A. To inform consumers about product and service and to persuade them to buy them.
B. To inform consumers about product and service.
C. To create advertisements.
D. B and C are correct.

Q29. The amount of money a company plans to spend in business purpose over a period
of time.
A. Budget
B. Brief
C. Price
D. Campaign

Q30. ___________is a situation when something is not likely change

A. Fix B. Adaption C. Stability D. Flexibility

Q31. The ….…department identifies a need for a product, and tells the marketing dept.
A. Sales B. Marketing C. Purchasing D. Analysis

Q32. This role involves in passing details of raw materials and components to purchasing
A. Sales B. Marketing C. Purchasing D. Analysis

Q33. The company’s budget on advertising is similar to its competitors. This is an

example of ………….
A. competitor-based B. comparative-parity
C. market standard D. industry benchmark

Q34. Short funny clips that are shared widely on Tiktok can be a great example of
A. personal selling B. online marketing C. viral marketing D. both B) & C)

Q35. This role involves in planning the purchase of materials and their delivery to the
manufacturing.
A. Sales B. Marketing C. Purchasing D. Analysis

Q36. Choose one answer that best describes the stages in Promotion.
A. Promotion emphasizes product differentiation
B. Promotion is aimed at a much broader audience (the majority of the product’s users).
C. At this stage, there is virtually no promotion
D. Promotion is aimed at educating potential consumers (innovators and early adopters)
about the product, and building product awareness
A. d-b-a-c B. d-a-b-c C. d-c-a-b D. a-b-d-c

Q37. You may have to reduce prices to stimulate demand.

A. The consequences of excess capacity
B. The disadvantages of having large inventory
C. A and B are correct
D. A and B are incorrect

Q38. Other names of pull stategies include lean production, continuous flow manufacture
and………….mananufacturing.
A. Slow
B. Agile
C. Current
D. Bountiful

Q39. Senior managers…

A. make a decision on the project.
B. find a new market.
C. make a marketing plan.
D. Collect the customer’s need and delivers it to the sale department.

Q40. What is the difference between a product item and a product line length?
A. A product item is a group of related products, while a product line length is the
number of product categories.
B. A product item is a specific product within a product line, while a product line length
is the number of different product lines.
C. A product item is a product that is not part of a product mix, while a product line
length is the total number of products in a product mix.
D. There is no difference between a product item and a product line length.