Question 1;A firm sells small-ticket items to their regular customers on customer charge accounts and then bills the customers each month. This type of credit arrangement is called;Answer;trade credit.;charge account credit.;installment credit.;debit card credit.;2 points;Question 2;is a technique which greatly simplifies the pricing function by setting the same price for items with similar characteristics.;Answer;Odd pricing;Leader pricing;Price lining;Geographical pricing;2 points;Question 3;When a small business is faced with price competition from a much larger competitor, it should consider;Answer;going head-to-head on prices by lowering its cost structure.;using non-price competition by offering value added service.;make rapid, continual price changes to keep the competition off balance.;move to a premium price strategy by offering higher scale goods and services.;2 points;Question 4;When developing a marketing approach to pricing, business owners must;Answer;establish prices that are compatible with their customers' expectations and what they are willing to pay.;compete solely on price.;establish prices that are compatible with their customers' expectations and add a certain percentage to it.;establish prices that are compatible with their customers' expectations and subtract a certain percentage to it.;2 points;Question 5;Probably the most important consideration a manufacturer has when setting the final price of its new exclusive perfume is;Answer;the perfume's production cost.;competitor's prices.;the image the company wants to create for the scent in the customer's mind.;choosing between odd pricing and price lining.;2 points;Question 6;costing includes only those costs that vary directly with the volume of an item produced.;Answer;Absorption;Break-even;Indirect;Direct;2 points;Question 7;Even in the short run, a small business must set the price of a product at least equal to the ________ costs (per unit), or it must shut down.;Answer;fixed;variable;total;invariable;2 points;Question 8;In ________ pricing, a type of geographical pricing, a small firm charges customers located in different territories different prices for the same products.;Answer;FOB factory;uniform delivered;zone;price lining;2 points;Question 9;Most service firms base their prices on;Answer;fairly stable pricing policies.;the cost of the service plus an estimate of the value they add in delivering the service.;market surveys on their respective industries.;an hourly basis for services rendered.;2 points;Question 10;Which of the following is correct?;Answer;Sales ? variable costs ? fixed costs = contribution margin;Total revenue ? variable costs = contribution margin;Total revenue ? fixed costs = contribution margin;Total revenue ? profit = contribution margin;2 points;Question 11;Small business owners get into trouble when determining their price floor when they;Answer;focus on what the customer will pay.;assume their costs are the same as their competitors'.;begin to track financial ratios to determine what they are doing.;use the price floor as the minimum price in their acceptable price range.;2 points;Question 12;is a technique in which a small firm marks down the price of a popular item below its normal price in an effort to increase customer traffic and to boost sales of other items.;Answer;Odd pricing;Leader pricing;Price lining;Suggested retail pricing;2 points;Question 13;When pricing products, it is important to remember that;Answer;there is an ideal price that customers will pay for a given product or service.;once the acceptable price range is found, prices should not be changed again.;pricing is more an intuitive than a quantitative process.;a customer orientation in price setting is most important.;2 points;Question 14;include(s) the unit cost of a manufacturer's product under an absorption costing system.;Answer;Opportunity costs;Depreciation;Insurance;Variable costs;2 points;Question 15;A customer who purchases a television from Ace Appliance Store and pays for it in 36 monthly payments is using;Answer;trade credit.;charge account credit.;installment credit.;debit card credit.;2 points;Question 16;Key to successfully establishing an international location is;Answer;securing the necessary licenses to operate in the foreign country.;finding the right person to manage the international office.;making a substantial investment in personnel.;being able to speak the language of the foreign country.;2 points;Question 17;Currency: inflation rate, availability, controls, stability of exchange rate, Balance of payments, Per capita income and distribution, Disposable income and expenditure patterns are components of;Answer;demographic/physical environment.;social/cultural environment.;economic environment.;market access.;2 points;Question 18;A relatively easy way of getting into international marketing, which currently handles about 10% of all U.S. exports, is through ________ who act as distributors in foreign countries for domestic companies of all sizes.;Answer;foreign licensees;international franchises;joint ventures;export trading companies;2 points;Question 19;When collecting for the sale of foreign goods, a small business will use a ________, an agreement between their bank and the foreign buyer's bank that guarantees payment.;Answer;bank draft;foreign sales agreement;tariff voucher;letter of credit;2 points;Question 20;The first step to becoming a truly global company is to;Answer;establish an export program.;find a joint venture partner.;begin to think globally, taking on a global attitude toward a business.;hire motivated, multilingual managers.;2 points;Question 21;The type of companies that are an important channel of foreign distribution for small companies just getting started in international trade or for those lacking the resources to assign their own people to foreign markets are referred to as;Answer;export management companies.;joint ventures.;sole proprietorships.;export trading companies.;2 points;Question 22;A(n) ________ is a business that buys and sells products in a number of countries, offering a range of services?importing, exporting, shipping, distributing, and others?to their clients.;Answer;foreign joint venture;export trading company;foreign licensee;resident buying office;2 points;Question 23;An entrepreneur wants to move into international markets but can't quite figure out how to do it. He's not clear on his target market or how to approach it but he knows he needs to "go global." This entrepreneur is experiencing which barrier to international trade?;Answer;Financing;Information;Cultural;Attitude;2 points;Question 24;involves a transaction in which a company selling goods in a foreign country agrees to promote investment and trade in that country.;Answer;Countertrade;Export;Import;Bartering;2 points;Question 25;The most important ingredient in the recipe for a successful joint venture is;Answer;choosing the right country or region.;generating sufficient capital to pursue the venture.;choosing the right partner.;hiring efficient employees to carry out the venture.;2 points;Question 26;A ________ is a document the seller draws on the buyer, requiring the buyer to pay the face amount (the purchase price of the goods) either on sight (a sight draft) or on a specified date (a time draft) once the goods are shipped.;Answer;Bank draft;Letter of Credit;COD;Line of Equity;2 points;Question 27;is/are one of the trading intermediaries a small company can use to enter the global marketplace.;Answer;Export merchants;Joint ventures;International franchising;Establishing international locations;2 points;Question 28;The simplest and least expensive way to conduct international business is through;Answer;foreign licensees.;the World Wide Web.;joint ventures.;trade intermediaries.;2 points;Question 29;The tax that a government puts on products that are imported into a country is called a(n);Answer;embargo.;tariff.;quota.;non-tariff barrier.;2 points;Question 30;A type of non-tariff barrier to trade that consists of selling large quantities of products in foreign countries below cost is referred to as;Answer;dumping.;clearance selling.;bartering.;exporting.
Paper#31046 | Written in 18-Jul-2015Price : $27