Question

Question 36

"Stockturn rate" means:

	A	the number of days required to sell a given output of products.
	B	the amount of time needed to sell every item in a retailer's inventory.
	C	the number of times the average inventory is sold in a year.
	D	the rate at which products enter and leave an intermediary's establishment.
	E	None of these is a good definition of "stockturn rate."

Question 37

A high stockturn rate:

A		is only possible with a low markup percent.
B		is likely to result in low profits.
C		reduces the inventory investment and can improve profits.
D		increases the space needed for inventory.
E		None of these alternatives is correct.

Question 38

Average fixed costs:

	A	increase as the quantity produced increases.
	B	decline for a while as output increases and then begin to rise again.
	C	decrease steadily as output increases.
	D	are less than average variable costs at all output levels.
	E	None of these alternatives is correct.

Question 39

As a product moves through its product life cycle stages:

A		consumers are offered less product variety.
B		distribution tends to become more and more exclusive.
C		competition forces firms to skim instead of just meeting competition.
D		the promotion emphasis is on building selective demand.

Price discrimination:

A		by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries.
B		is not covered by Federal laws, but in some states it is illegal.
C		is always illegal.
D		may be legal if the firm can prove that different prices were set based on different costs.
E		None of these alternatives is correct.

Question 42

All of the following are true of institutional advertising except it

A		focuses on the name and prestige of an organization or industry.
B		seeks to inform, persuade, or remind.
C		tries to keep the product's name before the public.
D		develops goodwill or improves an organization's relations with various groups.
E		advocates a specific cause or idea.

Question 43

Which of the following statements about sales promotion is NOT TRUE?

	A	Sales promotion refers to those promotion activities that stimulate interest, trial, or purchase by final consumers.
	B	A particular sales promotion activity usually lasts for only a limited time period.
	C	It is generally used to complement the other promotion methods.
	D	Sales promotion objectives usually focus on prompting some long-term action.
	E	Sales promotion can often be implemented quickly and get sales results sooner than advertising.

Question 44

Which country bans any advertising targeted directly at children?

A		USA
B		Canada
C		New Zealand
D		Japan
E		India

Question 45

Target return pricing objectives:

A		usually are very high for firms facing heavy competition.
B		aren't used by industry leaders because they can maximize profits.
C		would never make sense for a nonprofit organization.
D		may simplify the management of large producers with many divisions or departments.
E		All of these alternatives are correct.

Answer 1

PLEASE FIND BELOW ANSWERS TO FIRST 4 QUESTIONS :

Answer to question 36 :

Formula for Stockturn rate = Cost of goods sold in a year / average inventory

Therefore , stockturn rate is number of times average inventory is sold in a year

ANSWER : C ) NUMBER OF TIMES AVERAGE INVENTORY IS SOLD IN A YEAR

Answer to question 37 :

Stockturn rate = Cost of goods sold/ Average inventory

Therefore High stockturn rate will be possible when average inventory will be low .

Following are not the possible answers :

1. is only possible with low mark up percentage : Low mark up percentage will decide profit and sales price which will not affect stockturn rate
2. Is likely to result in low profits : High stockturn rate means inventory is turned more number of times in a year resulting in least possible locked up value of goods which will result in increase in profit
3. Increases the space needed for inventory : High stock turn rate means low average inventory. Low average inventory will require low space requirement

Low stockturn rate will therefore result in low investment in inventory . Low investment in inventory will result in lesser quantum of money locked up in system resulting in improvement in profit .

ANSWER : C) REDUCES THE INVENTORY INVESTMENT AND CAN IMPROVE PROFITS

Answer to question 38 :

In economics, average fixed cost (AFC) is the fixed costsof production (FC) divided by the quantity (Q) of output produced. ... As the total number of units of the good produced increases, the average fixed cost decreases because the same amount of fixed costs is being spread over a larger number of units of output.

ANSWER : c ) DECREASE STEADILY AS OUTPUT INCREASES

Answer to question 39:

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

As it can be seen during Maturity stage, competition forces firms to be more focused and concentrate on maintaining market share by all means which may include skimming the market to find out the right niche to remain in competition

ANSWER : C) COMPETITION FORCES FIRMS TO SKIM INSTEAD OF JUST MEETING COMPETITION