WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 2 Practice Questions: Review 1 & 2 1. Jason owns a corner store. In 2019 Jason’s store sold $200,000 worth of goods to local people wanting newspaper, milk, cigarettes, pop etc. Jason’s store paid various suppliers $100,000 for the various goods that it sold. The store paid $2,000 per month in rent, and $40,000 in total to two students who worked in the store part-time. All other expenses (fees, taxes, insurance) totalled $10,000. From this information we can say that, for 2019: a) Jason made a profit of $48,000 b) Jason made a profit of $1,000 c) Jason lost money d) Jason made a profit of $26,000 e) None of these options are correct 2. Imagine that you sell a new “smart lock” for front doors. It allows homeowners to lock and unlock the door from anywhere (they have an internet connection) via a mobile application. The ability of the product to perform this is known as a: a) Feature b) User configuration c) Benefit 3. Johnson spends part of each day communicating directly with his front-line employees in an effort to both motivate them and resolve any potential problems they might have. This is an example of the ________ function. a) Planning b) Organizing c) Controlling d) Leading 4k￥ 12 Revenue 200000 Cost $100000 Supplier 24000 Rent 10000 Other 40000 Labour WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 2 Practice Questions: Review 1 & 2 1. Jason owns a corner store. In 2019 Jason’s store sold $200,000 worth of goods to local people wanting newspaper, milk, cigarettes, pop etc. Jason’s store paid various suppliers $100,000 for the various goods that it sold. The store paid $2,000 per month in rent, and $40,000 in total to two students who worked in the store part-time. All other expenses (fees, taxes, insurance) totalled $10,000. From this information we can say that, for 2019: a) Jason made a profit of $48,000 b) Jason made a profit of $1,000 c) Jason lost money d) Jason made a profit of $26,000 e) None of these options are correct 2. Imagine that you sell a new “smart lock” for front doors. It allows homeowners to lock and unlock the door from anywhere (they have an internet connection) via a mobile application. The ability of the product to perform this is known as a: a) Feature b) User configuration c) Benefit 3. Johnson spends part of each day communicating directly with his front-line employees in an effort to both motivate them and resolve any potential problems they might have. This is an example of the ________ function. a) Planning b) Organizing c) Controlling d) Leading 4k￥ 12 Revenue 200000 Cost $100000 Supplier 24000 Rent 10000 Other 40000 Labour WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 1 4. Trucking companies measure productivity of their personnel who load trucks by calculating the amount of freight that is handled per hour. For example, a measure could be that 40,000 pounds per person per hour may be what is to be achieved. After the shift is over, a manager will review the amount of freight handled to determine if it met the company’s target. The manager is performing the ______ function(s) of management. a) Planning b) Organizing c) Controlling d) Leading 5. At whi
ch stage of the product life cycle is revenue not yet sufficient to offset development costs a) maturity b) shake-out c) introduction d) extension e) growth 6. Which of the following describes the key difference between convenience products and shopping products a) Convenience products generally cost more b) Shopping products tend to involve more careful evaluation of alternatives c) Shopping products tend to be goods whereas convenience service tend to be services d) Shopping products tend to be high contact whereas convenience products tend to be low contact 7. The value package that comes with purchasing a Mercedes Benz automobile would include all of the following except a) The ability to transport passengers and luggage b) The reputation of German engineering c) The prestige that comes from owning a luxury car d) High resale value e) There is no exception in this list, all four are part of Mercedes’ value package WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 2 8. A wedding dress is expensive and will be remembered by a bride for the rest of her life. The buyer of a wedding dress will spend a good deal of time and emotional energy making sure to select the “perfect” dress. These are the characteristics of which type of product a) Shopping b) Luxury c) Specialty d) Emotional 9. Once a product nears the end of its product life cycle, it, a) Begins earning relatively high profits b) Can return to an earlier stage through creative marketing c) Will benefit from the use of price skimming d) Is impossible to return to that or other stages 10. Which of the following product attribute is the most difficult to measure a) Function b) Benefit c) Features d) Desire e) Wants 11. A bank offers extended hours on weekends and holidays to the customers who bank at their location, which product’s attribute is the bank illustrating a) Function b) Features c) Benefits d) Desires 12. Which stage of the product life cycle will likely to have the most research and design activities a) Introduction b) Growth c) Maturity d) Decline product life cycle extension WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 3 13. Which stage of the product life cycle is characterised by economies of scale a) Introduction b) Growth c) Maturity d) Decline 14. Which stage of the product life cycle is characterised by most of the profit earned a) Introduction b) Growth c) Maturity d) Decline 15. J&P Peanut Butter adding a new chocolate flavour to its peanut butter is most likely to be doing: a) Economies of Scale b) Declining offering c) Life cycle extension d) Introducing new products WEEK 7 MGTA02 || 2022-02-22 Ran Ding | U T S C 4 Short Answer: 1. Whenever Carmen Wong goes into her local video rental store, she sees that there are more and more DVDs and fewer and fewer VHS tapes on the shelves. Where does this suggests that DVDs are in terms of their product life cycle If you were the manufacturer of VHS tape cassettes, what would you do to the price of your product DVD = growth VHS = decline SInce VHS is in decline, we should set a low price than DVD, since demand is not that much for VHS, therefore we should set a lower price for VHS