WEEK 7 MGTA02 || 2022-02-22
ح٤ Ran Ding | U T S C Ԛ
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
ح٤ Ran Ding | U T S C Ԛ
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
ح٤ Ran Ding | U T S C Ԛ
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 which 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
ح٤ Ran Ding | U T S C Ԛ
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
ح٤ Ran Ding | U T S C Ԛ
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
ح٤ Ran Ding | U T S C Ԛ
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