Practice Exam MCQ

1 What is ONE benefit of global branding?

(A) It can be recognised in many markets.
(B) It better suits a production approach to marketing.
(C) It is a marketing strategy designed for every market.
(D) It is a customised product that can be used in many markets.

2 Which government institution would investigate a claim that a company has falsified its accounting records?

(A) Australian Securities Exchange

(B) NSW Department of Fair Trading
(C) Australian Securities and Investment Commission
(D) Australian Competition and Consumer Commission

3 Data related to a small manufacturing business is shown in the table. What possible conclusion can be drawn from the data?

(A) Job dissatisfaction is being demonstrated in a different way.

(B) The staff turnover levels reflect increased job dissatisfaction.
(C) The days lost to disputes reflect increased job satisfaction.
(D) Absenteeism levels indicate increased job satisfaction.

	2010	2011
Number of employees	20	20
Number of days lost to disputes	25	10
Absenteeism	5	20
Staff turnover	10%	10%

4 How can a business improve its working capital management?

(A) By increasing cost centres

(B) By reducing variable costs
(C) By leasing rather than buying assets
(D) By extending credit terms to 60 days

5 A business is relocated to a new manufacturing plant that recycles all water and reduces energy usage considerably. What are the likely impacts of the relocation for the business?

(A) An increase in both environmental impacts and operating costs

(B) A decrease in both environmental impacts and operating costs
(C) A decrease in environmental impacts and an increase in operating costs
(D) An increase in environmental impacts and a decrease in operating costs

6 A business has a range of products across the product life cycle. Which marketing strategy could be adopted to increase profits for this business in the short term?

(A) Eliminate non-performing products

(B) Research new distribution channels
(C) Increase the product research and development budget
(D) Use a discount pricing policy on the full range of products

7 An employee has made a complaint to his manager regarding the small number of shifts he is being given per fortnight. Which strategy should the manager use first to manage the situation effectively?

(A) Mediation

(B) Negotiation
(C) Monetary rewards
(D) Non-monetary rewards

8 A manufacturing business has recently changed its marketing strategy to include e-marketing.

What external influence may have led to this?

(A) Increased staffing costs

(B) Underperforming retail sales
(C) The recent employment of a computer expert
(D) The inability to differentiate its brand from competitors

Use the following information to answer Questions 9–10.

Fnancial statement for a school canteen

	Feb	Mar	Apr	May
Cash Sales	$1000	$1000	$1000	$1800
Cash Expenses	$500	$2500	$600	$1000

9 What is the closing cash balance at the end of May?

(A) –$1200

(B) –$600
(C) $200
(D) $1000

10 Which strategy could the canteen manager have adopted to improve cash flow in March?

(A) Pay all the expenses in February

(B) Delay paying debtors on time
(C) Collect receivables quarterly
(D) Obtain an overdraft

11 Which of the following is an output from the operations processes of a business?

(A) Gantt charts

(B) Customer service
(C) Human resources
(D) Sequencing and scheduling

12 A restaurant has changed its menu because a large number of migrants have moved into the area. Which influence on marketing led to the change?

(A) Economic

(B) Government
(C) Psychological
(D) Sociocultural

13 Which strategy could an Australian exporter adopt to reduce the risk of non-payment?

(A) Factoring

(B) Hedging
(C) Letter of credit
(D) Unsecured note

14 A manufacturer operating in Australia is having legal proceedings brought against it by its employees. The case concerns serious health issues resulting from long term exposure to fumes from the production process. Which legal and ethical responsibilities might this manufacturer have failed to fulfil?

(A) Workers compensation requirements and providing a duty of care

(B) Occupational health and safety requirements and providing a duty of care
(C) Workers compensation requirements and providing fair working conditions
(D) Occupational health and safety requirements and providing fair working conditions

15 Which strategy should an exporting business implement to increase profits and respond to an appreciating Australian dollar?

(A) Sell off assets and lease them back

(B) Offer debtors a discount for early payments
(C) Review marketing objectives to focus on domestic sales
(D) Identify cost centres and work to improve their efficiency

16 What information can a business use to monitor and control its marketing plan?

(A) SWOT analysis

(B) Cash flow statement
(C) Market share analysis
(D) Balance sheet figures

17 An international clothing manufacturer has closed its Australian manufacturing plant and relocated to Indonesia. What are the likely effects of this decision on the business?

(A) Increased wage costs and increased employment in Australia

(B) Decreased wage costs and decreased employment in Australia
(C) Decreased wage costs and increased employment in Australia
(D) Increased wage costs and decreased employment in Australia

18 Many Australian businesses have expanded overseas in the last 20 years. What marketing role does this best represent?

(A) Mass

(B) Positioning
(C) Social
(D) Strategic

19 What is the benefit to shareholders of debt financing over equity financing?

(A) It minimises risk.

(B) Return on shareholders equity is likely to be higher.
(C) Repayments can be postponed in economic recessions.
(D) Loans are guaranteed by the Australian Securities Exchange.

20 What is human resource management?

(A) The communication of goals and the provision of resources to employees

(B) The daily supervision, allocation of duties and evaluation of employees
(C) The use of domestic and global contractors
(D) The organisational hierarchy of a business