1. Which one of the following measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset? 
Squared deviation
Beta coefficient
Standard deviation
Mean
Variance

2. Sensitivity analysis: 
looks at the most reasonably optimistic and pessimistic results for a project.
helps identify the variable within a project that presents the greatest forecasting risk.
is used for projects that cannot be analyzed by scenario analysis because the cash flows are unconventional.
is generally conducted prior to scenario analysis just to determine if the range of potential outcomes is acceptable.
illustrates how an increase in operating cash flow caused by changing both the revenue and the costs simultaneously will change the net present value for a project.

3. A pro forma financial statement is a financial statement that: 
expresses all values as a percentage of either total assets or total sales.
compares actual results to the budgeted amounts.
compares the performance of a firm to its industry.
projects future years’ operations.
values all assets based on their current market values.
 
4. A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so, the firm:
automatically gives preferential treatment in the allocation of funds to its riskiest division.
encourages the division managers to only recommend their most conservative projects.
maintains the current risk level and capital structure of the firm.
automatically maximizes the total value created for its shareholders.
allocates capital funds evenly amongst its divisions

Question 5
A major way marketers create positive and distinct images is through:
A. marketing plans.
B. hiring marketing personnel.
C. marketing communications.
D. funding charities.

Question 6
An important goal of marketing communications is to build a relationship with the organization’s:
A. employees.
B. technological team.
C. channel members.
D. research and development channel.

Question 7
__________ is an activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product.
A. Sales promotion
B. Promoting a company
C. Selling goods
D. None of the above

Question 8
A non paid form of non personal communication about the organization and its products that is transmitted through a mass medium in the form of a news story is referred to as:
A. advertising.
B. newsletters.
C. publicity.
D. None of the above

Question 9
Why would the manufacturer of a $390 video home security system be reluctant to use advertising as its sole promotional tool?
A. The manufacturer would have little control over the promotional message.
B. Advertising is an ineffective way to create a product or brand image.
C. The advertising message can be targeted to an individual.
D. Advertising reaches many people who are not potential buyers.

Question 10
The specialist viewpoint is represented by advertising experts who are primarily concerned with measuring the effects of:
A. specific ads or campaigns.
B. the economical status.
C. the research approach.
D. the percent of sales approach

Question 11

What are the objectives for advertising?
A. Specific ads or campaigns
B. Creating awareness, aiding comprehension, developing conviction, and encouraging ordering
C. Implement marketing plans
D. None of the above

Question 12
The ultimate objective of the business advertiser is to make:
A. people aware of the company.
B. sales and profit.
C. informed guesses about how to manipulate buyers.
D. None of the above

Question 13
The __________ method attempts to determine retail price by using product costs as a base.
A. per-unit expenditure
B. purchase pricing
C. percentage-of-sales
D. all-you-can-afford

Question 14
Well-planned advertising programs usually make use of the __________ approach.
A. marketing
B. financial
C. task
D. None of the above

Question 15
__________ are in the best position to act as the intermediaries through whom valuable information can be passed back and forth between buyers and producers.
A. Marketing managers
B. Customers
C. Advertisers
D. Salespeople

Question 16
The process of locating potential customers is called:
A. database building.
B. planning sales calls.
C. pre-selling.
D. prospecting.

Question 17
Which of the following is a salesperson’s best source of prospects?
A. Trade shows
B. Referrals from satisfied customers
C. Canvassing
D. Centers of influence

Question 18
Which of the following statements about objections during a sales presentation is true?
A. Objections are typically trivial, and best handled by ignoring them.
B. Objections can arise at any time during the sales presentation.
C. A good salesperson allows objections to be raised only when the sales presentation is concluded.
D. In handling an objection, a salesperson should be willing to challenge the prospect’s opinion and experience.

Question 19
In response to an objection, the salesperson should __________ the customer.
A. not immediately challenge
B. thank
C. listen passively to
D. actively challenge

Question 20
The concept of __________ focuses the organization’s attention on providing continuing satisfaction and reinforcement to individuals or organizations that are past or current customers.
A. pre marketing
B. advertising
C. after marketing
D. warranting