Study Guide

Field 012: Career and Technical Education—Marketing
Sample Multiple-Choice Questions

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Objective 0001
Business and Human Resources Management (Standard 1)

1. Employees of a financial services firm perform a wide variety of tasks. The types of tasks that are performed change with the time of year and the client that is being served. These changes can sometimes be rapid and unexpected. Which of the following is likely to be the most efficient and effective way for managers to ensure flexibility in matching work assignments with the changing needs of the business?

  1. developing a list of independent contractors who can be hired temporarily to fill office needs
  2. increasing the size of the permanent staff by hiring employees who specialize in one or two areas
  3. cross-training office staff so that they are familiar with the requirements of a wide range of tasks
  4. reducing the number of tasks employees perform by focusing more narrowly on the firm's core mission
Answer
Correct Response: C.
This question requires the examinee to have a broad and comprehensive understanding of the nature and scope of business operations and principles of operations management. In a rapidly changing business environment, managers must ensure that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. If a firm is required to perform a variety of tasks, one effective way to ensure that staff can meet the needs of customers is to cross-train the staff so the staff can perform a variety of tasks.
Objective 0002
Entrepreneurship and Business Ownership (Standard 2)

2. Which of the following types of businesses is required to pay federal business taxes as an entity separate from ownership?

  1. general partnership
  2. C corporation
  3. S corporation
  4. sole proprietorship
Answer
Correct Response: B.
This question requires the examinee to have a broad and comprehensive understanding of the types and characteristics of business ownership, including sole proprietorships, partnerships, corporations, franchises, and cooperatives. A C corporation is a legal entity that is separate from the owners of the corporation, and the corporation must pay federal taxes.
Objective 0003
Business and Marketing Communication (Standard 3)

3. In which of the following situations is a private Internet message board likely to be the most effective communication tool to utilize?

  1. discussing a marketing decision with several colleagues who work in different time zones
  2. quickly resolving an urgent marketing problem by consulting with a coworker online
  3. presenting a slide show to clients who do not have videoconference software
  4. publicly announcing the development of a highly anticipated new product or service
Answer
Correct Response: A.
This question requires the examinee to have a broad and comprehensive understanding of characteristics, applications, operation, advantages, and disadvantages of various types of communication technologies, including emerging technologies, used in business and marketing contexts. A private Internet message board is a Web application that allows a user to post a message that can be read by other members who have access to the message board. Members of the group can also post replies to the message and create discussion threads. This is an effective method for securely discussing marketing decisions among colleagues in different time zones and geographical locations.
Objective 0004
Financial Management, Accounting, and Math for Business and Marketing (Standard 4)

4. A supplier receives an order from a client for $50,000 worth of supplies. On December 1, the supplier makes its first delivery of $15,000 worth of supplies to the client. A second delivery for $15,000 worth of supplies occurs on December 31. The final delivery is made on January 15 of the following year. If the supplier uses accrual accounting, which portion of the total order should the supplier include in its total sales as of December 31 after the client receives the second delivery?

  1. $0
  2. $15,000
  3. $30,000
  4. $50,000
Answer
Correct Response: C.
This question requires the examinee to have a broad and comprehensive understanding of accounting terminology, steps in the accounting cycle, and the application of Generally Accepted Accounting Principles (GAAP). According to GAAP, revenues from selling inventory are recognized at the date of sale, which is often interpreted as the date of delivery. In this case, the two deliveries ($30,000) in December would accrue revenue in the first fiscal year while the remaining $20,000 delivered January 15 will accrue revenue in the second year.
Objective 0005
Personal Financial Literacy (Standard 6)

5. The risk of erosion of buying power due to inflation is likely to be greatest when investing CDs in which of the following situations?

  1. a period of extremely low interest rates
  2. an economic recession
  3. a period of stock market growth
  4. an economic recovery
Answer
Correct Response: A.
This question requires the examinee to have a broad and comprehensive understanding of strategies and skills for personal financial planning, money management, budgeting, and creating and maintaining financial records. A certificate of deposit (CD) is an investment of a given amount of money for a set time period at a specified interest rate. A CD is insured, so it is essentially risk free. Because the investment carries no risk, the interest rates are generally lower on CDs than on other investment instruments. If interest rates are extremely low, any accrued interest earned at the end of the specified time period will be offset by reduced buying power caused by inflation.
Objective 0005
Personal Financial Literacy (Standard 6)

6. Which of the following statements describes the primary function of an e-commerce Web site's privacy policy?

  1. instructing consumers not to share any information regarding the Web site with third parties
  2. explaining the encryption and security protocols that the Web site utilizes to protect consumers
  3. informing consumers about how their personal information may be collected and used
  4. affirming that all content on the Web site is copyrighted and may not be used without permission
Answer
Correct Response: C.
This question requires the examinee to have a broad and comprehensive understanding of rights and responsibilities of consumers and the use of rational decision-making skills when purchasing goods and services. A Web site's privacy policy is a legal document that informs consumers about how their private information may be collected, stored, or shared. Because this information has been provided on the Web site, it is implied that the user of the Web site is consenting to the terms of the agreement.
Objective 0006
Economics (Standard 7)

7. Which of the following economists advocated for strong government interventions such as increased government spending to smooth the business cycle and help prevent and soften recessions?

  1. Adam Smith
  2. John Maynard Keynes
  3. Milton Friedman
  4. Karl Marx
Answer
Correct Response: B.
This question requires the examinee to have a broad and comprehensive understanding of major economic theories and their influence on the formulation of public policy. John Maynard Keynes believed that government played an important role in stimulating the economy during a depression. Keynes argued that the Great Depression was caused by a lack of aggregate demand, and that the government could increase demand by increasing spending, thereby generating economic activity. This point of view is referred to as Keynesian economics.
Objective 0007
Business, Marketing, and Personal Law and Ethics (Standard 5)

8. A promissory note written by one person to another would be considered a negotiable instrument if the note:

  1. requires the bearer to perform an additional service in order to get paid.
  2. is a written agreement between two parties but is not notarized by a notary public.
  3. specifies a form of payment to the bearer other than money (e.g., stocks, gold).
  4. is payable on a specified date rather than upon presentation of the note by the bearer.
Answer
Correct Response: D.
This question requires the examinee to have a broad and comprehensive understanding of the functions and uses of commercial paper and the laws and regulations pertaining to credit, taxes, and bankruptcy. The terms of a promissory note include the principal amount, the interest rate, the parties, the terms of repayment, and the maturity date. When all of these terms are met, the note is considered a negotiable instrument.
Objective 0008
Marketing Research, Information Management, and Market Planning (Standard 8)

9. Which of the following statements most accurately describes how browser cookies have influenced the marketing techniques used on many e-commerce Web sites?

  1. Cookies enable a company to replace online advertisements belonging to other parties with their own advertisements.
  2. Advertisements are often contained within browser cookies so that consumers see them on multiple Web pages.
  3. Cookies can be configured to redirect a consumer's browser to a Web site that they did not intend to visit.
  4. Marketing efforts can be customized toward individual consumers by tracking their browsing habits using cookies.
Answer
Correct Response: D.
This question requires the examinee to have a broad and comprehensive understanding of types and characteristics of emerging technologies used in marketing and procedures for employing these technologies in various marketing contexts. A browser cookie is a small piece of data sent from a Web site and stored in a user's Web browser as the user is browsing that Web site. Every time the user loads the site, the browser sends the cookie back to the server to notify the site of the user's previous activity. In this way, cookies can be used to customize marketing to the individual consumer.
Objective 0009
Product/Service Development, Management, and Distribution (Standard 9)

10. In which of the following ways could radio-frequency identification (RFID) be used to assist an e-commerce business?

  1. to confirm that a product has been assembled correctly during production
  2. to automate the tracking of packages within the business's warehouse
  3. to allow customers to track their packages during delivery
  4. to enable delivery drivers to confirm that a package has been delivered correctly
Answer
Correct Response: B.
This question requires the examinee to have a broad and comprehensive understanding of types of characteristics of inventory control systems, strategies for maintaining inventory control, and the use of technology in product distribution and inventory management. Radio-frequency identification (RFID) is the wireless use of radio-frequency electromagnetic waves for the purposes of automatically identifying and tracking tags attached to objects. The range is typically only up to a few hundred meters, which makes RFID well suited for tracking packages within a business's warehouse.
Objective 0010
Product/Service Pricing, Promotion, and Selling (Standard 10)

11. Which of the following describes a promotional strategy used to generate primary demand?

  1. A sports clothing company runs print advertisements for its products in golfing magazines.
  2. A manufacturer of custom machine parts sends informational brochures to local engineering companies.
  3. An ice cream stand runs radio advertisements for its products on hot summer days.
  4. A consortium of chicken producers runs television advertisements urging increased consumption of chicken.
Answer
Correct Response: D.
This question requires the examinee to have a broad and comprehensive understanding of pricing strategies, including promotional and penetration pricing, and circumstances in which each strategy might be used. Primary demand advertising seeks to boost demand for an entire product class. This differs from selective demand advertising, which seeks to point out the advantages of one brand of product over the competing brands. Increasing the consumption of chicken is an example of primary demand advertising since it is seeking to increase the demand for chicken in general and is not focusing on a specific brand.
Objective 0011
International, Internet, and Specialty Marketing (Standard 11)

12. The designer for a movie review Web site has begun using a technology that identifies locations on the Web site that are most and least commonly clicked by users. The designer can best evaluate which of the following aspects of the Web site by using this technology?

  1. the aesthetic design of the site
  2. the quality of the site's content
  3. the placement of advertisements on the site
  4. the effectiveness of the site's search feature
Answer
Correct Response: C.
This question requires the examinee to have a broad and comprehensive understanding of strategies and procedures for establishing an Internet business and for planning, developing, designing, maintaining, and managing a Web site. Capturing data that shows which sections of a Web site are most accessed by users can be a valuable marketing practice. Identifying the sections of the site that most users frequent will allow the designer to place advertisements in those sections to maximize viewing exposure.
Objective 0012
Marketing Careers and Career Development (Standard 12)

13. In a marketing class, students discuss the advantages and disadvantages of various career paths and opportunities. In particular, the students debate the benefits of taking an entry-level job at a small, fast-growing e-marketing firm rather than a similar job at a large, respected, and well-established marketing and advertising firm. Which of the following best describes the likely benefits of taking a job at the small firm?

  1. a higher starting pay range and greater job security
  2. more company travel and client-facing opportunities
  3. a more comprehensive and generous employee benefits package
  4. broader job responsibilities and increased opportunities for promotion
Answer
Correct Response: D.
This question requires the examinee to have a broad and comprehensive understanding of types and characteristics of career opportunities in business- and marketing-related fields. Larger, more-established companies typically offer higher starting pay ranges and greater job security as well as a more generous benefits package. In a small, fast-growing company, each employee will have multiple responsibilities and will learn more about the entire scope of the business. As the company grows, it will need to hire new employees, which in turn will provide more opportunities for promotion of existing staff.
Objective 0013
Core Knowledge and Skills for Marketing Teachers (Standard 13)

14. The Vocational Education Act of 1963 is significant in the history of career and technical education because it was the first piece of federal legislation to:

  1. approve funds for vocational education in secondary public schools.
  2. stipulate that vocational education should be separate from a public school's secondary curriculum.
  3. include business education in the definition of vocational education.
  4. call for the creation of a national board to develop a system of occupational skills standards and certifications.
Answer
Correct Response: C.
This question requires the examinee to have a broad and comprehensive understanding of important events and developments in the history of career and technical education and marketing education. The Vocational Education Act of 1963 authorized federal funds to support separate vocational schools, vocational work-study programs, research, training, and demonstrations in vocational education, which includes business education.
Objective 0014
Marketing Instruction and Assessment (Standard 14)

15. In a high school marketing class, teams of students use interactive simulation software to develop and market a new product. The teams use simulated market research and other software to choose a product, determine pricing, develop a promotional campaign, address market competition, create a budget, and evaluate profit-and-loss data. In accordance with the ISTE National Educational Technology Standards for Students, this is a particularly appropriate activity for promoting students' creativity and critical thinking because it:

  1. engages students in using existing knowledge and digital tools to collaboratively explore complex issues and solve realistic marketing problems.
  2. presents students with firsthand experiences in understanding the challenges of entrepreneurship and the nature of compromise.
  3. provides students with multiple and varied sources of product viability and profitability data and strategies for using the data to make marketing decisions.
  4. offers students an entertaining alternative to the traditional drill-and-practice type of educational games software.
Answer
Correct Response: A.
This question requires the examinee to have a broad and comprehensive understanding of MBA Research and Curriculum Center; National MBA Curriculum Standards in Finance, Management/Administration, and Marketing; and the ISTE National Education Technology Standards. ISTE's National Educational Technology Standards for Students (NETS•S) describe the skills and knowledge students need to learn to function in an increasingly global and digital world. These standards emphasize skills such as creativity, innovation, critical thinking, and communication, in addition to technology operations and concepts. A computer simulation is a program that models a real-world situation or event. This class project simulates the steps involved in developing a marketing campaign for a new product, which requires students to analyze data and solve real-world problems. These activities promote student creativity and critical thinking.