Question 1

Rudolf Freer Inc., an automobiles manufacturer, decides to create an all-weather golf cart. The decision is stimulated by the increasing popularity of snow-golfing. The R&D team of Rudolf develop a working model of the golf cart and simulate different weather conditions in the lab to see how the golf cart holds up. The golf cart is currently in the stage of _____.

Options :

A : alpha testing

B : beta testing

C : market testing

D : concept testing

E : idea generation

Answer: A

Question 2

_____ are small, full-line discount stores that offer a limited merchandise assortment at very low prices.

Options :

A : Category specialists

B : Specialty stores

C : Extreme value retailers

D : Supermarkets

E : Department stores

Answer: C

Question 3

A consumer goods manufacturer, Ankam, is accused of manufacturing substandard goods. The complainants claim that the products break down before the expiration of their warranty but the warranty is void because the parts that malfunction are not covered by the warranty. Ethan, an independent investigator, is looking into the matter. What should he do first?

Options :

A :

Check whether the warranty issued by Ankam clearly specifies that certain parts are not covered by the warranty.

B :

Collect information on all malfunctions and check the list of malfunctioning parts against the warranty to verify if the complaint is true.

C :

Conduct tests of Ankam-s products under various conditions and identify the conditions under which they break down.

D : Interview each of the complainants to find out about their use of Ankam-s products.

E : Advise Ankam on the measures it could adopt until the investigation is complete.

Answer: A

Question 4

Kate buys a new summer dress but is worried that the color may fade during the first wash. This perceived danger that Kate is experiencing is known as _____ risk.

Options :

A : social

B : financial

C : physiological

D : performance

E : psychological

Answer: D

Question 5

In which of the following cases is a company changing its business strategy in response to a strength identified in a SWOT analysis?

Options :

A :

When it realized that its products were inferior in quality to competitors' products, KPR Inc. instituted a revamp of its production processes.

B :

YellowBerry Inc. identified market demand for powdered energy drinks, and began producing powdered drinks to cater to this demand

C :

When a survey revealed that customers thought its products were safe and durable, Masada Motors began stressing that aspect in its advertisements.

D :

Chocobella Inc. introduced a line of unsweetened chocolates when a competitor-s unsweetened chocolate saw increasing demand.

E :

When new competitors entered its market, Widdershins Inc. had to increase its advertising and marketing efforts to maintain its market share.

Answer: C

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