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QUESTION NO: 1
Saleye Pharmaceuticals develops cheaper alternatives to proprietary drugs. Its mission statement states that it wants to create affordable medicine for everyone and create a healthier world. Saleye releases a new and improved version of its pain-relieving drug, Fento. Within a week,
Saleye receives many complaints stating that the drug is inducing hallucinations and in some cases triggering certain anxiety disorders. Saleye was caught off-guard as its animal and human trials did not reveal any side effects. Saleye deliberated over the decision to recall the drug for over a week and by the time it eventually did, it had lost millions in stocks. Where did Saleye fail?
A. It did not have an ethical mission statement.
B. It did not have control measures in place.
C. It did not consider the target market before creating its drug.
D. It prioritized profits over effective drugs.
E. It did not conduct large-scale human trials.
Answer: B
QUESTION NO: 2
When conducting a SWOT analysis, opportunities and threats are likely to arise from:
A. assets and financial performance.
B. key personnel.
C. changes in consumer preferences.
D. the company's core competencies.
E. the location of the company.
Answer: C
QUESTION NO: 3
Newtown-based athletic shoe manufacturer Alpha Shoes sells different types of shoes for kids, and focuses its marketing activities in the Newtown region. To increase sales of its products, Alpha begins an intensive promotional campaign in Newtown's schools. Which of the following market strategies is the company using?
A. diversification
B. market penetration
C. horizontal integration
D. market development
E. vertical integration
Answer: B
QUESTION NO: 4
X-Pert Bikes sells bikes for people of all ages. The company is creating a new advertising campaign targeted only at existing customers, encouraging them to buy an X-Pert Bike the next time they want a bike. The company also begins an X-Pert Club for existing users of X-Pert Bikes, as research has shown that familiarity with a brand increases the chances of repeat purchases. In this case, X-Pert's campaign is aiming to build ______.
A. brand awareness
B. brand dilution
C. brand parity
D. brand extension
E. brand loyalty
Answer: E
QUESTION NO: 5
Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at
$120 each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,200 for rent and insurance, $300 for heat and electricity, $600 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner.
What is the break-even point for Forever Quilting?
A. 50
B. 60
C. 70
D. 80
E. 90
Answer: D
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Updated: May 27, 2022