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Stakeholder Relationship Revision Questions

CIPS level 4 (Gaborone University College of Law and Professional Studies)

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STAKEHOLDERS RELATIONSHIPS QUESTIONS

1. Which of the following are the two types of stakeholders? (select 2 options)
A. Internal stakeholder. C. Terminal stakeholder.
B. Communal stakeholder. D. External stakeholder
2. Which of the following is not a type of external stakeholder?
A. Customers. C. Suppliers.
B. Employees. D. Government
3. Which of the following is not a type of internal stakeholders?
A. CEO C. Media.
B. Finance department. D. Design team
4. There are many types of government legislation that have influence on procurement and supply. Which of the
following is not one?
A. Data protection. C. Health and safety.
B. Income tax. D. Worker’s rights
5. Which of the following is not one of the three types of activity sector?
A. Private sector C. Not- for profit sector.
B. Industrial sector D. Public sector
6. Which of the following organizations are in the not –for –profit sector?
A. Private hospital C. Co-operative
B. Charities D. Limited company
7. Which of the following is a definition of ‘equilibrium point’?
A. The point at which profit and loss are equal
B. The point at which supply and demand are equal
C. The point at which employee salaries increase in proportion
D. The point at which sales between competing companies are equal
8. Which of the following is a feature of imperfect competition?
A. Competing firms brands produce almost identical products
B. Products prices between brands do not vary
C. Customers develop brand loyalty because of differentiated products
D. Businesses cannot exert price power
9. Which of the following is an example from everyday life where you may be involved in negotiation?
A. Shopping in a supermarket C. Paying an electricity bill
B. Arranging a time to meet a friend D. Buying phone credit
10. Which of the following is an example from procurement and supply where you may be involved in negotiation?
A. Paying salaries to employees C. Paying water bills.
B. Taking sick leave D. Deciding on a delivery schedule

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11. Which of the following is not one of the five steps in negotiation process?
A. Preparation and planning C. Withholding price information.
B. Bargaining and problem solving D. Defining ground rules
12. Which of the following is a method of non- verbal communication?
A. E-mail C. Face- to-face
B. Telephone call D. Radio
13. Which of the following is a definition of conflict?
A. A successful negotiation. C. A shared working ethic.
B. A difference of options and principles. D. An decrease in consumer demand
14. Which of the following is not one of the five phases of the Thomas-Killman conflict mode instrument?
A. Accommodation. C. Collaboration.
B. Competing. D. Contrasting
15. Which of the following is not a likely cause of conflict between employees in the workplace?
A. Differences in personality. C. Shared interests.
B. Rivalry/competition. D. Differences in values
16. Pressure groups and lobbyists are which type of stakeholder?
A. Connected C. Secondary
B. Internal D. Contractual
17. As a stakeholder, society at large will expect which of the following from an organisation?
A. An extensive product range C. Continually high profitability
B. Corporate and social responsibility D. High levels of customer satisfaction
18. As an organization’s stakeholder, the government will be interested in which of the following?
A. Generation of corporate tax C. Market share of business
B. Increase in sales and turnover D. Provision of customer service
19. How might the procurement function support colleagues in the design team?
A. Researching potential suppliers C. Ensuring a smooth flow of goods
B. Helping with resourcing issues D. Setting up outsourcing contracts
20. An organization’s senior management team is which of the following types of stakeholders?
A. External C. Connected
B. Secondary D. Internal
21. An organization’s employee is which of the following types of stakeholders?
A. Internal stakeholder C. Functional stakeholder
B. Business stakeholder D. Department stakeholder
22. The prompt delivery of components is likely to be a key objective of which department?
A. Finance C. Production
B. Design D. Human resources

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23. From the supplier’s perspective, who is the consumer?

A. The person who wrote the specifications
B. Whoever is the user of the product
C. The person who initiates the purchase
D. All external stakeholders
24. Which of the following is a way of formalizing cross-functional working relationships between internal
stakeholders?
A. Establishing a matrix structure C. Forming a centralized approach
B. Creating internal service levels D. Developing a communication plan
25. Today, which of the following are likely to be interested in an organization’s approaches to sustainability care for
the environment and ethical practices?
A. All stakeholders C. Connected stakeholders
B. Internal stakeholders D. Secondary stakeholders
26. An organisation’s finance department, logistic function, marketing team and procuremnt department are all what?
A. Internal stakeholders C. Functional stakeholders
B. Business stakeholders D. Department stakeholders
27. Which of the following is a characteristic of an external stakeholder?
A. It has no direct contractual dealings with the organisation
B. It has no interest in the activities and dealings of the organisation
C. It is not impacted upon by the organisation or its activities
D. It has no dependency whatsoever on the organisation
28. Which of the following is responsible for the identification and management of risks to an organisation’s
reputation?
A. All employees C. The quality assurance manager
B. Marketing department D. Quality circle leaders
29. Why is a high level of interaction required between the procurement and marketing functions of an organisation?
A. Most marketing is outsourced to the procurement function
B. Much of an organisation’s marketing requirements are supplied by external providers
C. The marketing and procurement functions are often combined
D. The procurement and marketing functions share common objectives
30. Which of the following statements about industrial buyers is true? The buyer:
A. cannot be part of the decision-making-unit C. is frequently not the user
B. must have considerable experience D. will always hold the budget
31. Which of the following is an activity that procurement will undertake and which has direct impact on colleagues
in sales and marketing?
A. Approving invoices for payment C. Dealing with supplier conflict
B. Scheduling deliveries D. Sourcing materials for new products

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32. The procurement function at AAA Manufacturing has agreed to pay a key suppliers within seven days of receipt
of goods instead of the normal 45 days. This is most likely to cause conflict with which other internal function?
A. Production C. Operations
B. Finance D. Distribution
33. The procurement function are most likely to support which of the following in the development of specifications?
A. Audit C. Design
B. Finance D. Human Resources
34. The procuremnt team will support which of the following with value analysis?
A. Engineering C. Human resources
B. Finance D. Marketing
35. The procuremnet and finance function can be in conflict, for example, finance delay making paymnets to
suppliers. Why might finance want to do this?
A. To improve the organisation’s cash-flow C. To reduce overheads
B. To reduce budgets D. To improve supplier relationships
36. More than 50% of the finance which supports HND Manufacturing group is provided by PWT Banking
Corporation. To HND, PWT could be described as a:
A. Shareholder C. Customer
B. Investor D. Stakeholder
37. The procuremnt function can assist colleagues in finance by undertaking which of the following?
A. Analysing supplier perfomance data C. Categorising levels of procurement risk
B. Undertaking supplier financial analysis D. Providing accurate forecast of spend
38. How might the procurement function support colleague in the design team?
A. Researching potential suppliers C. Ensuring a smooth flow of goods
B. Helping with resourcing issues D. Setting up outsourcing contracts
39. The main types of organizational sector are….
A. First, second and third C. First, private and public
B. Private, public and third sector D. Primary, agricultural and fishing
40. A charity is a type of organisation in which sector?
A. The private sector C. The voluntary sector
B. The public sector D. The financial sector
41. Which of the following is a role for the Human Resource Management (or personnel) function in an organisation?
A. Training and recruiting C. Checking and processing invoices
B. Sorting problems with office telephones D. Analysis of manufacturing costs
42. What is the output of a manufacturing company?
A. High-quality services C. Tangible products to sell to customers
B. Public accountability and audits D. A well-educated workforce

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43. Which of the following is a characteristic of an organisation in the public sector?

A. Organisations are owned by the their investors and controlled by directors or managers on their behalf
B. The primary purpose is achieving defined objectives for charitable purpose or to represent the interest of a
group of people
C. There is little or no competition
D. The primary purpose is the achievement of commercial objectives with the main aim of maximizing profits
44. When negotiating and the other party will listen to the other party but may still stick to their position is often
referred to as which type of negotiation personality?
A. Open: hard C. Closed: hard
B. Closed: soft D. Open: soft
45. The public sector includes which of these organisations?
A. Banks, insurance companies and retail shops
B. Management consultancies and data warehouse
C. Central government departments and local authorities
D. Sports clubs, churches and charities
46. Organisations owned by shareholders exist in which of the following sector?
A. Third C. Private
B. Public D. Not for profit
47. A charity is a type of organisation in which sector?
A. The private sector C. The voluntary sector
B. The public sector D. The financial sector
48. Which of the following is an area of focus for the procurement and supply function of a private sector
organisation?
A. Contributing to profit C. Making donations
B. Generating taxes D. Supporting the government
49. Which of the following is not a purpose or objective of third sector organisations?
A. Raising awareness of a cause or issue
B. Political lobbying and advocacy on behalf of a group
C. Maximizing profits for the owners of the organisation and contribute to their wealth
D. Providing material aid and services to the public or specific beneficiaries
50. Which of the following would be identified as a third sector organisation?
A. Local government C. Trade unions
B. Small manufacturing company D. Private limited company
51. An organisation that grows trees used in the production of pulp for the paper industry is an example from which
sector?
A. Primary C. Tertiary
B. Retail D. Secondary

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52. Service providers are placed in which industry sector?

A. Retail C. Primary
B. Tertiary D. Secondary
53. What is a characteristic of primary industry?
A. It transforms raw materials into components
B. It has no choice about its location
C. It is only involved in delivering services
D. It does not make a profit
54. TWL Banking Group is in which industry sector?
A. Production C. Tertiary
B. Secondary D. Primary
55. The demand curve considers the demand for a product in relation to it’s…..
A. Costs C. Price
B. Profit margin D. Availability
56. Intense rivalry between suppliers might occur in which scenario?
A. There are a few powerful suppliers
B. There is low demand for the product
C. There is little product differentiation
D. It is difficult for buyers to switch suppliers
57. The volume of goods or services that organisations are willing and able to sell is known as….
A. Manufacturing C. Supply
B. Demand D. Elasticity
58. The equilibrium price is reached when……
A. all pricing in the market is exactly the same
B. sellers are happy to charge what buyers are content to pay
C. pricing is the only factor the buyer will consider
D. buyers are not concerned about how much they pay
59. A market dominated by a few large competing suppliers is called …?
A. Oligopsony C. Oligopoly
B. Totopoly D. Monopoly
60. Supply and demand can be affected by ‘big picture’ issues such as economic growth, regulation, societal changes
and government policy. These are known as which of the following?
A. Supply and demand factors C. Competitive forces
B. The internal environment D. Macro environmental factors
61. Which of the following is a feature of a monopoly market?
A. Many substitutes C. Flexible pricing
B. High barriers to entry D. Low profits

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62. When line ‘D’ moves to position ‘D1’ what has occurred

A. A reduction in demand C. An increase in demand

B. A reduction in price D. A reduction in supply
63. Complete the sentence: The equilibrium price is reached when……
A. All pricing in the market is exactly the same
B. Sellers are happy to charge what buyers are content to pay
C. Pricing is the only factor the buyer will consider
D. Buyers are not concerned about how much they pay
64. Oral or written recommendation by a satisfied customer to the prospective customers of a good or service is
known as which type of marketing technique?
A. Word-of-Mouth Marketing C. Transactional marketing
B. Relationship marketing D. Mass marketing definition
65. What is used to show the impact of price changes on demand?
A. A demand matrix C. A demand plan
B. A demand cycle D. A demand curve
66. Supplier price discrimination may occur in which of the following market structures?
A. Perfect competition C. Monopoly
B. Open competition D. Oligopoly
67. The negotiation personality where one party may be cautious and apprehensive about sharing any information is
referred to as…..
A. Closed C. Open
B. Soft D. Hard
68. Which of the following is a supplier’s response to falling prices?
A. Reduce production volumes C. Increase volume discounts
B. Launch a high quality substitute D. Increase output of the product
69. In which of the following market structures does the buyer have the most power?
A. Monopoly C. Oligopoly
B. Perfect competition D. Monopolistic competition

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70. What is the price of £0.35 on this graph called?

A. The interference price C. The fair price

B. The equilibrium price D. The firm price.
71. Which of the following describes an oligopoly market structure?
A. A large buyer with significant power
B. Supply exceeds demand in a small market
C. A small number of large suppliers compete
D. There is no competition in the market
72. Which of the following actions would present collusion within an oligopoly market?
A. The production of similar products C. The introduction of identical packaging
B. The use of the same advertising agency D. The formation of a price cartel
73. Which of the following might account for changes in the overall market size?
A. Increases in pricing C. Surplus production capacity
B. Reduction in birth rates D. Decreases in supplier costs
74. Increases in the size of a market are influenced by which of the following?
A. Level of competition C. Business failure rates
B. Supplier’s capacity D. Economic growth
75. Which of the following enhances buyer power within a market?
A. No product differentiation C. No substitute products
B. High market entry barriers D. Existence of forward integration
76. Which of the following describes the principle that, by allowing prices to move freely, supply will match demand?
A. Supply power C. Supplier rivalry
B. The price mechanism D. A supply curve
77. Which of the following marketing technique encourages customer loyalty via store cards, dividend cards,
vouchers and discounts?
A. Relationship marketing C. Newsletter marketing
B. Transactional marketing D. Exhibitions and trade shows
78. An individual that is easy to get along with but may say yes in a negotiation just to avoid conflict is said to be
which of the following?
A. Hard C. Soft
B. Closed D. Open

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79. What is the main impact on the purchasing organisation when dealing with a highly profitable market where there
are no barriers to entry?
A. Limited choice of supplier C. New suppliers coming on stream
B. A low level of supply D. Many buyers exiting the market
80. A market structure is determined by which of the following?
A. Scale of demand C. Nature of product
B. Length of supply chain D. Level of competition
81. The point at which producers wish to sell the same amount as consumers wish to buy, create which of the
following?
A. Breakeven point C. Supply and demand
B. Equilibrium price D. Competitive party
82. An industry is more competitive when:
A. there are many suppliers producing similar products
B. the switching costs for buyers is relatively high
C. there are fewer larger buying organisations
D. the buyers’ spend is a low proportion of the suppliers’ revenue
83. Two products from different suppliers are interchangeable. If the price of one goes up the demand for the other
will increase. Which of the following justifies the increase in demand?
A. The availability of a substitute C. Supply and demand
B. The demand curve D. The supply curve
84. Complete the sentence. New players can keep competitive rivalry high in markets where there are few------
A. Profit opportunities C. Government incentives
B. Large buyers D. Barriers to entry
85. Which of the following is not a stage of the product life cycle?
A. Introduction C. Growth
B. Marketing D. Decline
86. Which of the following is not part of the marketing mix?
A. Promotion C. Performance
B. Place D. Packaging
87. In which of the following stages of the product life cycle does promotion plays a great role in increasing the
product sale?
A. Introduction C. Growth
B. Maturity D. Decline
88. Which of the following is not part of the marketing process?
A. Management process C. Anticipation customer requirements
B. Identifying customer requirements D. Increasing prices for products

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89. Marketing technique that capitalizes on a customer’s fear of missing out on something is referred to as which of
the following?
A. Word-of-Mouth Marketing C. Scarcity marketing
B. Cause related marketing D. Mass marketing definition
90. Building rapport is known to be a core skill for which of the following
A. Analyzing numbers C. Influencing others
B. Assessing information D. Gathering information
91. In order to build rapport it is useful to be able to demonstrate which of the following?
A. Confidence C. Sympathy
B. Empathy D. Intelligence
92. Which of the following is an effective rapport-building technique?
A. Asking questions C. Mimicking
B. Mirroring D. Taking notes
93. Communication to change the attitude of someone else, for example in a negotiation, is known as which of the
following?
A. Relationship building C. Discussion
B. Building rapport D. Persuasion
94. Which of the following is always useful in building rapport with someone?
A. Sending an email C. Speaking slowly
B. Finding common ground D. Phoning every day
95. A tough and challenging negotiator is said to have which of the following negotiation personality?
A. Hard C. Closed: hard
B. Open D. Open: hard
96. Communication, in the broadest sense, is defined as…..
A. A two-way discussion C. An interactive debate
B. An information exchange D. A meeting between two people
97. Which of the following describes interference in the communication process and can be a barrier to effective
communication?
A. Coding C. Noise
B. Speed D. Intervention
98. Communication across different stakeholders within the purchasing community can have a positive effect if it is
used to achieve which of the following?
A. To win argument C. To build relationships
B. To eliminate conflicts D. To exert power
99. Body language is a form of which of the following?
A. Encoded message C. Non-verbal communication
B. Noise D. Distortion

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100. Which of the following is the most important factor in choosing the communication medium if there is an
emergency requirement?
A. Complexity C. Interactivity
B. Speed D. Cost
101. When you communicate with another person, what should you look out for from them to confirm they have
received the message from you?
A. Origination C. Encoding
B. Feedback D. Transmission
102. Which of the following is a form of ‘code’ used within a communication?
A. Noise C. Weighted average
B. Distortion D. Jargon
103. Sahid has an urgent order and his boss tells his “Money is not an issue; we simply have to get the products
tomorrow. Which of the following is the most important factor for Sahid in choosing the communication medium?
A. Complexity C. Interactivity
B. Speed D. Cost
104. An individual that is cautious but willing to listen is referred to as having which type of negotiation personality?
A. Closed: soft C. Open: hard
B. Closed: hard D. Open soft
105. When there is a need to communicate with a supplier, which of the following will directly influence the choice of
communication medium used?
A. Date contract began
B. Complexity of message
C. Experience of the parties
D. Whether the supplier is providing goods or services
106. Which of the following is a frequent problem that is encountered when working in teams?
A. Using collective skills C. Leveraging interpersonal skills
B. Generating a range of ideas D. Making decisions take longer
107. Why are teams good for the individuals within them? Working in teams….
A. means individual efforts are reduced C. satisfies social needs
B. never leads to conflict D. means that targets are always hit
108. Authority imbalance within a group can lead to which of the following?
A. Trust C. Diversity
B. Conflict D. Delegation
109. Which of the following builds cohesion among groups of people at work?
A. Qualitative targets C. Team identity
B. Power imbalance D. Group norms

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110. Which of the following is true of highly effective teams?

A. There is no need for individual targets
B. Team members only need to understand their own role
C. Open confrontation will not be tolerated
D. There is trust between members
111. The procurement team at XYZ Manufacturing Group has been unable to forecast accurately the future volumes
of components it needs. Why is this likely to cause conflict between the procurement and finance teams at XYZ
Manufacturing? Because finance……..
A. needs to manage the company’s cash-flow
B. will be placing the orders for the components
C. is responsible for scheduling deliveries
D. must agree terms with the supplier
112. Which of the following is true about working in a team?
A. Team members will always get on
B. Teams will always collaborate
C. New members will always be welcomed
D. Teamwork facilitates idea generation
113. Which type of negotiation personality describe an individual who will trust and follow the other party in a
negotiation process?
A. Soft C. Closed
B. Hard D. Open
114. Which of the following may polarize views and ‘dislocate’ group members?
A. Litigation C. Collaboration
B. Collective bargaining D. Destructive conflict
115. A pressure group focuses on ethical practices. Its primary aim, when dealing with an organisation to which it is a
stakeholder, is to…
A. encourage it to employ more people
B. help it to reduce its bank debt
C. help to negotiate better terms with suppliers
D. influence its policies and strategies
116. The promotion “P” of marketing is also known as ________.
A. Product Differentiation C. Cost
B. Distribution Marketing D. Communication
117. Constructive conflict can result in which of the following?
A. Reduced risk C. Innovative solutions
B. More stakeholders D. Fewer suppliers

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118. Which of the following defines ‘a small group of people with complementary skills who are committed to a
common purpose and goals for which they hold themselvesjointly accountable’?
A. A union C. A board
B. A team D. A work unit
119. In team development, the stage at which members start to assert themselves and test out roles is known as which
of the following?
A. Preforming C. Forming
B. Storming D. Norming
120. Whether to sell via intermediaries or directly to consumers, how many outlets to sell through, and whether to
control or cooperate with other channel members are examples of decisions marketers must make about
A. Promotion C. Distribution
B. Price D. Product
121. According to the stages of team development, at which stage does the team start to settle down and agree how to
share work?
A. Storming C. Performing
B. Norming D. Forming
122. Which of the following refers to individual differences in characteristic patterns of thinking, feeling and behaving?
A. Performance C. Personality
B. Sociality D. Rapport
123. In a negotiation process, a very trusting and open individual who assumes others to be the same is referred to as
which of the following?
A. Open C. Closed
B. Open: soft D. Open: hard
124. A disagreement has arisen between a purchaser and the supplier. When it is resolved the solution represents an
improvement to the product and a better relationship going forward between the parties. This is an example of:
A. constructive conflict C. beneficial arguments
B. positive disagreements D. solutioned agreements
125. When would disciplinary procedures be used to resolve conflicts?
A. Dealing with staff employed by the organisation
B. Dealing with supplier disputes
C. Dealing with difficult supply chain issues
D. Dealing with unsatisfied customers
126. Which of the following is a conflict handling style described as ‘the use of bargaining with each party trading
concessions and gains’?
A. Determining C. Synchronising
B. Accommodating D. Compromising.

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127. Where compromise is used to resolve conflict, how is agreement reached?

A. Both parties make concessions
B. The parties collaborate to achieve a ‘win/win’
C. Both parties adopt an ‘avoiding’ approach
D. One party uses power to force a ‘win/lose’
128. Which of the following is a common source of internal conflict within an organisation?
A. Poor suppliers C. Budget allocations
B. Contractual disputes D. Unsatisfied customers
129. Conflict due to a personality clash is a result of which of the following?
A. Resource issues C. Financial issues
B. Interpersonal issues D. Motivational issues
130. Which of the following is not an element of the marketing mix?
A. Distribution. C. Target market.
B. Product. D. Pricing.
131. Within a team, which of the following is often a cause of conflict?
A. Different team roles C. Qualifications of team members
B. Different experience levels D. Poor communication
132. The psychologist Frederick Herzberg defined ‘hygiene’ issues as a potential source of conflict and dissatisfaction.
Which of the following is a ‘hygiene’ factor?
A. The work itself C. Promotion
B. Recognition D. Working conditions
133. According to ‘Thomas’ model of conflict handling styles, working with the other party for outcome of mutual
benefit is known as which of the following?
A. Avoiding C. Collaborating
B. Forcing D. Compromising
134. Shona is frustrated at work because departments are continually arguing over headcount and budgets. This is
evidence of:
A. institutional conflict C. resource conflict
B. hierarchy-based conflict D. status conflict
135. Which of the following will achieve buy-in from stakeholders in conflict resolution?
A. Displinary action C. Collective bargaining
B. Litigation D. Encouraging co-operation
136. The concept of a ‘win/win’ approach to conflict resolution is often the mutual goal of both parties. Such an
approach can be best achieved through which of the following?
A. Withdrawal C. Collaboration
B. Using force D. Making concessions

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137. ‘Collaborating’ is also known as:

A. lose/lose C. win/lose
B. win/win D. partial win/win
138. In which stage of the product life cycle is advertising and promotion aimed at retaining existing customers and
persuading customers to switch from competitor products?
A. Introduction C. Maturity
B. Growth D. Decline
139. Which one is the method to use when two parties have to work together so as to resolve conflicts?
A. Collaboration C. Accommodation
B. Forcing or competing D. Avoiding
140. The concept of a ‘win/win’ approach to conflict resolution is often the mutual goal of both parties. Such an
approach can be best achieved through which of the following?
A. Withdrawal C. Collaboration
B. Using force D. Making concessions
141. In which of the following stages of the product life cycle do sales peak?
A. Introduction C. Maturity
B. Growth D. Decline
142. Promotion does not include which of the following:
A. Advertising Sales C. Promotion
B. Marketing Research D. Personal Selling
143. Price competition starts to occur in which phase of the product life cycle?
A. Introduction C. Decline
B. Growth D. Maturity
144. The variables the most common marketing mix are:
A. Product, Price Promotion, and People.
B. Product, Price Promotion, and Place
C. Product, Price, Production, and Place
D. Product, Research Promotion, and Place
145. Placement focuses on distribution. Which of the following is not part of place/placements?
A. channels of distribution C. All are part of placement
B. convenience or accessibility value D. logistics
146. Marketing management is ________.
A. managing the marketing process
B. monitoring the profitability of the company’s products and services
C. the art and science of choosing target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value
D. developing marketing strategies to move the company forward

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147. One of the key tasks of marketers is ____________ and to create consumer perceptions that the product is worth
purchasing.
A. To make products easily visible and available
B. To promote sales of products
C. To differentiate their products from those of competitors
D. To do marketing surveys
148. Which of the following is NOT a potential reason for a new product to fail?
A. an underestimated market size
B. a poorly designed product
C. an incorrectly positioned product
D. higher than anticipated costs of product development
149. Which of the following is NOT a challenge presented by the product life cycle that a firmmust face?
A. All products eventually decline.
B. Changing tastes, technologies, and competition affect the marketing of the product as it passesthrough
lifecycle stages.
C. A firm must be good at adapting its marketing strategies.
D. It is difficult to plot the stages as a product goes through them.
150. New product development starts with ________.
A. idea generation C. concept testing
B. concept development D. test marketing
151. Which of the following is perhaps the most important external source of new-product ideas?
A. Engineers C. distributors and suppliers
B. customers D. trade magazines, shows, and seminars
152. Marketing environment variables are:
A. the market forces over which marketers have little control, and which affect buyers' needs as well as
marketing managers' decisions regarding marketing mix variables.
B. the market forces over which marketers have little control, and which should be avoided.
C. the same as the market place.
D. the macro and market forces over which marketers have little control, but which affect buyers' needs as well
as marketing managers' decisions regarding marketing mix variables.
153. Which of the following is NOT a recommended method for companies to tap into their customers as sources for
new-product ideas?
A. analyzing customer complaints and questions
B. relying heavily on customers to know what types of technical products they need
C. working alongside customers to get ideas and suggestions
D. putting customer-created products on the market

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154. Which of the following statements is true for both monopolistically competitive and oligopolistic industries?
A. It is impossible for new firms to enter the industries.
B. Collusion and the creation of cartels is common.
C. Producers cannot benefit from knowing other firms' plans.
D. Firms have some degree of control over prices.
155. If a few firms share most of an entire industry's revenues, the market structure is most likely
A. monopolistically competitive C. perfectly competitive
B. an oligopoly D. a monopoly
156. All of the following can help break a monopoly EXCEPT
A. increased barriers to entry C. international competition
B. changing consumer tastes D. technology and innovation
157. Which of the following best describes a successful monopolist?
A. The only buyer of a resource or type of labor
B. The only seller of a difficult-to-substitute product
C. The only buyer of a consumer product
D. The only seller of a non-essential product
158. A monopoly is able to make greater profits than a perfectly competitive firm because
A. the monopolist fixes prices in cooperation with its rivals
B. barriers to entry in the monopolist's market prevent competition
C. antitrust legislation protects the monopolist from regulation
D. monopolistic firms are always larger than competitive firms
159. Whic h of the following would most likely be a monopoly?
A. An appliance store C. A supermarket
B. An electricity provider D. A dentist's office
160. What should organisations seek to do with stakeholders who have high interest and low power?
A. Invest minimal effort C. Keep satisfied
B. Keep informed D. Invest maximum effort
161. A special kind of imperfectly competitive market that has only two firms is called
A. a doublet. C. a duopoly.
B. a two-tier competitive structure. D. an incidental monopoly.
162. In perfect competition, restrictions on entry into an industry
A. do not exist. C. apply to labor but not to capital.
B. apply to both capital and labor. D. apply to capital but not to labor.
163. When we attempt to meet our needs without concern for our partner's needs, we are
A. collaborating. C. competing.
B. compromising. D. folding.

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164. Which of the following statements is NOT a characteristic of a perfectly competitive market?
A. The equilibrium output is both allocatively and productively efficient.
B. While firms in a perfectly competitive market can make positive, zero, or negative economic profits in the
short-run, they have to make zero economic profits in the long-run.
C. Marginal revenue for a perfectly competitive firm is equal to the market price because firms in a perfectly
competitive market are price takers.
D. In the short-run, a perfectly competitive firm will continue production as long as it can cover its total variable
costs.
165. Markets with only a few sellers, each offering a product similar or identical to the others, are typically referred to
as ………..
A. monopolistically competitive markets. C. monopoly markets.
B. oligopoly markets. D. competitive markets.
166. One characteristic of an oligopoly market structure is:
A. Firms in the industry are typically characterized by very diverse product lines.
B. Products typically sell at a price that reflects their marginal cost of production.
C. The actions of one seller can have a large impact on the profitability of other sellers.
D. Since markets are typically large, the actions of one seller largely go unnoticed by its competitors.
167. One key difference between an oligopoly market and a competitive market is that
A. oligopolistic firms are interdependent while competitive firms are not.
B. oligopolistic firms sell completely unrelated products while competitive firms do not.
C. oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not.
D. oligopolistic firms are price takers while competitive firms are not.
168. Perfect competition is an industry with
A. a few firms producing identical goods.
B. many firms producing goods that differ somewhat.
C. a few firms producing goods that differ somewhat in quality.
D. many firms producing identical goods.
169. In a perfectly competitive industry, there are
A. many buyers and many sellers.
B. many sellers, but there might be only one or two buyers.
C. many buyers, but there might be only one or two sellers.
D. one firm that sets the price for the others to follow.
170. In perfect competition, the product of a single firm
A. is sold to different customers at different prices.
B. has many perfect complements produced by other firms.
C. has many perfect substitutes produced by other firms.
D. is sold under many differing brand names.

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171. In perfect competition,

A. there are significant restrictions on entry.
B. each firm can influence the price of the good.
C. there are few buyers.
D. all firms in the market sell their product at the same price.
172. Which of the following market types has the fewest number of firms?
A. perfect competition C. monopoly
B. monopolistic competition D. oligopoly
173. Which describes a barrier to entry?
A. anything that protects a firm from the arrival of new competitors
B. a government regulation that bars a monopoly from earning an economic profit
C. something that establishes a barrier to expanding output
D. firms already in the market incurring economic losses so that no new firm wants to enter the market
174. A barrier to entry is
A. an open door.
B. the economic term for diseconomies of scale.
C. illegal in most markets.
D. anything that protects a firm from the arrival of new competitors.
175. Marketing consists of what?
A. selling at a lower price than rivals sell for
B. producing more output to lower average costs
C. advertising and packaging
D. None of the above answers are correct.
176. Firms use marketing to
A. influence a consumer's buying decision.
B. convince customers that their product is worth its price.
C. persuade buyers that their product is superior to others.
D. All of the above answers are correct.
177. Conflict can be defined as
A. a competition between people who can therefore not be friends
B. The interaction of interdependent people who perceive incompatible goals and interference from each other
in achieving those goals
C. Irreconcilable differences that can never be resolved
D. all of the above
178. Generating as many solutions as possible that can meet each partner's needs is known as
A. brainstorming. C. a conflict ritual.
B. information processing. D. conflict-resolution.

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179. Which of the following is NOT a reason to study interpersonal conflict?

A. To realize that people develop individually through conflict
B. To learn that conflict is natural
C. To learn that conflict is not natural
D. To improve our ability to manage conflicts
180. When people have differing opinions on issues that relate to their personal value systems and issues of right and
wrong, it is called a
A. moral conflict C. value conflict
B. situational conflict D. judgmental conflict
181. Which conflict style has been labeled "lose-lose" because even though we win some of what we want, we lose
the rest?
A. Accomodating C. collaborating
B. competing D. compromising
182. When parties in conflict give up part of what they want in order to achieve partial satisfaction in meeting their
goals, they are
A. collaborating. C. sacrificing.
B. accommodating. D. compromising.
183. The process of overcoming resentment toward persons who have committed a transgression is known as
A. apologizing. C. dismissing.
B. forgiveness. D. avoidance.
184. How are members of individualist cultures expected to manage conflicts?
A. use indirect styles of conflict management that do not threaten face needs
B. before moving to outcomes or goals, manage face concerns
C. assert individual interests and move quickly toward tangible outcomes
D. reflect collective ideas and opinions, and restrain emotions during conflict
185. Which of the following is a potential benefit of conflict at work?
A. organizational change C. increased job commitment
B. creative problem solving D. all of the above
186. Definable groups of people who have an economic and/or social interest in the organisation are called
A. employees. C. managers.
B. stakeholders. D. linking pins
187. A well-framed mission statement
A. defines specific performance objectives for the organisation.
B. delineates which managers are responsible for what activities.
C. gives direction to a sense of purpose.
D. defines the core technology on which the organisation is dependent

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188. What should organisations seek to do with stakeholders who have high interest and low power?
A. Invest maximum effort. C. Keep satisfied.
B. Keep informed. D. Invest minimal effort
189. Doing the right things" is referred to as ____________.
A. effectiveness C. efficiency
B. productivity D. profitability
190. Which of the following is not a characteristic of conflict?
A. perceived incompatible goals C. expressed struggle
B. perceived interference for outside parties D. independent parties
191. Which of the following is a tactic of avoiding conflict?
A. competing C. autonomy
B. stonewalling D. compromising
192. Process which begins when one party perceives that other has frustrated, or is about to frustrate, some concern of
his, is known as
A. Conflict C. Risk
B. Uncertainty D. Poor management
193. The method of research that gathers data about perceptions, feelings, opinions through interviews and
questionnaires in their actual work setting is known as
A. case study C. field survey
B. field experiment D. laboratory experiment
194. Which of the following method is correct when dealing with conflict situations?
A. Speaking slowly C. Speaking quietly
B. Not letting the customer speak D. Showing empathy
195. When resolving conflict it is essential to make the most eye contact in which of the following circumstances:
A. When you are brainstorming C. When you are problem-solving
B. When you are listening D. When you are assertively stating your point
196. The conflict management styles that can get you into the most trouble are…
A. The avoiding style C. The problem-solving style
B. The forcing style D. The bargaining style
197. What should organisations seek to do with stakeholders who have high interest and high power?
A. Keep satisfied. C. Invest maximum effort.
B. Keep informed. D. Invest minimal effort.
198. A 'key player' is a stakeholder with which of the following?
A. Low interest and low power C. High interest and high power
B. High interest and low power D. Medium interest and medium power

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199. At a project for a government agency, your sponsor wants to make sure you identify all of the right people that
will provide input the project. The degree to which a particular stakeholder may be able to positively or negatively
affect a project is his or her:
A. Level of engagement. C. Level of commitment.
B. Level of interest. D. Level of influence.
200. Which of the following is an example of negative communication?
A. Asking the customer to speak up because you cannot hear them
B. Shouting at the customer to show your authority
C. Telling a customer to calm down after a fight
D. Politely refusing entry to a customer who does not meet the entry requirements

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