MARKETING

I plan on depositing 5,000 at the end of ever year with an expected return on the account being 9.8%, how long will it take me to reach $1 million in my account?

Now what if I only deposited 4,000, what is my expected return on the account to have $1 million in my account.

16. Mattel needed to act quickly when they learned of potential lead hazards in some of its
toys. As a firm, they used ethical principles and approaches to:
A. isolate itself from the Chinese firm and its subcontractor to make sure it did not get blamed
for the problem.
B. minimize the damage by focusing on the few product lines affected.
C. maintain its strong relationship with its customers by recalling products that posed dangers
to children and their customers.
D. use the occasion as an opportunity to shed unprofitable lines of products at the same time
they disposed of the defective products.
E. All of the above.
17. Using profit as the sole guide for corporate action can lead to:
A. increased short run and long run profitability.
B. short-term profits but long-term loss of customers.
C. long-term profitability but short-term losses.
D. increased corporate social responsibility.
E. all of the above
18. Deceptive advertising and promotion of inferior products are examples of
_______________ ethical issues.
A. business
B. marketing
C. social
D. finance
E. economic
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19. Unlike other business functions like accounting or finance, people in marketing are often
singled out as the root cause of ethical concerns because:
A. they are trained in the art of effective persuasive communication.
B. consumers recognize marketers are not as quantitatively skilled as accounting and finance
people.
C. they interact directly with consumers.
D. problems like those that occurred at Enron, Tyco, and WorldCom were caused by
marketers.
E. marketers, by definition, are less ethical.
20. Products that may damage the environment, use of sweatshop labor, and marketing of
dangerous products are examples of:
A. internal, controllable marketing issues.
B. managerial issues but not marketing issues.
C. situational ethical issues.
D. marketing social issues.
E. no big deal and should not be considered a problem in most marketing environments.
21. Because marketing and sales professionals are so much in the public's eye, it should not be
surprising to find them:
A. make accountants look good.
B. define the company's internal ethical standards.
C. generate corporate social responsibility.
D. offset visibility through advertising.
E. sometimes rank poorly in ratings of trusted professions.
22. In a recent Gallup survey, which of the following came in last in ratings of trusted
professions?
A. car salespeople.
B. lawyers.
C. senators.
D. real estate agents.
E. medical doctors.
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23. Janice was shocked to learn that the real estate company she just went to work for did not
have a _________________, the basic starting point for creating a strong ethical climate.
A. ethical retreat seminar
B. set of values
C. contract
D. social commitment
E. business ethics bonus
24. The Johnson & Johnson Credo prioritized their responsibilities to:
A. users of their products first, then employees, communities and finally the stockholders.
B. stockholders first, then management, the employees and then finally, their suppliers and
vendors.
C. domestic markets first, then other countries in the developed world and finally, countries in
the developing world.
D. users of their products first, then researchers who develop their products, regulators and
then the financial markets.
E. doctors first, then nurses, insurance companies and other payers, financial markets, then the
consumer users of their products.
25. The Johnson & Johnson Credo:
A. is a response to the Tylenol incident.
B. was proved to be a historical artifact but ineffective when the company needed to act in the
Tylenol crisis, which was a clear lesson to other companies to update similar documents.
C. became the model and standard for all pharmaceutical companies.
D. is remarkable, far-ranging, durable and long document in the detailed description of
potential problems for the company.
E. is a one-page document created by Robert Wood Johnson which has guided the firm ever
since.
26. When J&J removed all Tylenol from the shelves after some containers were tampered
with, poisoning and killing seven people, the company was:
A. sacrificing short-term profits for long-term credibility.
B. responding to consumer outcry.
C. being directed to do so by the Food and Drug Administration.
D. accepting the fact that consumers would never use Tylenol again.
E. designing promotional discounts to sell the returned Tylenol in less developed countries.
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27. Jacqueline was pleased to read a paraphrasing of the "Golden Rule," "Do unto our
customers as you would have them do unto you." as part of her new employer's mission
statement. Next, Jacqueline expects to find in the firm's employee handbook:
A. a summary of recent Supreme Court business ethics cases.
B. implicit understandings to guide her in decision-making.
C. explicit rules governing the firm's transactions.
D. statements of employee concerns.
E. all of the above
28. To have an ethical business climate requires all employees to be dedicated to that goal
because:
A. employees have to be taught ethical standards.
B. managers rarely enforce values unless employees ask them to do so.
C. customers are only vaguely interested in a firm's ethical standards.
D. employees do not have sufficient visionary scope to understand the ramifications of
unethical behavior.
E. the roots of ethical conflict often are competing values of individuals.
29. Almost every organization includes values and ethics as part of their mission statement
and includes a set of explicit rules in the company's employee handbook. Once the rules are in
place there must be:
A. a system of controls that rewards appropriate behavior and punishes inappropriate
behavior.
B. a Web site where employees can vent their frustration over lapses in ethical behavior.
C. weekly reminder seminars to enforce guidelines.
D. commitment from customers to accept these rules.
E. all of the above
30. Ronald is concerned about selling his company's software, knowing his firm does not
intend to continue the line of software and will not be issuing upgrades in the future. Before
talking to his supervisor, Ronald will likely:
A. discuss the issue with a trusted family member.
B. read his company's employee handbook, looking for explicit rules.
C. ask other salespeople how they feel about selling the software.
D. consult industry ethical standards guidelines.
E. any or all of the above
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31. Senior management of an automobile manufacturing company found the transmission in
their trucks sometimes appears to be in park when it is not. When the engine is left running,
this could cause the truck to shift into reverse without the driver knowing it. The company
weighed the cost of recalling thousands of trucks against the potential cost of lawsuits. This is
an example of:
A. people are innately corrupt.
B. everyone does it.
C. choosing between conflicting outcomes.
D. if you do not take advantage, someone else will.
E. people rarely understand the consequences of unethical actions.
32. Which of the following types of unethical behavior are likely to be observed in marketing
environments?
A. High pressure sales techniques.
B. Deceptive sales tactics
C. Misrepresentation of company data.
D. Misleading advertising.
E. All of the above
33. New real estate disclosure regulations require sellers and their agents to tell prospective
buyers about any existing problems. Previously, they were only expected to answer buyer's
questions. The new regulation addressed the marketing ethical problem of:
A. high pressure sales techniques.
B. deceptive pricing tactics
C. misrepresentation of company data.
D. misleading advertising.
E. withholding information.
34. Edward is seriously considering developing his entry-level marketing position into a fullfledged
career. His mentor suggested he learn and demonstrate the Ethical Values in the AMA
Code of Ethics. Which of the following is not one of those Ethical Values?
A. Honesty when dealing with customers and stakeholders.
B. Fairness in balancing the needs of both buyers and sellers.
C. Respect for the human dignity of all stakeholders
D. Dedication to increasing the return on investment for shareholders as the main duty of the
corporation.
E. Citizenship to fulfill economic, legal, philanthropic and social responsibilities strategically.
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35. Elizabeth has developed a promotional campaign for a client that promises a hefty return
for her owned cash-strapped business. While the campaign does not violate any laws, it might
be considered manipulative and misleading, especially when targeted toward senior citizens.
If Elizabeth were to consult the AMA Code of Ethics she'd discover:
A. there is a high value placed on creative approaches for clients which can outweigh other
concerns if the client or firm are in financial danger.
B. that different concerns affect the client and her business.
C. the General Norms and Ethical Values are somewhat ambiguous, and she should rely on
her own personal ethics and her firms Code of Ethics.
D. her campaign might be difficult to support despite its creativity and ability to meet the
needs of both her client and her own firm.
E. there are few practical guidelines in situations like these.
36. The AMA Code of Ethics is silent with regard to:
A. regulators.
B. customers.
C. economically vulnerable segments such as children and the elderly.
D. consultants
E. None of the above. The AMA Code of Ethics mentions each of these.
37. In making decisions managers are often faced with the dilemma between doing what is
beneficial for them and possibly the firm in the short run, and doing what is right and
beneficial for the firm and society in the long run. To address this conflict, a firm's:
A. quarterly profit statement needs to be ethically evaluated.
B. long-term goals must be stated in general terms so as to not interfere with individual's
short-term goals.
C. think about society ahead of the needs of the company.
D. long-term goals must be aligned with the short-term goals of each individual within the
firm.
E. all of the above
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38. After a rash of embarrassing and potentially illegal activities, Jane is re-assessing the
ethical standards and practices in her organization. Jane will assess:
A. whether the organization has a strong ethical climate.
B. what explicit rules for governing the firm's transactions exist.
C. the current a code of ethics.
D. what system for rewarding and punishing behavior is in place.
E. all of the above
39. One of Big Ben Clock Company's customers has complained to the home office about
high-pressure sales tactics used by their leading sales representative. The company's code of
ethics explicitly directs sales personnel not to engage in such practices. The manager of Big
Ben will likely:
A. assess whether the organization has a strong ethical climate.
B. determine what explicit rules for governing the firm's transactions exist.
C. review ambiguity in the current a code of ethics.
D. determine what punishment is appropriate.
E. all of the above
40. One of All Army Credit Union's customers complained to the home office about huge fees
assessed to his account that were not mentioned when he opened the account. The manager of
Al Army Credit Union will likely:
A. assess whether the organization has a strong ethical climate.
B. determine what explicit rules for governing the firm's transactions exist.
C. review ambiguity in the current a code of ethics.
D. determine what reward is appropriate for the staff member who generated the fees.
E. all of the above
41. Firms with strong ethical climates tend to:
A. make greater utilization of business development consultants.
B. offer more goods and services than firms without strong ethical climates.
C. be more socially responsible.
D. invest more in sales training software.
E. all of the above
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42. Many executives and corporate board of directors perceive being socially responsible as
not part of their mission or responsibility. These business leaders consider being socially
responsible to be:
A. the basic requirement of any business.
B. the equivalent of the AMA standard of "Do no harm."
C. the sum of customer and operational effectiveness.
D. basic business ethics.
E. beyond the norms of corporate ethical behavior.
43. One of the criticisms of corporate social responsibility is the difficulty of demonstrating:
A. revenue savings to the company.
B. tangible benefits to the company
C. virtual perceptions among the company's consumers.
D. the benefits to government from compliance with social responsibility regulations.
E. the social need for corporate social responsibility.
44. Internet auction sites are especially prone to scamming as discussed in the Power of the
Internet 3.1: Unethical Internet Behavior. _______________ are vulnerable to scams, and a
great deal of money is lost.
A. Buyers only
B. Sellers only
C. The auction sites
D. All of the above
E. None of the above.
45. Being socially responsible is generally considered ____________________.
A. a good thing to do only when a company is profitable.
B. inappropriate for most firms in today's market.
C. beyond the norms of corporate ethical behavior.
D. more appropriate for regulators, ethical philosophers and clergy with a special interest in
social and corporate behavior.
E. corporate foundations who can effectively concentrate a firm's philanthropy.
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46. For his class in ethics, Isaac examined the practices of a number of nationally focused and
international firms to determine how ethics and corporate social responsibility were being
practiced. He found:
A. firms could be both ethical and socially responsible.
B. firms could be ethical, but they were not involved with the larger community.
C. firms could be neither ethical nor socially responsible and still be part of the business
community.
D. firms could have questionable ethical practices yet donate a lot to the community which
could embarrass the recipients of the donations.
E. all of the above.
47. Ironically, while the leaders of Enron Corporation were manipulating the company's
finances for their personal benefit, the company was a major donor to Houston area charities.
Enron had ethically-challenged business practices but was also:
A. practicing marketing ethics.
B. manipulating the company's bottom line through charitable donations.
C. creating a local ethical business climate.
D. contributing to corporate social responsibility.
E. all of the above
48. In Adding Value 3.1, Coca-Cola's HIV/AIDS program:
A. provides free soft drinks to AIDS victims.
B. uses Coca-Cola's marketing muscle to promote Coke's new AIDS vaccine.
C. leverages Coca-Cola's corporate assets for corporate social responsibility efforts.
D. shows how an ethical climate can lead to better business practices.
E. all of the above
49. The Ethical Decision-Making Framework includes all of the following steps EXCEPT:
A. identify issues.
B. promote the firm's corporate social responsibility efforts.
C. gather information and identify stakeholders.
D. brainstorm and evaluate alternatives.
E. choose a course of action.
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50. Garrett has just purchased a beer distributorship. He wants to increase the visibility of his
firm in local markets but knows there are a number of regulations and socially accepted
practices associated with promoting alcoholic beverages. According to the framework for
ethical decision making, the first thing Garrett will do is:
A. identify issues.
B. promote the firm's corporate social responsibility efforts.
C. gather information and identify stakeholders.
D. brainstorm and evaluate alternatives.
E. choose a course of action.