Chapter 4 Evaluating Opportunities

Chapter 4 Evaluating Opportunities - Chapter 4: Evaluating...

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Chapter 4: Evaluating Opportunities in the Changing Marketing Environment True-false Questions 1. Earning a profit probably should be one of the objectives of a firm, but it should not be the only one. | Ans: True | Easy | LO: 2 | Pg. 85 | Definition | 2. A mission statement sets out the organization's basic purpose for being. | Ans: True | Easy | LO: 2 | Pg. 85 | Definition | 3. A mission statement can help a manager decide which opportunities to pursue and which to screen out. | Ans: True | Easy | LO: 2 | Pg. 85 | Definition | 4. A mission statement sets out the strengths and weaknesses of a firm as well as the opportunities and threats that it faces. | Ans: False | Easy | LO: 2 | Pg. 85 | Definition | 5. The objectives of a firm should direct the operation of the marketing department, but aren't important to the rest of the business. | Ans: False | Easy | LO: 2 | Pg. 86 | Definition | 6. If the cost of production per unit goes down as the quantity produced increases, small producers can be at a great cost disadvantage. | Ans: True | Easy | LO: 3 | Pg. 87 | Definition | 7. Smaller producers always have a great advantage in competing with larger producers because of their flexibility. | Ans: False | Easy | LO: 3 | Pg. 88 | Definition | 8. Ownership of patents, a familiar brand name, and financial strength are some of the many resources of a firm that a manager should evaluate when searching for new opportunities. | Ans: True | Easy | LO: 3 | Pg. 88 | Definition | 9. Good relations with middlemen, good locations, and good salespeople are some of the many resources of a firm that should be evaluated when searching for new opportunities. | Ans: True | Easy | LO: 3 | Pg. 88 | Definition | 10. Over the long run, most product-markets tend toward monopolistic competition. | Ans: False | Easy | LO: 4 | Pg. 89 | Definition | Chapter 4: Evaluating Opportunities in the Changing Marketing Environment 4 - 1
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11. In market-directed economies, unregulated monopolies are rare. | Ans: True | Easy | LO: 4 | Pg. 89 | Definition | 12. Pure competition can always be avoided--if a firm tries hard enough. | Ans: False | Easy | LO: 4 | Pg. 89 | Definition | 13. In monopolistic competition, managers sometimes try to differentiate very similar products by relying on promotion or other elements of the marketing mix. | Ans: True | Easy | LO: 4 | Pg. 90 | Definition | 14. The major shortcoming of competitor analysis is that it focuses on the weaknesses of competitors--but ignores their strengths. | Ans: False | Easy | LO: 4 | Pg. 90 | Definition | 15. The first step in a competitor analysis is to identify current and potential competitors. | Ans: True | Easy | LO: 4 | Pg. 90 | Definition | 16. Competitive barriers are conditions that make it difficult for a firm to compete in a market. | Ans:
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This note was uploaded on 10/17/2011 for the course BUSINESS 023 taught by Professor Hisyam during the Spring '11 term at Universiti Teknologi Malaysia.

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Chapter 4 Evaluating Opportunities - Chapter 4: Evaluating...

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