Marketing Management Midterm Practice Test

What agency implements and enforces safety standards for hundreds of companies and industries in addition to conducting training programs and issuing notices to employers in violation of their regulations?

• Internal Revenue Service

• Occupational Safety and Health Administration

• Food and Drug Administration

Approximately what percentage of small businesses close within their first year of operation?

• 1/2

• 1/3

• 1/4

Which of the following is a fixed expense?

• Monthly supplies that change every month

• Rent that stays the same every month

• Employee travel reimbursement that changes monthly

True of False? A fixed expense is an expense that remains the same every month instead of varying from month to month.

• True

• False

True or False? An variable expense is an expense that does NOT remain the same every month and varies in expense.

• True

• False

True or False? American Apparel Clothing is NOT made in the United States but instead made in a manufacturing facility outside of the United States.

• True

• False

What is the formula to determine Net Income?

• Revenue X Expenses

• Revenue - Expenses

• Revenue + Expenses

• Revenue X Expenses

In order to calculate the ACTUAL cost of an employee, employers must mulitple their base salary by a specifc number to properly estimate the actual cost of that employee. What number does the base salary need to be multiplied by?

• 2.5 - 3

• 3 - 4.5

• 1.25 - 1.4

If you are calculating the ACTUAL cost of one of your employees, You need to multiple their base salary by a specific number to properly estimate. If the base salary is $50,000, which of the following answers reflect the proper formula and numbers to use?

• $50,000 X 3.5

• $50,000 X 1.25

• $50,000 X 5

True or False? If a company's retention rate is 88%, then that means for every 100 employees the company hires, 88 stay working with the company.

• True

• False