Certification Test Study Guide 3

Which of the following actions is most likely to lead to a serious legal penalty:

• refusing to speak when a police officer questions you

• missing a couple of days of school due to a family vacations

• being noisy with your friends at an amusement park

• possession of legal medication without a prescription

Answer explanation

Possession of legal medication without a prescription. It is illegal to be in possession of a medication, even if it is a legal medication, if you do not have a prescription for it. Missing school for a family vacation will not lead to a legal penalty. Missing too much school is breaking a law, but a couple of days is not a criminal offense. While people are allowed to file noise complaints that can lead to legal penalties, an amusement park is a place where noise is expected, so you will not be penalized as long as you are not creating a disturbance or being unsafe. You have the right to refuse to speak when a police officer questions you, so it should not lead to a legal penalty.

A type of business ownership in which one or more of the owners does not have full liability is called a

• limited partnership

• general partnership

• sole proprietorship

• service organization

Answer explanation

Limited partnership. In a limited partnership, one or more partners has limited liability in terms of the amount of financial responsibility or the amount of involvement in the business. A sole proprietorship is owned by one person, and the owner has unlimited liability. A service organization is a provider of intangible products, not a type of business ownership. In a general partnership, all partners are liable for the debts or losses of the business

. Benjamin's job involves monitoring the various retailers that sell his company's products. He analyzes each retailer's sales reports so that his company can see which stores are most successful. Benjamin's job falls under the category of

• financial planning

• managerial accounting

• channel management

• project management

Answer explanation

Channel management. Channel management is a set of processes by which marketers ensure that products are distributed to customers efficiently and effectively. Part of channel management involves analyzing a company's channels of distributions, or the paths and routes that goods take from the producer to the customer. Benjamin's job, therefore, falls under the category of channel management— not managerial accounting, financial planning, or project management. Managerial accounting is the process of analyzing financial information for the pursuit of an organization's goals. Financial planning involves making a comprehensive evaluation of a client's financial state and then recommending appropriate actions. Project management involves planning and executing a project with the intent of achieving a specific goal or outcome.

What effect does the technology of digital money have on the distribution function?

• manages information

• boosts job performance

• creates virtual reality

• improves cash flow

Answer explanation

Improves cash flow. For many businesses, the distribution function is expensive to operate because it involves storing, processing, and transporting products. Oftentimes, businesses bill customers for the costs involved in distribution and then wait for payment. By using the technology of digital money, cash can be transferred electronically from the customer's account to the business's account. This improves cash flow because the business does not need to wait long periods of time for payment. It can receive cash instantly. The technology of digital money does not boost (employee) job performance, create virtual reality, or manage information.

In which situation might exclusive distribution be considered a legal arrangement?

• a distributor requires a customer to buy all of its products to obtain one product

• a business prevents a competitor's product from entering the market

• a franchisor requires a franchisee to sell only the franchisor's products

• a manufacturer assigns an exclusive territory to restrict competition

Answer explanation

A franchisor requires a franchisee to sell only the franchisor's products. Exclusive distribution is a strategy that forbids dealers from carrying the competitors' products. This strategy is usually considered illegal because it restricts competition. However, it is legal in certain situations, such as a franchisor requiring a franchisee to sell only the franchisor's products. One of the characteristics of a franchise agreement is that the franchisee buys the right to sell the products of the franchisor. In exchange for that right, the franchisor may require the franchisee to sell only the franchisor's products. The franchisor is protecting the image of its product by preventing the franchisee from carrying competing brands. It is usually considered illegal for a business to prevent a competitor's product from entering the market. A distributor requiring a customer to buy all of its products to obtain one product is an example of a tying contract. A manufacturer assigning an exclusive territory to restrict competition is usually considered illegal.

Emotional intelligence is considered to be a predictor of

• physical health

• standardized test scores

• future wealth

• success in life

Answer explanation

Success in life. Emotional intelligence is considered to be a predictor of success in life. Being emotionally intelligent does not necessarily mean that you will score higher on standardized tests, accumulate wealth in the future, or be physically healthy

To minimize conflict among distribution channel members, channel relationships should be viewed as

• partnerships

• friendly rivalries

• employees

• nonbinding contracts

Answer explanation

Partnerships. There are often many businesses or individuals that move products from the producer to the end user. These businesses and individuals are a distribution chain's channel members. The more channel members that a supply chain has, the higher the risk of conflict or disagreement among the members. Channel conflict occurs for a variety of reasons, such as bypassing one channel member in the process or disagreeing about sales terms. To reduce the risk of intense channel conflict, all channel members need to consider their relationships with each other as partnerships working toward the same goal—satisfying the end user. Viewing channel relationships as friendly rivalries, employees, or nonbinding contracts will not minimize conflict.

Which of the following is a barrier to effective listening:

• open-mindedness

• empathy

• concentration

• distractions

Answer explanation

Distractions. Distractions are any occurrences or noises that attract the listener's attention. They can be a major block to effective listening. Concentration is focusing one's attention. Open-mindedness means being receptive to new ideas. Empathy is being able to put yourself in another's place. These alternatives would aid listening, not hinder it.

A message that is as short and to the point as possible is referred to as

• courteous

• concise

• correct

• complete

Answer explanation

Concise. Concise messages are clear and short. A courteous message addresses others with respect. Completeness in communication means giving all the information required. Carefully checking all facts and figures for accuracy before delivering a message should ensure correctness.

If a message recipient is frowning and has clenched fists, the emotional response that s/he is most likely displaying is

• nervousness

• sadness

• joy

• anger

Answer explanation

Anger. Nonverbal cues are the elements of communication that use gestures and facial expressions rather than words. Nonverbal behavior can indicate what the sender and/or the receiver think about a message. If the recipient responds to a message by frowning and clenching his/her fists, it is likely that the message has made the recipient angry. Message recipients might cry or cover their faces with their hands if the message contains sad news. Smiling and jumping up and down usually indicate that a message contains good news, which causes joy. Message recipients might express nervousness by tapping their toes, shaking, twitching, or biting their fingernails.