Question 1

Final goods and services refer to

Accepted Answer

Final goods and services refer to goods and services that have been purchased for final use and that cannot be resaled.

Question 2

Quality assurance is an example of which process?

Accepted Answer

Quality assurance (QA) is a way of preventing mistakes and defects in manufactured products and avoiding problems when delivering solutions or services to customers.

Question 3

An increase in the price of a good will

Accepted Answer

In economics we study that, if the price of a good increases the demand in its quantity decreases or the demand for its complimentary good increases. For example, if the rice of a good increased by 5%, the demand in its quantity decreases by 10% approximately.

Question 4

The purpose of safety stock is to

Accepted Answer

The purpose of safety stock is to control the likelihood of a stockout due to the variability of demand during lead time. Stockouts contribute to the direct loss of any type of business.

Question 5

Fixed cost per unit increases when

Accepted Answer

Fixed cost per unit increases when production volume decreases. The fixed cost per unit does not always remain the same. Fixed cost per unit increases when production volume decreases and vice versa.

Question 6

Sales promotions include all of the following except

Accepted Answer

Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Sales promotions include Coupons, Rebates, Free Samples, etc... Online Ads come under advertising form.

Question 7

Equivalent units of production are equal to

Accepted Answer

Equivalent units of production are equal to number of whole units that could have been completed if all work of the period had been used to produce whole units.

Question 8

Which of the following does not motivate entrepreneurs?

Accepted Answer

Security in a business does not motivate entrepreneurs. An entrepreneurs primary motivation to start a business is to be independent.

Question 9

A monopoly is a market that has

Accepted Answer

A monopoly is a market that has a single seller of a unique product in the market. He does not have any competition in the market as he has no substitute product for the product he is selling.

Question 10

Product costs are also called

Accepted Answer

Product costs are also called Inventoriable Costs, since the product costs are used to value their goods in inventory.

Question 11

An improvement in production technology will

Accepted Answer

An improvement in production technology will shift the supply curve to the right.

Question 12

Performance goals are used to

Accepted Answer

Performance goals are used to measure productivity.

Question 13

What is the main motive behind dealer incentives?

Accepted Answer

The main motive behind dealer incentives is to give the products at some low price for the dealers who take the products in bulk and maintain good selling of these products.

Business Awareness Questions