IMANET-CMA Online Practice Questions and Answers

Which of the following best describes a market synergy?

A. Technology transfer from one product to another.

B. Bundling of product distributed through the same channels.

C. Production of multiple products at one facility.

D. Use of complementary management skills to achieve entry into a new market.

Which statement regarding direct marketing is not true?

A. Comparative shopping using catalogs is a form of direct marketing.

B. Direct marketing has declined as a result of market degasification.

C. Customers benefit because selection is expanded and ordering is simplified.

D. Voice mail is a form of direct marketing.

Marketing is involved in all phases of the business-process approach to approach to value creation and delivery. In the tactical marketing phase, the firm

A. Defines market segments

B. Selects target markets

C. Dvelops the offering

D. Uses an integrated marketing process to communicate value

the rational decision-making process is most often typified by

A. Perfect information.

B. Bounded rationality.

C. Selection of optimum decisions.

D. Choice of the least risky solution.

In the decision-making process, dentil\ting alternative courses of action can be accomplished by many methods. Which of the following is a method of idea generation that reports the first thought to come to mind in response to a given stimulus?

A. Creative leap.

B. Brainstorming.

C. Forced relationship.

D. Free association.

Information processing for decision making is characterized by two styles: anaI3, tic and intuitive. Which of the following is a characteristic of the intuitive style?

A. Unstructured.

B. Objective.

C. Detailed.

D. Deductive.

On August 15, 19XX, National Corporation announced a 1-for-10 reverse split, the event to occur on September 6, subject to shareholder approval. The stock's closing price on August 14 was $1.375. If nothing changes, at what price would you expect the stock to sell after the stock split is made effective on September 6?

A. $13.75

B. $10.00

C. $2.75

D. $1.38

Which mutually exclusive project would you select if both are priced at $1,000 and your discount rate is 14%: Project A, with three annual cash flows of $1 .000, Project B, with three years of zero cash flow followed by three years of $1,500 annually?

A. Project A.

B. Project B.

C. The IRRs are equal, hence you are indifferent.

D. The NPVs are equal, hence you are indifferent.

Flex Corporation is studying a capital acquisition proposal in which newly acquired assets will be depreciated using the straight-line method. Which one of the following statements about the proposal would be incorrect if a switch is made to the Modified Accelerated Cost Recovery System (MACRS)?

A. The net present value will increase.

B. The internal rate of return will increase.

C. The payback period will be shortened.

D. The profitability index will decrease.

The CEO of a rapidly growing high-technology firm has exercised centralized authority over all corporate functions. Because the company now operates in four states, the CEO is considering the advisability of decentralizing operational control over production and sales. Which of the following conditions probably will result from and be a valid reason for decentralizing"

A. Greater local control over compliance with federal regulations.

B. More efficient use of headquarters staff officials and specialists.

C. Quicker and better operating decisions

D. Greater economies in purchasing