Free CLEP Marketing Trivia Question and Answers — Questions and Answers
Question 1: When the cost is $1,000 and the markup is $500, what percentage of the cost does the markup represent?
- 33%
- 25%
- 50% (Correct answer)
- 75%
Correct answer: 50%
To calculate the markup percentage based on cost, you divide the markup amount by the cost. Here, the markup is $500 and the cost is $1,000. So, $500 divided by $1,000 equals 0.50, which means the markup represents 50% of the cost.
Question 2: Sue wants to start teaching kids tennis, but she needs to figure out how much she should charge per lesson. Her acquaintance advised her that the markup percentage should be 15% and the markup amount should be $17. What is the selling price?
- cost = $13.00; selling price = $38.00
- cost = $100.00; selling price = $25.00
- cost = $113.33; selling price = $130.33 (Correct answer)
- cost = $133.33; selling price = $166.66
Correct answer: cost = $113.33; selling price = $130.33
Assuming the 15% markup is on the cost, we can find the cost by dividing the markup amount by the markup percentage: Cost = $17 / 0.15 = $113.33. The selling price is then the cost plus the markup amount: Selling Price = $113.33 + $17 = $130.33. This aligns with the provided correct option.
Question 3: Sears' sale of Craftsman tools is an illustration of:
- a dealer brand
- a family brand (Correct answer)
- an individual brand
- a licensed brand
Correct answer: a family brand
A family brand, also known as an umbrella brand, uses a single brand name for multiple products within a company's portfolio. Sears' Craftsman tools exemplify this, as 'Craftsman' is a well-known brand applied to a wide range of tools. This strategy leverages the reputation and recognition of the established brand across different product lines.
Question 4: Which of the following sorts of items best describes toilet paper?
- staple (Correct answer)
- emergency
- impulse
- specialty
Correct answer: staple
Staple products are convenience goods that consumers purchase regularly and routinely, often with little thought or effort. Toilet paper fits this description perfectly as it is a frequently needed household item bought out of habit, rather than an impulse purchase, an emergency item, or a specialty good requiring significant search effort.
Question 5: A retailer that specializes in non-perishable goods like furniture and carries a broad selection of them. An example of such is hardware, electronics, etc.
- specialty wholesaler
- general merchandise wholesaler (Correct answer)
- rock jobber
- single-line wholesaler
Correct answer: general merchandise wholesaler
A general merchandise wholesaler deals with a wide variety of non-perishable goods, such as furniture, hardware, and electronics, rather than specializing in a single product line. This broad selection across different categories is the defining characteristic that distinguishes it from specialty or single-line wholesalers. The description perfectly matches the role of a general merchandise wholesaler.
Question 6: What act does price fixing fall under?
- Robinson-Patman Act
- Unfair Trade Practice Act
- Magnuson-Moss Act
- Sherman Act (Correct answer)
Correct answer: Sherman Act
The Sherman Act of 1890 is a landmark U.S. antitrust law that prohibits anti-competitive agreements and monopolies. Price fixing, which is an agreement among competitors to raise, fix, or maintain prices, is considered a per se violation of Section 1 of the Sherman Act, making it illegal under this legislation.
Question 7: What service(s) or activities are provided by wholesalers?
- provide market information
- store inventory
- supply capital
- all of the above (Correct answer)
Correct answer: all of the above
Wholesalers provide a range of crucial services to both manufacturers and retailers. These include providing market information by understanding demand, storing inventory to manage supply chains, and supplying capital by purchasing goods in bulk and extending credit. Therefore, all the listed activities are integral functions of wholesaling, making 'all of the above' the correct answer.
Free CLEP Marketing Trivia Question and Answers
When the cost is $1,000 and the markup is $500, what percentage of the cost does the markup represent?