FREE CLEP Marketing Trivia Question and Answers

Question 1

When the cost is $1,000 and the markup is $500, what percentage of the cost does the markup represent?

Accepted Answer

50%

Answer

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?

Accepted Answer

cost = $113.33; selling price = $130.33

Answer

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:

Accepted Answer

a family brand

Answer

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?

Accepted Answer

staple

Answer

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.

Accepted Answer

general merchandise wholesaler

Answer

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.

CLEP Practice Test

CLEP Practice Test

FREE CLEP Marketing Trivia Question and Answers