Question : Which of the following statement is correct?
Statement 1: Labeling is used as an ineffective sales promotional tool.
Statement 2: Labelling is to provide statutory warning required by law.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is false and statement 2 is true.
Solution : Labeling is used as effective sales promotional tool. Labelling is to provide statutory warning required by law. To put "smoking is injurious to health" on the package of cigarette and "chewing tobacco is injurious to health" on the package of Pan masala are the examples of statutory warning.
Hence, option D is correct.
Answer laterQuestion : Statement 1: Selling concept focuses on customer satisfaction through understanding their needs.
Statement 2: Marketing concept solely relies on aggressive promotional tactics to drive sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is true. The selling concept does focus on customer satisfaction through understanding their needs. This concept involves understanding customer needs and wants and then developing strategies to meet those needs and sell products or services that address those wants.
Statement 2 is false. The marketing concept does not solely rely on aggressive promotional tactics to drive sales. The marketing concept emphasizes understanding customer needs and wants, creating valuable products or services to meet those needs, and delivering value to customers. It's not just about promotion; it's about a holistic approach that involves product development, pricing, distribution, and promotion based on understanding and satisfying customer needs.
Question : Assertion: The marketing concept aims to achieve long-term customer loyalty and satisfaction.
Reason: The marketing concept solely focuses on short-term sales targets.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. The marketing concept does indeed aim to achieve long-term customer loyalty and satisfaction. It emphasizes building strong and lasting relationships with customers by understanding and fulfilling their needs and preferences.
The reason is false. The marketing concept does not solely focus on short-term sales targets. While achieving sales is a part of marketing, the primary focus is on long-term customer satisfaction and loyalty. Marketing is about creating sustained customer relationships and meeting customer needs in the long run.
In summary, the assertion is true, but the reason is false. The marketing concept is more concerned with long-term customer relationships and satisfaction rather than just short-term sales targets.
Question : Assertion: Sales promotion techniques aim to boost long-term customer loyalty
Reason: Sales promotion techniques focus solely on short-term sales increases.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Sales promotion techniques do aim to boost customer loyalty, but they also aim to achieve short-term sales increases. While the immediate goal of sales promotions is often to increase sales in the short term, a well-designed sales promotion strategy can also contribute to long-term customer loyalty. For example, promotions can attract new customers who may become loyal in the long run through positive experiences with the brand.
The reason provided is false. Sales promotion techniques are not solely focused on short-term sales increases. While they do often have an immediate impact on sales, they can also be designed and implemented strategically to enhance customer loyalty over the long term.
Question : Statement 1: Marketing concept focuses on delivering superior value to customers.
Statement 2: Selling concept solely relies on product features to drive sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. The marketing concept indeed focuses on delivering superior value to customers. It emphasizes understanding and meeting customer needs and wants by offering products or services that provide value and benefits to the customers.
Statement 2 is false. The selling concept does not solely rely on product features to drive sales. While product features may be a part of the selling approach, the selling concept emphasizes aggressive promotional tactics and sales techniques to maximize short-term sales.
Therefore, statement 1 is correct, and statement 2 is false.
Question : Case Study:
XYZ Beauty Products offers a limited-time deal where customers receive a free gift with the purchase of specific skincare items. What sales promotion technique is XYZ Beauty Products using?
Option 1: Trade Shows
Option 2: Premiums
Option 3: Rebates
Option 4: Loyalty Programs
Correct Answer: Premiums
Solution : The correct answer is (b) Premiums.
Premiums involve offering a free or discounted item as an incentive to encourage a purchase. In this case, customers receive a free gift with the purchase of specific skincare items, making it a premium offer. Trade shows, rebates, and loyalty programs are distinct sales promotion techniques with different incentives or mechanisms.
Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their
Capital Accounts were as follows:
Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th September 2012. In the event of the death of any partner following are the provisions in the Partnership Deed:
(i) Interest on Capital will be calculated at the rate of $10 \%$ p.a.
(ii) The deceased partner; 's legal representative will be paid Rs. 35,000 for his share of goodwill.
(iii) The firm had a Reserve Fund of Rs. 2,10,000. The deceased partner will be paid his share in the Reserve Fund.
(iv) His share of profit till the date of death will be calculated based on sales. It is also specified that the sales during the year 2011-12 were Rs. $15,00,000$. The sales from 1st April 2012 to 30th September 2012 were Rs. 3,00,000. The profit of the firm for the year ending 31st March 2012 was Rs. 3,00,000.
Question:
Deceased 's partners share of profit will be ____________or profit and loss suspense account will be______________.
Option 1: debited by Rs 20,000
Option 2: credited by Rs 20,000
Option 3: debited by Rs 60,000
Option 4: Credited by Rs 60,000
Correct Answer: debited by Rs 20,000
Solution : Answer = debited by Rs 20,000
| Verma's capital a/c | |||
| By Verma's executor a/c (b/f) | 5,66,000 | By Bal b/d | 4,20,000 |
| By IOC | 21,000 | ||
| ($4,20,000 \times \frac{10}{100} \times \frac{6}{12}$) | |||
| By Reserve fund | 70,000 | ||
| ($2,10,000 \times \frac{1}{3}$) | |||
| By Sharma & Goyal capitals a/c | 35,000 | ||
| By P & L suspense a/c | 20,000 | ||
| 5,66,000 | 5,66,000 | ||
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000.
Hence, the correct option is 1.
Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.
Option 1: Operating profit ratio
Option 2: Operating ratio
Option 3: Net profit ratio
Option 4: Gross profit ratio
Correct Answer: Operating profit ratio
Solution : Answer = Operating profit ratio
The operating profit ratio measures the efficiency of a company's operations by assessing the relationship between operating profit and revenue from operations (net sales). It indicates the percentage of revenue retained as operating profit after deducting operating expenses.
Hence, the correct option is 1.
Question : Which of the following statements are false with respect of Net profit ratio?
Option 1: Net Profit Ratio establishes the relationship between Net Profit and Revenue from Operations, i.e., Net Sales.
Option 2: Net Profit Ratio is an indicator of overall efficiency of the business. Higher the Net Profit Ratio, better the business.
Option 3: An increase in the ratio over the previous period shows improvement in the operational efficiency and decline means otherwise.
Option 4: None of the above.
Correct Answer: None of the above.
Solution : Answer = None of the above.
Net profit Ratio Establishes the Relationship Between Net profit and Revenue from operation
The net profit Ratio is an indicator of the overall efficiency of the Business.
Higher the Net Profit Ratio Better the Business.
Hence, the correct option is 4.
Question : Case Study 3: Importance of Entrepreneurship Development
XYZ Electronics is a well-established company that has been manufacturing traditional electronic gadgets for decades. With changing consumer preferences, the demand for their products has declined. The management realized the need to innovate and cater to the growing market for smart devices. They invested in research and development to create cutting-edge smart gadgets, resulting in increased sales and market share.
Question:
How did XYZ Electronics respond to the changing market demands?
Option 1: By ignoring the market trends and continuing with traditional gadgets
Option 2: By investing in research and development for smart gadgets
Option 3: By shutting down the business
Option 4: By reducing the prices of their traditional gadgets
Correct Answer: By investing in research and development for smart gadgets
Solution : The correct answer is (b) By investing in research and development for smart gadgets
Recognizing the decline in demand for traditional electronic gadgets and the growing market for smart devices, XYZ Electronics took the proactive approach of investing in research and development. This strategic decision enabled them to create cutting-edge smart gadgets, leading to increased sales and market share.
