Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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The
belief that acts should be judged according to their outcomes is called a. | Deontology | b. | Teleology | c. | Ethics | | |
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2.
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What
is predatory pricing? a. | Setting prices which competitors cannot
match | b. | Setting prices below the cost of
production | c. | Setting prices which customers cannot
afford | | |
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3.
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Which
of the following is NOT one of Kuhlman’s basic duties of sellers? a. | Manufactured
products must provide a minimum level of security | b. | Suppliers should
be open to consumers’ complaints | c. | Manufactured products should be
returnable | | |
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4.
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Which
of the following is the minimum level of ethical behaviour, according to Donaldson? a. | The firm is
law-abiding | b. | The company establishes a set of company
regulations | c. | The company establishes a code of
conduct | | |
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5.
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What
is a Romalpa clause? a. | A contractual agreement that payment in full is to be made
within 30 days | b. | A contractual agreement that title to the goods only passes to
the purchaser once payment has been made | c. | A contractual agreement that the supplier accepts no liability
for goods damaged in transit | | |
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6.
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Which
of the following statements made by a double-glazing salesman would be an infringement of the Trade
Descriptions Act? a. | Our products are
the best on the market | b. | There is a vacuum between the panes of glass in our
windows | c. | The frames of these windows are
UV-resistant | | |
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7.
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If a
salesman offers a discount, under what circumstances might this contravene the 1987 Consumer
Protection Act? a. | If the
salesperson claims that the discount will only apply tonight, when that is not in fact the
case | b. | If the discount
is greater than 20% | c. | If the discount is offered before the final price has been
stated | | |
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8.
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What
is the difference between pyramid selling and multi-level marketing? a. | Pyramid selling
involves recruiting people as well as selling | b. | Pyramid selling
means that the salespeople buy the goods | c. | Pyramid selling involves promoting the products as well as
selling | | |
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9.
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Which
of the following is NOT part of a code of conduct? a. | Guidelines for
what information customers should be given before signing contracts | b. | Guidelines on
how follow-up visits should be conducted | c. | Guidelines on hiring staff | | |
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10.
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The
body of law which covers contracts is called: a. | Civil law | b. | Criminal
law | c. | Binding
law | | |
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