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.

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.

Correct Answer: Unity of command
 

Solution : Unity of command is being violated here. It involves each subordinate should receive orders from only one superior. The subordinate is accountable to his single Boss only.
Hence Option B is correct.

Correct Answer: Both statements are correct.

Solution : The correct answer is (a) Both statements are correct.

Statement 1 is correct. Sales promotion techniques are designed to stimulate immediate sales and generate consumer interest in the short term through various strategies like discounts, coupons, contests, and limited-time offers.

Statement 2 is correct. Sales promotion techniques do indeed impact consumer purchasing decisions. These promotions often influence consumers to make a purchase by offering incentives, discounts, or attractive deals, affecting their decision-making process.

Correct Answer: Both statements are correct.

Solution : The correct answer is (a) Both statements are correct.

Statement 1 is correct. Sales promotion techniques are designed to stimulate immediate sales and generate consumer interest in the short term through various strategies like discounts, coupons, contests, and limited-time offers.

Statement 2 is correct. Sales promotion techniques do impact consumer purchasing decisions. These promotions often influence consumers to make a purchase by offering incentives, discounts, or attractive deals, affecting their decision-making process.

Correct Answer: Setting customer service standards.

Solution : The correct answer is (a) Setting customer service standards.

In the process of control, the first step for IJK Retail would be setting customer service standards. Control begins with establishing clear and specific standards or goals against which performance will be measured. In this case, the company needs to define the expected customer service standards that it wants to maintain across its outlets before it can measure, compare, and take corrective action if necessary.

Correct Answer: Middle level management 

Solution : Sales managers are included in the middle level of management. The middle level consists of heads of different functional departments like department managers and other executive officers attached to different departments.

Hence, Option B is correct.

Correct Answer: To identify potential opportunities and threats in the market

Solution : The correct answer is (C) To identify potential opportunities and threats in the market

Understanding the business environment is important for ABC Ltd. (and for any business) because it helps in identifying potential opportunities and threats in the market. By being aware of external factors, such as economic conditions, competition, and market trends, ABC Ltd. can make informed decisions and adapt its strategies to capitalize on opportunities and mitigate potential threats. This understanding allows the company to be more responsive and better prepared to navigate the challenges and changes in the market.

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 incorrect. The selling concept primarily focuses on short-term sales and transactions rather than building customer loyalty and long-term relationships. It often involves aggressive sales tactics to close deals but may not prioritize long-term relationships.

Statement 2 is false. The marketing concept does not solely focus on achieving short-term sales goals. It emphasizes understanding customer needs and creating value for customers, aiming for long-term relationships and customer satisfaction.

Therefore, statement 1 is correct, and statement 2 is false.