Sales
Question : Which of the following is an example of a marketing objective?
Option 1: Increasing brand awareness by 20% within six months
Option 2: Reducing production costs by 10% annually
Option 3: Hiring five new sales representatives
Option 4: Expanding into five new markets
Correct Answer: Increasing brand awareness by 20% within six months
Solution : The correct answer is (a) Increasing brand awareness by 20% within six months.
A marketing objective is a specific and measurable goal that a company sets to achieve through its marketing efforts. It provides a clear target or outcome that the company aims to accomplish within a specific time frame.
Among the options provided, increasing brand awareness by 20% within six months is an example of a marketing objective. It sets a specific goal of increasing brand awareness by a specific percentage (20%) within a defined time frame (six months). This objective focuses on a marketing-related outcome and provides a clear metric to measure success.
Question : Case Study:
A company believes that aggressive sales and promotion efforts are essential to boost sales. They prioritize short-term sales goals over long-term customer relationships. This philosophy reflects the:
Option 1: Societal Marketing Concept
Option 2: Product Concept
Option 3: Marketing Concept
Option 4: Selling Concept
Correct Answer: Selling Concept
Solution : The correct answer is (d) Selling Concept.
The Selling Concept is a marketing philosophy that emphasizes aggressive sales techniques and promotional efforts to convince customers to buy a company's products or services. It focuses on achieving short-term sales goals and transactions rather than building long-term customer relationships. The primary goal is to sell what the company produces, often with less consideration for long-term customer satisfaction or relationship-building.
A company focuses on aggressive sales and promotional efforts to sell its products. They believe that customers will not buy enough unless the company undertakes a substantial selling and promotion effort. This philosophy reflects:
Option 1: Marketing Concept
Option 2: Societal Marketing Concept
Option 3: Selling Concept
Option 4: Production Concept
Solution : The correct answer is (c) Selling Concept.
The Selling Concept is a marketing philosophy that emphasizes aggressive sales techniques and promotional efforts to convince customers to buy a company's products or services. The belief underlying this concept is that customers typically won't buy enough on their own, so a company must use various selling and promotional tactics to stimulate demand and close sales. It's a more product-focused approach, and the primary goal is to sell what the company produces rather than understanding and meeting customer needs, which is a central focus of the Marketing Concept.
Question : A chain of coffee shops called Coffee Corporation operates in 3 Indian states. It has expanded thanks to its efficient organisational structure, despite pressure from rivals in the domestic market. The business is divided into four departments: Sales, Brand Management, Supply Chain Management, and Purchase and Production. Because staff become experts in their respective fields thanks to this arrangement, operations have become more efficient. Due to the concentration being on a certain set of abilities, they could receive specialised training. Identify the Coffee Corporation's corporate structure.
Option 1: Functional structure
Option 2: Formal Organisation Structure
Option 3: Divisional structure
Option 4: Informal Organisation Structure
Correct Answer: Functional structure
Solution : Functional structure is the classification of related jobs into separate departments. Hence, the correct option is 1.
ABC Bookstore provides a discount to university students who show their student IDs when purchasing books. What sales promotion technique is used here?
Option 1: Trade Shows
Option 2: Premiums
Option 3: Trade Allowances
Option 4: Discounts
Correct Answer: Discounts
Solution : The correct answer is (d) Discounts.
Providing a discount to university students who show their student IDs is a common way to stimulate sales and attract a specific target market—students in this case. Discounts involve reducing the regular price of a product or service, encouraging customers to make a purchase due to the perceived cost savings. Trade shows, premiums, and trade allowances are different sales promotion techniques involving distinct strategies and incentives.
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: The amount of goodwill distributed amongst the partners are
Option 1: Rs 17,500
Option 2: Rs 35,000
Option 3: Rs 24,000
Option 4: None of the above
Correct Answer: Rs 35,000
Solution : Answer = Rs 35,000
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000. Hence, the correct option is 2.
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 : Statement 1: By integrating and automating all business processes, computerised accounting system benefits all firms. Statement 2: These tasks could include production, inventory management, sales, and financing.
Option 1: Both the statements are true
Option 2: Both the statements 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: Both the statements are true
Solution : By integrating and automating all business processes, computerised accounting system benefits all firms. These tasks could include production, inventory management, sales, and financing. Additionally, it makes it easier to organise precise and current business data in an approachable way. Hence, the correct option is 1.
Question : A, B, and C are partners in a business where they split profits and losses 2: 2: 1. C died on March 31, 2022. Each year on December 31st, accounts are closed. Sales for 2021 totaled Rs. 6,00,000, and profits came to Rs. 60,000. From January 1 to March 31, 2022, there were Rs. 2,00,000 sales. The dead partner's share of the sales-based profit for the current year is:
Option 1: Rs.3,000
Option 2: Rs.4,000
Option 3: Rs.20,000
Option 4: Rs.8,000
Correct Answer: Rs.4,000
Solution : % of Profit on sales = 60000 / 600000 = 10%
Hence Profit on Rs.200000 sales which were made from 1 january to 31 march 2022 is Rs.20000 (200000 * 10%)
Profit sharing ratio = 2 : 2: 1
So share of C is Rs.20000 * 1 / 5 = Rs.4000
Hence the correct answer is option 2.
Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Inventory Turnover Ratio will be
Option 1: 6 times
Option 2: 4 times
Option 3: 8 times
Correct Answer: 8 times
Solution : Answer = 8 times
Inventory Turnover
$\mathrm{Ratio}=\frac{\text{Cost of goods Sold}}{\text{Average Inventory}}$ $\Rightarrow \quad \frac{2,40,000}{30,000}=8 \text { times }$
Cost of goods sold
= Sales - G. P
= 3,20,000 - 80,000
= 2,40,000
Average Inventory = $\frac{29000+31000}{2}$
= 60,000/2 = 30,000 Hence, the correct option is 3.
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