30 Questions
If income decreases, demand for cheaper products increases.
False
An increase in the number of suppliers leads to a decrease in supply.
False
Technological changes always lead to a decrease in supply.
False
Changes in consumer preferences do not impact demand.
False
If providers expect prices to rise, supply increases.
False
Competition is influenced by the availability of substitute goods.
True
Market research only provides information about existing customers, not prospective ones.
False
Primary sources of market research always involve conducting empirical studies.
False
Secondary sources of market research are tailored to the specific interests of a business.
False
Customer analysis only focuses on who the current customers are, not potential customers.
False
Customers who buy products are always the same people who use them in both B2C and B2B markets.
False
Knowing where customers buy products helps identify their preferred channels of distribution.
True
Inelastic demand is commonly associated with products that people do not necessarily need.
False
The elasticity of demand is solely determined by prices and price changes.
False
The elasticity of demand remains constant whether in the short run or the long run.
False
Distribution partners only handle logistics tasks and do not inform consumers about products.
False
Distributors do not sell directly to businesses.
False
Promotion activities aim to only inform potential customers, not the general public.
False
Return on equity (ROE) is calculated by dividing profit before tax and interest (EBIT) by equity.
False
ROCE can be calculated using either capital employed at the end of the year or average capital employed.
True
Capital employed at the end of the year is calculated by subtracting non-current liabilities from equity.
False
Average capital employed is calculated by adding capital employed at the beginning of the year to capital employed at the end of the year and dividing by 2.
True
Investors generally prefer businesses with a low ROCE for stable returns over time.
False
Asset turnover aims to indicate how much profit was generated by every euro invested in net assets.
False
The formula for total cash flow in a cash flow statement is: Money at the end of the year - Money at the beginning of the year.
True
The percentage of current assets can be calculated as: Current assets divided by Total liabilities.
False
Equity development is determined by subtracting the total equity at the beginning of the year from the total equity at the end of the year.
True
The equity ratio is calculated as: Equity divided by Total liabilities.
False
A balance between non-current assets and long-term financial resources exists when Equity + Non-current liabilities < Non-current assets.
False
Reading a balance sheet helps in determining the percentage of current liabilities by dividing Current liabilities by Total liabilities.
False
Test your knowledge on factors that influence demand such as changes in income, consumer preferences, and complementary goods. Understand how these factors affect the demand curve and consumer behavior.
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