MKT Quiz 7

Question 1
0 out of 1 points

A strategic alliance exists when one party has confidence in another firm’s reliability and integrity.

Selected Answer: True
Answers:
True

False

Response Feedback:
This is the definition of trust, not strategic alliance.

Question 2
1 out of 1 points

Although the price of a chemical added to paint to protect surfaces from mold and mildew has almost doubled, the price of paint has risen an average of only 5 percent, and the demand for both paint and the chemical that eliminates mold and mildew has remained stable. The demand for this chemical is:

Selected Answer:
b.
inelastic.
Answers:
a. elastic. b. inelastic. c. derived. d. bundled. e. change resistant.

Response Feedback:
A good is price inelastic if a change in price leads to a small change in quantity demanded or does not significantly affect demand for the product.

Question 3
1 out of 1 points

Boise Cascade
Boise Cascade comprises two businesses. Boise Cascade Building Materials Distribution is one of the largest wholesale building materials distributors in the United States. The firm’s 33 distribution facilities market a wide range of building products and services to retail lumber dealers, home improvement centers, and industrial accounts nationwide. Boise Cascade Wood Products manufactures plywood, lumber, particleboard, and engineered wood products (laminated veneer lumber, I-joists, and laminated beams) at 20 manufacturing facilities in the United States and Canada. The firm’s wood products are used primarily in housing, industrial construction, and a variety of manufactured products. The wood products are sold to retail lumber dealers, home centers specializing in the do-it-yourself market, and industrial customers.

Refer to Boise Cascade. The plywood, lumber, particleboard, and engineered wood products manufactured by Boise Cascade would be classified as:

Selected Answer:
d.
processed materials.
Answers:
a. supplies. b.