Decide whether each is either true (T) or false (F) 1)Employee ownership may improve employees commitment to the company they work for and the achievement of its goals. * True False 2)Indirect costs or overheads are the day-to-day running costs of a business organization, including insurance charges, loan repayments, cleaning and office costs. Therefore, indirect costs are also very similar to variable costs. * True False 3)Cigars, SPA treatments, travel packages, are all examples of price elastic products. * True False 4)The extension stage in the product life cycle is usually launched after the product enters decline stage so that the company can avoid exiting the market. * True False 5)Applicants for senior positions in an organization will often be required to produce a large amount of evidence of their skills and experience in an application form, CV, and covering letter. * True False 6)The marketing mix refers to the distribution and pricing activities related for a product offered by an organization. * True False 7)A letter of employment is used to produce a person specification or job specification listing the skills, qualifications, experience, and qualities a person will need to do the job effectively. * True False 8)The best way companies can organize their departments is by main customer groups. * True False 9)Communicating with customers involves advertising products and services, providing product information, taking orders, and arranging delivery schedule. * True False 10)Changes in consumer demand over time and the amount of competition between producers can affect the volume and value of different goods and services sold. * True False 11)Money-off coupons are forms of sales incentives used in below the line promotion. * True False 12)If the organization has a decentralized structure, decisions related to the strategic direction of the company such as the budget, sources of finance, and investment opportunities can be taken at the middle level. * True False 13)In the maturity phase of the product life cycle, the role of advertising is to persuade customers to buy more of the products to increase revenues. * True False 14)The term Venture capital is often used to describe funds available for businesses to start up and for small businesses with exceptional growth and profit potential. * True False 15)A distribution channel involves all the people involved in the physical movement of a good or service from producer to consumer. * True False 16)In order for a company to secure an external source of finance, it only needs to ask for the money from any financing source a bank or a creditor. * True False 17)Break-even analysis is used to calculate the maximum level of output a business will need to produce and sell to cover its costs and to examine the impact that changes in costs, prices and sales could have on profits. * True False 18)Insufficient demand for new shares may reduce the share price on the stock market, if this happens shareholders will gain more money. True False 19)Marketing strategies should be carefully planned and based on good market research and analysis. * True False 20)Informal communication involves messages that include information which are deemed necessary to ensure business continuity. * True False