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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Johnson was seen as _____________ and the company's stock price suffered as a result.
(a) Nice.
(b) Eccentric.
(c) Crazy.
(d) Funny.

2. What do some in Congress pressure the EPA to do?
(a) Hide its findings.
(b) Dilute its findings.
(c) Destroy its findings.
(d) Strengthen its findings.

3. After years of bickering and hesitation, what do the "big three" anti-cancer organizations (AHA, ALA, ACS) do?
(a) They go their separate ways.
(b) They form a coalition to take on the entrenched tobacco interests in Washington.
(c) They give up on the tobacco industry.
(d) They run their own tests and studies without the aid of each other.

4. A lawyer named ____________, who had expertise in asbestos litigation, saw an opportunity to go after the tobacco industry, given recent New Jersey strict liability litigation.
(a) Mark Eddington.
(b) Mike Eden.
(c) Marc Edell.
(d) Matt Eckel.

5. By the end of the decade, Philip Morris leads RJR in sales _________________.
(a) 62 to 9 percent.
(b) 52 to 19 percent.
(c) 42 to 29 percent.
(d) 32 to 29 percent.

6. What does the Reagan era usher in?
(a) A time of government interference with business.
(b) A time of government non-interference with business.
(c) A time for protesting smoking.
(d) A time of big government.

7. What does the tobacco industry cunningly use the tax--which doubled from eight to sixteen cents--to do?
(a) Lower the cost of cigarettes and selling more cigarettes in the process.
(b) Sell more packs of cigarettes.
(c) Increase its prices significantly more than the amount of the actual increase - giving them more profit.
(d) Encourage more people to begin smoking.

8. The success of what 1973 horse race opens a new era for sponsoring spectator sporting events?
(a) The Marlboro Derby.
(b) The Winston Cup.
(c) The Winston Derby.
(d) The Marlboro Cup.

9. Marketers wanted to release a low tar Marlboro, but did not want what to happen?
(a) The image of the cowboy to change.
(b) Consumers to not like the taste.
(c) Consumers to not trust the original cigarettes.
(d) The name "mild" to detract from the rugged image of the product.

10. What quickly became a prestigious health research institute?
(a) The United States Healthy Families Guild (USHFG).
(b) The American Healthcare Organization (AHO).
(c) The American Health Foundation (AHF).
(d) The United States Foundation for Health (USFH).

11. Into what does the 1979 Surgeon General's Report delve?
(a) A few things.
(b) Very little.
(c) Many things.
(d) Nothing substantial.

12. In 1978, the AMA releases a long awaited report on tobacco which is considered what?
(a) A whitewash by many in the health community.
(b) Significant in the fight against the tobacco industry.
(c) A tremendous improvement.
(d) A great attempt by the AMA.

13. Philip Morris made a successful buyout offer for _____________ in 1986.
(a) Nabisco.
(b) Kraft.
(c) General Mills.
(d) General Foods.

14. Why do Marlboro Lights start off slowly?
(a) Men do not trust them.
(b) They have little flavor.
(c) Lack of recognition.
(d) The name makes it sound less appealing.

15. When does RJR general council Henry Ramm urge a more aggressive approach to the previous holding the line?
(a) When Clarence Little is replaced as scientific director of CTR.
(b) When Clay Little becomes the scientic director of CTR.
(c) When Clay Little is replaced as scientifc director of CTR.
(d) When Clarence Little becomes the scienfic director of CTR.

Short Answer Questions

1. RJR reached the largest non-oil takeover package to date with what company?

2. Why does management choose not to launch this product named Epic?

3. Philip Morris invests in what type of facilities that replace the old, factory cigarette mills of the past?

4. Studies in the early 1970s showed that smokers could be broken into what?

5. Eventually, what are the tobacco companies successful in doing?

(see the answer keys)

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