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Marketing Management chapter 2 practice test

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created 4 years ago by business_gal
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Developing Marketing Strategies and Plans

updated 4 years ago by business_gal

Grade levels:
11th grade, 12th grade, College: First year, College: Second year, College: Third year, College: Fourth year

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1

The task of any business is to ________.
A) create customer needs
B) differentiate in terms of cost of production
C) deliver customer value at a profit
D) reduce competition
E) communicate similar value as provided by competitors

Page: 33

C

2

What is the traditional view of marketing?
A) Firms should just focus on production because if the products are good then they will automatically sell.
B) Firms should just focus on production and selling because marketing occurs as a part of the selling process.
C) Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them.
D) Firms should price their products as low as possible so that marketing them becomes easy.
E) Firms should remember that promotion is the most important of the four Ps.

Page: 33

B

3

Value delivery process can be divided into three phases, out of which "choosing the value" implies _______, which is the essence of strategic marketing.
A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering

Page: 34

D

4

Apex Corporation is one of the best in its industry in terms of costs and performance. Many companies in its industry will probably consider Apex as a ________.
A) pioneer
B) benchmark
C) target for acquisition
D) future supplier
E) sounding board for ideas

Page: 34

B

5

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________.
A) market-sensing process
B) new-offering realization process
C) customer acquisition process
D) customer relationship management process
E) fulfillment management process

Page: 34

A

6

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________.
A) market-sensing process
B) customer acquisition process
C) customer relationship management process
D) fulfillment management process
E) new-offering realization process

Page: 34

D

7

Today, the "mass market" is actually splintering into numerous segments, each with its own wants, perceptions, preferences, and buying criteria. This implies that ________.
A) the traditional marketing approach would be the best approach to follow
B) the producers must consider themselves as a part of the value-chain process
C) the producers should focus on niche markets
D) all market segments are equally profitable
E) target market strategies are no longer effective

Page: 34

B

8

The first phase of the value creation and delivery sequence is ________ that represents the "homework" marketing must do before any product exists.
A) choosing the value
B) providing the value
C) communicating the value
D) considering the value
E) acquiring the value

Page: 34

A

9

The last step in the value creation and delivery sequence is ________ the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product.
A) developing
B) positioning
C) communicating
D) reversing
E) researching

Page: 34

C

10

In the cycle of complete strategic planning, taking corrective action is a part of ________.
A) planning
B) implementation
C) controlling
D) organizing
E) analyzing

Page: 37

C

11

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service).
A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities

Page: 34

C

12

Michael Porter's value chain would identify which of the following as a support activity?
A) shipping out final products
B) marketing products
C) procurement
D) servicing products
E) operations

Page: 34

C

13

Which of the following can be considered a primary activity in the value chain process?
A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure

Page: 34

D

14

The fulfillment management process includes all the activities in ________.
A) gathering and acting upon information about the market
B) researching, developing, and launching new high-quality offerings quickly and within budget standards
C) defining target markets and prospecting for new customers
D) building deeper understanding, relationships, and offerings to individual customers
E) receiving and approving orders, shipping the goods on time, and collecting payment

Page: 34

E

15

With respect to core business processes, the ________ includes all the activities involved in gathering external information, disseminating it within the organization, and acting on the information.
A) market-sensing process
B) market research process
C) target marketing process
D) market pulse process
E) deployment process

Page: 34

A

16

With respect to the core business processes, the ________ includes all the activities involved in developing, and launching high-quality products quickly and within budget.
A) market-sensing process
B) new-offering realization process
C) fulfillment management process
D) customer acquisition process
E) customer relationship management process

Page: 34

B

17

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of ________.
A) customer acquisition process
B) customer relationship management process
C) customer prospecting process
D) customer integrating management process
E) customer equity process

Page: 34

B

18

________ allows the company to discover who its target markets are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to different customer opportunities.
A) Network management
B) Supply chain management
C) Marketing management
D) Customer relationship management
E) Total quality management

Page: 34

D

19

Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________.
A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network

Page: 34-35

E

20

The key to utilizing organizational core competencies is to ________ that make up the essence of the business.
A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces

Page: 35

C

21

________ has three characteristics: (1) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and (3) it is difficult for competitors to imitate.
A) Core competency
B) Market sensing process
C) Corporate social responsibility
D) Strategic business unit
E) Philanthropy

Page: 35

A

22

Core competencies tend to refer to areas of special technical and production expertise, whereas ________ tend to describe excellence in broader business processes.
A) process benchmarks
B) distinctive capabilities
C) distributive capabilities
D) facultative benchmarks
E) concentric capabilities

Page: 35

B

23

Holistic marketers achieve profitable growth by expanding customer share, ________, and capturing customer lifetime value.
A) undermining competitive competencies
B) building customer loyalty
C) creating customer needs
D) renewing a customer base
E) cannibalizing products

Page: 36

B

24

The holistic marketing framework is designed to address three key management questions. Which of the following is one of those questions?
A) Value claims—how does the company deal with value clutter?
B) Value proposition—how can value propositions be made profitable?
C) Value erosion—are there weak links in the company's value chain?
D) Value network—how can a company effectively network?
E) Value exploration—how can a company identify new value opportunities?

Page: 36

E

25

As Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography. Thus, it is moving away from the production of film roll cameras. This would be an example of which of the following value creation steps?
A) abandoning current product lines
B) changing the corporate vision
C) repositioning the company's brand identity
D) redoing the corporate logo
E) realigning core competencies

Page: 36

C

26

Of the four organizational levels, the corporate level is likely to take which of the following decisions?
A) entering a new market
B) resource allocation for each product
C) strategic plan for individual business units
D) choosing specific suppliers for each business unit
E) marketing plan for each product

Page: 36

A

27

Most large companies consist of four organizational levels: the corporate level, the ________, the business unit level, and the product level.
A) board of director level
B) major stakeholder level
C) management team level
D) division level
E) strategic level

Page: 36

D

28

During Jill's market research study, many customers indicated that traditional oven mitts made it very difficult to hold baking dishes, resulting in frequent spills. Jill brought her findings to the research department, and her company leveraged its engineering and design competencies to develop a new hand-held hot-pad that allows for significantly greater dexterity in handling hot cooking implements, while protecting the cook from burns. This is an example of the ________ element of the holistic marketing framework.
A) integrated marketing
B) value creation
C) negative demand
D) value networking
E) value focus

Page: 36

B

29

The marketing plan, the central instrument for directing and coordinating the marketing effort, operates at ________ levels.
A) functional and operational
B) strategic and tactical
C) corporate and operational
D) customer and expenditure
E) corporate and division

Page: 36-37

B

30

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities.
A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement

Page: 36-37

B

31

Which of the following plans would most likely include directions for implementing and addressing daily challenges and opportunities in product features, promotion, merchandising, pricing, sales channels, and service areas?
A) the tactical marketing plan
B) the target marketing plan
C) the deployment plan
D) the product-launch plan
E) the product-development plan

Page: 37

A

32

Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters?
A) defining the corporate mission
B) establishing strategic business units
C) assigning resources to each SBU
D) assessing growth opportunities
E) deciding sales channels

Page: 37

E

33

Juan Garcia plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner.
A) strategic
B) selective
C) tactical
D) niche
E) operational

Page: 37

C

34

A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________.
A) profitability
B) target market feasibility
C) opportunity
D) continuous improvement
E) quality products

Page: 38

C

35

Mission statements are at their best when they reflect a ________.
A) market
B) strength
C) competency
D) vision
E) value

Page: 38

D

36

Which of the following is one of the five major characteristics of good mission statements?
A) They focus on a large number of goals.
B) They expand the range of individual employee discretion.
C) They define the major competitive spheres within which the company will operate.
D) They take a short-term view.
E) They are long and comprehensive to ensure that all critical concepts are included.

Page: 38

C

37

The ________ is the number of channel levels, from raw materials to final product and distribution, in which a company will participate.
A) industry sphere
B) vertical sphere
C) product/application sphere
D) competence sphere
E) market segment sphere

Page: 39

B

38

Gerber primarily serves the baby food market. In choosing to focus on this market, Gerber is defining its competitive sphere on the basis of ________.
A) vertical segmentation
B) backward integration
C) market segmentation
D) diversification
E) differentiation

Page: 39

C

39

While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ tends to focus on selling a product or service to a current market.
A) strategic market definition
B) target market definition
C) cognitive definition
D) product definition
E) tactical definition

Page: 39

B

40

What are hollow corporations?
A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated

Page: 39

C

41

A ________ of a business focuses on selling a product or service to an existing market.
A) target market definition
B) strategic market definition
C) mass-market definition
D) differentiated market definition
E) integrated market definition

Page: 39

A

42

Which of the following is best described as a market-oriented business definition?
A) Missouri-Pacific Railroad: We run a railroad.
B) Xerox: We make copying equipment.
C) Standard Oil: We sell gasoline.
D) Encyclopedia Britannica: We distribute information.
E) Columbia Pictures: We make movies.

Page: 40

D

43

A characteristic of a ________ is that it can be a single business or collection of related businesses that can be planned separately from the rest of the company.
A) strategic business unit
B) subsidiary unit
C) merged unit
D) niche market unit
E) specialized business unit

Page: 41

A

44

A strategic-planning gap can be corrected by ________.
A) changing the company's mission
B) adjusting its core values
C) choosing integrative growth strategies
D) redefining organizational culture
E) increasing resource use

Page: 42-43

C

45

Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies.
A) concentric growth
B) conglomerate
C) horizontal
D) intensive growth
E) integrative growth

Page: 43

D

46

Which of the following is an example of growth by diversification?
A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs

Page: 43

B

47

A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ strategy.
A) diversification growth
B) intensive growth
C) target growth
D) integrative growth
E) conglomerate growth

Page: 43

D

48

Which of the following is an example of intensive growth?
A) a company improves its market share with its current products in the current markets
B) a company enters a new market with current products
C) a company develops new products for its existing markets
D) a company improving sales by integrating backward
E) a company developing new products for new markets

Page: 43

D

49

If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore ________ strategy first because it is easier to improve an existing business than to build a new one.
A) market-penetration
B) market-development
C) diversification
D) product-development
E) exclusive

Page: 43

A

50

Once Starbucks had established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs and high-speed wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate

Page: 43

A

51

Qantas, the Australian national carrier, introduces flights to the Middle East. This is an example of ________.
A) product development
B) diversification
C) market development
D) market penetration
E) differentiation

Page: 43

D

52

A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products, or markets.
A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy

Page: 45

B

53

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"?
A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture

Page: 45

E

54

When it was first launched, Google's paid search platform represented a new strategy for revenue generation on the Internet. This is an example of innovation along which of the following dimensions?
A) process
B) supply chain
C) value capture
D) presence
E) brand

Page: 47

C

55

The first step in the business unit strategic-planning process deals with which of the following?
A) formulate goals
B) define business mission
C) implement strategies
D) execute programs
E) conduct SWOT analysis

Page: 48

B

56

Through its cutting-edge point-of-sale inventory management technology and highly efficient shipping practices, Walmart is able to keep its inventory expenditure extremely low and to pass these savings on to consumers in the form of low prices. Walmart's strategy is best described as ________.
A) a focused approach
B) integrative growth
C) differentiation
D) market development
E) overall cost leadership

Page: 50

E

57

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies.
A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming

Page: 51

B

58

After analyzing their company's strengths and weaknesses, top managers at Loan Bright decided that they would serve individual loan officers who typically only wanted to purchase small sets of homebuyer data, rather than bigger institutional clients. To meet the needs of this segment, Loan Bright simplified its sales contract, restructured its advertising efforts to focus on Google ads, and created a separate customer-service department. Loan Bright's strategy is best described as a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

Page: 51

B

59

Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

Page: 51

C

60

McDonald's has often teamed up with Disney to offer products related to current Disney films as part of its meals for children. The best description of this form of alliance would be a(n) ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

Page: 51

E

61

Abbot Laboratories warehouses and delivers 3M's medical and surgical products to hospitals across the United States. The best description of this form of alliance would be a(n) ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) indirect collaboration
E) promotional alliance

Page: 51

B

62

MasterCard and Visa may team up with university alumni associations to offer affinity credit cards that typically display an iconic image associated with the university on the card itself and may include an incremental donation program associated with purchases made using the card. The best description of this form of alliance would be a ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

Page: 51

E

63

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________.
A) defined strategy
B) focused strategy
C) value-added strategy
D) competitive advantage strategy
E) customer-focused strategy

Page: 51

B

64

When one company licenses another to produce its offerings, or two companies jointly market their complementary offerings, it is called a ________.
A) pricing collaboration
B) product or service alliance
C) promotional alliance
D) logistics collaboration
E) total quality management

Page: 51

B

65

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________.
A) value managed partnership
B) decentralized partnership
C) centralized partnership
D) partner relationship management
E) intensive growth management

Page: 52

D

66

Which of the following statements is true of marketing plans?
A) They can be independently developed without worrying about other functional areas.
B) They provide direction and focus for a brand, product, or company.
C) They are usually profit-oriented.
D) They are of limited use to non-profit organizations.
E) They are typically five-year plans and they lay out the strategies required to achieve targets in those five years.

Page: 54

B

67

Which of the following elements of a marketing plan permits senior management to grasp the plan's major thrust?
A) the situation analysis
B) the marketing strategy
C) the executive summary
D) the financial projections
E) the short-term targets

Page: 54

C

68

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus.
A) long-term
B) profit
C) short-run
D) product
E) price

Page: 54

C

69

The ________ is the last section of the marketing plan and spells out the goals and budget for each month or quarter, so management can review each period's results and take action as needed.
A) executive summary
B) situation analysis
C) marketing strategy
D) financial projections
E) implementation and controls

Page: 55

E

70

The traditional view of marketing is that the firm makes something and then sells it.

Page: 33

true

71

Marketing goods that are currently in short supply would require significant marketing talent.

Page: 33-34

false

72

The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.

Page: 34

false

73

In the communication stage of the value creation and delivery sequence, marketing must determine specific product features, prices, and distribution channels.

Page: 34

false

74

The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.

Page: 34

false

75

The new-offering realization process involves all activities in defining target markets and prospecting for new customers.

Page: 34

false

76

A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

Page: 34

true

77

Another name for a company's value delivery network is "distribution chain."

Page: 34-35

false

78

Competitors in a given industry can be identified by the similarities in their core competencies.

Page: 35

false

79

A firm's core competency has applications only in the specific market in which the firm operates.

Page: 35

false

80

Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers.

Page: 36

true

81

When a manager is trying to identify how the company can efficiently create promising new offerings, he is addressing the question of value delivery.

Page: 36

true

82

The marketing plan is the central instrument for directing and coordinating the marketing effort.

Page: 36

true

83

A strategy is a game plan for achieving what the business unit wants to achieve.

Page: 36

true

84

Mission statements that express unrealistic visions are usually unable to inspire employees to achieve their targets.

Page: 38

false

85

Good mission statements should be long and clear, should emphasize on a wide range of goals, and stress on the company's major policies and values.

Page: 38

false

86

If Xerox Corporation defined its scope of business as "making copying equipment", it can be classified as a marketing definition.

Page: 40

false

87

An intensive growth strategy involving marketing current products to new markets is a market-development strategy.

Page: 43

true

88

A company seeking to expand the number of existing products sold to its current markets, would be using a "market-penetration strategy."

Page: 43

false

89

If a company sought to grow by starting new businesses that have no relation to its current technology, products, or markets, the company would be using a market penetration strategy.

Page: 43

false

90

"What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis.

Page: 45

true

91

An environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

Page: 49

true

92

Internal analysis in SWOT involves analyzing the possible opportunities and threats that can come from the market.

Page: 49-50

true

93

Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic-planning process model.

Page: 50

true

94

In applying MBO (management by objectives) all objectives are treated as being equally important.

Page: 50

false

95

For an MBO (management by objectives) system to work, one of the four criteria that the unit's objectives must meet is that objectives must be stated quantitatively whenever possible.

Page: 50

true

96

Contrary to popular belief, it is not possible to maximize sales and profits simultaneously.

Page: 50

true

97

A firm that is always working to improve its product offerings such that consumer needs are addressed more efficiently is following a differentiation strategy.

Page: 51

true

98

A firm employing a focus strategy concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market.

Page: 51

false

99

Partner relationship management is now considered as a core skill fundamental to the development and maintenance of strategic alliances.

Page: 52

true

100

Firms directing the same strategy to the same target market constitute a strategic group.

Page: 51

true

101

A written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives is called a vision statement.

Page: 54

false

102

Marketing plans are becoming more production oriented because of the high costs of doing business in today's economy.

Page: 54

false

103

A marketing plan should open with a situation analysis.

Page: 54

false

104

Definitions of a firm's mission as well as its marketing and financial objectives are included in the marketing strategy section of the marketing plan.

Page: 54

true

105

Sales forecasts, expense forecasts, and break-even analysis are usually found in the section on financial projections in the marketing plan.

Page: 54

true

106

A marketing plan is evaluated on the basis of how simple, specific, realistic, and complete it is.

Page: 55

true

107

Good marketing plans are usually short and to the point.

Page: 54

false

108

Most marketing plans conclude with a section that indicates how the plan will be implemented.

Page: 55

true

109

The marketing strategy section of the marketing plan spells out goals and budgets for each month or quarter so the management can review each period's results and take corrective action as needed.

Page: 55

false


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