nuclear power only for Allen

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Chapter 05

Multiple Choice Questions

26.

_____ is the process of creating and managing a business to achieve desired objectives.

A.	Entrepreneurship

B.	Bootstrapping

C.	Intrapreneuship

D.	Innovation

E.	Brainstorming

27.

A _____ is best described as any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

A.	publicly owned business

B.	limited liability company

C.	small business

D.	publicly traded company

E.	for-profit corporation

28.

A small business is any independently owned business that employs not more than _____ people.

100

500

300

200

29.

Vernon runs Buzz, his own event management company, which frequently organizes large corporate events. Vernon has established a good reputation for organizing corporate events with a fair degree of professionalism at reasonable costs. Vernon works out of his old house with a staff of about 55 employees. Vernon's company is most likely to be categorized as a(n):

A.	multinational corporation.

B.	limited liability company.

C.	franchise.

D.	public sector holding.

E.	small business.

30.

The Small Business Administration (SBA) is a(n):

A.	body established by the U.S. Chamber of Commerce to encourage the intrapreneurial spirit in small businesses.

B.	independent agency of the federal government that offers managerial and financial assistance to small businesses.

C.	independent agency created under the GATT to protect small businesses against competition from larger companies.

D.	division of the federal government that is responsible for ensuring that newly formed businesses adhere to the law.

E.	U.S. Congressional agency that regulates the issue of stocks by small businesses.

31.

Which of the following is an advantage for small businesses that choose to enter the retailing industry?

A.	Retailing is relatively difficult field to gain entry.

B.	Retailing requires a large capital investment in the initial stages.

C.	Retailing allows small business to focus on specific groups of consumers.

D.	Retailing requires sophisticated machinery and technical expertise.

E.	Retailing suffers from heavy competition and losses only in the initial stages.

32.

Which of the following reasons makes retailing an attractive industry for small businesses?

A.	Retailing eliminates the need for any entrepreneurial skills.

B.	Retailing offers high barriers to entry.

C.	Retailing eliminates the need to engage in active interactions with the final customers.

D.	Retailing requires low initial financing.

E.	Retailing limits a firm's need to focus on specific groups of consumers.

33.

Which of the following best illustrates a small business operating in a retail industry as opposed to wholesaling its products?

A.	Janet bakes cakes and sells them to other restaurants and cafes in malls.

B.	BC Inc. manufactures stationery and sells it in bulk to book shops and supermarkets.

C.	Pink Cult, an apparel company, sells its merchandise through OMG!.com.

D.	Neon Love Inc. imports candles and directly sells them to customers through kiosks.

E.	Auto Line Inc. manufactures component parts of cars and sells them to automobile companies.

34.

Many service providers are considered retailers because they:

A.	require a high initial start-up cost.

B.	provide their services directly to ultimate consumers.

C.	sell their services from a single store location.

D.	focus on large market segments and institutional buyers.

E.	employ only a small number of people.

35.

Which of the following traits will help entrepreneurs succeed?

A.	Risk aversion

B.	Intolerance

Frugality

D.	Impulsivity

E.	Neuroticism

36.

One of the major reasons people want to own and operate their own business is to:

A.	avoid the risk of competition.

B.	be their own boss.

C.	avoid multi-tasking.

D.	reduce stress levels.

E.	avoid direct responsibility of the operations.

37.

Which of the following is an advantage of a small business?

A.	Greater adaptability to changing market demands

B.	Highly trained and competent staff

C.	Low levels of stress in managing the business

D.	Diverse and large workforce

E.	High success rates

38.

Red Carpet Inc. is a small apparel store started by an aspiring designer. The store needs to compete against larger, well-established multinational brands. Which of the following strategies will most help Red Carpet Inc. avoid competition from larger firms?

A.	Red Carpet Inc. should have multiple levels of management like the larger firms.

B.	Red Carpet Inc. should target large market segments that the competitors serve.

C.	Red Carpet Inc. should expand the scale of production to enjoy greater economies of scale.

D.	Red Carpet Inc. should start to work with customers only when the products are ready for sale.

E.	Red Carpet Inc. should focus on and target small market niches or product needs.

39.

Small businesses usually have only one layer of management. Which of the following is an implication of this?

A.	Small businesses face a low risk of failure.

B.	Small businesses have great flexibility to adapt to changing market conditions.

C.	The decision-making process is lengthy in small businesses.

D.	Small businesses have better access to managerial experience and skills than larger firms.

E.	Small business owners have a limited amount of direct authority.

40.

Which of the following is a disadvantage of small-business ownership?

A.	High cost of formation

B.	Bureaucratic decision-making process

C.	Ability to focus upon specific groups of customers

D.	Worries about employee problems or competition

E.	Limited scope for innovation

41.

Which of the following is a reason behind the failure of small businesses?

A.	Overcapitalization

B.	Reputation

C.	Managerial experience

D.	Poor business concept

E.	High costs of start-up

42.

Carol has recently opened a restaurant in her neighborhood. Which of the following is NOT likely to be a source of stress?

A.	Competition

B.	Reputation

C.	Rent increases

D.	Employee issues

E.	Changing market demand

43.

_____ is best described as the lack of funds to operate a business normally.

A.	Debt financing

B.	Trade credit

C.	Franchising

D.	Trade deficit

E.	Undercapitalization

44.

Gerald started a business using the savings from his previous job. He planned to run his business on the revenue generated from sales. However, a few months later, Gerald found it difficult to pay his staff, rent, and other expenses. Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Gerald to operate the business normally. Which of the following causes of small business failure does this scenario best illustrate?

A.	Undercapitalization

B.	Trade credit

C.	Economies of scale

D.	Debt financing

E.	Debt factoring

45.

Which of the following is the shortest path to business failure?

A.	Overcapitalization

B.	Undercapitalization

C.	Rent increases

D.	Competition

E.	Changing market demand

46.

The principal immediate threats to small and mid-sized businesses include:

A.	rapidly advancing technology.

B.	rising entrepreneurial spirit.

C.	reducing imports.

D.	escalating costs.

E.	increasing exports.

47.

A business plan should do all of the following EXCEPT:

A.	provide the rationale for the business.

B.	include estimates of income and expenses.

C.	establish a strategy for acquiring sufficient funds.

D.	include an analysis of the competition.

E.	limit the business's flexibility and decision-making ability.

48.

Arnold approached a bank to get a loan for a business he planned to launch later in that year. He explained his business idea and its capital requirements to the bank manager. The manager listened to the plan and asked Arnold to provide a formal document that included a rationale for the business, an explanation of how it will achieve its goals, an analysis of the competition, and estimates of income and expenses among other information. Which of the following documents does the bank expect from Arnold in this scenario?

A.	A business plan

B.	A cash flow statement

C.	A promissory note

D.	A balance sheet

E.	A marketing plan

49.

In the process of starting a business, the step that immediately succeeds the development of a business plan involves:

A.	organizing resources like labor and supplies.

B.	developing some general business ideas.

C.	deciding an appropriate legal form of business ownership.

D.	promoting the business to the customers.

E.	filing for tax returns for the business with the Internal Revenue Service.

50.

To make profits from a small business, the owner must first provide or obtain _____ to start the business and keep it running smoothly.

products

employees

profits

supplies

capital

51.

Which of the following is NOT a source of equity financing?

A.	Reinvesting profits into the business

B.	Selling personal assets to raise funds

C.	Bringing in useful personal assets such as a computer into the business

D.	Securing long-term loans from a family member

E.	Selling stock in the business to family members or friends

52.

Walter sold a piece of land he inherited from his grandparents and started a business with the proceeds. Which of the following sources has Walter used to raise funds for his business?

A.	Equity financing

B.	Debt financing

C.	Venture capital

D.	Initial public offering

E.	Angel Investment

53.

Janice works in a factory that manufactures decorative accessories for office spaces, hotels, and designer homes. She wants to start her own business because she believes that the market for decorative products has a great growth potential. However, she does not want to depend on anyone else for the procuring the initial capital and would like to raise the amount herself. In this scenario, which of the following methods would Janice adopt to raise funds through equity financing?

A.	Janice would secure a mortgage from a family member or friend.

B.	Janice would secure a loan from the Small Business Administration (SBA).

C.	Janice would ask for a line of credit from her previous bank.

D.	Janice would invest her savings in the new business.

E.	Janice would ask suppliers for a longer trade credit.

54.

Jacob and Harry are business partners in a company that manufactures portable solar panels. They initially started the business with their savings. However, now the company plans to expand its operations and the required amount of capital cannot be raised through savings or by reinvesting profits. Thus, the partners have decided to sell stock in their business to family members, friends, and employees. Which of the following sources of capital have Jacob and Harry planned to use for the expansion of their business?

A.	Debt financing

B.	Bootstrapping

C.	Equity financing

D.	Mortgaging

Factoring

55.

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called ____.

A.	intrapreneurs

B.	category captains

C.	venture capitalists

D.	trade debtors

E.	franchisers

56.

Securing a mortgage from a bank for a new business venture is an example of:

A.	equity financing.

B.	venture capitalism.

C.	debt financing.

D.	trade credits.

E.	collaterals.

57.

When an entrepreneur takes out a loan from a bank, the bank will require him to put up _____, which is a financial interest in the property or fixtures of the business, to guarantee payment of the loan.

A.	collateral

B.	venture capital

C.	trade credit

D.	business plan

E.	cash flow statement

58.

Lara, a single mother, borrowed some capital for her business from Women Progress Council (WPC) at an extremely low rate of interest. Which of the following forms of funding a new small business does this scenario best illustrate?

A.	Trade credit

B.	Equity financing

C.	Venture capital

D.	Debt financing

E.	Crowdsourcing

59.

Andrew, a pharmacist, realized that he should stock extra supplies of a particular medicine to respond to an outbreak of a particular infection in the city. Lacking sufficient capital to purchase the extra inventory, he turned to his bank and asked to borrow a predetermined sum of money. Which of the following sources of funding does this scenario best illustrate?

A.	Trade credit

B.	Initial public offering

C.	Venture capital

D.	Equity financing

E.	Line of credit

60.

A license to sell another's products or to use another's name in business, or both, is called a ____.

franchise

cartel

C.	collateral

mortgage

collusion

61.

Since Eva Carl has decided to use her savings to purchase the rights to own and operate a McDonald's fast-food restaurant rather than starting her own restaurant, she is probably a(n) ____.

A.	trade creditor

B.	franchisee

C.	franchiser

D.	intrapreneur

E.	venture capitalist

62.

Nathan started the first outlet of Dynamix Gym in New York City in 1995. The business expanded over time, and Nathan became the owner of a chain of gyms in New York State. Though the business had potential to expand outside New York, Nathan did not want to take the risk or responsibility. Hence, he decided to sell the license to own and operate gyms in the name of Dynamix Gym to independent owners. In return, he charged them an initial fee and a small share in the monthly profits. In this scenario, Nathan is a(n) ____.

A.	franchisee

B.	intrapreneur

C.	angel investor

D.	franchiser

E.	venture capitalist

63.

Which of the following statements accurately brings out the difference between franchising and building an independent business from scratch?

A.	The time required to set up an independent business is much lower than obtaining a franchise.

B.	A franchise outlet often reaches the break-even point faster than an independent business would.

C.	A franchisee would experience more flexibility in decision making than the owner of an independent business.

D.	The quality of goods and services needs to be more standardized and uniform in independent business than in franchises.

E.	Access to managerial and financial assistance is more limited in franchises than in independent businesses.

64.

Which of the following is an advantage that purchasers of a popular franchise experience?

A.	They get access to the already established brand name or brand equity.

B.	They have great flexibility to make decisions for their individual franchise outlets.

C.	They can enjoy their total profits without having to share anything with the franchisers.

D.	They can easily add or delete a good or service from the existing product line.

E.	They are free to vary their operational processes based on their needs and constraints.

65.

One of the main drawbacks of franchising is that it requires the franchisee to:

A.	invest a lot of time and effort in setting up the business.

B.	take sole responsibility for all decisions in the business.

C.	share the profits of the business with the franchiser.

D.	build the brand appeal for the franchise outlet on his or her own.

E.	invest considerable capital in national and local advertising programs.

66.

Paul has recently quit his job as an investment banker. He plans to open a restaurant. He has two options: he can either start his own new restaurant from scratch or purchase a franchise from an already established restaurant or fast food chain. His wife, Lisa, supports the former plan. Which of the following statements strengthens the argument in favor of Lisa's choice of opening a restaurant independently?

A.	It is easier and faster to build a business from scratch.

B.	It is easier to reach the break-even point through an independent business.

C.	It is more difficult to attract customers in a franchise business as the entrepreneur has to personally build the brand appeal.

D.	It is easier and more flexible to make and execute decisions in an independent business.

E.	It is easier to succeed in a business built from scratch as the products and the business format are already proven.

67.

Millennials number around 75 million and represent a huge business opportunity in the United States. Which of the following is a defining feature of the millennials?

A.	Baby boomers above the age 50

B.	First generation immigrants

C.	People born at the turn of the millennium between 1999 and 2001

D.	People from immigrant communities who migrated to U.S. between 1946 and 1964

E.	People born between 1977 and 1994

68.

Sally is a human resource manager at a company. A survey of the company's employees revealed that more than 80 percent of the employees belonged to the demographic segment Generation Y. In this scenario, which of the following HR strategies should Sally implement in order to best serve the needs of the employees?

A.	Sally should solely use financial rewards to motivate the employees to improve their productivity.

B.	Sally should keep the training sessions highly formal with no scope for entertainment.

C.	Sally should restrict the employees from using work from home or telecommuting options.

D.	Sally should avoid giving regular, direct feedback to the employees.

E.	Sally should use recognition and advancement as the driving forces to motivate employees.

69.

Which of the following demographic segments should small retailers specializing in ethnic products and small service providers target?

A.	Immigrants

B.	Echo boomers

C.	Baby boomers

D.	Generation X

Drivers

70.

Which of the following demographic trends has made health care and financial planning industries attractive for small businesses in the United States?

A.	Decreasing population of millennials

B.	Increasing income among generation X

C.	Aging baby boomers who are wealthy

D.	Reducing entrepreneurial spirit among young generations

E.	Increasing imports into the economy

71.

Which of the following is an implication of technological advances to small businesses?

A.	It fails to make any significant changes as small businesses cannot afford to use sophisticated technology in their operations.

B.	It reduces a small business's ability to adapt to changing trends and market demands.

C.	It increases the ratio of baby boomers as employees in small businesses.

D.	It provides new opportunities for small businesses to expand their operations abroad.

E.	It reduces a small company's ability to customize their services and products.

72.

Norton is a human resource manager at a large multinational company. After a drastic drop in revenue, his company is thinking of ways to correct the situation. At a meeting with the top management, the CEO suggested that 20 percent of the employees should be eliminated. This move would help the company cut costs and continue functioning on the current projects. In this scenario, which of the following strategies is this MNC planning to use?

A.	Debt financing

B.	Intrapreneruship

C.	Crowdsourcing

D.	Franchising

E.	Downsizing

73.

Downsizing is an effective way to:

A.	gain the advantages of small businesses.

B.	increase organizational tasks.

C.	reduce entrepreneurial spirit among employees.

D.	increase the management layers.

E.	gain employee trust.

74.

Which of the following statements accurately describes intrapreneurs?

A.	Employees who become a part of a company's board of directors through internal promotions are referred to as intrapreneurs.

B.	Entrepreneurs who sell the rights to use their products to independent owners are intrapreneurs.

C.	Entrepreneurs who are involved in international business are referred to as intrapreneurs.

D.	Independent investors who help a company raise capital through internal financing are intrapreneurs.

E.	Individuals in large firms who take responsibility for the development of innovations within the organizations are intrapreneurs.

75.

Which of the following is an ineffective practice in making big businesses act small?

A.	Encouraging a spirit of entrepreneurship within the organization

B.	Increasing the layers of management within the organization

C.	Downsizing to reduce work tasks

D.	Keeping the growth vision long term

E.	Focusing on current customers rather than looking for new customers

76.

George is an employee at a company that provides information technology solutions to other firms. He has been developing a new smart phone application from the resources of the company. In this scenario, George best illustrates a(n) ____.

A.	franchiser

B.	venture capitalist

C.	intrapreneur

D.	entrepreneur

E.	trade creditor

Chapter 8

Multiple Choice Questions

26.

If an employee is involved with transforming resources into goods and services, then he is in:

A.	marketing.

B.	financing.

C.	human resources.

D.	operations management.

E.	budgeting.

27.

Irene is an employee associated with producing goods, services, and ideas that satisfy the needs of customers. Thus, she works most closely with:

A.	financing.

B.	budgeting.

C.	production.

D.	human resources.

E.	operations.

28.

Operations management has the primary responsibility for:

A.	employing computer-assisted manufacturing (CAM) exclusively for all transformations.

B.	transforming goods and services into resources.

C.	creating products that satisfy customers.

D.	developing only such products which are intangible.

E.	converting outputs into inputs.

29.

Which of the following is true of the transformation process?

A.	It is the development and administration of activities that transform resources into goods, services, and ideas.

B.	It is the conversion of human, financial, and physical resources into goods, services, and ideas.

C.	It involves the assigning of labor, energy, and money for the advertisement of services.

D.	It is associated with the promotion and pricing of goods and services.

E.	It deals with the distribution and logistics of products.

30.

Viewed from the perspective of operations, the money used to purchase a carpenter's tools and the electricity used to run his power saw are:

A.	processes.

outputs.

stocks.

inputs.

E.	maintenance costs.

31.

Viewed from the perspective of operations, the furniture items produced by a carpenter are:

A.	variations.

inputs.

C.	equipment.

outputs.

E.	processes.

32.

From the perspective of operations, food sold at a restaurant and services provided by a plumbing company are:

A.	processes.

inputs.

outputs.

stocks.

costs.

33.

How do operations managers ensure quality and efficiency during the transformation process?

A.	They ensure that their products never use the modular design of transforming because this process increases the cost of labor.

B.	They always employ computer-assisted manufacturing (CAM) technologies to guide and control the transformation processes.

C.	They shift from material-requirements planning (MRP) to just-in-time (JIT) inventory management.

D.	They keep the work cycling between two different batches of labor in order to track any loopholes.

E.	They take feedback at various points in the transformation process and compare them to established standards.

34.

Money, employees, time, and equipment are examples of an airline's _____ to the transformation process.

outputs

B.	intangibles

products

services

inputs

35.

Which of the following is true of the transformation process?

A.	It does not occur in service companies.

B.	It occurs in all organizations, regardless of what they produce or their objectives.

C.	It occurs only in manufacturing companies because they use tangible inputs.

D.	It excludes fund-raising and promoting a cause.

E.	It is not a part of government agencies because they do not use machineries for mass production.

36.

Which of the following is NOT a point of difference between service providers and manufacturers?

A.	Services are more labor-intensive.

B.	Manufacturing has more uniform outputs.

C.	Services do not undergo a transformation process.

D.	Manufacturing productivity can be measured straightforwardly.

E.	Service providers have less control over the variability of their inputs.

37.

For most organizations, the ultimate objective is for produced outputs to be:

A.	easy to develop.

B.	tangible, hard goods.

C.	inexpensive.

D.	worth more than the cost of inputs.

E.	equal to the costs of input.

38.

The nature of the service provider's product requires:

A.	fewer employee inputs.

B.	a higher degree of customer contact.

C.	delayed consumption.

D.	more expensive inputs.

E.	more standardization.

39.

Actual performance of the service provider's product typically occurs:

A.	several days after purchase.

B.	outside the service provider's facility.

C.	at the point of consumption.

D.	in the buyer's home.

E.	before the point of consumption.

40.

To receive a haircut, you generally have to go to a salon. This information reflects the _____.

A.	uniformity of inputs

B.	uniformity of outputs

C.	labor required

D.	measurement of productivity

E.	nature and consumption of output

41.

The products of service providers tend to be more customized than those of manufacturers because:

A.	different customers have different needs.

B.	the requirements of all customers are more or less the same.

C.	technological innovations have reduced variability.

D.	there is more capital required in service provision.

E.	the specific needs of individual customers get incorporated.

42.

The fact that a hairdresser gives each customer a different haircut relates to the difference between service providers and manufacturers in terms of:

A.	consumption of output.

B.	uniformity of inputs.

C.	labor required.

D.	measurement of productivity.

E.	uniformity of output.

43.

When compared to service providers, the products of manufacturers are typically:

A.	more labor-intensive.

B.	less uniform.

C.	more difficult to store.

D.	more standardized.

cheaper.

44.

Compared to service providers, manufacturers generally:

A.	are more labor-intensive.

B.	are more capital-intensive.

C.	customize their outputs.

D.	have difficulty measuring productivity.

E.	produce intangible outputs.

45.

Zedpro Computer Company is determining demand for its future products and how much consumers are willing to pay. For this, Zedpro should rely on:

A.	the economy.

B.	marketing research.

C.	its competitor's moves.

D.	successful past experiences.

E.	intuition.

46.

As a manufacturing process, the term standardization means:

A.	ensuring that each product is sold at the same price.

B.	that similar products, manufactured by different companies, all operate in the same manner.

C.	making identical, interchangeable components or complete products.

D.	making the exact product a particular customer needs or wants.

E.	making an item in self-contained units that can be interchanged to create different products.

47.

A primary reason for using standardization is to:

A.	reduce production costs.

B.	increase consumer options.

C.	reduce product quality.

D.	increase variations.

E.	foster creativity.

48.

Building a computer so that the components can be installed in different configurations to meet customers' needs is a result of:

A.	flexible manufacturing.

B.	modular design.

C.	customization.

D.	specialization.

E.	varied engineering.

49.

Facility location decisions are complex because:

A.	all customers want plants nearby.

B.	transportation costs are excessively high.

C.	speed of delivery is not very important.

D.	proximity to market or community characteristics are not important factors.

E.	the firm must live with it once the decision has been made and implemented.

50.

A company that manufactures large products, such as houses or bridges, may require that all resources be brought to a central location during production. This type of facility layout is called:

A.	fixed-position layout.

B.	product layout.

C.	line layout.

D.	central control layout.

E.	assembly line layout.

51.

A company performing large, complex tasks such as construction or exploration is called a(n):

A.	continuous manufacturing organization.

B.	intermittent organization.

C.	project organization.

D.	exploration company.

E.	survey company.

52.

A metal fabrication plant with a cutting department, a drilling department, and a polishing department would likely use _____ layout.

A.	fixed-position

B.	horizontal-position

process

D.	geographical

E.	customer-based

53.

A hospital having an X-ray unit, an obstetrics unit, few emergency rooms, and other units would best be classified as a(n):

A.	intermittent organization.

B.	project organization.

C.	continuous manufacturing organization.

D.	fixed organization.

E.	assembly line organizations.

54.

An organization that creates many products with similar characteristics, such as automobiles, television sets, or vacuum cleaners, would most likely be categorized as a(n):

A.	continuous manufacturing organization.

B.	intermittent organization.

C.	project organization.

D.	process layout organization.

E.	fixed-position organization.

55.

Which of the following statements is true?

A.	Organizations can start greening their supply chains by increasing resource consumption and waste.

B.	The adoption of 100 percent wind-powered electricity increases carbon emissions.

C.	Aluminum cans can be recycled an infinite number of times.

D.	It is mandatory for organizations to incorporate sustainability into their business models.

E.	Balancing profitability and socially responsibility is impossible for corporate organizations.

56.

Which of the following activities is NOT included in supply chain management?

A.	Getting products to customers

B.	Obtaining and managing raw materials

C.	Managing finished products

D.	Packaging finished products

E.	Researching and developing products

57.

All activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging them, and getting them to customers are part of:

A.	stock management.

B.	supply chain management.

C.	engineering.

finance.

E.	strategic planning.

58.

Within organizations, purchasing is also referred to as:

A.	consumption.

B.	disposition.

C.	acquisition.

D.	procurement.

E.	budgeting.

59.

The buying of all materials needed by an organization is called:

A.	consumer behavior.

B.	capital expenditure.

C.	purchasing.

D.	standardization.

E.	just-in-time management.

60.

The term _____ refers to all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses.

inventory

B.	order quantities

C.	production

D.	raw materials inventory

E.	intangibles

61.

Materials that have been purchased to be used as inputs in making other products are included in:

A.	finished inventory.

B.	partial inventory.

C.	raw materials inventory.

D.	supplier inventory.

E.	component parts inventory.

62.

The process of determining how many supplies and goods are needed, keeping track of quantities on hand, each item's location, and who is responsible for it is called:

A.	process layout.

B.	product layout.

C.	material-requirements planning.

D.	inventory control.

E.	continuous manufacturing control.

63.

A model of inventory management that identifies the optimum number of items to order to minimize the costs of managing them is called the:

A.	just-in-time management model.

B.	flexible scheduling model.

C.	material requirements planning model.

D.	economic order quantity model.

E.	logistics model.

64.

Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as:

A.	just-in-time inventory management.

B.	flexible scheduling.

C.	material-requirements planning.

D.	logistics.

E.	the economic order quantity model.

65.

A planning system that schedules the precise quantity of materials needed to make a product is called:

A.	just-in-time management.

B.	material-requirements planning.

C.	economic order quantities.

D.	flexible scheduling.

E.	cycle-time management.

66.

One popular method of scheduling is the _____ which identifies all the major activities or events required to complete a project, arranges them in a sequence or path, determines the critical path, and estimates the time required for each event.

A.	computer-assisted manufacturing (CAM)

B.	Program Evaluation and Review Technique (PERT)

C.	Critical Path Method (CPM)

D.	economic order quantity (EOQ) model

E.	material-requirements planning (MRP)

67.

The system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system is called:

A.	total quality management.

B.	statistical process control.

C.	Program Evaluation and Review Technique (PERT).

D.	operations control.

E.	production control.

68.

Which of the following is true about quality?

A.	It is a concern only for manufacturing companies.

B.	It is a concern only for service providers.

C.	It always indicates the price charged for a product.

D.	It is a critical element of operations management.

E.	Its definition should vary from employee to employee.

69.

The degree to which a good or service meets the demands and requirements of customers is called:

A.	efficiency.

B.	productivity.

quality.

D.	effectiveness.

E.	customer satisfaction.

70.

It is especially difficult to measure quality characteristics when:

A.	a firm uses ISO 9000.

B.	a firm has a total quality management program.

C.	the product is a good.

D.	the product is a service.

E.	a firm uses statistical process control.

71.

_____ refers to the processes an organization uses to maintain its established quality standards.

A.	Quality control

B.	Implementation

C.	Continuous manufacturing

D.	Fixed-position layout

Logistics

72.

_____ is a philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality.

A.	The marketing concept

B.	Total quality manufacturing

ISO 9000

D.	Statistical process control

E.	Total quality management

73.

The first step in quality control for any organization is:

A.	undertaking inspections.

B.	establishing standards.

C.	sampling products.

D.	implementing services.

E.	initiating corrections.

74.

Sampling is likely to be used:

A.	when inspection tests are destructive.

B.	when every product must be tested because of human life and safety.

C.	to assess the quality of services.

D.	sampling is the most expensive option.

E.	testing takes a few minutes to complete.

75.

It is desirable to test only a sample of the product in all of the following circumstances EXCEPT when:

A.	inspection procedures are expensive.

B.	elaborate testing equipment is required.

C.	testing takes a significant number of hours to complete.

D.	the product is destroyed by sampling.

E.	sampling does not destroy the product.

Chapter 10

Multiple Choice Questions

26.

All of the following are activities performed by human resources managers EXCEPT:

planning.

B.	recruiting.

selling.

training.

E.	compensating.

27.

A human resources manager deciding how many new employees an organization will need to fill vacant positions in the near future is engaging in the activity of ____.

A.	recruiting

planning

training

selling

E.	compensating

28.

_____ involves determining, through observation and study, the specific tasks that comprise a job and the knowledge, skills, and abilities necessary to perform the job.

A.	Job description

B.	Job specification

C.	Job design

D.	Job analysis

E.	Job appraisal

29.

An overview of a job's title, tasks, relationships with other jobs, the physical and mental skills required, duties, responsibilities, and working conditions is referred to as the:

A.	job appraisal.

B.	job portfolio.

C.	job description.

D.	job analysis.

E.	job specification.

30.

The qualifications necessary for a specific job, in terms of education, experience, and personal and physical characteristics are spelled out in the ____.

A.	job evaluation

B.	job specification

C.	job analysis

D.	job description

E.	job assessment

31.

______ refers to forming a pool of qualified applicants from which management can select new employees.

Planning

Training

C.	Compensating

D.	Appraising

E.	Recruiting

32.

When compared to the external sources of recruitment, recruiting from internal sources:

A.	results in higher turnover.

B.	incurs higher costs.

C.	increases the possibility of lockouts.

D.	decreases picketing.

E.	improves employee morale.

33.

Which of the following is an internal source of recruitment for an organization?

A.	Vocational schools

B.	Current employees

C.	Social networking sites

D.	Competing firms

Colleges

34.

A characteristic of search firms known as headhunters is that they:

A.	focus on internal rather than external sources of recruitment.

B.	specialize in recruiting employees for entry-level jobs.

C.	look for qualified candidates who are working for other companies.

D.	undertake training for unusual job requirements or skillsets.

E.	operate as career planners for employees within organizations.

35.

An employer beginning the selection process for new employees would begin with ____.

training

B.	reference checking

testing

D.	the application form

E.	orientation

36.

Which stage of the employee selection process allows management to obtain detailed information about an applicant's experience and skills, reasons for changing jobs, and an idea of whether the person would fit in with the company?

A.	Orientation

Training

Testing

D.	Reference checking

E.	Interviewing

37.

During which stage of the selection process is a candidate expected to undergo physical examinations to determine his or her suitability for a specific job?

A.	Orientation

B.	Reference checking

C.	Interviewing

D.	Filling out the application form

Testing

38.

At which stage in the selection process is an employer likely to make use of the Myers-Briggs Type Indicator?

A.	Interviewing

B.	Reference checking

C.	Orientation

Training

Testing

39.

Reference checking usually involves:

A.	monitoring the working conditions in a firm.

B.	checking a company's compliance with its policies.

C.	assessing an applicant's potential for a job.

D.	checking the previous work experience of a candidate.

E.	identifying possible sources for recruitment.

40.

The _____ is a federal agency established by the Civil Rights Act of 1964 and dedicated to increasing job opportunities for women and minorities and eliminating job discrimination based on race, religion, color, sex, national origin, or handicap.

A.	National Center for Civil and Human Rights

B.	United States Commission on Civil Rights

C.	Equal Employment Opportunity Commission

D.	Pension Benefit Guaranty Corporation

E.	National Association for the Advancement of Colored People

41.

Orientation is the human resources function that:

A.	includes building tours, introductions, and socialization.

B.	provides on-the-job training to employees.

C.	appraises employees subjectively.

D.	teaches employees to do specific job tasks.

E.	occurs after the employee is on the job for several months.

42.

An orientation includes all of the following EXCEPT:

A.	on-the-job training.

B.	a tour of the building.

C.	introductions to supervisors.

D.	description of company benefits.

E.	distribution of organizational manuals.

43.

Vikram is an employee of the Monsanto research lab. In an effort to improve his managerial skills and prepare him for a promotion, his company sends him on a series of experiential management training exercises at company expense. By helping him increase his knowledge, Vikram's company is involved in:

A.	development.

B.	orientation.

testing.

D.	grade assignment.

E.	performance appraisal.

44.

A(n) _____ is a performance appraisal method that provides feedback from a panel that typically includes superiors, peers, and subordinates.

ranking

B.	grade assignment

polygraph

D.	360-degree feedback system

E.	behavioral checklist

45.

When Sophia Smith moved to a new job that involved more responsibility and an increase in compensation, the move would typically be considered a(n):

transfer.

B.	conciliation.

C.	separation.

D.	arbitration.

E.	promotion.

46.

Joe was recently moved to a new position in his company that involved learning new skills and undertaking work assignments. However, he received no salary raise. Joe's change in position can best be described as a(n):

A.	promotion.

lockout.

C.	separation.

D.	arbitration.

transfer.

47.

Which of the following statements is true of a separation?

A.	It is an employee's departure from an organization due to termination or some other reason.

B.	It is an employment change that involves demotion.

C.	It is an advancement to a higher-level job.

D.	It is a temporary suspension of employment due to violation of work rules.

E.	It is a horizontal move from one job to another within the same company.

48.

Socorro was terminated from her job by her employer because she was repeatedly late to work. She contributes to her company's turnover through:

A.	conciliation.

demotion.

transfer.

D.	separation.

E.	arbitration.

49.

Which of the following is likely to be an unacceptable reason for firing an employee?

A.	Violation of company rules

B.	Excessive absenteeism

C.	Frequent tardiness

D.	Being a union organizer

E.	Poor performance

50.

Human resources departments strive to:

A.	increase lockouts.

B.	avoid arbitration to resolve third party issues.

C.	minimize losses due to separations and transfers.

D.	discourage strikebreaking.

E.	fire employees because of their race, religion, gender, or age.

51.

Financial compensation falls into two general categories:

A.	time wages and piece wages.

B.	wages and salaries.

C.	wages and benefits.

D.	commissions and incentives.

E.	salaries and benefits.

52.

A wage/salary survey indicates:

A.	how much employees in a company need to earn in order to meet their financial needs.

B.	how much compensation similar firms are paying for jobs that the firms have in common.

C.	the proportion of compensation that can be paid through non-financial methods.

D.	how satisfied employees are with the compensation they receive from their employers.

E.	the differences between the salaries of men and women performing the same jobs.

53.

Which of the following statements is true of payment using time wages?

A.	It encourages employees to be more productive.

B.	It provides incentives to increase productivity.

C.	It is primarily used for skilled craftworkers.

D.	It is appropriate when employees are continually interrupted.

E.	It is used when quantity is more important than quality.

54.

In a sales company, employees are paid a percentage of their sales in order to motivate them to sell as much as they can. The company incorporates _____ as an incentive system.

A.	commissions

B.	time wages

C.	profit sharing

salaries

bonuses

55.

Which of the following statements is true of salary as employee compensation?

A.	It involves distributing a percentage of company profits.

B.	It is a nonfinancial reward.

C.	It is associated with white-collar workers.

D.	It involves paying a percentage of an employee's sales.

E.	It a monetary reward for exceptional performance.

56.

If a company pays its workers additional compensation at the end of the year as a "thank you" for good work, this monetary reward would most likely be categorized as:

wages.

B.	commission.

a salary.

D.	a benefit.

a bonus.

57.

Which of the following forms of compensation includes an employee stock ownership plan?

Wages

Bonuses

C.	Profit sharing

Salaries

E.	Commissions

58.

Which of the following statements is true of employee stock ownership plans?

A.	They encourage employees to become involved in strikebreaking.

B.	They create a sense of partnership between a firm and its employees.

C.	They reduce employee morale and productivity.

D.	They increase the possibility of lockouts.

E.	They are applicable only to senior employees of a firm.

59.

Which of the following forms of compensation is NOT a benefit?

A.	Paid vacation

B.	Health insurance

C.	Pension plans

D.	Commissions

E.	Child care

60.

Employee organizations formed to deal with employers for achieving better pay, hours, and working conditions are known as:

A.	workforce groups.

B.	cooperatives.

C.	working groups.

D.	labor unions.

E.	quality circles.

61.

Which of the following objectives do labor unions strive to achieve?

A.	Reduced pay

B.	Increased job security

C.	Less safe working conditions

D.	Increased work hours

E.	Increased lockouts

62.

One reason for deterioration of union growth is because:

A.	traditional union members lack organization.

B.	of the shift from a service to a manufacturing economy.

C.	the unions are not backed by the power of a large group.

D.	the proportion of blue-collar jobs is increasing.

E.	of the increasing automation of factories.

63.

The formal, written document that spells out the relationship between the union and management for a specified period of time is called a:

A.	conciliation dossier.

B.	labor contract.

C.	turnover file.

D.	arbitration report.

E.	job specification.

64.

In a labor contract, the _____ clause calls for automatic wage increases during periods of inflation to protect the "real" income of the employees.

A.	non-compete

giveback

C.	arbitration

D.	cost-of-living escalator

E.	wage-salary

65.

Which of the following statements is true of a strike?

A.	It prevents people from purchasing a company's products.

B.	It is started by the management.

C.	It halts or disrupts the normal working of a firm.

D.	It is one of the least effective labor weapons.

E.	It seldom disrupts normal working conditions.

66.

A boycott takes place when:

A.	a union and management negotiate a labor contract with the help of a mediator.

B.	employees of a company refuse to work as a protest against unfair management practices.

C.	management closes a work site so that employees cannot go to work.

D.	union members protest against management practices by marching outside the employer's work site.

E.	union members are asked to refrain from purchasing the products of a company whose policies do not favor union members.

67.

If a union strike partly shuts down a company's operations and the management closes down the rest of the plant so that none of its employees can go to work, it represents a(n):

A.	injunction.

embargo.

boycott.

lockout.

picket.

68.

If the negotiations between a union and the management representatives come to a standstill and a third party is brought in to make suggestions or propose solutions to help resolve the impasse, though the solutions are not binding on the parties, then the third party would most likely be a(n):

A.	arbitrator.

mediator.

scab.

D.	picketing agent.

E.	conciliator.

69.

If a neutral party is brought in to settle a labor-management dispute and if his or her solution is legally binding and enforceable, the neutral party is most likely to be involved in ____.

A.	conciliation

picketing

mediation

D.	arbitration

E.	strikebreaking

70.

The difference between an arbitrator and a mediator is that:

A.	a mediator is a neutral third party, while an arbitrator is a member of the union.

B.	a mediator's solution to a labor dispute is enforceable.

C.	an arbitrator's decision is binding on the participants in a dispute while a mediator's is not.

D.	an arbitrator is a neutral third party, while a mediator is a representative of management.

E.	a mediator merely facilitates discussions between the union and management, but does not suggest solutions.

71.

Which of the following is a primary diversity characteristic?

Gender

Income

C.	Marital status

Religion

E.	Military experience

Age, gender, race, ethnicity, abilities, and sexual orientation represent primary characteristics of diversity that are inborn and cannot be changed.

72.

Which of the following represents a secondary characteristic of diversity?

Income

Age

Race

Gender

Abilities

73.

____, is a primary characteristic of diversity.

Age

B.	Work background

C.	Religious belief

D.	Geographic location

Income

74.

If an organization fosters and values workforce diversity:

A.	it makes less productive use of the organization's resources.

B.	it reduces conflict among employees of different cultural groups.

C.	it decreases sharing of organizational goals among diverse employees.

D.	it reduces innovation and creativity of the employees.

E.	it decreases the ability to serve the needs of a diverse customer base.

75.

Which of the following factors is a reason why affirmative action plans became politically questionable?

A.	Increased reverse discrimination

B.	High planned obsolescence

C.	High level of lockout

D.	Increased picketing

E.	Frequent boycotts

Chapter 05

Multiple Choice Questions

26.

_____ is the process of creating and managing a business to achieve desired objectives.

Entrepreneurship

Bootstrapping

Intrapreneuship

Innovation

Brainstorming

27.

_____ is best described as any independently owned and operated business that is not

dominant in its competitive area and does not employ more than 500 people.

publicly owned business

limited liability company

small business

publicly traded company

for

profit corporation

Chapter 05

Multiple Choice Questions

26. _____ is the process of creating and managing a business to achieve desired objectives.

A. Entrepreneurship

B. Bootstrapping

C. Intrapreneuship

D. Innovation

E. Brainstorming

27. A _____ is best described as any independently owned and operated business that is not

dominant in its competitive area and does not employ more than 500 people.

A. publicly owned business

B. limited liability company

C. small business

D. publicly traded company

E. for-profit corporation