Business Principles

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Which of the following BEST describes an international organizational structure?

A firm that starts in a single country but in time sells products all over the world

Which of the following is the BEST description of a master operations schedule?

A top-level schedule showing which products will be produced, and when, in upcoming time periods

How is a functional organization divided?

According to group activities

Which of the following BEST describes make-to-stock operations?

Activities for producing standardized products for mass consumption

Which of the following is included in the production, or operations, process?

All the processes involved in making a good or service available for consumption

Mikel is allowed to make decisions and resolve problems when working with his customers. Which type of delegation has Mikel been granted?

Authority

In which step of the supply chain is one likely to find raw-material suppliers?

Before production begins

Due to a slump in the​ economy, a manufacturer of microwave​ ovens, gas and electric​ ranges, and outdoor grills has seen sales steadily decline. During the planning​ phase, which major operational category should be addressed​ first?

Capacity

Which of the following terms refers to the reporting relationships within the​ company, that​ is, who reports to​ whom?

Chain of command

Referring to the scenario above, as Sara's manager, what could Simon do to BEST improve this situation?

Create accountability

What is the process of grouping jobs into logical units after jobs are specialized?

Departmentalization

An appliance manager has separate business units for microwave​ ovens, gas and electric​ ranges, and outdoor grills. Each of these business units markets and produces its own products. Which organizational structure would this​ reflect?

Divisional structure

Which of the following is the organizational structure that relies on product departmentalization?

Divisional structure

In which of the following scenarios would the manager need to use a Gantt chart?

Edith is in charge of building a professional theatre production set and needs to determine which tasks must be done, by when, and which tasks can be overlapped.

Which of the following would be an example of an informal​ group?

Employees at Hawkeye Products get together during the lunch break each Friday for a book club.

Which of the following BEST describes supply chain management?

Evaluating and improving the overall stream of goods and processes among multiple companies that contribute to a finished product

A small real estate development firm has a sales manager with three​ employees, a​ two-person finance department that manages financial​ transactions, and five project​ managers, including the owner of the​ company, who hire subcontractors and oversee the actual building of the homes. What is the MOST LIKELY form of organizational​ structure?

Functional

Which of the following is the organizational structure in which authority is determined by the relationships between group functions and activities?

Functional

As a project manager responsible for bringing a​ time-sensitive new product to​ market, your BEST choice for staying on track would be a​ _______.

Gantt chart

As CEO of a major manufacturing​ company, your tactical plan is based on flexibility. Which of the following strategies would be the BEST focus for the tactical​ plan?

Hire personnel who thrive on change.

Which of the following managers would likely have staff authority rather than line​ authority?

Human resources manager

Which of the following terms is the process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?

Inventory control

What is the process of identifying specific jobs that need to be done and designating the people who will perform them?

Job specialization

Which of the following actions represents the first step in the delegation process — assigning responsibility?

Laurel has given the task of redesigning the company newsletter to the newest intern, Jake.

Which of the following illustrates a fixed-position layout?

Liam runs a carpet cleaning business where he goes from one location to the next cleaning carpets with the equipment he keeps in his van.

At a discount grocery​ store, customers may not find the best selection of​ goods, and the store may not always have adequate stock of items or have the most attractive​ displays, but its prices are the best in town. Based on this​ description, which business strategy does the company use for attracting​ customers?

Low cost

Which of the following is a TRUE statement about grapevines?

Managers can use the grapevine to improve decision making.

Which of the following is a characteristic of a centralized firm with a tall organizational structure?

Many layers of communication and authority

Which of the following examples BEST demonstrates line authority?

Nasir's company, which makes rugged watches for underwater use, follows a direct chain of command from top to bottom, with Nasir at the top.

Your small soap manufacturing company with 10 employees just produced a video that has gone​ viral, boosting orders by​ 1,000 percent. Your current manufacturing process cannot handle the volume. Which of the following possible management positions would be BEST to add immediately to your​ organization?

Operations manager

Which of the following BEST describes the specification of the jobs to be done within an organization and the ways in which they relate to one another?

Organizational structure

Which of the following describes a product layout?

Organizing production steps for a single product created in a fixed sequence and according to production requirements

For a large project, managers should use a to identify the sequence of activities, the time needed to perform the various activities, and the most time-consuming set of activities within the sequence.

PERT chart

Which of the following scheduling tools is a graphical illustration of a​ project's schedule, showing the sequence of tasks to be performed in completing the​ project?

PERT chart

Which of the following types of departmentalization is achieved by dividing the organization according to the production methods used to create a good or service?

Process

You can go online now and order a Ferrari 812​ GT, a car customized to your specifications based on a menu of options. It is then assembled and shipped to you from Europe. If you were part of the Ferrari layout planning​ team, which is the MOST LIKELY layout​ alternative?

Process

Which of the following layouts is defined as the physical arrangement of production activities that groups equipment and people according to function?

Process layout

Which of the following can be defined as the process of dividing an organization according to specific goods or services being created?

Product departmentalization

Which of the following materials management functions is responsible for the acquisition of all the raw materials and services that a company needs to produce its​ products?

Purchasing

Toyota prides itself on the fact that all assembly is to​ specification, that its products have the highest reliability in the​ industry, and that its cars are​ defect- and​ blemish-free when they leave the manufacturing floor. Based on this​ description, which business strategy does Toyota use for attracting​ customers?

Quality

Which of the following is NOT an aspect of materials​ management?

Quality control

Which of the following is indicated by the chain of command within the organization?

Reporting relationships

is authority based on expertise that usually involves counseling and advising line managers.

Staff authority

Which of the following is used to show upcoming work shifts for a firm's employees?

Staff schedule

Which type of corporate structure would utilize a narrower span of control?

Tall

Which of the following BEST describes departmentalization?

The grouping of jobs into logical units after jobs are specialized

Which of the following is the BEST description of a low-contact system?

The level of customer contact in which the customer need not be part of the system to receive the service

Burton works in a flat organization. Which of the following describes his span of control?

The number of employees supervised

Which of the following is the BEST description of a matrix organizational structure?

The organizational structure created by superimposing one form of structure onto another

Which of the following BEST describes a divisional organizational structure?

The organizational structure in which products are produces and markets by different business units in the organization

Which of the following BEST describes intrapreneuring?

The process of creating and maintaining innovation and flexibility within a large organization

Which of the following is the BEST description of geographic departmentalization?

The process of dividing an organization according to the areas of the country or the world served by a business

Which of the following is the BEST description of customer departmentalization?

The process of dividing an organization to offer products and meet needs for identifiable buyers

Within the organization, what are line departments directly linked to?

The production and sales of a specific product

In the process of materials management, what is the goal of purchasing?

To acquire needed raw materials

As a staff member, Mariah counsels Noah on personnel procedures, but she isn't in charge of making any of the final decisions for his department. What is the role of a staff member in the organization?

To help line departments in making decisions

What is the purpose of a staff schedule?

To show upcoming work shifts for a firm's employees

Which of the following BEST describes the purpose of an organizational chart?

To show where employees fit within the organization's structure

Which of the following is an example of a service operations activity?

Tutoring

Which area of materials management involves the storage of goods in an organization's distribution centers?

Warehousing

A​ once-popular French restaurant hires you to help improve sagging sales. It is the only restaurant of its kind in the​ area, but customers have complained of slow service and inconsistent quality. This business would best benefit from implementing​ _______.

business process reengineering

​McDonald's uses​ ___________ as a way to maintain standardization. All restaurants must follow precise steps in buying products and making and packaging menu items. Most advertising is handled at the corporate​ level, and any local advertising must be approved.

centralization

Kaden is a restaurant manager for a national chain. In addition to the standard dessert menu, Kaden has the freedom to offer key lime pie, a local favorite. Kaden works for a .

decentralized organization

In an organizational structure that relies on product departmentalization, the framework is based on .

divisions

Dividing an organization according to groups' activities is known as departmentalization.

functional

In an organization that uses​ _______ departmentalization, groups of employees are segregated based upon the tasks or activities they perform.

functional

A(n) is an example of a high-contact system.

hair salon

Charity owns a hair salon that specializes in unusual cuts and color. Her business is considered a because customers need to be present during the entire point of service.

high-contact system

The social interactions that take place in a company between employees at various levels, on an everyday basis, is considered to be the company's

informal organization

The most important​ "inventory" used for many​ high-contact services is not physical goods but exists in the form of​ _______ about service product​ offerings, clients, their​ interests, needs,​ activities, and even their plans for interactions with other clients.

information

Many​ firms, including​ Rubbermaid, DreamWorks​ Animation, 3M, and​ Xerox, encourage and support creating and maintaining the innovation and flexibility of a​ small-business environment within a​ large, bureaucratic structure. This BEST describes​ _________.

intrapreneuring

Natural Foods is a nationwide grocery chain specializing in organic and fair trade products. Rather than make all purchasing decisions at​ headquarters, managers in each store are given considerable discretion to stock fresh produce and other products that reflect the preferences of customers and the availability of products in that area. Based on​ this, it would appear that Natural Foods​ _______.

is a decentralized organization

The main task of American Airlines is to transport passengers and their luggage from one airport to another. The main task of Sprint is to provide telecommunications services. These are examples of​ __________.

job specialization

In the automotive industry, parts are brought together from all over the world to create a final product. To reduce storage time, lessen warehouse space, and save money, many car manufacturers engage in .

just-in-time (JIT) production

With regard to materials management, a will eliminate excess inventory.

lean production system

Keeping track of thousands of moving parts — planning, organizing, and controlling the flow of these parts — is known as .

materials management

Ford used​ ________ organization to design the 2020 Mustang. A design team composed of people with​ engineering, marketing,​ operations, and finance expertise was created to design the car. After the work was​ done, team members moved back to their permanent jobs.

matrix

Many factors play a part in determining an​ organization's optimal structure. Chief among them are the​ organization's ____________.

mission and strategy

When a company beats its competition through optimizing its flexibility in production capacity, this is an example of .

operations capability

​A(n) _____________ is used to clarify structure and to show employees where they fit into a​ firm's operations.

organization chart

Although its products are assembled in the United​ States, a company chooses to hire a firm in Portugal to handle ongoing technical support and customer service issues. This is an example of​ _______.

outsourcing

Making shoelaces is a specific process that Nike needs as part of its shoes, but it can be done cheaper in Bangladesh where the cost of labor is significantly less than the United States. The action of moving shoelace production is known as .

outsourcing

FedEx Office stores use​ _______ layouts for a variety of tasks. Activities such as​ photocopying, computing,​ binding, and laminating are performed in​ separate, specialized areas.​ Walk-in customers move from area to area performing​ self-service tasks.

process

The Kraft Heinz Company divides up its departments. The Oscar Mayer division focuses on hot dogs and lunch​ meats, the Kraft Cheese division focuses on cheese​ products, and the Maxwell House and Planters divisions focus on coffee and packaged nuts. This is an example of​ _________ departmentalization.

product

At Petsmart, the grooming, food, and toy departments may be viewed as separate company units or , each responsible for its own revenue and budgeting.

profit centers

Performance and consistency are two key dimensions of .

quality

As a consultant for the federal government tasked with coming up with education and business incentives to decrease​ unemployment, the BEST place to focus your efforts would be the​ ____________ sector.

service

Your​ instructors, the bus​ driver, the messaging​ provider, and the music provider all work in​ ______. They provide intangible and tangible service​ products, such as​ entertainment, transportation,​ education, and communications services.

service operations

In the United​ States, _______ generate more of the​ private-sector national income than any other sector.

services

Burton works in a flat organization, so when it comes to the distribution of authority, his encompasses several employees.

span of control

As the new head of the recently created quality control department for a manufacturing​ firm, you would first establish​ ___________.

specific standards and measures

Angelina is responsible for ensuring that she has adequate nursing coverage on all shifts in a large rehabilitation and health care center. This task would require that Angelina complete a​ _______.

staffing schedule

Evaluating and improving the overall stream of goods and processes among multiple companies that contribute to a finished product is called .

supply chain management

Retailers order hand sanitizer that is poured into containers and​ labeled, packed in​ boxes, shipped to a distribution​ center, and delivered to retailers. Suppose the cardboard box company was affected by​ COVID-19 and closed its doors for several weeks. This example shows​ that, during the 2020​ COVID-19 pandemic, there was a breakdown of​ _______.

the supply chain

The Cinemark theater offers​ midday, afternoon, and evening movies seven days a week. This creates​ _______ utility by making movies available when different consumers want them.

time

When a theater offers midday, afternoon, and evening shows seven days a week, it creates utility; it adds customer value by making products available when consumers want them.

time

A​ _______ organization has little or no formal structure.​ Typically, it has only a handful of permanent employees and a modest administrative facility. Its managers bring in temporary​ workers, lease​ facilities, and outsource services to meet the demands of each unique situation.

virtual

​_______ brings together all needed materials at the precise moment they are required for each production​ stage, not​ before, thus creating fast and efficient responses to customer orders.

​Just-in-time (JIT) production

At the University of Texas Gift​ Shop, you choose the item you wish to​ buy, such as a​ T-shirt or tote​ bag, then personalize it with a​ character, color, and name so that your product is truly one of a kind. This BEST describes which production​ process?

​Make-to-order operations

​_______ analysis involves the evaluation of company​ policies, materials​ flows, and work activities to determine whether these contribute to customer appeal or worth.

​Value-added


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