Business Concepts Ch. 6,7,8, & 16 exam review

Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: How much are total fixed costs?

$600,000

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. What is the estimated first-year demand for your jogging shoes?

12,000 pairs of shoes

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. What is the estimated second-year demand for your jogging shoes?

15,000 pairs of shoes

Material costs often make up ____ of total manufacturing costs.

50%

More than _____ percent of individuals in the U.S. age 18 and older use the Internet regularly

80

Which of the following is not a risk in developing a profitable product?

All of the above are true

_____ are forms of compensation other than salaries, hourly wages, or financial incentives.

Benefits

A _____ software system determines the steps needed to produce components and instructs the machines that do the work.

Computer Aided Manufacturing (CAM)

_____ are electronic collections of related data that can be accessed by various members of an organization.

Databases

Because she has no formal contract, Mary Murphy's workplace situation falls into which of the following legal categories?

Employment-at-will

_____ is the most effective method of ensuring that sensitive computer-stored information can't be accessed or altered by unauthorized parties.

Encryption

You work for a company that manufactures and sells guitars. What type of computer system allows you and others in your organization to quickly find out whether a particular guitar is in stock, determine the expected delivery date, find out your customer's credit rating, and find the current selling price of the guitar?

Enterprise resource planning (ERP) system

This summer you worked at a day care center where it was common for parents to be late picking up a child. You willingly stayed late and waited for these parents so that other employees could get home to their families. But at raise time, you got a much smaller raise than your co-workers. Your reaction was to say, "Forget it. I'm not working extra hours anymore." What theory of motivation best explains your behavior?

Equity theory

A firm's _____ department will recruit, train, evaluate, and compensate its salespeople.

Human resources

If you were to replace the word "cloud" with another word it would be ________.

Internet

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?

Inventory Control

Which of the following is not included among operations support systems?

Materials handling systems

____ starts when each side states its position and presents its demands.

Negotiation

_____ systems are generally used by managers at lower levels of an organization.

Operations support

When production processes reach a certain level of complexity, operations managers may use _____ charts to schedule activities.

PERT

Which of the following is not a way in which the Internet is used by purchasing managers?

Sell the company's goods

Willowbend Tours operates a chain of 25 touring guides throughout the Appalachian Mountains in the eastern United States. Each office employs two guides, one receptionist/office assistant, and one equipment handler. One guide specializes in canoe and rafting outings while the other is a hiking specialist. Of the three job categories, guides are by far the most difficult to recruit. Next comes the receptionist/office assistants, followed by the equipment handlers, who are basically unskilled workers. Turnover among guides is 20 percent, 30 percent among office staff, and 60 percent among equipment handlers. Owners find that recruiting, motivating, and keeping a quality workforce is an ongoing challenge. Where is management most likely to find new tour guides?

Through specialized publications or employment agencies

Some governmental and not-for-profit organizations are experiencing higher than average turnover rates. To reduce the high cost of replacing employees, they're adopting techniques used in the private sector. Because many of these organizations maintain centralized authority structures with strict policies and procedures, retaining workers-and maintaining efficiency in both costs and performance-means that changes must be made these areas. An element of trust is quite important in the minds of an employee when he or she weighs the prospect of leaving a job.

True

Your own computer monitors your Internet activities and keeps track of the _____ that you access.

URLs

A company's transaction processing system processes both financial and non-financial transactions. Which of the following is a non-financial transaction?

Updating credit history of a customer

Which of the following statements is true for single individuals in demanding careers?

Want predictable schedules that allow them to plan social and personal activities

Individuals from various functional areas who work together to design a product are called _____.

a project team

Operations managers focus on scheduling the _____ needed to transform raw materials into finished goods.

activities

Which of the following is/are approaches used to forecast demand for a product?

all of these approaches

HR managers organize information about a given job by performing a job _____.

analysis

Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: If you end up selling 12,000 pairs of shoes the first year, how much profit will you make?

approximately $240,000

High-volume goods are produced efficiently by people, equipment, or departments arranged in a_____.

assembly line layout

_____ is the practice of comparing a company's own performance with that of a company which excels in the same activity.

benchmarking

Which of the following statement(s) about entrepreneurs is true?

both a and c

he AFL/CIO's national "Don't Buy or Patronize" list asks union workers to _____ the products of certain companies.

boycott

Using _____ analysis allows you to determine the level of sales that you must reach in order to avoid losing money.

breakeven

The goal of the "design with manufacturing in mind" step in the product development process is to:

build both quality and efficiency into the manufacturing process.

Burger King's point-of-sale device built into every Burger King cash register helps the company do all of the following except:

calculate the profit made by the store during a given time period.

In your position as _____, you oversee IT planning and implementation and report to the CIO (chief information officer).

chief technology officer

Willowbend Tours operates a chain of 25 touring guides throughout the Appalachian Mountains in the eastern United States. Each office employs two guides, one receptionist/office assistant, and one equipment handler. One guide specializes in canoe and rafting outings while the other is a hiking specialist. Of the three job categories, guides are by far the most difficult to recruit. Next comes the receptionist/office assistants, followed by the equipment handlers, who are basically unskilled workers. Turnover among guides is 20 percent, 30 percent among office staff, and 60 percent among equipment handlers. Owners find that recruiting, motivating, and keeping a quality workforce is an ongoing challenge. When Willowbend Tours was founded, the owners prepared a job _____ to identify the duties and activities involved in each position

description

During the product development process of _____, a product development team focuses its attention on making a high-quality product at the lowest possible cost.

designing with manufacturing in mind

Just about everybody is familiar with the amazing success that eBay has enjoyed during the last few years. It's spawned eBay stores across the country, and executives plan to roll out more creative business practices in the near future. eBay uses the Internet to _____.

do all of these

Under federal law, it's illegal to discriminate in recruiting and hiring on the basis of all the following characteristics except:

education

Over the past several decades, the courts have undercut employers' rights under the _____ doctrine.

employment-at-will

In which type of recruiting would you probably list openings in local job fairs?

external

The practice of installing _____ to keep fires that start in one part of a building from getting into another has a direct application in information technology.

firewalls

In producing large items, manufacturers often use a _____ layout, in which workers go to equipment and in-process products that stay in one place.

fixed-position

____ is one of the hardest tasks in business.

forecasting demand for a proposed product

Both product and process layouts arrange work by _____

function

Managers report that, except for firing people, _____ is their least-favorite task.

giving performance appraisals

All of the following are daily activities involved in the process of materials management except _____.

goods production

If a footwear maker's latest jogging shoe is considered a "purple cow," the line has _____.

great potential

Companies that use a just-in-time (JIT) production system:

have frequent contact with their suppliers.

Sal Mineo relies on _____ data that's generated by the company itself rather than provided by outside sources.

internal

Career Technology's _____ is a private network with Internet technologies that's available only to the company's employees.

intranet

You have a better chance of getting your idea patented if the invention:

is not useless - has some utility

You are an airline steward for a major airline. You just learned that the airline will charge for food. In addition to serving meals, you will now have to collect payments from those buying their food onboard. What job redesign strategy has your company put into place?

job enlargement

When an employer helps an employee attain a sense of personal achievement by providing stimulating work, the best characterization of the employer's policy is _____.

job enrichment

The inventory-control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.

material requirements planning (MRP)

At Calibration Industries Ltd., _____ managers need information to help them allocate resources and oversee the activities under their control.

middle

Jeff Craddock is a plant supervisor for Made Right Wood Products Inc., which makes both standardized and customized signs out of solid wood and wood veneers. Over the past few years, the firm has grown steadily and now employs more than 200 people working two shifts. Keeping employees motivated, however, is a constant challenge for both Craddock and production manager Marie Horowitz. Both try hard to apply motivational techniques that they learned in college, encountered in local workshops, and discovered during the course of on-the-job training. Made Right, it seems, has a higher percentage of single parents and older workers than the industry average, and that fact seems to be one of the problems: More workers ask for time off to do things with their children, and older employees visit a lot of doctors. As elsewhere, tardiness and absenteeism also cut into production efficiency. Craddock and Horowitz are once again rethinking possible approaches to employee motivation. When discussing performance with employees, Craddock and Horowitz could avoid a common mistake by providing _____.

open and honest feedback

The _____ manager is responsible for determining a vendor's reputation.

operations

Under a _____ policy, you can work fewer than 40 hours a week if you're willing to have your pay and benefits adjusted accordingly.

part-time employment

An enterprise resource planning system does all of the following except _____.

planning operations processes

In seeking new locations, Burger King officials look for busy intersections or such _____ as shopping malls or movie theaters.

primary destinations

Workers or departments that perform similar tasks may be grouped together in a _____ layout.

process layout

All of the following are types of utility that customers value except _____.

product

A _____ team consists of individuals from different functional areas assigned to work together throughout the product development process.

project

A _____ is a physical model of a product.

prototype

_____ includes all of the steps that a company takes to ensure that its goods and services are of sufficiently high quality to meet customers' needs.

quality assurance

A _____ is the most commonly used encryption system for transmitting data over the Internet.

secure sockets layer

Connie's is a regional chain of family-style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard-working businessperson who's expanded her business to 15 locations in four states. A "calling card" of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business. In such activities as greeting customers, seating them, taking their orders, cooking their food, and serving them, Connie's staff is providing _____.

services

Just about everybody is familiar with the amazing success that eBay has enjoyed during the last few years. It's spawned eBay stores across the country, and executives plan to roll out more creative business practices in the near future. In considering what to do about malicious programs, eBay managers will be concerned about all of the following except _____.

snakes

Using a technique called _____, computer criminals disguise their identities by modifying the addresses of the computers from which they launch their schemes.

spoofing

To apply for a patent, you send an application to:

the U.S. Patent and Trademark Office

Making decisions on how to hold down the costs of materials and labor is the job of ______

the operations manager

Among other things, employees at software maker SAS consider their workplace friendly because:

they're encouraged to stay home with sick children.

You work on Just Born's production line decorating Peeps. Arranging work in this way, by function, creates the following problems with one exception:

time required to train workers on several jobs can be extensive.

By making Christmas decorations available the day after Thanksgiving, Holly's Holiday Shop is offering customers what kind of utility?

time utility

Your employee manual contains extensive information on your benefits. Which of the following is a benefit required by law?

workers' compensation