Business Exam 2
Which of the following describes the total economic value of all the products that a country exports, minus the economic value of all the products that it imports?
Balance of trade
South Korea can manufacture electronics more efficiently and less expensively than other countries, giving that country which of the following?
Comparative advantage
_______ planning identifies alternative courses of action that an organization can utilize if its original plans do not achieve intended objectives.
Contingency
What is an important factor that differentiates services from physical goods?
Customers are often satisfied through the intangible value they receive with a service.
Management of Speedy Supplies, Inc. is not happy with the long and complicated process that customers must go through to purchase product and have it delivered. They decide to invest a great deal of time and resources to implement an online system that will improve efficiency and customer service and lower costs over the long term. What has the company implemented?
Business process reengineering
Julian works for Enormous Enterprises, a company that produces and sells many different products. In Julian's role as Vice President, he is responsible for all parts of the business associated with the company's computer-related products. Which of the following forms of organizational structure does Julian's company follow?
Divisional
Which of the following terms identifies the model explaining why countries engage in international trade?
National competitive advantage
Which of the following is NOT an aspect of materials management?
Quality control
Pete heard from his coworker that the company might have to eliminate some jobs. Pete shared that information with his buddies in another department. Pete is participating in which of the following?
the grapevine
The informal communication network within an organization is known as _______.
the grapevine
Employees from a culture that is characterized by power respect _______.
would expect their superiors to make decisions with little input from employees
What is something companies use to reduce the need for storage space and save money on inventory?
Just-in-time production
Julia owns a shop that makes wedding dresses for brides-to-be. Julia knows that each bride has a specific style and needs the dress to be exactly what she imagines, so Julia designs and produces every wedding gown individually. Which of the following BEST describes Julia's operations process?
Make-to-order
At the Disney Store Personalization Shop, you choose the item you wish to buy, such as a t-shirt or tote bag, then personalize it with a Disney character, color, and name so that your product is truly one-of-a-kind. This BEST describes which production process?
Make-to-order operations
Which of the following are the four basic functions of management?
Planning, organizing, leading, and controlling
_______ analysis involves the evaluation of company policies, materials flows, and work activities to determine whether these contribute to customer appeal or worth.
Value-added
A movie theatre is considered a ________ operation.
high-contact
What is the special ability that a company does well to outperform the competition?
Operations capability
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
Golfer's Paradise is the ultimate one-stop shop for golfers. The store has everything a person wants or needs to play golf dash- such as golf clubs, shoes, bags, balls, and apparel dash- under one roof. Which form of utility does this represent?
Place
Erin, the business administration department chair, observes a trend of increased enrollments in online college courses versus traditional face-to-face courses. She establishes a goal of introducing three new online courses during the fall semester and maps out the steps that the department needs to address to develop these course offerings. Which management function does this BEST describe?
Planning
What is another term for operations?
Production
A manufacturing company prides itself on the fact that all assembly is to specification, that its products have the highest reliability in the industry, and that its products are defect- and blemish-free when they leave the manufacturing floor. Based on this description, which business strategy does the company use for attracting customers?
Quality
The layout of a PERT chart uses arrows to show which of the following?
Sequence of activities
Which form of international expansion involves the development of a mutually beneficial partnership with a company in a foreign country?
Strategic alliance
Which of the following is intended to minimize inventory costs, reduce storage requirements, and create a fast and efficient response to customer orders by bringing together all needed materials to produce a product at the precise time they are needed in the production stage?
TQM
Which managerial skill set is particularly important for first-line managers?
Technical skills
Which organization is empowered to promote trade by encouraging its members to adopt fair-trade practices, reduce trade barriers by promoting multilateral negations, and establish fair procedures for resolving disputes among members?
The World Trade Organization (WTO)
Magnificent Machines, Inc. has found a way use less resources without any decrease in production. What can be said of Magnificent Machines?
The company has increased productivity.
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 would be an example of an informal group?
Employees at Hawkeye Products get together during the lunch break each Friday for bible study.
Dielectric Communications builds antennas for TV stations. These antennae are often as large as several football fields laid back-to-back. Which type of layout would this company likely use?
Fixed position
A company that manufactures locomotives is likely to use which layout in its manufacturing process?
Fixed position layout
Companies such as 3M that emphasize new product development often use which strategy for attracting customers in their industries?
Flexibility
Magnetic Microprocessors, Inc. uses raw materials and the skill and effort of its employees to make goods and services for its customers. What is Magnetic Microprocessors creating?
Form utility
In a custom-product layout, people are grouped according to which of the following?
Function
Veronica would like to become the office manager in the law firm where she works, but she has an assertive personality and has had some problems dealing effectively with the other administrative assistants in the firm. If Veronica wants to advance to a managerial position, she should consider working on which skill set?
Human relations skills
Sizeable Solutions, Inc has become so large that management fears it will lose its ability to develop unique products. They have created a team that is encouraged to pursue products and markets that the many company policies and procedures have made impossible until now. Sizeable Solutions, Inc. is encouraging which of the following?
Intrapreneuring
Which of the following materials management functions is responsible for receiving, storing, handling, and counting raw materials, partly finished goods, and finished goods?
Inventory control
Companies that have designed their production processes to be efficient and limit inventory to only what is necessary have what type of system?
Lean production
Which of the following terms refers to the reporting relationships within the company; i.e., who reports to whom?
Chain of command
Julian works in the service sector as a manager for a local steakhouse. Julian's primary concern should be for which element of operations?
The human element
Mallow Counseling provides counseling for adolescents and deals specifically with anxiety issues and eating disorders. This is an example of _______.
a service operation
The shared experiences, stories, beliefs, and norms that characterize an organization reflect its _______.
corporate culture
People who are collectivist in their values _______.
emphasize the needs of the group over the needs of the individual
Corn and wheat that is grown in the United States and shipped to Asia is considered which of the following for the United States?
export
In order to produce low-cost products and maintain an advantage over competitors, what type of planning is important?
Location planning
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 price
Companies have to keep track of a lot of things, sometimes even millions of things. Which of the following operations control challenges is the process by which things are tracked?
Materials management
Magnum, Inc. has put together a "game plan" outlining how much activity needs to occur over the next several months. What has Magnum developed?
A master schedule
New construction requires the coordination of timing among numerous activities. Which type of schedule is BEST suited for this activity?
A project schedule
Program Evaluation and Review Technique (PERT) is often used for which of the following?
A project schedule
Which of the following is a legal agreement between countries agreeing to cooperate with one another?
A treaty
What is the definition of globalization?
A trend toward countries becoming interdependent
Which of the following BEST describes a negative balance of trade?
The value of a country's imports exceeds the value of its exports.
If the United States imports more products than it exports, it has which of the following?
Trade deficit
Melissa works in the computer support industry. She is one of only 3 regular employees, so the company often hires temporary workers or outsources projects when the workload increases. Melissa is often seeking consultants with particular IT skills, and sometimes rents offices for the temporary employees and consultants to work in. Which form of organizational structure does this describe?
Virtual
In order to enter the market in Eastern Europe, DNC Enterprises enters into a contract with a firm in the Ukraine that allows that firm to use its brand name, operating procedures, and proprietary technology in making its products. This BEST describes _______.
a licensing arrangement
Each week, employees from production, engineering, and quality control at Waco Products meet to discuss problems that have arisen and work to develop solutions for them. This is an example of _______.
a quality improvement team
A country's _______ is the flow of money into or out of a country, including the value of its imports and exports, money spent on tourism, foreign aid programs, and currency trading.
balance of payments
In successful companies, operations must be designed to support the company's ________.
business strategy
On an average day, Elena's Ice Cream Delights can produce and serve 300 customers. This is known as the store's ________.
capacity
Companies such as UPS and FedEx that deliver packages to households and businesses often follow a(n) ________ strategy.
dependability
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
The theory of national competitive advantage is an accepted model for why nations engage in international trade. Which of the following is NOT one of the four conditions for a national competitive advantage?
exchange rate
Products produced in the United States and then shipped for sale to other countries are referred to as _______.
exports
Employees at Hoosier Products are organized into departments according to their specialized skills and the tasks that they perform, such as production, marketing, human resources, IT, and accounting. This approach BEST describes a _______ structure.
functional
In an organization that uses _______ departmentalization, groups of employees are segregated based upon the tasks or activities they perform.
functional
Organizational plans established by managers in specific areas such as human resources, marketing, manufacturing, and sales to aid them in achieving the overarching goals of the organization are referred to as _______ strategy.
functional
Accomplishments that a business intends and plans to achieve are referred to as _______.
goals
A company that produces only textbooks is involved in ________.
goods operations
An assembly line is an example of _______.
goods operations
Karl, Lucas, and Stephanie always go out for happy hour after work. They are members of a(n)________.
informal group
You go to a hair salon for a haircut and end up buying a tube of styling gel as you're checking out. The haircut is a(n) _______, whereas the styling gel would be considered a(n) _______.
intangible service; tangible service
Organic Goodness 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 Organic Goodness _______.
is a decentralized organization
Leading Technologies knows how important it is to provide superior quality and continuously improve its product. Company management believes the best way to do this is to upgrade the talent, skills, and knowledge of its employees. Leading Technologies employs which form of organizational structure?
learning
In her role as Director of Human Resources, Leslie reports to both the Vice President of Human Resources and the Vice President of the business unit that she supports. Which of the following form of organizational structure does Leslie's company follow?
matrix
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
The members of a society or culture with uncertainty avoidance would be likely to _______.
prefer structure and predictability over ambiguity and change
At a bakery, baked goods boxes travel past individual work stations on a conveyor, and workers at each station perform a small task, such as placing baked goods in the box, placing the cover on the box, affixing stickers to the box, or shrink-wrapping the box in plastic. This BEST describes a_______ layout.
product
Which intrapreneurial role may have only limited technical understanding of the innovation, but is helpful in promoting the idea throughout the organization and gaining support?
product champ
Observing employees, monitoring their interactions with customers and providing training in customer relations skills are part of ________.
quality control
Cassie recently began working in the shipping department of a manufacturing company and has noticed that her coworkers are truly concerned about producing quality products. Cassie is scheduled to attend quality training sessions that are required for all new employees. Her team leader told her this training is important and will help her understand how to do the job right. Cassie's team is an example of ________.
quality ownership
In an effort to protect its rice industry, Japan places limits on the amount of rice that can be imported. This is an example of a(n) _______.
quota
In the United States, _______ generate more of the private-sector national income than any other sector.
services
Johanna is responsible for ensuring that she has adequate nursing coverage on all shifts in a large rehabilitation and healthcare center. This task would require that Johanna complete a _______.
staffing schedule
Which of the following determines the value of a country's exchange rate under a floating exchange rate system?
supply and demand
The chief operating officer (COO) of a firm would be categorized as a _______ manager in the organization.
top
Crystal is the manager of an editing firm. She is discussing with her editors whether or not mailing out manuscripts is more desirable for clients than emailing them electronic copies. Crystal is engaging in ________.
value-added
After working for Stafford Automotive Group as an automotive technician for the last 4 years, Stan was promoted to the position of Service Manager. He now oversees the work of the other automotive technicians and shop attendants, is responsible for training them, and manages the parts inventory. Stan would be considered a(n) _______ manager.
first-line
According to data from the World Bank, Pakistan's 2014 per capita income was $1,335 (in U.S. dollars). Pakistan would be categorized as a(n) _______ country according to World Bank standards.
lower-middle-income
