Exploring the World of Business Final Review

Enterprise portals can take one of three forms. They are:

"B2B, B2E, and B2C"

Gross Domestic Product

GDP is the total market value of all final goods and services produced within a nation s borders each year

_____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.

Lean manufacturing

"Examples of transformative technologies include all the following, tractor, digital camera, smartphone" T or F

True

"In finance, the opportunity for a profit is called a return." T or F

True

Flexible manufacturing systems combine automated workstations with computer-controlled transportation devices that move materials between workstations and into and out of the system. T or F

True

Productivity is the number of goods and services one worker can produce? T or F

True

Trade is a source of creative destruction; T or F

True

Collecting data over a period and then processing that data all at the same time is called _____ processing.

batch

A firm with a _____ has its ability to provide a unique product or service that offers something of value to buyers besides simply a lower price.

differential competitive advantage

A CAD/CAM system

does all of the above

Which of the following is NOT a current trend in production and operations management?

fast manufacturing systems (FMS)

An example of process manufacturing is

gasoline

"One useful tool for routing is _____, where production managers map the flow from suppliers through the factory to customers."

value-stream mapping

"Many companies use _____ to connect two or more private networks over a public network, such as the Internet."

virtual private networks

"The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activity for internal use is financial accounting." T or F

False

A server is an application that runs on a personal computer or workstation. T or F

False

Customer satisfaction is the ratio of benefits for the customer to the sacrifice necessary to obtain those benefits. T or F

False

Equity financing obligates the firm to pay dividends. T or F

False

Information management focuses on fostering innovation. T or F

False

Just-in-time is a process eliminating steps in the production process that do not add benefits to customers. T or F

False

Knowledge management involves condensing information. T or F

False

Which of the following statements about preferred stock is true?

Preferred stock produces a fixed-amount dividend.

"_____ is the combining of natural resources, human resources, and capital to produce goods and services."

Production

Personal selling is part of the

Promotion strategy

"The higher the price of a good or service, the greater the amount a producer is willing to supply?" T or F

True

Information management involves processing information. T or F

True

Knowledge management focuses on gaining a competitive advantage. T or F

True

The marketing concept emphasizes consumer orientation. T or F

True

When the economy is growing

Unemployment declines, inflation increases, and GDP increases"

Business cycles?

Upward and downward changes in the level of economic activity.

Market structure

is defined by the number of suppliers in a market

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:

mass production

A group of two or more computer systems linked together by communications channels to share data and information is called a computer:

network

"In a Capitalist economy, businesses are"

privately owned

The quantity of a product or service businesses will make available at various prices is called

supply

A product provides customer value if

the market price is below the customer value

Profit is the

"amount of money remaining from a firm s sales revenue after it deducts production costs, interest costs, and taxes"

Flexible manufacturing systems combine automated workstations with computer-controlled transportation devices that move materials between workstations and into and out of the system; T or F

True

"The purchasing function, sometimes called _____, is an important part of any firm's production strategy."

procurement

"What management function is production manager Cedric Stein using when he orders aluminum parts (bumpers, drive trains, etc.) to be used in the production of Audi cars in Audi's Neckarsulm plant?"

purchasing

Instagram is an example of

The creative side of creative destruction.

Things of value owned by a firm are called its:

assets

Which of the following statements about computer networks is true?

A computer network is a group of two or more computers linked together by communications channels to share data and information.

Which of the following factors will be important in the selection of a site for a production facility?

All of the above

Economic growth.

All the above

Examples of wide-area networks (WANs) are

Extranets and intranets

"In site selection, close proximity to competitors would make a site undesirable." T or F

False

"The balance sheet summarizes the firm s revenues, expenses, and total profit or loss over a period." T or F

False

"The five P's are product, promotion, price, people, and possession." T or F

False

"The higher the price of a good or service, the greater the amount a consumer will demand?" T or F

False

"Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities." T or F

False

"The equipment and techniques needed to manage, and process information is"

Information technology

Which of the following statements does NOT describe an advantage inherent in equity financing?

Interest is tax-deductible.

Which of the following is true about creative destruction?

It can lead to business failure

Why is creative destruction a good thing?

It is the source of new products and services.

_____ management focuses on gathering and sharing an organization s collective knowledge to improve productivity and foster innovation.

Knowledge

"A global vision includes all of the following, except?"

Negotiating international trade agreements

Which of the following statements about knowledge management is true?

None of the above statements about knowledge management is true.

Packaging is part of the

Product strategy

A computer program that copies itself into other software and can spread to other computer systems is called:

a computer virus

"In a Capitalist economy, markets are controlled by"

a price system determined by the free flows of supply and demand

What is Six Sigma?

a quality control process

"Jobs appear, disappear, and evolve due to competition form"

all the above

The nature of jobs and the workplace is changing

all the above

Which of the following is an example of a data security issue?

all the above

Which of the following is a current trend in production and operations management?

business process management (BPM)

"Funds invested in long-lived assets, such as land, buildings, machinery, and equipment, are called:"

capital expenditures

An example of an assembly process is

cars

Which one of the following is NOT a commonly used method for segmenting markets?

consumer

Raw unorganized facts that can be moved and stored

data

"In a Socialist or Communist economy, businesses are"

government-owned or nationalized

Comparative advantage leads to

greater product variety and lower prices

The idea behind _____ is to take the massive amounts of idle capacity sitting on desktops and in server farms and put it to use performing complex calculations that would otherwise have to be done on very large parallel supercomputers that would cost millions of dollars.

grid computing

Good routing procedures:

increase productivity

Data that has been processed in a way that makes it useful for making business decisions

information

The process of creative destruction

leads to improvement in products and processes

Financial managers often shift temporary funds from checking accounts to _____ securities to earn higher interest returns.

marketable

"The _____ is the belief that the firm should dedicate all its planning, policies, operations, and efforts to the satisfaction of the customer."

marketing concept

The ability to manufacture many goods at once is called _____ production.

mass

Dividends are:

payments to the shareholders from company earnings

"Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of ""munchers."" A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies."

product and promotion

"When a thermometer manufacturer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:"

production

Customer satisfaction:

refers to the customer s feeling that a product has met or exceeded expectations

A target market is a specific group of consumers toward whom a firm directs its marketing effort. T or F

True

"Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country s poor human rights record. However, China is also an inexpensive place to manufacture clothing, and despite its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?"

availability of production inputs

A retail manager who wants to know how his store s sales would be affected if he reduces the number of different national brands the store carries would use what type of information system?

decision support system

Computer-aided manufacturing (CAM) uses computers to:

develop and control production processes

Which type of information system is used only by operational managers?

transaction processing system

Sales for which a firm has not yet been paid are accounts receivable. T or F

true

Lean manufacturing is a system where materials arrive exactly when they are needed for production; T or F

False

Personal selling is an element of product strategy. T or F

False

There are no significant differences between the consumer market and the business-to-business market. T or F

False

Total Quality Management is the use of quality principles only in a company s manufacturing operations. T or F

False

The money a company earns from providing services or selling goods to customers

Revenue

What does the number of American automobile manufacturing workers reveal about creative destruction?

That creative destruction can free up labor for new pursuits.

What are both Kodak and Polaroid examples of?

The painful side of creative destruction.

"The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activity for internal use is managerial accounting." T or F

True