Business Exam Review (Set 5)

Jaron, the district technology coordinator for ABC Schools, is responsible for purchasing new computers for the District. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting: a. a make or buy decision b. negotiations c. competitive bidding d. retail buying

competitive bidding

One of the benefits of production to consumers is that production a. provides a way to be competitive b. provides a way to earn profits c. makes use of automation d. creates form utility

creates form utility

Because operations managers control so much of a business's money, they must focus on: a. generating publicity, b. hiring the best employees c. creating effective advertising campaigns, d. keeping costs low

keeping costs low

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating: a. technical, b. natural talent, c. creativity, d. aggressive behavior

technical

Which is an example of a demographic trend? a. the aging of the population, b. shifting political climates, c. rising interest rates, d. a concern for fitness and health

the aging of the population

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah? a. business use, b. retail, c. industrial, d. wholesale

wholesale

A main reason that environmental scanning is important is so that businesses can be aware of: a. new products, b. potential threats, c. competitors internal environments, d. foreign markets

potential threats

Why is production important to businesses? a. it prevents businesses from wasting resources b. it creates goods and services businesses can sell c. it enables businesses to charge high prices d. it informs businesses about consumers' needs and wants

it creates goods and services businesses can sell

How does marketing-research data help a business's production planning? a. By identifying consumers' needs and wants b. by determining how products will be produced c. by identifying resources needed in production d. by setting the timetable to use in production

By identifying consumers' needs and wants

What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds? a. demographics, b. environmental, c. technical, d. cultural

Demographics

Which management function is described in the following situation: James Crane has created a team atmosphere among the members of his sales department. When the team exceeded their monthly sales goal, James rewarded them with a celebratory dinner out and a five=percent bonus. a. planning, b. controlling, c. directing, d. organizing

Directing

Which are examples of middle management job titles: a. District manager, department head, and regional sales manager b. President, senior vice president, and chief executive officer c. collections supervisor, crew chief, and production supervisor d. floor supervisor, area supervisor, and section manager

District manager, department head, and regional sales manager

Managing information regarding copyrights and trademarks helps a company to preserve its: a. customers, b. inventory, c. correspondence, d. identity

Identity

What is one way that the trend towards protecting the environment has a negative effect on many businesses? a. increase costs, b. reduces pollution, c. promotes growth, d. decreases prices

Increases costs

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using? a. material, b. financial, c. human, d. information

Information

What management function is being described in the following situation: David Thomas, a top level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise. a. Organizing, b. Controlling, c. Planning, d. Directing

Organizing

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen? a. sales will increase b. sales will decrease c. profit margin for donuts will increase d. profit margin for donuts will decrease

The profit margin for donuts will increase

Which is a detail that a buyer should know prior to placing an order for raw materials? a. which employees will be converting raw materials into products b. how the finished product will be marketed c. whether the company has storage space for the raw materials d. who will be purchasing the finished products

Whether the company has storage for the raw materials

A clothing manufacturer checks one paior of pants out of every shipment to ensure the quality of its product. This process is known as quality ______________________: a. inspection, b. guarantee, c. delivery, d. assurance

assurance

The growth of e-commerce is changing the way companies do business by allowing them to a. place high prices on products b. communicate with similar organizations c. be accessible to customers at all times d. reduce the services they provide customers

be accessible to customers at all times

How does appropriate information management affect a business's relationship with its customers? a. businesses make better financial decisions b. businesses earn higher profits c. businesses lose focus on customers d. businesses serve customers more effectively

businesses serve customers more effectively

Operations managers have two main goals - efficiency (keeping costs low) and: a. productivity (keeping business running fast) b. legality (keeping the business in good standing with the law) c. effectiveness (keeping customers satisfied) d. reputation (keeping up the business's good name)

effectiveness (keeping customers satisfied)

Which of the following would be done first in an environmental scan: a. carrying out scanning activities b. identify and analyzing important trends & issues c. selecting trends and issues to act on d. identifying participants and responsibilities

identify and analyzing important trends & issues

Which of the following is a trend in information management: a. increased compliance laws and regulations b. decreased competition c. decreased number of electronic documents d. increased number of workers in the office

increased compliance laws and regulations

Running out of inventory can result in: a. lost sales, b. higher taxes, c. higher productivity, d. more satisfied customers

lost sales

Appropriate information management saves businesses time and money by: a. maintaining yearly raises for employees b. increasing information overload c. increasing paper trails d. maintaining higher levels of productivity

maintaining higher levels of productivity

Information management can be a challenge because: a. no one wants to participate in it b. there is often not enough information to manage c. there is only one "right" way to do it d. many people don't understand what it is

many people don't understand what it is

A business should conduct environmental scans on a continuous basis so that it can: a. control the external environment b. change customers' attitudes c. save money d. respond to opportunities

respond to opportunities

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered: a. check the supplier's credential b. contact the supplier's references c. visit the supplier's plant d. review the invoice

review the invoice

As the use of information-management systems continues to grow, it is important for businesses to be concerned with their customers' a. need for information b. access to credit c. level of service d. rights to privacy

rights to privacy

Why is routing an important production activity? a. routing establishes the production path of inputs. b. routing issues orders for production to start c. routing establishes a timetable for production d. routing establishes company standards

routing establishes the production path of inputs.

Complying with environmental laws is part of which operations activity? a. inventory control, b. logistics, c. purchasing, d. safety and security

safety and security

Which example illustrates how environmental factors are interrelated? a. low investor confidence heavily impacts financial planners b. new legislation will be written in the future c. the economy affects what competitors are doing d. the economy affects banking institutions

the economy affects what competitors are doing

Efficient production enables businesses to: a. make an accurate forecast of sales b. obtain advance orders for goods and services c. turn out the most products at the least cost. d. charge higher prices than competitors

turn out the most products at the least cost.