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