final study

The acronym for computer softwareare that comines CAD and CAM system in production is

CIM

WHICH OF THE FOLLOWING WOULD BE A POSITIVE RESULT OF DEPARTMENTALIZATION OF PRODUCT?

IT RESULTS IN GOOD CUSTOMER RELATIONS

A __ distribution system is one where all of the marketing functions are at the retail level are managed by the producer

administered

The type of production that puts componetns together is referred to as a ___ process

assembly

Changing a supply line to make it more efficient and a better use of resources would exhibit a) networking b) restructuring c) the hiring function d) benchmarking

b

Which of hte following are variable cost in a break0-even alaysis a) insturance for the facility and equiopmetn b) labor used in making the product c) rent for the facility d) raw materials used in the product

b and d.

What process requires long production runs that turn out finished goods over time?

continuous process

A franchisee system such as McDonald's is an example of a ___ distribution system

contractual

In which type of distribution system are all of the intermediary functions owned and controlled by the manufacturer?

corporate

__ ___ are usually issued in units of 1,000

corporate bonds

A channel of distribution ensures which of the following

correct assortment and quanitites available as needed flow of money and title to goods flow of communication throughout the channel

Groups of employees from different departments who work together on a long-term basis are called

cross-functional teams

Widely shared values within an organzation providing unity and cooperation to achieve common goals is called an organizational __

culture

When a company purchases raw material in bulk, thus reducing the cost of production, it is called

economies of scale

Advantages of departmentalization by function

employees develop in depth skills and continue to progress the company can achieve economies of scale.

According to Fayol's traditional management rules, line organization managers

enforce discipline for those they supervise issue order to those they supervise

The process of identifying factors that can affect marketing success is called

environmental scanning

Stocks of corpporation in emerging fields such as technology and biotechnology or Internet-related firms, whose earnings are expected to grow at a faster rate than other stocks, are referred to as ___ stocks

growth

Financial statement shows the firm's profits after cost, expenses, and taxes

income statement

The __ __ summarizes revenues, costs, and expenses over a specific period, which may be a week, a month, or a year

income statement

___ ratio measures the degree to which a firm relies on borrowed funds in its operations

leverage

IN line-and-staff structures, staff manager sprovide advice and support to line departments on specailized matters such as finance, engineerings, human resources, and the law

line

In line-and-staff strucutres, staff managers provide advice and support to ___ departments on specialized matters such as finance, engineerings, hr, and the law

line departments

A company that works virutally with a design firm for six months to develop a new line of handbags, then servers its connection with them when they shift to desingin shoes, exemplifies which ortanization structure?

networked organizations

A specialized area of management that converts or transform resrouces, including human resources into goods and services is the defintion of

operations management

___ ___ planning helps to solve issues related to facility layout location, and inventory control

operations management

Fayol's __ principles tates that materials and peopls houdl be place and maintained in the proper location within an organization

order

As a company grows it may become necessary for it to create ___ ___ to show relationships among people, to determine who is accountable for the completion of specific work, and to show who reports to whom

organizational chart

__ or division of labor, begins with determining what work needs to be done, and then dividing up the tasks among the organization

organizing

An employee researching potential buyers and then choosing who is most likely to buy is performing the __ step of the selling process

prospecting

The promotional strategy in which the producer uses wholesaler discounts, personal selling, sales promotion contest, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise is known as a ___ strategy

push

A process layout is used in production when

similar equipment and functions are grouped together.

Financial __ such as income statements and balane sheets indicate a firm's financial health and stability

statements

The entire sequence of linked activities that must be performed by organizations to move goods from the source of raw materials to the ultimate consumer is a

supply chain or value chain

A local cabel satelitte comapny offering 100 bonuses to existing customers who refer their friends and family is relying on

viral marketing

A tempoeraily network organization mde up of replaceable firms that join and leave as needed is called a ___ organization

virtual

Which of the following would be shown on an income statement? a) revenue b) operating expenses c) assets d) net income

a, and d.

Line mangers are those who have the authority to a) enforce discipline b) adjust to changing conditions c) provide advice about affirmative action d) issue orders

a, b and d.

A current bill that a company owes to other that is the result of buying merchandise on credit is called

accounts payable.

Companies conduct market research on: a) osolete products b) ecological impact of decisions c) business trends d) global trends

b, c and d

Which of the following would qualify as staff personnel in the line-and-staff organization a) product assemblers b) legal advisers c) human resource managers d) marketing research analysst

b, c and d.

Which of the following are characteristics of a martix organization a) specialist from the organization are removed from the line-and-staff strucutre b) specialist from different parts of the organiztion work together temporaily c) specailist from different partso fh teo rganzition remain part of the line-and-staff structure d) specailist from different parts of the organization work on specific projects

b, c and. d

Innovations like the mass production of cars can create economies of scale. However, over time this benefit beomes less meaniful because a) consumers buy less and less b) other companies copy the processes c) labor becomes less expensive d) raw materials become less expensive

b.

The type oforganization that has direct two way line of responsbility, authority, and communication from the top down, with everyone reporting to one supervisor is called a a) staff organization b) line organization c) line and staff organization d) tall organization

b.

Which of Fayol's principles states that materials and people should be placed and maintained in the proper location? a) division of labor b) order c) equity d) authority

b.

A __ __ reports the firm's financial condition on a specific date

balance sheet.

Advantages of issuing bonds?

bondholderes are creditos of the firm, now owners bond interest is tax deductible to the firm

advantages of issuing bonds

bondholders are creditors of the firm, now owners bond interest is tax deductible to the firm

A cross-functional team that includes supliers, distributors, and customers goes beyond organizational

boundaries

Bonds that give the issuing company the right to pay them prior to their maturity date are called

callable bonds

____ expenditures are considered major investments in long-term assets

capital

The positive difference between the purchase price of a stock and its sale price is called

capital gain

The statement of cash flows is a financial statement that shows

cash receipts and disbursements

On the statement of cash flows activites from operations incldue

cash transactions associated with running the business

If the structure of an organization is a tall pyramid, it would be likely to have __ decision making

centralized

Target's CEO personally conducts the interview process when hiring for the top 600 positions in the company. This is an example of __

centralized authority

A commerical finance company will make short-term loans to borrowers who offer tangible assets as collateral.

collateral

What is a bond?

debt instruments that larger companies sells to raise long-term funds

Companies that allow their managers to make key decisions to cater to local markets are

decnetralized

The production era phiolsophy was to prdouce as much as possible because the ___ was unlimited

demand

The characteristics of a rack-jobber

displaying the product retaining title to the goods sharing profits with the retailer when goods are sold.

A warehouse used by a transportation company such as FedEx to gather and reship goods quickly is a

distribution warehouse

Preferred stock differs from common stock as it

does not usually have voting rights pays dividends to preferred stockholders first pays a fixed dividend

A wholesaler who solicits order from retailers and other wholesaler and then arranges to have the merchandise shipped directly from the producer to the buyer is a(n)

drop shipper

Net income after taxes divided by the number of common stock shares outstanding is called

earning per share.

A newer software system that combines the computerized functions of all divisions of the firm such as finance, human resources, and order fulfillment into a single integrated software program using a single database is

enterprise resource planning

A firm selling ownership in the company in the form of stock is using ___ financing

equity

Which of these steps are used in PERT?

estimating time for tasks analyzing and sequencing tasks

The physical arrangement of resources in the production process refers to

facility layout.

__ is a significant question because, once the decisions has been made and implemented, the firms must live with it due ot the high costs involved

facility location

A __ __ combines many small shipment s from more than one company to create a larger, cost most cost-effective shipment

freight forwarder

Among the advantage of a matrix structure are that it

gives managers flexibility in assigning people to projects encourages creativity.

Revenue minus cost of goods sold is called

gross profit

The ___ __ summarizes all the revenues from operating activites, money resources used up, expenses, and resources left after all costs and expenses

income statement

The terms of the bond such as interest and repayment date are called the

indenture terms

The terms of the bond such as interest and repayment date are called the a) interest terms b) denture terms c) indenture terms

indenture terms

A disadvantage of both line and line and staff organizational strucutres is that they become

inflexible

Staff personnel

information technology workers legal advisers

A firm that chooses to combine all of the promotional tools into one comprehensive, unified promotional strategy is employing __ ___ __

integrated marketing communication

___ promotion replaces monologue with dialogue, which establishes a more collaborative relationship between buyer and seller

interactive

Direct mall of static paper catalogs has experienced increased competition caused by the use of ___ ___ online

interactive video

Sales training is an important example of

internal sales promotion

Careful control of __ costs allows a firm to maintain correct levels of stock and product

inventory

A typical mutual fund

invest in both stocks and bonds

True about commerical paper

it is unsecured promissory notes it has values of 100,000 and up it matures in 270 days or less.

Which is the following are true about commerical paper?

it is unsecured promissory notes it matures in 270 days or less it has values of 100,000 and up.

What happens if a company calls a bond before the maturity date?

it pays investors a price above the bond's face value

unsecured, short-term funds a bank will lend to a business, provided the funds are readily available, is called a

line of credit.

___ ratios measure a company's ability to turn assets into cash to pay its short-term debt

liquidity

When marketers target buyers with sampling, coupons, and rebates while using pubilicty to target all customers in a particular region, they are exhibiting ___

management of the promotion mix

A __ order tells a broker to buy or sell a stock immediately at the best price available

market

A three-part business philosophy that involves a customer, service, and proft orientation in the

marketing concept

A large organization might use a flat organization structure in order to

match the flexiblity of small firms

using sales forecasts to make sure needed parts and materials are avaialble at the right time and palce using a computer-based operations mangements system is the defintion of

matierals requirements planning.

A ___ structure, also called a project management structure, sets up teams from different departments, therby creating two or more intersecting lines of authority

matrix.

A ___ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority

matrix.

Which type of wholesaler is an independently owned firm that takes title to the goods it handles?

merchant

The facility layout that uses teams of workers to complete more complex units of the final product is know nas a __

modular layour

Promotions include

motivating potential custoemrs to buy informing people about products

time-to-market

moving products quickly to customer at the lowest cost

A presentation in the sales process is designed to match the benefits of a product to the client's

needs

commerical paper is often used when the firm

needs cash for a few months and does not want to go through a bank.

__ income after taxes

net

The "bottom line" is

net income or loss after taxes the last line on the income statement

A good reason public relations is becoming more and more important today i

newspapers have cut staff and need sources of information

The dollar amount assigned to each share of stock which is included in the corporation's charter is called the

par value

A promissory note states that the borrower will

pay a specific amount of money pay at a certain date pay the holder

A term-loan agreeement is a promissory note that requires the borrower to

pay interest on a loan pay specified amount in installments

A term loan agreement is a promissory notes that requires the borrower to

pay specified amount in installments pay interest on a loan

The ___ step is usually unnecessary in B2C sales

preapproach

Name some of the basi cpremises underlying the contemporary view of quality in organizations

process oriented continous improvment a part of operations management

To determine a ___ __, marketers must carefully monitor their customer base and how products are perceived

product category

The marketing concpet that states that the organization should focus on those goods and services that earn the most and will enable the organization to survive and expand is called the

profit orientation

Reduced customer satisifaction, more workers at the end of inspection lines, and the cost of scrapping an entire product if it is defective are the disadvantage of conducting __ ___ at the end of the production line

quality control

Financial management is about managing a firm's ___, so that it can meet it goals and objectives

resources

Examples of profitability ratios include

return on sales basic earnings per share return on equity

Difference between a line of credit and revolving credit agreeement is that the

revolving credit agreement is guaranteed.

A line of credit that is guarnteed but usaully comes with a fee is called

revolving credit.

Which of the following are possible components of a push strategy

sales promotion personal selling advertising

the focus of the marketing era that makes sure everyone in the organization has the same objective - customer satisifaction - is the

service orientation

Which of the following are inputs to the account system?

shipping documents sales documents

Notes payable

short-term or long-term liabilities that a business promises to repay by a certain date.

when a business selects grousp or segments that they can serve most profitably, this is called

target marketing

Factoring accounst

the firm that buys the accounts receivable collects the amount due it is the acccounts receivable of a firm sold for a discount

In a franchise system, the franchisee agrees to

the procedures of the franchiser the rules and regulation of the franchiser.

Line personnel are those responsible for the achievement of organizational goals such as making a product. THey include such employees as

the supervisor of a department that cuts out tabletops

Independent bond rating organizations rate bonds according to t

their degree of risk

Examples of a problem solved by operations mangement planning as it realtes to manufacuring includ

time-to-market facility location inventory control

Reasons to use a Gantt chart

to determine stages of a project to identify projects in process to trace a production process

Material handling is the movements of goods

to workstations in the factory from warehouse to factory floor within a warehouse

A Fayol principle that states each worker is to report to one and only one boss

unity of command

Characteristics of advertising

uses various media non-personal communication

A company that pays people to pay positive things about its product over the Internet is using __ marketing

viral

A temporarily networked organization made up of replaceable firms that join and leaves as need is called a ___ organization

virtual

Manager used to more traditional organization forms may have trouble adapting to the importance of __ organization structures

virtual

The marketing function known as place provides distribution from the producer to the consumer and includes which of the following activities

warehousing inventory management shipping