Coba Core Combo - 11/18 - 2 PM
If the outcome of event A is not affected by event B, then events A and B are said to be a) mutually exclusive b) independent c) collectively exhaustive d) None of the above
b) independent
Evaluating a product idea to determine its likelihood of success is a) product screening b) estimating c) technological forecasting d) product windowing e) product evolution
a) product screening
Which of the following is an assumption of the basic EOQ model? a) Lead time is known and constant. b) Demand may be seasonal. c) Orders can arrive in partial shipments. d) Quantity discounts are considered. e) Lost sales are allowed, but not back orders.
a) Lead time is known and constant.
If event A and event B cannot occur at the same time, then events A and B are said to be a) mutually exclusive b) independent c) collectively exhaustive d) None of the above
a) mutually exclusive
Prior to the introduction of the euro, O&B Company, a U.S. corporation, is in possession of accounts receivable denominated in Deutsche marks. To what type of risk are they exposed? A. Liquidity risk. B. Political risk. C. Exchange-rate risk. D. Price risk.
C. Exchange-rate risk.
The obligations that individuals and organizations have regarding the preservation of existing values and institutions fall within which of the following moral dimensions of the information age? A. family and home B. property rights and obligations C. system quality D. accountability and control E. quality of life
E. quality of life
According to the price/quality strategy matrix, when a company overprices its product in relation to its quality it is considered to be using which type of strategy? a. Good-value strategy. b. Premium strategy. c. Overcharging strategy. d. Snob strategy.
c. Overcharging strategy.
All of the following are currently being used as traits that can be profiled by biometric authentication except: a. fingerprints b. facial characteristics c. body odor d. retinal images e. voice
c. body odor
A(n)________ is a name, term, sign, symbol, or design, or a combination of these that identifies the maker or seller of a product or service. a. product feature b. sponsorship c. brand d. logo
c. brand
When an importing country sets limits on the amount of goods it will accept in certain product categories it is called a(n): a. quota. b. barrier. c. tariff. d. embargo.
a. quota.
The fact that services are sold, produced, and consumed at the same time refers to which of the following service characteristics? a. Intangibility b. Inseparability c. Variability d. Perishability
b. Inseparability
The strength of the relationship between customer requirements and product characteristics is shown in the __________ matrix. a) Trade-off b) Product c) Relationship d) Strength e) Inverse
c) Relationship
Which of the following is sensitive to extreme values? a) The median b) The interquartile range c) The arithmetic mean d) The 1st quartile
c) The arithmetic mean
Which of the following would be an appropriate alternative hypothesis? a) The mean of a population is equal to 55 b) The mean of a sample is equal to 55 c) The mean of a population is greater than 55 d) The mean of a sample is greater than 55
c) The mean of a population is greater than 55
With JIT there are two types of Kanban cards, production Kanban and __________ Kanban. a) Buffer b) Transaction c) Withdrawal d) Logistics e) Sales
c) Withdrawal
_______________ is a strategy of using a successful brand name to launch a new or modified product in a new category. a. Duo branding b. Line extension c. Brand extension d. Multi branding
c. Brand extension
Consider a workstation that can process 4000 units per hour. It takes 15 minutes to receive an order from the previous station. The container size is 20 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation? a) 16 b) 3600 c) 50 d) 10 e) 60
e) 60
Which of the following is not a typical result of the bullwhip effect? a) Absenteeism b) Lost revenues c) Ineffective transportation use d) Poor customer service levels e) Misused manufacturing capacity
a) Absenteeism
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a(n): a. retailer. b. wholesaler. c. distribution channel. d. logistics.
c. distribution channel.
When personal interviewing involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization, the method is called: a. selective sponsorship. b. probing. c. focus group interviewing. d. the Delphi method.
c. focus group interviewing.
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics is called: a. Geothermy. b. Demography. c. Ethnography. d. Hemos-popography.
b. Demography.
____________________________ is the practice of adopting policies and developing strategies that both sustain the environment and produce profits for the company. a. Environmentalism b. Environmental sustainability c. Consumerism d. Consumer accountability
b. Environmental sustainability
Rolls Royce uses which of the following distribution formats? a. Intensive distribution b. Exclusive distribution c. Selective distribution d. Open distribution
b. Exclusive distribution
A KPI is: a. an industry standard for measuring performance along a given dimension. b. a measure proposed by senior management. c. an alternative to the balanced scorecard method. d. an analytic technique for measuring financial performance. e. a measurement of knowledge performance.
b. a measure proposed by senior management.
What type of probability distribution will most likely be used to analyze warranty repair needs on new cars in the following problem? The service manager for a new automobile dealership reviewed dealership records of the past 20 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their new cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new cars sold. A) binomial distribution B) Poisson distribution C) Hypergeometric distribution D) None of the above
A) Binomial distribution
Beginning January 2, Year 1, a company deposited $50,000 in a savings account for 2 years. The account earns 10% interest, compounded annually. What amount of interest did the company earn during the 2-year period? A. $10,500 B. $10,000 C. $5,500 D. $5,000
A. $10,500
A vendor offered Wyatt Co. $25,000 in compensation for losses resulting from faulty raw materials. Alternatively, a lawyer offered to represent Wyatt in a lawsuit against the vendor for a $12,000 retainer and 50% of any award over $35,000. Possible court awards with their associated probabilities are as follows: Award Probability $75,000 0.6 $0 0.4 Compared with accepting the vendor's offer, the expected value for Wyatt to litigate the matter to a verdict provides a A. $4,000 loss. B. $8,000 gain. C. $21,000 gain. D. $38,000 gain.
A. $4,000 loss.
Selected information from the accounting records of Bolingbroke Company follows: Net sales $1,800,000 Cost of goods sold 1,200,000 Inventories at January 1 336,000 Inventories at December 31 288,000 Assuming there are 300 working days per year, what is the number of days' sales in average inventories for the year? A. 78 B. 72 C. 52 D. 48
A. 78
Each of the following financial instruments is a derivative except A. A fixed interest, 5-year note payable. B. Interest rate futures. C. An agreement to buy a piece of equipment in 6 months at a price determined today. D. A contract to purchase a commodity in 6 months at a price determined today.
A. A fixed interest, 5-year note payable.
Which of the following corporate characteristics would favor debt financing versus equity financing? A. A high tax rate. B. A high debt-to-equity ratio. C. Low aversion to risk. D. Below average stock issuing costs.
A. A high tax rate.
Each of the following business functions is considered part of a company's value chain except A. Accounting. B. Customer service. C. Marketing. D. Research and development.
A. Accounting.
Global companies that deal with the political and financial risks of conducting business in a particular foreign location face which of the following types of risk? A. Country risk. B. Principal risk. C. Interest rate risk. D. Commodity price risk.
A. Country risk.
Net working capital is the difference between A. Current assets and current liabilities. B. Fixed assets and fixed liabilities. C. Total assets and total liabilities. D. Shareholders' investment and cash.
A. Current assets and current liabilities.
If a firm is considering the use of learning curve analysis in the determination of labor cost standards for a new product, it should be advised that this technique ordinarily is most relevant to situations in which the production time per unit decreases as additional units are produced and the unit cost A. Decreases. B. Does not change. C. Increases or decreases in an unpredictable manner. D. Increases slightly.
A. Decreases.
Which of the following refers to the purchase or sale of goods and services over the Internet? A. E-commerce B . E-business C. Customer relationship management (CRM) D. Management information system (MIS) E. Supply chain management (SCM)
A. E-commerce
Which of the following systems would you use to determine which trends in your supplier's industry will affect your firm the most during the next five years? A. Executive support systems (ESS) B. Transaction processing systems (TPS) C. Management information systems (MIS) D. Decision support system (DSS) E. KWM
A. Executive support systems (ESS)
An analysis of a company's planned equity financing using the Capital Asset Pricing Model (or Security Market Line) incorporates only the A. Expected market earnings, the risk-free rate, and the beta coefficient. B. Expected market earnings and the price-earnings ratio. C. Risk-free rate, the price-earnings ratio, and the beta coefficient. D. Risk-free rate and the dividend payout ratio.
A. Expected market earnings, the risk-free rate, and the beta coefficient.
You have been hired by Inspiration Inc. to help improve its financial performance. Inspiration Inc. is a business communications consulting firm that services many clients in different industries throughout the world. The firm provides its clients with customized written recommendations about how to best use the client's existing resources to improve the client's internal communications. The company has approximately 100 consultants, all of whom are located in its central headquarters in Chicago. Which of the following systems would you recommend to improve Inspiration Inc.'s business processes and improve its financial performance? A. Extranet, to enable quick collaboration via the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed B. CRM, to maintain easily accessible customer records to minimize the time spent looking for client data C. KMS, to minimize redundant work on similar clients D. Video conferencing system, to improve collaboration E. MIS, to produce reports on the firm's operations
A. Extranet, to enable quick collaboration via the Internet, minimize the time spent communicating with the client, and minimize the amount of paperwork needed
Given demand in excess of capacity, no spoilage or waste, and full use of a constant number of assembly hours, the number of components needed for an assembly operation with an 80% learning curve should I. Increase for successive periods. II. Decrease per unit of output. A. I only. B. II only. C. Both I and II. D. Neither I nor II.
A. I only.
A financial institution looking to assess its investment portfolio's exposure to price changes most likely would use which of the following techniques? A. Market value at risk analysis. B. Cash flow at risk analysis. C. Earnings at risk analysis. D. Backtesting analysis.
A. Market value at risk analysis.
Because of the large number of factors that could affect the demand for its new product, interactions among these factors, and the probabilities associated with different values of these factors, the marketing department would like to develop a computerized model for projecting demand for this product. By using a random-number procedure to generate values for the different factors, it will be able to estimate the distribution of demand for this new product. This method of estimating the distribution of demand for the new product is called A. Monte Carlo simulation. B. Linear programming. C. Correlation analysis. D. Differential analysis.
A. Monte Carlo simulation.
If a CPA's client expected a high inflation rate in the future, the CPA would suggest to the client which of the following types of investments? A. Precious metals. B. Treasury bonds. C. Corporate bonds. D. Common stock.
A. Precious metals.
________ are not held liable for the messages they transmit. A. Regulated common carriers B. Private individuals C. Organizations and businesses D. Elected officials E. European ISPs
A. Regulated common carriers
A put is an option that gives its owner the right to do which of the following? A. Sell a specific security at fixed conditions of price and time. B. Sell a specific security at a fixed price for an indefinite time period. C. Buy a specific security at fixed conditions of price and time. D. Buy a specific security at a fixed price for an indefinite time period.
A. Sell a specific security at fixed conditions of price and time.
Which of the following is considered the most important U.S. federal statute setting forth conditions for handling information about individuals? A. The Privacy Act B. The Gramm-Leach-Bliley Act C. The Freedom of Information Act D. COPPA E. HIPAA
A. The Privacy Act
Which security is most often held as a substitute for cash? A. Treasury bills. B. Common stock. C. Gold. D. AAA corporate bonds.
A. Treasury bills.
Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return? A. U.S. Treasury bonds; corporate first mortgage bonds; corporate income bonds; preferred stock. B. Corporate income bonds; corporate mortgage bonds; convertible preferred stock; subordinated debentures. C. Common stock; corporate first mortgage bonds; corporate second mortgage bonds; corporate income bonds. D. Preferred stock; common stock; corporate mortgage bonds; corporate debentures.
A. U.S. Treasury bonds; corporate first mortgage bonds; corporate income bonds; preferred stock.
Short-term interest rates are A. Usually lower than long-term rates. B. Usually higher than long-term rates. C. Lower than long-term rates during periods of high inflation only. D. Not significantly related to long-term rates.
A. Usually lower than long-term rates.
In network economics, the value of a commercial software vendor's software products: A. increases as more people use them. B. decreases as more people use them. C. increases due to higher marginal gain in output. D. decreases according to the law of diminishing returns. E. is unrelated to the number of people that use them.
A. increases as more people use them.
Internet technology: A. makes it easy for rivals to compete on price alone. B. imposes a significant cost of entry, due to infrastructure requirements. C. increases the difference between competitors because of the wide availability of information. D. makes it easy to sustain operational advantages. E. has lessened competitive rivalries.
A. makes it easy for rivals to compete on price alone.
________ is the ability to offer individually tailored products or services using the same production resources as mass production. A. mass customization B. size customization C. personalization D. demand customization E. CAD
A. mass customization
A firm can exercise greater control over its suppliers by having: A. more suppliers B. fewer suppliers C. global suppliers D. local suppliers E. only a single supplier
A. more suppliers
Which of the five moral dimensions of the information age does spamming involve? A. quality of life B. system quality C. accountability and control D. information rights and obligations E. property rights and obligations
A. quality of life
Bates Corp. has $100,000 in bonds payable with a fair market value of $120,000. It also has 1,000 shares of common stock issued at $50 per share with a fair market value of $80 per share. What amount represents the corporation's market capitalization? A. $50,000 B. $80,000 C. $170,000 D. $180,000
B. $80,000
The coefficient of correlation that indicates the weakest linear association between two variables is A. -0.73 B. -0.11 C. 0.12 D. 0.35
B. -0.11
A company has cash of $100 million, accounts receivable of $600 million, current assets of $1.2 billion, accounts payable of $400 million, and current liabilities of $900 million. What is its acid-test (quick) ratio? A. 0.11 B. 0.78 C. 1.75 D. 2.11
B. 0.78
If the return on the market portfolio is 10% and the risk-free rate is 5%, what is the effect on a company's required rate of return on its stock of an increase in the beta coefficient from 1.2 to 1.5? A. 3% increase. B. 1.5% increase. C. No change. D. 1.5% decrease.
B. 1.5% increase.
Konstans Corp. is considering purchasing an investment security with the following information: Likelihood Return on Investment 50% 2% 40% 4% 10% 14% The expected return on this investment is A. 2% B. 4% C. 25% D. 50%
B. 4%
During the current year, Rand Co. purchased $960,000 of inventory. The cost of goods sold for the year was $900,000, and the ending inventory at December 31 was $180,000. What was the inventory turnover for the year? A. 6.4 B. 6.0 C. 7.2 D. 5.0
B. 6.0
City Development, Inc., is considering a new investment project that will involve building a large office block in Frankfurt-am-Main. The firm's financial analysis department has estimated that the proposed investment has the following estimated rate of return distributions: Rate of Return Probability (5%) 30% 10% 50% 20% 20% Calculate the expected rate of return. A. 5.5% B. 7.5% C. 10.5% D. 11.7%
B. 7.5%
You work for a highly successful advertiser that is about to expand nationally. Of utmost importance will be finding a way to store and disseminate its clients' frequently updated branding and style guides throughout the organization. The guides include multiple image files and text documents. What system will best serve these needs? A. A wiki B. An extranet with knowledge management system (KMS) capabilities C. A transaction processing system (TPS) with knowledge management system (KMS) capabilities D. A telepresence system E. A virtual world
B. An extranet with knowledge management system (KMS) capabilities
A measure that describes the risk of an investment project relative to other investments in general is the A. Coefficient of variation. B. Beta coefficient. C. Standard deviation. D. Expected return.
B. Beta coefficient.
You are the production manager for a manufacturer of bicycle parts. Which of the following tools or technologies would you use to improve production precision? A. value chain B. CAD software C. benchmarking D. industry best practices E. porter's competitive forces model
B. CAD software
The main reason that a firm would strive to reduce the number of days sales outstanding is to increase A. Accounts receivable. B. Cash. C. Cost of goods sold. D. Contribution margin.
B. Cash.
Bander Co. is determining how to finance some long-term projects. Bander has decided it prefers the benefits of no fixed charges, no fixed maturity date, and an increase in the credit-worthiness of the company. Which of the following would best meet Bander's financing requirements? A. Bonds. B. Common stock. C. Long-term debt. D. Short-term debt.
B. Common stock.
Which of the following types of systems could be used to enable different firms to work collaboratively on a product? A. Intranet B. Extranet C. Knowledge management system (KMS) D. Customer relationship management (CRM) E. Decision support system (DSS)
B. Extranet
In general, it is more expensive for a company to finance with equity capital than with debt capital because A. Long-term bonds have a maturity date and must therefore be repaid in the future. B. Investors are exposed to greater risk with equity capital. C. Equity capital is in greater demand than debt capital. D. Dividends fluctuate to a greater extent than interest rates.
B. Investors are exposed to greater risk with equity capital.
The expected monetary value of an event A. Is equal to the conditional value or profit of the event. B. Is equal to the payoff of the event times the probability the event will occur. C. Is the profit forgone by not choosing the best alternative. D. Is the absolute profit from a particular event.
B. Is equal to the payoff of the event times the probability the event will occur.
An example of a business using information systems for supplier intimacy is: A. Apple's creation of the iPad B. JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced. C. Citibank's ATM system D. Verizon's web-based digital dashboard providing real-time company information for managers. E . the Mandarin Oriental's use of computers to keep track of guests' preferences.
B. JCPenney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced.
In decision theory, those uncontrollable future events that can affect the outcome of a decision are A. Payoffs. B. States of nature. C. Probabilities. D. Nodes.
B. States of nature.
The expected monetary value of an act is the A. Sum of the conditional profit (loss) for each event. B. Sum of the conditional profit (loss) for each event times the probability of each event's occurrence. C. Conditional profit (loss) for the best event times the probability of each event's occurrence. D. Revenue minus the costs for the act.
B. Sum of the conditional profit (loss) for each event times the probability of each event's occurrence.
A market analyst has estimated the equity beta of Modern Homes, Inc., to be 1.4. This beta implies that the company's A. Systematic risk is lower than that of the market portfolio. B. Systematic risk is higher than that of the market portfolio. C. Unsystematic risk is higher than that of the market portfolio. D. Total risk is higher than that of the market portfolio.
B. Systematic risk is higher than that of the market portfolio.
Which of the following can typically access a company's intranet? A. The general public B. The firm's employees C. The firm's customers D. The firm's suppliers E. The firm's outside contractors
B. The firm's employees
What does Beta measure in the capital asset pricing model? A. The volatility of a stock relative to its competitors. B. The volatility of a stock relative to the market. C. The additional return required over the risk-free rate. D. Unsystematic risk.
B. The volatility of a stock relative to the market.
If the ratio of total liabilities to equity increases, a ratio that must also increase is A. Times interest earned. B. Total liabilities to total assets. C. Return on equity. D. The current ratio.
B. Total liabilities to total assets.
Which of the following statements about 3-D printing is not true? A. 3-D printing is also known as additive manufacturing. B. Unlike traditional techniques, 3-D printing results in some wasted material. C. 3-D printing can create objects from plastic, metal, or composite materials. D. CAD systems supply data for 3-D printing. E. 3-D printing is often used to fashion items for small production runs.
B. Unlike traditional techniques, 3-D printing results in some wasted material.
The risk of a single stock is A. Interest rate risk. B. Unsystematic risk. C. Portfolio risk. D. Market risk.
B. Unsystematic risk.
A firm that locates all systems development and operations at its headquarters is using a ________ system configuration. A. unilateral B. centralized C. decentralized D. networked E. virtual
B. centralized
The use of digital technology and the Internet to execute the major business processes in the enterprise is called: A. e-commerce B. e-business C. enterprise applications D. Management information system (MIS) E. KWM
B. e-business
"Look and feel" copyright infringement lawsuits are concerned with: A. the distinction between tangible and intangible ideas. B. the distinction between an idea and its expression. C. using the graphical elements of another product. D. using the creative elements of another product. E. violation of a monopoly on the ideas behind a product.
B. the distinction between an idea and its expression.
The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output, is referred to as: A. the point of no return B. the law of diminishing returns C. supply and demand D. inelasticity E. virtual economics
B. the law of diminishing returns
If two projects are completely and positively linearly dependent (or positively related), the measure of correlation between them is A. 0 B. +.5 C. +1 D. -1
C. +1
What is the weighted-average cost of capital for a firm using 65% common equity with a return of 15%, 25% debt with a return of 6%, 10% preferred stock with a return of 10%, and a tax rate of 35%? A. 10.333% B. 11.275% C. 11.725% D. 12.250%
C. 11.725%
An analyst covering Guilderland Mining Co. common stock estimates the following information for next year: Expected return on the market portfolio 12% Expected return on Treasury securities 5% Expected beta of Guilderland 2.2 Using the CAPM, the analyst's estimate of next year's risk premium for Guilderland's stock is closest to A. 7.0% B. 10.4% C. 15.4% D. 21.4%
C. 15.4%
This year, Nelson Industries increased earnings before interest and taxes (EBIT) by 17%. During the same period, earnings per share increased by 42%. The degree of financial leverage that existed during the year is A. 1.70 B. 4.20 C. 2.47 D. 5.90
C. 2.47
he following information was taken from Culver Co.'s financial statements for the current year ending December 31: Current assets $11,000,000 Noncurrent assets 14,000,000 Total stockholders' equity 10,000,000 Total operating expenses 20,000,000 What was Culver's debt ratio as of December 31? A. 40% B. 50% C. 60% D. 250%
C. 60%
Scrunchy-Tech, Inc., has determined that it can minimize its weighted-average cost of capital (WACC) by using a debt-equity ratio of 2/3. If the firm's cost of debt is 9% before taxes, the cost of equity is estimated to be 12% before taxes, and the tax rate is 40%, what is the firm's WACC? A. 6.48% B. 7.92% C. 9.36% D. 10.80%
C. 9.36%
Which of the following illustrates the use of information systems to strengthen customer and supplier intimacy? A. A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy B. A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly to customers C. A PC manufacturer's use of information systems to facilitate direct access from suppliers to their production schedules D. A grocery store chain's use of information systems to produce products and services at a lower price than competitors E. An airline's use of information systems to analyze detailed data on customers to determine each customer's profitability
C. A PC manufacturer's use of information systems to facilitate direct access from suppliers to their production schedules
Which of the following terms refers to significant disparities in access to computers and the Internet among different social groups and different locations? A. Computer vision syndrome (CVS) B. Technostress C. Digital divide D. Repetitive Stress Injury (RSI) E. Carpal tunnel syndrome (CTS)
C. Digital divide
The risk of loss because of fluctuations in the relative value of foreign currencies is called A. Expropriation risk. B. Multinational beta. C. Exchange rate risk. D. Undiversifiable risk.
C. Exchange rate risk.
If Dexter Industries has a beta value of 1.0, then its A. Return should equal the risk-free rate. B. Price is relatively stable. C. Expected return should approximate the overall market. D. Volatility is low.
C. Expected return should approximate the overall market.
Which of the following is most useful when risk is being prioritized? A. Low- and high-probability exposures. B. Low- and high-degree loss exposures. C. Expected value. D. Uncontrollable risks.
C. Expected value.
You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics, such as views and click-throughs, about their current display ads. Which type of system will most efficiently provide a solution? A. Customer relationship management (CRM) B. Enterprise system C. Extranet D. Intranet E. KWM
C. Extranet
Which one of the following is not a determinant in valuing a call option? A. Exercise price. B. Expiration date. C. Forward contract price. D. Underlying asset price.
C. Forward contract price.
Serial bonds are attractive to investors because A. All bonds in the issue mature on the same date. B. The yield to maturity is the same for all bonds in the issue. C. Investors can choose the maturity that suits their financial needs. D. The coupon rate on these bonds is adjusted to the maturity date.
C. Investors can choose the maturity that suits their financial needs.
The yield curve shown implies that the A. Credit risk premium of corporate bonds has increased. B. Credit risk premium of municipal bonds has increased. C. Long-term interest rates have a higher annualized yield than short-term rates. D. Short-term interest rates have a higher annualized yield than long-term rates.
C. Long-term interest rates have a higher annualized yield than short-term rates.
Osgood Products has announced that it plans to finance future investments so that the firm will achieve an optimum capital structure. Which one of the following corporate objectives is consistent with this announcement? A. Maximize earnings per share. B. Minimize the cost of debt. C. Maximize the net worth of the firm. D. Minimize the cost of equity.
C. Maximize the net worth of the firm.
Which of the following is a data analysis technology that finds hidden connections between data in disparate sources? A. HIPAA B. FIP C. NORA D. COPPA E. Spyware
C. NORA
The use of derivatives to either hedge or speculate results in A. Increased risk regardless of motive. B. Decreased risk regardless of motive. C. Offsetting risk when hedging and increased risk when speculating. D. Offsetting risk when speculating and increased risk when hedging.
C. Offsetting risk when hedging and increased risk when speculating.
A forward contract involves a commitment today to purchase a product A. On a specific future date at a price to be determined some time in the future. B. At some time during the current day at its present price. C. On a specific future date at a price determined today. D. Only when its price increases above its current exercise price.
C. On a specific future date at a price determined today.
Which one of the following statements is correct regarding the effect preferred stock has on a company? A. The firm's after-tax profits are shared equally by common and preferred shareholders. B. Control of the firm is now shared by the common and preferred shareholders, with preferred shareholders having greater control. C. Preferred shareholders' claims take precedence over the claims of common shareholders in the event of liquidation. D. Nonpayment of preferred dividends places the firm in default, as does nonpayment of interest on debt.
C. Preferred shareholders' claims take precedence over the claims of common shareholders in the event of liquidation.
Preferred and common stock differ in that A. Failure to pay dividends on common stock will not force the firm into bankruptcy, while failure to pay dividends on preferred stock will force the firm into bankruptcy. B. Common stock dividends are a fixed amount, while preferred stock dividends are not. C. Preferred stock has a higher priority than common stock with regard to earnings and assets in the event of bankruptcy. D. Preferred stock dividends are deductible as an expense for tax purposes, while common stock dividends are not.
C. Preferred stock has a higher priority than common stock with regard to earnings and assets in the event of bankruptcy.
Which of the following occurs when muscle groups are forced through tens of thousands of repetitions under low-impact loads? A. Carpal tunnel syndrome (CTS) B. Computer vision syndrome (CVS) C. Repetitive Stress Injury (RSI) D. Technostress E. RSS
C. Repetitive Stress Injury (RSI)
A widely used approach that managers use to recognize uncertainty about individual items and to obtain an immediate financial estimate of the consequences of possible prediction errors is A. Expected value analysis. B. Learning curve analysis. C. Sensitivity analysis. D. Regression analysis.
C. Sensitivity analysis.
All of the following can be considered managerial responsibilities except: A. making action plans to solve organizational problems. B. creating new products and services. C. designing new information systems. D. allocating human resources to coordinate the work to be done. E. setting strategy for responding to business challenges in the environment.
C. designing new information systems.
Which of the following is not one of the competitive forces in Porter's model? A. suppliers B. competitors C. external environment D. customers E. Technology
C. external environment
________ typically develop a single information system, usually at the home base, and then replicate it around the world. A. domestic exporters B. multinational firms C. franchisers D. transnational firms E. virtual companies
C. franchisers
The Internet raises the bargaining power of customers most effectively by: A. creating new opportunities for building loyal customer bases. B. making more products available. C. making information available to everyone. D. lowering transaction costs. E. reducing barriers to entry.
C. making information available to everyone.
The average number of baseball tickets sold at a particular price is an example of: A. input B. raw data C. meaningful information D. output E. feedback
C. meaningful information
Data management technology consists of the: A. physical hardware and media used by an organization for storing data. B. detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C. software governing the organization of data on physical storage media. D. hardware and software used to transfer data. E. universally accepted standards for storing data
C. software governing the organization of data on physical storage media.
What is the price of a 10-year, 10% coupon bond with a $1,000 face value if investors require a 12% return? Assume annual coupon payments. Present Value of an Ordinary Annuity % 10 Periods 10 6.14 12 5.65 Present Value of $1 % 10 Periods 10 .386 12 .322 A. $565.00 B. $322.00 C. $604.50 D. $887.00
D. $887.00
Listed below are four numbers. Which of these numbers represents the coefficient of correlation of a stock portfolio with the least unsystematic risk? A. 100.0 B. 1.0 C. 0.0 D. -1.0
D. -1.0
The following information pertains to a company's potential investment in security X: Maturity risk premium 1% Liquidity risk premium 3% Default risk premium 2% Risk-free rate 4% What is the company's required rate of return for the investment in this security? A. 4% B. 6% C. 9% D. 10%
D. 10%
Using the capital asset pricing model (CAPM), the required rate of return for a firm with a beta of 1.5 when the market return is 10% and the risk-free rate is 8% is A. 5% B. 8% C. 10% D. 11%
D. 11%
Dividends are equal to $5, and the current share price is $50. Dividends are expected to grow at 2% forever. According to the dividend growth model, what is the investor's required rate of return? A. 8.2% B. 10.0% C. 12.0% D. 12.2%
D. 12.2%
What is the after-tax cost of preferred stock that sells for $5 per share and offers a $0.75 dividend when the tax rate is 35%? A. 5.25% B. 9.75% C. 10.50% D. 15%
D. 15%
A stock priced at $50 per share is expected to pay $5 in dividends and trade for $60 per share in one year. What is the expected return on this stock? A. 10% B. 20% C. 25% D. 30%
D. 30%
Aaron Co's vendor will be offering discounts next year. Which of the following credit terms offered by the vendor is most beneficial to Aaron? A. 2/10, net 60. B. 3/15, net 30. C. 5/20, net 45. D. 5/20, net 60.
D. 5/20, net 60.
Which of the following is considered a corporate equity security? A. A shareholder's preemptive right. B. A shareholder's appraisal right. C. A callable bond. D. A share of callable preferred stock.
D. A share of callable preferred stock.
One type of risk to which investment securities are subject can be offset through portfolio diversification. This type of risk is referred to as A. Market risk. B. Undiversifiable risk. C. Liquidity risk. D. Company unique risk.
D. Company unique risk.
All of the following are alternative marketable securities suitable for short-term investment except A. U.S. Treasury bills. B. Eurodollars. C. Commercial paper. D. Convertible bonds.
D. Convertible bonds.
Which of the following systems supports making decisions that are unique, rapidly changing, and not easily specified in advance? A. Management information system (MIS) B. Transaction processing system (TPS) C. Executive support system (ESS) D. Decision support system (DSS) E. KWM
D. Decision support system (DSS)
Which of the following systems is designed to support organization-wide process coordination and integration? A. Decision support system (DSS) B. Management information system (MIS) C. Customer relationship management (CRM) D. Enterprise applications E. Executive support system (ESS)
D. Enterprise applications
An investment security with high risk will have a(n) A. Low expected return. B. Lower price than an asset with low risk. C. Lower coefficient of variation. D. High standard deviation of returns.
D. High standard deviation of returns.
Many assumptions and factors may be considered to determine the fair value except A. Net realizable value. B. Expected costs. C. Market value. D. Historical cost.
D. Historical cost.
Which of the following best describes Immanuel Kant's categorical imperative? A. If an action cannot be taken repeatedly, then it is not right to be taken at any time. B. One should take the action that produces the least harm or incurs the least cost. C. One can put values in rank order and understand the consequences of various courses of action. D. If an action is not right for everyone to take, it is not right for anyone to take. E. You should act towards others as you would like them to act towards you.
D. If an action is not right for everyone to take, it is not right for anyone to take.
As a company becomes more conservative with respect to working capital financing policy, it would tend to have a(n) A. Increase in the ratio of current liabilities to noncurrent liabilities. B. Decrease in the operating cycle. C. Decrease in the quick ratio. D. Increase in the ratio of current assets to noncurrent assets.
D. Increase in the ratio of current assets to noncurrent assets.
During the year, Mason Company's current assets increased by $120,000, current liabilities decreased by $50,000, and net working capital A. Increased by $70,000. B. Did not change. C. Decreased by $170,000. D. Increased by $170,000.
D. Increased by $170,000.
If Brewer Corporation's bonds are currently yielding 8% in the marketplace, why is the firm's cost of debt lower? A. Market interest rates have increased. B. Additional debt can be issued more cheaply than the original debt. C. There should be no difference; cost of debt is the same as the bonds' market yield. D. Interest is deductible for tax purposes.
D. Interest is deductible for tax purposes.
Management's financial estimates are based on all of the following except: A. Knowledge. B. Experience. C. Expectations. D. Irrelevance.
D. Irrelevance.
Which of the following is a primary drawback to the "do anything anywhere" computing environment? A. It makes work environments less pleasant. B. It creates a digital divide. C. It centralizes power at corporate headquarters. D. It blurs the traditional boundaries between work and family time. E. It leads to employees being paid less for the total amount of work performed.
D. It blurs the traditional boundaries between work and family time.
If a call option is "out-of-the-money," A. It is worth exercising. B. The value of the underlying asset is more than the exercise price. C. The option no longer exists. D. It is not worth exercising because the value of the underlying asset is less than the exercise price.
D. It is not worth exercising because the value of the underlying asset is less than the exercise price.
Management's financial estimates are based on all of the following except A. Knowledge. B. Experience. C. Assumptions. D. Known outcomes.
D. Known outcomes.
When managing cash and short-term investments, a corporate CFO is primarily concerned with A. Maximizing rate of return. B. Minimizing taxes. C. Investing in Treasury bonds since they have no default risk. D. Liquidity and safety.
D. Liquidity and safety.
When purchasing temporary investments, which one of the following best describes the risk associated with the ability to sell the investment in a short period of time without significant price concessions? A. Interest-rate risk. B. Purchasing-power risk. C. Financial risk. D. Liquidity risk.
D. Liquidity risk.
A human resources system that summarizes the total moving, house-hunting, and home financing costs for employees in all company divisions is an example of which of the following? A. Knowledge management system (KMS) B. Transaction processing system (TPS) C. Executive support system (ESS) D. Management information system (MIS) E. Customer relationship management (CRM) system
D. Management information system (MIS)
From an investor's viewpoint, the least risky type of bond in which to invest is a(n) A. Debenture bond. B. Deep discount bond. C. Income bond. D. Mortgage bond.
D. Mortgage bond.
An organization would usually offer credit terms of 2/10, net 30 when A. The organization can borrow funds at a rate exceeding the annual interest cost. B. The organization can borrow funds at a rate less than the annual interest cost. C. The cost of capital approaches the prime rate. D. Most competitors are offering the same terms, and the organization has a shortage of cash.
D. Most competitors are offering the same terms, and the organization has a shortage of cash.
Which of the following may be used to estimate how inventory warehouse costs are affected by both the number of shipments and the weight of materials handled? A. Economic order quantity analysis. B. Probability analysis. C. Correlation analysis. D. Multiple regression analysis.
D. Multiple regression analysis.
Which of the following statements is (are) correct regarding corporate debt and equity securities? I. Both debt and equity security holders have an ownership interest in the corporation. II. Both debt and equity securities have an obligation to pay income. A. I only. B. II only. C. Both I and II. D. Neither I nor II.
D. Neither I nor II.
A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces? A. Product differentiation B. Traditional competitors C. Low number of suppliers D. New market entrants E. Substitute products
D. New market entrants
The following excerpt was taken from a company's financial statements: " . . . 10% convertible participating . . . $10,000,000." What is most likely being referred to? A. Bonds. B. Common stock. C. Stock options. D. Preferred stock.
D. Preferred stock.
When the U.S. dollar is expected to rise in value against foreign currencies, a U.S. company with foreign currency denominated receivables and payables should A. Slow down collections and speed up payments. B. Slow down collections and slow down payments. C. Speed up collections and speed up payments. D. Speed up collections and slow down payments.
D. Speed up collections and slow down payments.
If a bond sells at a premium, the A. Stated coupon rate must be less than the required market rate. B. Nominal rate must be less than the yield rate. C. Bond purchase price must be lower than the face amount of the bond. D. Stated coupon rate must be more than the required market rate.
D. Stated coupon rate must be more than the required market rate.
Which of the following is not true about the GDPR? A. The GDPR requires Internet companies to obtain explicit consent from consumers for the use of their personal data. B. The GDPR requires Internet companies to delete information at the user's request. C. The GDPR requires Internet companies to retain information only as long as absolutely necessary. D. The GDPR rejects the right to be forgotten. E. The GDPR applies only to all companies providing services in Europe.
D. The GDPR rejects the right to be forgotten.
Which of the following statements about cycle time is not true? A. Cycle time refers to the total elapsed time from the beginning of a process to its end. B. Shorter cycle times mean that problems are caught earlier in the process. C. Finding ways to reduce cycle time often means finding ways to simplify production steps. D. The fewer steps in a production process, the more likely that an error will occur. E. Information systems can help reduce cycle time.
D. The fewer steps in a production process, the more likely that an error will occur.
According to the capital asset pricing model (CAPM), which of the following statements is true regarding the required rate of return for a security with a beta of 1? A. The required rate of return is lower than the risk-free rate. B. The required rate of return is equal to the risk-free rate. C. The required rate of return is higher than the market return. D. The required rate of return is equal to the market return.
D. The required rate of return is equal to the market return.
A Chinese conglomerate owns a construction subsidiary that is building a port in Mozambique. The firm pays its workers in the Mozambican metical but keeps its books for the project in the South African rand. At the end of the fiscal year, the conglomerate must report consolidated financial statements denominated in the yuan. The exchange rate risk encountered by the conglomerate in the currency conversions leading up to its consolidated financial statements is known as A. Transition exposure. B. Economic exposure. C. Transaction exposure. D. Translation exposure.
D. Translation exposure.
An investor is currently holding income bonds, preferred stocks, subordinated debentures, and U.S. Treasury bonds. Which of these securities traditionally is considered to have the least risk? A. Income bonds. B. Preferred stocks. C. Subordinated debentures. D. U.S. Treasury bonds.
D. U.S. Treasury bonds.
In decision making under conditions of uncertainty, expected value refers to the A. Likely outcome of a proposed action. B. Present value of alternative actions. C. Probability of a given outcome from a proposed action. D. Weighted average of probable outcomes of an action.
D. Weighted average of probable outcomes of an action.
All of the following describe the effects of globalization except: A. significant decreases in operating costs. B. reduction of labor costs through outsourcing C. ability to find low-cost suppliers D. increases in transaction costs E. replication of business models in multiple countries
D. increases in transaction costs
The term management information systems refers to a specific category of information systems serving: A. integrated data processing throughout the firm. B. transaction processing reporting C. senior management D. middle management functions E. knowledge workers
D. middle management functions
Which of the following is not an example of the potential dark side of big data? A. Police visits to individuals whom a computer system identified as likely to commit a crime in the future B. Use of a device installed in a car to analyze driving habits C. Use of a predictive modeling system that predicts life expectancy by using data about individual consumers' buying habits as well as personal and family medical histories D. Use of computerized systems to filter and hire job applicants E. Analyzing data from sensors installed in local parks to monitor soil moisture
E. Analyzing data from sensors installed in local parks to monitor soil moisture
Which of the following systems is designed to summarize and report on the company's basic operations? A. Knowledge management system (KMS) B. Decision support system (DSS) C. Executive support system (ESS) D. Transaction processing system (TPS) E. Management information system (MIS)
E. Management information system (MIS)
Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A. Executive support system (ESS) B. Customer relationship management (CRM) system C. Management information system (MIS) D. Decision support system (DSS) E. Supply chain management (SCM) system
E. Supply chain management (SCM) system
Which of the following forms of protection of intellectual property requires that the property be the subject of a nondisclosure agreement? A. Copyright B. Patent C. All forms of intellectual property protection D. Trademark E. Trade secret
E. Trade secret
Identifying potential customers for the businesses' products or services is an activity associated with the ________ function. A. finance and accounting B. human resources C. manufacturing and production D. technology E. sales and marketing
E. sales and marketing
Employees of the organization who receive goods or services from others in the company are a) Internal customers b) Ultimate customers c) Downstream customers d) Operators e) External customers
a) Internal customers
The Malcolm Baldrige Award criteria category that includes commitment by top management is a) Leadership b) Strategic planning c) Process management d) Business results e) Information and analysis
a) Leadership
All processes will have what type of variation? a) Random b) Assignable c) Identifiable d) Stochastic e) Common
a) Random
What measures the difference between the largest and smallest observations in a set of data? a) Range b) Coefficient of variation c) Coefficient of kurtosis d) Coefficient of skewness e) Standard deviation
a) Range
A study is under way in Yosemite National Forest to determine the adult height of American pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American pines. The study involves collecting heights from 250 randomly selected adult American pine trees and analyzing the results. Identify the sample in the study. a) The 250 randomly selected adult American pine trees b) The 25,000 adult American pine trees in the forest c) All the adult American pine trees taller than 60 feet d) All American pine trees, of any age, in the forest
a) The 250 randomly selected adult American pine trees
In JIT a Kanban card is used to signal a) The need for more parts b) A supplier needs assistance c) A worker is overloaded d) A machine is ready for preventive maintenance e) Management is inspecting operations
a) The need for more parts
Which of the following would be an appropriate alternative hypothesis? a) The population proportion is less than 0.65 b) The sample proportion is less than 0.65 c) The population proportion is not less than 0.65 d) The sample proportion is not less than0.65
a) The population proportion is less than 0.65
For the current month using JIT a) The same amount of each product is produced in the same order each day b) Production matches that of last month c) Lot sizes are varied week-to-week d) Production differs greatly from day to day e) Production is primarily for next month's sales
a) The same amount of each product is produced in the same order each day
An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a population standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? a) Z-test of a population mean b) Z-test of a population proportion c) t-test of population mean d) t-test of a population proportion
a) Z-test of a population mean
The chancellor of a major university was concerned about alcohol abuse on campus and wanted to find out the proportion of students at the university who visited campus bars on the weekend before the final exam week. A random sample of 250 students was taken. The answer on "whether you visited campus bars on the weekend before the final exam week" from students in the sample is an example of . a) a categorical variable b) a discrete variable c) a continuous variable d) a table of random numbers
a) a categorical variable
Suppose that on Wednesday the cost of inputs summed to $4000, and the value of outputs summed to $10,000. For which of the following values on Thursday will productivity stay the same? a) inputs = $2000, outputs = $5000 b) inputs = $5000, outputs = $10,000 c) inputs = $4000, outputs = $8000 d) inputs = $10,000, outputs = $4000 e) inputs = $12,000, outputs = $40,000
a) inputs = $2000, outputs = $5000
Which type of operation is used to produce many different products with varying process requirements in lower volumes? a) intermittent b) repetitive c) continuous d) downstream e) gateway
a) intermittent
Decisions regarding which of the following are not part of the production process structure? a) management policies b) facilities c) robots d) flow of goods and services through the facility e) flexible manufacturing system (FMS) machines
a) management policies
Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes all of the following except ______________________________________. a) managing cash flow b) arranging schedules c) managing inventory d) controlling quality e) designing work methods
a) managing cash flow
What are the three primary types of technology? a) product technology, process technology, and information technology b) product technology, process technology, and environmental technology c) product technology, process technology, and safety technology d) information technology, environmental technology, and safety technology e) environmental technology, information technology, and process technology
a) product technology, process technology, and information technology
Which type of process would be least likely to produce goods for inventory rather than for a specific customer request? a) project b) batch c) line d) continuous e) remanufacturing
a) project
Building a bridge over the Mississippi River for a new highway uses a a) project process b) batch process c) line process d) continuous process e) recycle process
a) project process
The portion of the universe that has been selected for analysis is called a) a sample b) a frame c) a primary data source d) a secondary data source
a) sample
In break-even analysis, in order to make a profit the company must a) sell above the break-even point b) sell below the break-even point c) sell at a loss d) sell at the break-even point e) sell on consignment
a) sell above the break-even point
Which of the following is not an input? a) services b) managers c) buildings d) technology e) information
a) services
Which of the following is not considered one of the four broad categories of competitive priorities? a) technology b) cost c) quality d) flexibility e) time
a) technology
Which of the following is least likely to be a consideration in facility location? a) the design of the production process b) mistakes in choosing a location can be difficult to correct c) often there are a number of acceptable locations d) expanding capacity at a current location may be an option e) location decisions can have a major impact on operating costs and revenues
a) the design of the production process
If the expected value of a sample statistic is equal to the parameter it is estimating, then we call that sample statistic a) unbiased b) minimum variance c) biased d) random
a) unbiased
What is the Hawthorne effect? a) workers responding to the attention they are given b) stopwatch time studies leading to time standards c) the use of quantitative methods for solving management problems d) the use of interchangeable parts e) more lighting increases productivity
a) workers responding to the attention they are given
A Type I error is committed when a) you reject a null hypothesis that is true b) you don't reject a null hypothesis that is true c) you reject a null hypothesis that is false d) you don't reject a null hypothesis that is false
a) you reject a null hypothesis that is true
For a population with μ = 100 and σ = 20, what is the z-score corresponding to X = 105? a. +0.25 b. +0.50 c. +4.00 d. +5.00
a. +0.25
What is the variance for the following set of scores? 2, 2, 2, 2, 2 a. 0 b. 2 c. 4 d. 5
a. 0
If a company's objective were to reach masses of buyers that were geographically dispersed at a low cost per exposure, the company would likely choose which of the following promotion forms? a. Advertising b. Personal selling c. Public relations d. Sales promotion
a. Advertising
Drop shippers perform which of the following functions? a. Assumes title and ships coal, lumber, or heavy equipment to a buyer. b. Stocks the bread rack in a grocery store. c. Maintains, owns, and stocks a CD display in a grocery store. d. Sells jewelry out of a catalog.
a. Assumes title and ships coal, lumber, or heavy equipment to a buyer.
Which of the following statements about passwords is not true? a. Authentication cannot be established by the use of a password. b. Password systems that are too rigorous may hinder employee productivity. c. Passwords can be stolen through social engineering. d. Passwords can be stolen through social engineering. e. Passwords can be sniffed when being transmitted over a network.
a. Authentication cannot be established by the use of a password.
What kind of decision making tool could help you develop a recommended system for your firm's website which has 50,000 visitors a month? a. Big Data Analytics b. Sensitivity Analysis c. Goal seeking d. Forecasting e. Simulation
a. Big Data Analytics
A network that spans a college or corporate facility is called a: a. CAN. b. MAN. c. LAN d. WAN e. WSN
a. CAN.
_____________ includes practices such as overstating the product's features or performance, luring the customer to the store for a bargain that is out of stock, or running rigged contests. a. Deceptive promotion b. Deceptive packaging c. Deceptive pricing d. Deceptive cost structure
a. Deceptive promotion
Given recent information about growth trends and growth potential of ethnic populations within the U.S. market, which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S. market's most viable segments? a. Hispanics and Asians b. African Americans c. Western Europeans d. Middle Eastern
a. Hispanics and Asians
Which of the following statements about the median is not true? a. It is more affected by extreme values than the arithmetic mean b. It is a measure of central tendency c. It is equal to Q2 d. It is equal to the mode in bell-shaped "normal" distributions.
a. It is more affected by extreme values than the arithmetic mean
If Mark Mars pays Hershey Foods Corporation for the right to use their name on his line of T-shirts, then Mr. Mars is using which type of branding? a. Licensed brand b. Manufacturer's brand c. Private brand d. Co-brand
a. Licensed brand
If an advertiser wants flexibility, timeliness, good local market coverage, broad acceptability, and high believability, the advertiser will probably choose which of the following mass media types? a. Newspapers b. Television c. Direct Mail d. Radio
a. Newspapers
The teacher in a communications class asks students to identify their favorite reality television show. The different television shows make up what scale of measurement? a. Nominal b. Ordinal c. Interval d. Ratio
a. Nominal
The shrinking of distances due to technological advances such as computer and fax connections by telephone, are one characteristic of what new challenge to marketing? a. Rapid globalization. b. The changing world economy. c. The call for more socially responsible marketing. d. The micro-chip revolution.
a. Rapid globalization.
________________ have contractual authority to sell a manufacturer's entire output. a. Selling agents b. Rack jobbers c. Manufacturer's agents d. Purchasing agents
a. Selling agents
Which of the following types of computers would you use to support a computer network? a. Server b. Mainframe c. Workstation d. PC e. Tablet
a. Server
In terms of execution styles, a family seated at the dinner table enjoying the advertised product would be an example of which of the following types of advertising? a. Slice of life b. Lifestyle c. Mood or imagery d. Personality symbol
a. Slice of life
Each salesperson is assigned to an exclusive area in which to sell the company's full line of products or services in which type of salesforce structure? a. Territorial sales force. b. Product sales force. c. Customer sales force. d. Hybrid sales force
a. Territorial sales force.
A research report summarizes the results of the hypothesis test by stating, "z = 2.13, p < .05." Which of the following is a correct interpretation of this report? a. The null hypothesis was rejected and the probability of a Type I error is less than .05. b. The null hypothesis was rejected and the probability of a Type II error is less than .05. c. The null hypothesis was not rejected and the probability of a Type I error is less than .05. d. The null hypothesis was not rejected and the probability of a Type II error is less than .05.
a. The null hypothesis was rejected and the probability of a Type I error is less than .05.
If all the possible random samples of size n = 25 are selected from a population with μ = 80 and σ = 10 and the mean is computed for each sample, then what shape is expected for the distribution of sample means? a. The sample means tend to form a normal-shaped distribution with the peak around the population mean of 80. b. The sample means should center around the population mean in an unpredictable shape. c. The sample means tend to be distributed evenly across the scale, forming a rectangular-shaped distribution. d. There are thousands of possible samples and it is impossible to predict the shape of the distribution.
a. The sample means tend to form a normal-shaped distribution with the peak around the population mean of 80.
How does the shape of the t distribution compare to a normal distribution? a. The t distribution is flatter and more spread out, especially when n is small. b. The t distribution is flatter and more spread out, especially when n is large. c. The t distribution is taller and less spread out, especially when n is small. d. The t distribution is taller and less spread out, especially when n is small.
a. The t distribution is flatter and more spread out, especially when n is small.
A group of quiz scores ranging from 4-9 are shown in a histogram. If the bars in the histogram gradually increase in height from left to right, what can you conclude about the set of quiz scores? a. There are more high scores than there are low scores. b. There are more low scores than there are high scores. c. The height of the bars always increases as the scores increase. d. None of the above
a. There are more high scores than there are low scores.
Which of the following is an example of a legacy system? a. Transaction processing system running on a mainframe b. Scalable grid computing system c. Web services running on a cloud computing platform d. MDM software e. Quantum computing system
a. Transaction processing system running on a mainframe
All of the following are types of information systems general controls except: a. application controls b. computer operations controls c. hardware controls d. software controls e. administration controls
a. application controls
CAD systems: a. are capable of generating realistic-looking three-dimensional graphic designs that can be rotated and viewed from all sides. b. provide an important source of expertise for organizations. c. allow groups to work together on documents. d. are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management. e. are used for creating virtual reality environments.
a. are capable of generating realistic-looking three-dimensional graphic designs that can be rotated and viewed from all sides.
One common misuse of marketing research findings in contemporary business is the tendency for marketing research to: a. become a vehicle for pitching the sponsor's products. b. become a vehicle for discriminating in the marketplace. c. become a means for raising prices. d. become a means for unfair competition.
a. become a vehicle for pitching the sponsor's products.
A(n) ________ is a structured survey of the accuracy and level of completeness of the data in an information system. a. data quality audit b. systems analysis c. systems audit d. data analysis e. data overview
a. data quality audit
The company that overlooks new and better ways to do things will eventually lose customers to another company that has found a better way of serving customer needs is a major tenet of: a. innovative marketing. b. consumer-oriented marketing. c. value marketing. d. sense-of-mission marketing.
a. innovative marketing.
Using a successful brand name to introduce additional items in a given product category under the same brand name (such as new flavors, forms, colors, added ingredients, or package sizes) is called a(n): a. line extension. b. brand extension. c. multi branding. d. new brands.
a. line extension.
ANOVA is necessary to evaluate mean differences among three or more treatments, in order to ____________________ . a. minimize risk of Type I error b. maximize risk of Type I error c. minimize risk of Type II error d. maximize risk of Type II error
a. minimum risk of Type I error
The "in" suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situations? a. modified rebuy b. new task buying c. straight rebuy d. indirect rebuy
a. modified rebuy
A _________ is a need that is sufficiently pressing to direct the person to seek satisfaction. a. motive b. want c. demand d. requirement
a. motive
The process of streamlining data to minimize redundancy and awkward many-to-many relationships is called: a. normalization b. data scrubbing c. data cleansing d. data administration e. data management
a. normalization
OLAP is a tool that enables users to: a. obtain online answers to ad hoc questions in a rapid amount of time. b. view both logical and physical views of data. c. quickly diagram data relationships. d. normalize data. e. find hidden patterns in large databases.
a. obtain online answers to ad hoc questions in a rapid amount of time.
A company is in the stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product. a. product development b. commercialization c. marketing strategy d. business analysis
a. product development
A _____________ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels. a. push strategy b. pull strategy c. blocking strategy d. integrated strategy
a. push strategy
A price reduction to buyers who buy in large volumes is called a(n): a. quantity discount. b. cash discount. c. seasonal discount. d. trade discount.
a. quantity discount.
The Gramm-Leach-Bliley Act: a. requires financial institutions to ensure the security of customer data. b. specifies best practices in information systems security and control. c. imposes responsibility on companies and management to safeguard the accuracy of financial information. d. outlines medical security and privacy rules. e. identifies computer abuse as a crime and defines abusive activities.
a. requires financial institutions to ensure the security of customer data.
If your company were to make a product such as a suit of clothes and sold that product to a retailer, your company would have sold to the market. a. reseller b. business c. government d. service
a. reseller
Which of the following refers to policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems? a. security b. controls c. Benchmarking d. algorithms e. identity management
a. security
The typical method of retail operation used by supermarkets and catalog showrooms is called: a. self-service retailing. b. limited-service retailing. c. full-service retailing. d. service-merchandiser.
a. self-service retailing.
Finding out why orders are not being filled on time at a distribution center is what kind of decision scenario? a. semi-structured b. high-velocity c. unstructured d. procedural e. operational
a. semi-structured
One of the most common problems with using internal database information is that: a. since it was probably collected for some other purpose, it may be incomplete or wrong. b. it is usually expensive to retrieve. c. top executives are usually unwilling to relinquish data, therefore, the data has limits. d. the data is almost always unsecured and, therefore, suspect as to reliability.
a. since it was probably collected for some other purpose, it may be incomplete or wrong.
In a relational database, a record is also called a(n): a. tuple b. key field c. entity d. field e. table
a. tuple
A(n) ________ is software for locating and managing stored web pages. a. web server b. net server c. router d. modem e. hub
a. web server
Even though buying roles in the family change constantly, the has traditionally been the main purchasing agent for the family. a. wife b. husband c. teenage children d. grandparent
a. wife
Of the following z-score values, which one represents the location closest to the mean? a. z = +0.50 b. z = +1.00 c. z = −1.00 d. z = −2.00
a. z = +0.50
Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in a certain year in the past. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary? a) $0.012 million b) $0.12 million c) $12 million d) $1,200.0 million
b) $0.12 million
The employees of a company were surveyed on questions regarding their educational background (college degree or no college degree) and marital status (single or married). Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is married and has a college degree is: a) 0.0667 b) 0.567 c) 0.667 d) 0.833
b) 0.567
If inputs increase by 6% and outputs increase by 24%, what is the percentage productivity increase? a) 400.00% b) 16.98% c) 0.25% d) 4.00% e) 18.00%
b) 16.98%
The owner of a fish market determined that the mean weight for a catfish is 3.2 pounds with a standard deviation of 0.8 pound. A citation catfish should be one of the top 2% in weight. A z-score of 2.054 for the top 2% was calculated. Assuming the weights of catfish are normally distributed, at what weight (in pounds) should the citation designation be established? a) 1.56 pounds b) 4.84 pounds c) 5.20 pounds d) 7.36 pounds
b) 4.84 pounds
The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. Relative Time (in Minutes) Frequency 0 but less than 5 0.37 5 but less than 10 0.22 10 but less than 15 0.15 15 but less than 20 0.10 20 but less than 25 0.07 25 but less than 30 0.07 30 or more 0.02 What is the width of each class? A) 1 minute B) 5 minutes c) 2% d) 100%
b) 5 minutes
Warranty claims, customer complaints, and costs of litigation are examples of __________ costs. a) Internal failure b) External failure c) Appraisal d) Prevention e) Replacement
b) External failure
Which of the following is more like a product layout as compared to a process layout? a) Resources used are general purpose. b) Facilities are more capital intensive. c) Processing rates are slower. d) Space requirements for inventory storage are higher. e) Scheduling resources is more challenging.
b) Facilities are more capital intensive.
The Wall Street Journal recently published an article indicating differences in perception of sexual harassment on the job between men and women. The article claimed that women perceived the problem to be much more prevalent than did men. One question asked of both men and women was: "Do you think sexual harassment is a major problem in the American workplace?" 24% of the men compared to 62% of the women responded "Yes." Assuming W designates women's responses and M designates men's, what hypothesis should The Wall Street Journal test in order to show that its claim is true? a) H0: pW - p M ³ 0 versus H1: pW - p M < 0 b) H0: pW - p M £ 0 versus H1: pW - p M > 0 c) H0: pW - p M = 0 versus H1: pW - p M ¹ 0 d) H0: pW - p M ¹ 0 versus H1: pW - p M = 0
b) H0: piw-
__________ analysis is a technique used to identify quality problems based on their degree of importance. a) Deming b) Pareto c) Davis d) Crosby e) Juran
b) Pareto
In a periodic review inventory system, how many units are ordered? a) Target inventory level b) Target inventory level - on hand balance c) Max inventory level - min inventory level d) The EOQ e) Average demand during review period + average demand during lead time
b) Target inventory level - on hand balance
Which of the following is most likely a parameter as opposed to a statistic? a) The average score of the first five students completing an assignment. b) The proportion of females registered to vote in a county. c) The average height of people randomly selected from a database. d) The proportion of trucks stopped yesterday that were cited for bad brakes.
b) The proportion of females registered to vote in a country
Percentage of orders shipped on schedule is a good measure of finished goods customer service if: a) all orders and customers have similar cost impacts. b) all orders and customers have similar value. c) all orders and customers have similar backorder requirements. d) later deliveries are not considered. e) late deliveries contribute to the overall demand.
b) all orders and customers have similar value.
The standard error of the population proportion will become larger a) as population proportion approaches 0 b) as population proportion approaches 0.50 c) as population proportion approaches 1.00 d) as the sample size increases
b) as population proportion approaches 0.50
If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a: a) key work location b) bottle neck c) place not to work d) project process location e) none of these
b) bottle neck
What technique is based on computing the quantity of goods a company needs to sell to just cover its costs? a) net present value b) break-even analysis c) internal rate of return d) activity based costing e) variable costing
b) break-even analysis
When using SPC if you plot the variable of interest against a timeline you are using a) scatter diagrams b) control charts c) fishbone diagrams d) pareto charts e) flow charts
b) control charts
Decisions regarding which of the following are not part of the production process infrastructure? a) organization of workers b) facilities c) worker pay d) quality control measures e) management policies
b) facilities
A recent change in supply chain management has been the: a) need for faster computers. b) green supply chain management requirement. c) requirement for advanced educational degrees. d) increased government regulation. e) need for smaller ocean transportation methods.
b) green supply chain management requirement.
What movement started with the publication of the results of the Hawthorne studies? a) scientific management b) human relations c) management science d) marketing research e) operations management
b) human relations
The standard error of the mean for a sample of 100 is 30. In order to cut the standard error of the mean to 15, we would a) increase the sample size to 200 b) increase the sample size to 400 c) decrease the sample size to 50 d) decrease the sample to 25
b) increase the sample size to 400
When does productivity increase? a) inputs increase while outputs remain the same b) inputs decrease while outputs remain the same c) outputs decrease while inputs remain the same d) inputs and outputs increase proportionally e) none of the above
b) inputs decrease while outputs remain the same
Which of the following operations management concepts did not evolve from scientific management? a) moving assembly lines b) interchangeable parts c) stopwatch time studies d) piece rate incentives e) setting time standards for task performance
b) interchangeable parts
What outsourcing functions does UPS provide for clients? a) accounting and inventories b) inventories and deliveries c) accounting and deliveries d) accounting and maintenance e) deliveries and maintenance
b) inventories and deliveries
Leveraging core competence is about sharing: a) workers b) knowledge c) machines d) expenses e) financial hedges
b) knowledge
Which product and service strategy is typically seen in repetitive operations? a) assemble-to-deliver b) make-to-stock c) assemble-to-order d) make-to-order e) make-to-package
b) make-to-stock
Which of the following is not a fixed cost? a) land rent b) materials c) overhead d) taxes e) insurance
b) materials
Which of the following is not typically considered to be a core competency? a) workforce b) mission c) market understanding d) technology e) facilities
b) mission
Which of the following is true regarding the relative predictability of the cycle of new product introductions? a) new car models are predictable, but new fashion and new skin care products are not b) new car models and new fashion are predictable, but new skin care products are not c) new car models, new fashion, and new skin care products are all predictable d) new car models, new fashion, and new skin care products are all unpredictable e) new fashion and new skin care products are predictable, but new car models are not
b) new car models and new fashion are predictable, but new skin care products are not
Which of the following is correct sequence for relating product design, process selection, and arrangement of equipment in the factory? a) product design determines arrangement of equipment which determines process selection b) product design determines process selection which determines arrangement of equipment c) process selection determines product design which determines arrangement of equipment d) process selection determines arrangement of equipment which determines product design e) arrangement of equipment determines process selection which determines product design
b) product design determines process selection which determines arrangement of equipment
What are companies that have low customer contact and are capital intensive; yet provide a service, called? a) pseudo-manufacturing organizations b) quasi-manufacturing organizations c) hierarchical manufacturing organizations d) service factories e) servifacturing organizations
b) quasi-manufacturing organizations
Which of the following would not be a basic element into which a job would be split when using predetermined time data? a) reach b) sort c) grasp d) insert e) turn
b) sort
Sampling distributions describe the distribution of a) parameters b) statistics c) both parameters and statistics d) neither parameters nor statistics
b) statistics
Which of the following is not true with respect to strategic and tactical decisions? a tactical decisions focus on more specific day-to-day decisions b) tactical decisions determine the direction for strategic decisions c) tactical decisions provide feedback to strategic decisions d) tactical decisions are made more frequently and routinely e) tactical decisions must be aligned with strategic decisions
b) tactical decisions determine the direction for strategic decisions
A study is underway in Yosemite National Forest to determine the adult height of American pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American pines. The study involves collecting heights from 250 randomly selected adult American pine trees and analyzing the results. Identify the population from which the study was sampled. a) The 250 randomly selected adult American pine trees b) The 25,000 adult American pine trees in the forest c) All the adult American pine trees taller than 60 feet d) All American pine trees, of any age, in the forest
b) the 25,000 adult American pine trees in the forest
Environmental scanning would not provide information on: a) sources of highly trained workers b) the firm's internal inefficient distribution system c) opportunities and threats d) changes in information technology e) changes in global competition
b) the firm's internal inefficient distribution system
In a right-skewed distribution a) the median equals the arithmetic mean b) the median is less than the arithmetic mean c) the median is greater than the arithmetic mean d) none of the above
b) the median is less than the arithmetic
Online retailing, or B2C, has shifted: a) the cost of doing business. b) the power from the suppliers to the consumers. c) the way the internet works. d) internal corporate power to the IT department. e) corporate funding levels to the IT department.
b) the power from the suppliers to the consumers.
The test for the equality of two population variances is based on a) the difference between the 2 sample variances. b) the ratio of the 2 sample variances. c) the difference between the 2 population variances. d) the difference between the sample variances divided by the difference between the sample means.
b) the ratio of the 2 sample variances
How many scores in the distribution are used to compute the range? a. only 1 b. 2 c. 50% of them d. all of the scores
b. 2
A vertical line is drawn through a normal distribution at z = -1.00. How much of the distribution is located between the line and the mean? a. 15.87% b. 34.13% c. 84.13% d. -15.87%
b. 34.13%
What is the first step in the calculation of (ΣX)^2? a. Square each score. b. Add the scores. c. Subtract 2 points from each score. d. Add the X - 2 values.
b. Add the scores
Which of the following statements is not true about cloud computing? a. It is the fastest-growing form of computing. b. It removes the concern about data and systems security for businesses. c. It allows smaller firms to use resources previously unaffordable. d. It relies on the Internet as the platform for delivering services to users. e. Charges for cloud resources are based on resources actually used.
b. It removes the concern about data and systems security for businesses.
________ are designed to have a generalized capability to learn. a. Knowledge-based systems b. Neural networks c. Fuzzy logic systems d. Expert systems e. Genetic algorithms
b. Neural networks
________ are ads that appear while subscribers are surfing online services or Web sites, including banners, pop-up windows, "tickers," and "roadblocks." a. Online infomercials b. Online ads c. Online broadcasts d. Online bullets
b. Online ads
Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result? a. Affordable method b. Percentage-of-Sales method c. Competitive-parity method d. Objective-and-task method
b. Percentage-of-Sales method
___________ is a person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment. a. Psychographics b. Personality c. Demographics d. Lifestyle
b. Personality
Setting call objectives is done during which of the following stages of the selling process? a. Prospecting b. Pre approach c. Approach d. Handling objections
b. Pre approach
____________ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. a. Prospecting b. Pre approach c. Approach d. Handling objections
b. Pre approach
________ is quoted as saying that "everyone lives by selling something. a. Bill Gates b. Robert Louis Stevenson c. Arthur Miller d. Henry Ford
b. Robert Louis Stevenson
All of the following are tools or technologies for extracting information from unstructured data sets except: a. sentiment analysis software b. SQL queries c. Hadoop d. a non-relational DBMS e. text mining
b. SQL queries
3M runs a Pollution Prevention Pays program that has led to a substantial reduction in pollution and costs. This would be an example of responding to which of the following? a. Nader's raiders. b. The "green movement." c. Governmental regulation. d. International competition.
b. The "green movement."
Which of the following statements about client/server computing is not true? a. The client provides the user interface. b. The bulk of processing occurs on the client. c. Computing on the Internet is based on the client/server model. d. The client is normally a desktop or laptop computer. e. The server provides security, remote access, and user authentication.
b. The bulk of processing occurs on the client.
A university is an example of which layout type? a) inverted b) hybrid c) process d) fixed position e) product
c) process
A teacher gave a reading test to a class of 5th-grade students and computed the mean, median, and mode for the test scores. Which of the following statements cannot be an accurate description of the scores? a. The majority of the students had scores above the mean. b. The majority of the students had scores above the median. c. The majority of the students had scores above the mode. d. All of the other options are false statements.
b. The majority of the students had scores above the median
Which of the following is a fundamental difference between the t statistic and a z-score? a. The t statistic uses the sample mean in place of the population mean. b. The t statistic uses the sample variance in place of the population variance. c. The t statistic computes the standard error by dividing the standard deviation by n - 1 instead of dividing by n. d. All of the above are differences between t and z.
b. The t statistic uses the sample variance in place of the population variance
What is the foundation technology for web services? a. HTML b. XML c. SOAP d. UDDI e. Java
b. XML
Traditionally, companies have defined their businesses in product terms or in technological terms. However, mission statements should be all of the following EXCEPT : a. market oriented. b. a statement of religion. c. motivating. d. based on distinctive competencies.
b. a statement of religion.
The goal of the marketing logistics system should be to provide: a. a targeted level of promotional support. b. a targeted level of customer service at the least cost. c. a targeted level of transportation expense ratio. d. a targeted level of field support.
b. a targeted level of customer service at the least cost.
The type of trade-promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products in some way is called a(n): a. discount. b. allowance. c. premium. d. rebate.
b. allowance.
Catalog marketing is big business in the United States. The average household receives catalogs per year. a. 25 b. 50 c. 75 d. 100
c. 75
Which of the following is NOT one of the five stages of the buyer decision process? a. need recognition b. brand identification c. information search d. purchase decision
b. brand identification
If your company were to make light bulbs to be used in photocopiers, you would most likely be selling to a ________ market. a. reseller b. business c. government d. service
b. business
When an international seller sells a plant, equipment, or technology to another country and agrees to take payment in the resulting products, it is called: a. barter. b. buy-back. c. counter purchase. d. like-value exchange.
b. buy-back.
More and more salespeople are being evaluated and compensated based on different measures than in the past. All of the following are illustrations of those measures EXCEPT : a. long-term customer satisfaction. b. competitive predatory pricing performance. c. full customer service. d. retention rates.
b. competitive predatory pricing performance.
In controlling network traffic to minimize slow-downs, a technology called ________ is used to examine data files and sort low-priority data from high-priority data. a. high availability computing b. deep packet inspection c. application proxy filtering d. stateful inspection e. unified threat management
b. deep packet inspection
In evaluating messages for advertising, telling how the product is better than the competing brands aims at making the ad: a. meaningful. b. distinctive. c. believable. d. remembered.
b. distinctive.
The use of multiple computers linked by a communications network for processing is called: a. grid computing b. distributed processing c. client/server computing d. centralized processing e. supercomputing
b. distributed processing
A "three-day cooling off period" in which buyers can cancel a contract after re-thinking it is to protect the consumer from: a. creative selling b. high pressure selling c. detail selling d. hard core selling
b. high pressure selling
The stage is the product life cycle that focuses on expanding market and creating product awareness and trial is the: a. decline stage. b. introduction stage. c. growth stage. d. maturity stage.
b. introduction stage.
A company faces several major decisions in international marketing. The first of these decisions is often: a. deciding whether to go international. b. looking at the global marketing environment. c. deciding which markets to enter. d. deciding how to enter markets.
b. looking at the global marketing environment.
All of the following are ways that marketing plays a key role in the company's strategic planning EXCEPT : a. marketing provides a guiding philosophy. b. marketing is the only discipline that can provide a formal structure for the planning effort. c. marketing provides inputs to strategic planners by helping to identify attractive market opportunities. d. within individual business units, marketing designs strategies for reaching the unit's objectives.
b. marketing is the only discipline that can provide a formal structure for the planning effort.
A distribution is positively skewed. Which is the most probable order for the three measures of central tendency? a. mean = 40, median = 50, mode = 60 b. mean = 60, median = 50, mode = 40 c. mean = 40, median = 60, mode = 50 d. mean = 50, median = 50, mode = 50
b. mean = 60, median = 50, mode = 40
All of the following would be ways to segment within the category of psychographic segmentation EXCEPT : a. social class. b. occupation. c. lifestyle. d. personality.
b. occupation.
A set of scores is presented in a frequency distribution histogram. If the histogram shows a series of bars that tend to decrease in height from left to right, then what is the shape of the distribution? a. Symmetrical b. positively skewed c. negatively skewed d. normal
b. positively skewed
The chi-square distribution is ______. a. symmetrical with a mean of zero b. positively skewed with all values greater than or equal to zero c. negatively skewed with all values greater than or equal to zero d. symmetrical with a mean equal to n - 1
b. positively skewed with all values greater than or equal to zero
A _______________ is the way consumers perceive an actual or potential product. a. product idea b. product image c. product concept d. product feature
b. product image
The ______________ holds that consumers will favor products that are available and highly affordable (therefore, work on improving production and distribution efficiency). a. product concept b. production concept c. production cost expansion concept d. marketing concept
b. production concept
All of the following are methods by which a company can divide up its sales responsibilities EXCEPT: a. territorial sales force structure. b. psychographic trait sales force structure. c. product sales force structure. d. customer sales force structure.
b. psychographic trait sales force structure.
Successful service companies focus their attention on both their customers and their employees. They understand which links service firm profits with employee and customer satisfaction. a. internal marketing b. service-profit chains c. interactive marketing d. service differentiation
b. service-profit chains
Consumer goods with unique characteristics or brand identification often requiring a special purchase effort are called: a. custom products. b. specialty products. c. convenience products. d. shopping products.
b. specialty products.
A researcher is interested in the sleeping habits of American college students. A group of 50 students is interviewed and the researcher finds that these students sleep an average of 6.7 hours per day. For this study, the average of 6.7 hours is an example of a(n) a. parameter b. statistic c. population d. sample
b. statistic
In terms of special product life cycles, a _______is a basic and distinctive mode of expression. a. genre b. style c. fashion d. fad
b. style
All of the following are commonly recognized promotion budget formats EXCEPT : a. the affordable method. b. the LIFO method. c. the percentage-of-sales method. d. the objective-and-task method.
b. the LIFO method.
Standard deviation is probably the most commonly used value to describe and measure variability. Which of the following accurately describes the concept of standard deviation? a. the average distance between one score and another b. the average distance between a score and the mean c. the total distance from the smallest score to the largest score d. one half of the total distance from the smallest score to the largest score
b. the average distance between a score and the mean
All of the following factors can affect the attractiveness of a market segment EXCEPT : a. the presence of many strong and aggressive competitors. b. the likelihood of government monitoring. c. actual or potential substitute products. d. the power of buyers in the segment.
b. the likelihood of government monitoring.
In a multi-tiered network: a. the work of the entire network is centralized b. the work of the entire network is balanced over several levels of servers. c. processing is split between clients and servers. d. processing is handled by multiple, geographically remote clients. e. users interface with the server rather than the client.
b. the work of the entire network is balanced over several levels of servers.
You have collected data on the monthly seasonally adjusted civilian unemployment rate for the United States over a 10-year period. Which of the following is the best for presenting the data? a) A contingency table b) A stem-and-leaf display c) A time-series plot d) A side-by-side bar chart
c) A time series plot
Most analysts focus on the cost of tuition as the way to measure the cost of a college education. But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand University wishes to estimate the textbook costs of first-year students at Drummand. To do so, she monitored the textbook cost of 250 first-year students and found that their average textbook cost was $600 per semester. Identify the population of interest to the researcher. a) All Drummand University students b) All college students c) All first-year Drummand University students d) The 250 students that were monitored
c) All first-year Drummand University students
Which of the following is not a remedy for the bullwhip effect? a) Allocate units based on past demand b) Price stabilization c) Base forecasts on demand coming from the immediate downstream customer d) Eliminate order batching e) Information sharing
c) Base forecasts on demand coming from the immediate downstream customer
Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is: a) a tier one supplier. b) a tier two supplier. c) a tier three supplier. d) a tier four supplier. e) not in the supply chain.
c) a tier three supplier.
If either event A or event B must occur, then events A and B are said to be a) mutually exclusive b) independent c) collectively exhaustive d) None of the above
c) collectively exhaustive
Highly-skilled hourly workers would be most needed by companies employing which of the following competitive priorities? a) location b) cost c) flexibility d) development speed e) time
c) flexibility
The first step in making a capacity planning decision is ______________________. a) evaluate capacity alternatives b) implementation c) identify capacity requirements d) develop capacity alternatives e) weight capacity objectives
c) identify capacity requirements
Information Technology does not assist the firm in: a) information storage b) information processing c) information creation d) intra firm information communication e) inter firm information communication
c) information creation
The broad view of JIT is now often termed __________________________. a) vendor-managed inventory b) business process reengineering c) lean production d) cycle time management e) e-distribution
c) lean production
What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles? a) project processes b) batch processes c) line processes d) continuous processes e) recycle processes
c) line processes
What is typically used to quantitatively compare the effectiveness of layouts? a) trial and error b) process control charts c) load-distance model d) mean absolute deviation (MAD) e) exponential smoothing
c) load-distance model
A is a numerical quantity computed from the data of a sample and is used in reaching a decision on whether or not to reject the null hypothesis. a) significance level b) critical value c) test statistic d) parameter
c) test statistic
When discussing the capacity of a facility, we need what two types of information? a) the amount of available capacity and the productivity of workers b) the speed of the machines and the availability of labor c) the amount of available capacity and the effectiveness of capacity use d) the investment in equipment and the availability of labor e) the investment in equipment and the number of workers
c) the amount of available capacity and the effectiveness of capacity use
In a correlational study, how many variables are measured for each individual and how many groups of scores are obtained? a. 1 variable and 1 group b. 1 variable and 2 groups c. 2 variables and 1 group d. 2 variables and 2 groups
c. 2 variables and 1 group
The results of a hypothesis test are reported as follows: "t(20) = 2.70, p , .05." Based on this report, how many individuals were in the sample? a. 19 b. 20 c. 21 d. cannot be determined from the information provided
c. 21
In a grouped frequency distribution one interval is listed as 20-24. Assuming that the scores are measuring a continuous variable, what is the width of this interval? a. 3 points b. 4 points c. 5 points d. 44 points
c. 5 points
What is the median for the following set of scores: Scores: 3, 4, 6, 8, 9, 10, 11 a. 7 b. 7.5 c. 8 d. 8.5
c. 8
When a company reviews sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives, they are in which of the following new process development stages? a. Concept development and testing. b. Commercialization. c. Business analysis. d. Marketing strategy development.
c. Business analysis.
The Internet is based on which three key technologies? a. TCP/IP, HTML, and HTTP b. TCP/IP, HTTP, and packet switching c. Client/server computing, packet switching, and the development of communications standards for linking networks and computers d. Client/server computing, packet switching, and HTTP e. Email, instant messaging, and newsgroups
c. Client/server computing, packet switching, and the development of communications standards for linking networks and computers
Setting the promotion budget so as to match the budgets of the competition is characteristic of which of the following budget methods? a. Affordable method b. Percentage-of-Sales method c. Competitive-parity method d. Objective-and-task method
c. Competitive-parity method
If advertising constantly sends out messages about materialism, sex, power, and status, which of the following categories of social criticism most closely matches this problem? a. Too much advertising. b. Too few social goods. c. Cultural pollution. d. Too much political power.
c. Cultural pollution.
150. Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail price. a. Deceptive promotion b. Deceptive packaging c. Deceptive pricing d. Deceptive cost structure
c. Deceptive pricing
The advantages of audience selectivity, no ad competition and personalization apply to which type of media? a. Newspapers b. Television c. Direct Mail d. Radio
c. Direct Mail
All of the following are intelligent agents that are able to respond to human voice commands with useful information in voice or written form except: a. Apple's Siri b. Microsoft's Cortana c. FaceBook's DeepFace d. Amazon's Alexa e. Google Now
c. FaceBook's DeepFace
______________ is screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible. a. Idea generation b. Concept development and testing c. Idea screening d. Brainstorming
c. Idea screening
Which of the following is not an example of a computer used as a target of crime? a. Knowingly accessing a protected computer to commit fraud b. Accessing a computer system without authority c. Illegally accessing stored electronic communication d. Threatening to cause damage to a protected computer e. Breaching the confidentiality of protected computerized data
c. Illegally accessing stored electronic communication
__________________ are products bought by individuals and organizations for further processing or for use in conducting a business. a. Consumer products b. Services c. Industrial products d. Specialty products
c. Industrial products
___________________________________ is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products. a. The promotion mix b. Integrated international affairs c. Integrated marketing communications d. Integrated demand characteristics
c. Integrated marketing communications
_________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. a. Mass marketing b. Market segmentation c. Market targeting d. Market positioning
c. Market targeting
______ has the advantage of being high in selectivity; low cost; immediacy; and interactive capabilities. a. Direct Mail b. Outdoor c. Online d. Radio
c. Online
Which of the following is not a characteristic of packet switching? a. Packets travel independently of each other. b. Packets are routed through many different paths. c. Packet switching requires point-to-point circuits. d. Packets include data for checking transmission errors. e. Packets are reassembled into the original message when they reach their destinations.
c. Packet switching requires point-to-point circuits.
The choice between high markups and high volume is part of which of the following retailer marketing decisions? a. Target market decisions b. Product assortment and services decisions c. Pricing decisions d. Promotion decisions
c. Pricing decisions
_________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices. a. Optional-product pricing b. Captive-product pricing c. Product line pricing d. By-product pricing
c. Product line pricing
________ refers to the ability of a system to expand to serve a number of users without breaking down. a. Capacity planning b. Management future planning c. Scalability d. Guaranteed levels of service e. Service level agreements
c. Scalability
What is meant by a biased statistic? a. The average value for the statistic overestimates the corresponding population parameter. b. The average value for the statistic underestimates the corresponding population parameter. c. The average value for the statistic either overestimates or underestimates the corresponding population parameter. d. The average value for the statistic is exactly equal to the corresponding population parameter.
c. The average value for the statistic either overestimates or underestimates the corresponding population parameter.
In 1985, the Coca-Cola Company made a classic marketing blunder with its deletion of its popular Coca-Cola product and introduction of what it called New Coke. Analysts now believe that most of the company's problems resulted from poor marketing research. As the public demanded their "old Coke" back, the company relented and reintroduced Coca-Cola Classic (which has regained and surpassed its former position) while New Coke owns only 0.1 percent of the market. Which of the following marketing research mistakes did Coca-Cola make? a. They did not investigate pricing correctly and priced the product too high. b. They did not investigate dealer reaction and had inadequate distribution. c. They defined their marketing research problem too narrowly. d. They failed to account for the Pepsi Challenge taste test in their marketing efforts.
c. They defined their marketing research problem too narrowly.
Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business? a. To protect companies from each other. b. To protect consumers from unfair business practices. c. To protect the interests of society. d. To protect businesses from unfair consumer demands.
c. To protect the interests of society.
The toy manufacturer you work for wants to exchange data with a chain of toy stores in order to improve its distribution and speed to market. The toy stores use different software than your firm. Which of the following tools or technologies presents the best solution? a. Mashups b. Extranet c. Web Services d. Cloud computing e. Intranet
c. Web Services
Which of the following is not an example of binomial data? Classifying college students according to a. gender: male, female b. age: 21 or younger, older than 21 c. college class: freshman, sophomore, junior, senior d. registered voter: yes, no
c. college class: freshman, sophomore, junior, senior
The practice of going after a large share of a smaller market or subsets of a few markets is called: a. undifferentiated marketing. b. differentiated marketing. c. concentrated marketing. d. turbo marketing.
c. concentrated marketing.
Many U.S. firms have sought relief from foreign competition by demanding protectionism policies by the U.S. government. A better way for companies to compete is to expand into foreign markets and: a. lower prices. b. increase promotion both at home and abroad. c. continuously improve their products at home. d. join into cartels at home.
c. continuously improve their products at home.
Software that organizes, manages, and processes business data, such as data concerned with inventory, customers, and vendors, is called: a. system software b. application software c. data management software d. network software e. web services software
c. data management software
A company's compensation plan should reflect its overall marketing strategy. For example, if the overall strategy is to grow rapidly and gain market share, the compensation plan should reward: a. loyalty and perseverance. b. spot selling and old product rejuvenation. c. high sales performance and encourage capturing new accounts. d. high pressure situations and competitive reaction.
c. high sales performance and encourage capturing new accounts.
All of the following are considered to be drawbacks of local marketing EXCEPT : a. it can drive up manufacturing and marketing costs by reducing economies of scale. b. it can create logistical problems when the company tries to meet varied requirements. c. it can attract unwanted competition. d. it can dilute the brand's overall image.
c. it can attract unwanted competition.
The total number of items that the company carries within its product lines refers to the of the product mix. a. width b. depth c. length d. consistency
c. length
Software applications that combine different components of online software applications are referred to as: a. integrated software b. widgets c. mashups d. grid computing e. web services
c. mashups
1. A population has a mean of μ = 35 and a standard deviation of σ = 5. After 3 points are added to every score in the population, what are the new values for the mean and standard deviation? a. μ = 35 and σ = 5 b. μ = 35 and σ = 8 c. μ = 38 and σ = 5 d. μ = 38 and σ = 8
c. mu=35 and std=5
The type of sales presentation approach that requires good listening and problem-solving skills is the: a. canned approach. b. formula approach. c. need-satisfaction approach. d. critical-thinking approach.
c. need-satisfaction approach.
The orange juice manufacturers know that orange juice is most often consumed in the mornings. However, they would like to change this and make the drink acceptable during other time periods during the day. Which form of segmentation would they need to work with and establish strategy reflective of their desires? a. gender segmentation b. benefit segmentation c. occasion segmentation d. age and life-cycle segmentation
c. occasion segmentation
The ______________ is a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others. a. facilitator b. referent actor c. opinion leader d. social role player
c. opinion leader
When a marketing research organization chooses a segment of the population that represents the population as a whole, they have chosen a a. group b. bi-variant population c. sample d. market target
c. sample
Yahoo, Info seek, and Excite are all called: a. browsers. b. Webcasters. c. search engines. d. software.
c. search engines.
In a relational database, the three basic operations used to develop useful sets of data are: a. select, project, and where. b. select, join, and where. c. select, project, and join. d. select, from, and join. e. who, what, and where.
c. select, project, and join.
A(n) ______________ is a retail store that carries a narrow product line with a deep assortment within that line. a. shopping goods store b. convenience store c. specialty store d. department store
c. specialty store
According to Engel's law, as income rises: a. the percentage spent on food rises. b. the percentage spent on housing increases. c. the percentage spent on other categories increases. d. the percentage spent on savings remains constant.
c. the percentage spent on other categories increases.
An authentication system in which a user must provide two types of identification, such as a bank card and PIN, is called: a. smart card authentication. b. biometric authentication. c. two-factor authentication. d. symmetric key authorization. e. token authentication
c. two-factor authentication.
The Wheeler-Lea Act gives the Federal Trade Commission the power to regulate: a. interstate commerce. b. marketing ethics. c. unfair and deceptive acts or practices. d. competitive advertising of objective product benefits.
c. unfair and deceptive acts or practices.
The American Marketing Association suggests a list of code of ethics. All of the following are ethics suggested in the area of distribution EXCEPT : a. not manipulating the availability of a product for purpose of exploitation. b. not using coercion in the marketing channel. c. using gray marketers whenever possible to save the consumer money. d. not exerting undue influence over the reseller's choice to handle a product.
c. using gray marketers whenever possible to save the consumer money.
When was the first mathematical model for inventory management developed? a) 1770 b) 1865 c) 1900 d) 1913 e) 1930
d) 1913
Who created "scientific management?" a) James Watt b) Adam Smith c) Eli Whitney d) Frederick W. Taylor e) Henry Ford
d) Frederick W. Taylor
Where was the just-in-time philosophy developed? a) Germany b) United States c) Canada d) Japan e) Italy
d) Japan
Most analysts focus on the cost of tuition as the way to measure the cost of a college education. But incidentals, such as textbook costs, are rarely considered. A researcher at Drummand University wishes to estimate the textbook costs of first-year students at Drummand. To do so, she monitored the textbook cost of 250 first-year students and found that their average textbook cost was $600 per semester. Identify the sample in the study. a) All Drummand University students. b) All college students. c) All first-year Drummand University students. d) The 250 students that were monitored.
d) The 250 students that were monitored
According to the financial calculations of the make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose? a) Make b) Buy c) The option with the lower variable costs d) The option with the higher variable costs
d) The option with the higher variable costs
Which of the following statements is not true about the level of significance in a hypothesis test? a) The larger the level of significance, the more likely you are to reject the null hypothesis. b) The level of significance is the maximum risk we are willing to accept in making a Type I error. c) The significance level is also called the level. d) The significance level is another name for Type II error.
d) The significance level is another name for Type II error
Reverse engineering is: a) altering the basic design based on user input. b) reengineering a failing product. c) acquiring a competitor's product and relabeling it for sale. d) acquiring a competitor's product and studying its design features. e) changing your mind on the previous design.
d) acquiring a competitor's product and studying its design features.
Which of the following is not a positive attribute of Multiple Suppliers? a) provides a greater flexibility of volume b) eliminates a supplier's dependence on the purchaser c) probability of assured supply is better d) deliveries can be schedule more easily e) allows for testing of new suppliers without jeopardizing the flow of materials
d) deliveries can be schedule more easily
Operations Management is responsible for increasing the organization's efficiency, which means the company will be able to __________. a) add to the engineering process b) take for granted current operations c) increase the number of positions under the manager's position d) eliminate activities that do not add value e) increasing purchasing opportunities
d) eliminate activities that do not add value
JIT can be traced back to the early 1900's but no one can argue that the philosophy gained worldwide prominence a) at the close of WWII b) in the 1950s c) in the 1960s d) in the 1970s e) in the 1980s
d) in the 1970s
Suppose that last month the cost of inputs summed to $100,000, and the value of outputs summed to $800,000. For which of the following values this month would productivity increase? a) inputs = $110,000, outputs = $800,000 b) inputs = $50,000, outputs = $400,000 c) inputs = $200,000, outputs = $1,600,000 d) inputs = $100,000, outputs = $820,000 e) inputs = $300,000, outputs = $1,600,000
d) inputs = $100,000, outputs = $820,000
The finance function is responsible for: a) sales, generating customer demand, and understanding customer wants and needs. b) plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations. c) planning, coordinating, and controlling the resources needed to produce a company's products and services. d) managing cash flow, current assets, and capital investments. e) efficiency and costs.
d) managing cash flow, current assets, and capital investments.
A key feature of scientific management is that workers are motivated only by __________________. a) love b) power c) challenging work d) money e) fame
d) money
An example of an operation that does not add value is ____________________________. a) removing iron ore from the ground and shipping it to a steel mill b) filling the underground gasoline tanks at a service station c) making a wedding cake d) moving components to a warehouse for storage until the factory needs them e) moving luggage from a cab to the airport ticket counter
d) moving components to a warehouse for storage until the factory needs them
At The GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations? a) engineering b) human resources c) marketing d) operations management e) purchasing
d) operations management
What are the two primary objectives of aggregate planning? a) material availability and supplier size b) total cost and production rate c) input rate and training for employees d) output rate and workforce size e) transportation rate and workforce size
d) output rate and workforce size
One disadvantage of using undertime is a) employee hourly rate decreases b) employee hourly rate increases c) product labor cost decreases d) product labor cost increases e) product labor cost is constant
d) product labor cost increases
Which of the following is not associated with descriptive statistics? a) mean b) standard deviation c) range d) proportion e) measure of the distribution of data
d) proportion
Which of the following is most likely a population as opposed to a sample? a) respondents to a newspaper survey b) the first 5 students completing an assignment c) every third person to arrive at the bank d) registered voters in a county
d) registered voters in a country
The concept of diseconomies of scale ________________________. a) states that the average cost of a unit produced is reduced when the amount of output increases b) is not realistic c) is not valid for regulated industries d) states that beyond a certain point the cost of each additional unit made increases e) is an approach for measuring unusable output
d) states that beyond a certain point the cost of each additional unit made increases
The power of a statistical test is a) the probability of not rejecting H0 when it is false b) the probability of rejecting H0 when it is true c) the probability of not rejecting H0 when it is true d) the probability of rejecting H0 when it is false
d) the probability of rejecting H0 when it is false
What is the standard deviation for the following population of scores? Scores: 1, 3, 7, 4, 5 a. 20 b. 5 c. 4 d. 2
d. 2
For the scores shown in the following stem and leaf display, what is the lowest score in the distribution? 9 374 8 945 7 7042 6 68 5 14 a. 7 b. 15 c. 50 d. 51
d. 51
What is the value of Σ(X - 2) for the following scores: 6, 2, 4, 2? a. 12 b. 10 c. 8 d. 6
d. 6
Which of the following is an open-source operating system designed for mobile devices? a. iOS b. OS X c. Chrome d. Android e. Apache HTTP
d. Android
Which of the following statements about data warehouses is not true? a. They store supply data to be used across the enterprise for management analysis and decision making. b. Data warehouse systems provide a range of ad hoc and standardized query tools, analytical tools, and graphical reporting facilities. c. They may include data from website transactions. d. Data warehouse systems provide easy-to-use tools for managers to easily update data. e. Data warehouses make data available for anyone to access as needed.
d. Data warehouse systems provide easy-to-use tools for managers to easily update data.
The biggest or greatest amount of involvement in a foreign market comes through which of the following? a. Exporting b. Joint venturing c. Licensing d. Direct investment
d. Direct investment
___________________ is the general term for a buying and selling process that is supported by electronic means. a. Internet commerce b. Web commerce c. Computer commerce d. Electronic commerce
d. Electronic commerce
Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources? a. Marketing intelligence b. Marketing research c. Customer profiles d. Internal databases
d. Internal databases
________ is an operating system-independent, processor-independent, object-oriented programming language that has become a leading interactive programming environment for the web. a. XML b. SOA c. HTML d. Java e. COBOL
d. Java
________ help users gain information from large amounts of geographically linked data. a. Data Visualization Tools b. GIS c. GDSS d. Location analytics tools e. CAD systems
d. Location analytics tools
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is called: a. Marketing strategy. b. Marketing control. c. Marketing analysis. d. Marketing implementation.
d. Marketing implementation.
Which of the following statements about neural networks is not true? a. Neural network applications are used to address problems of control and optimization. b. Neural networks are being used to help detect credit card fraud. c. Neural networks are being used to screen patients for coronary artery disease. d. Neural networks are best used as a substitute for human decision makers. e. Neural networks are being used to predict the performance of equities.
d. Neural networks are best used as a substitute for human decision makers.
When a company enters a new product category for which its current brand names are not appropriate, it will likely follow which of the following brand strategies? a. Product extensions b. Line extensions c. Brand extensions d. New brands
d. New brands
The most logical budget setting method is found in the list below. Which is it? a. Affordable method b. Percentage-of-Sales method c. Competitive-parity method d. Objective-and-task method
d. Objective-and-task method
Cognitive dissonance occurs in which stage of the buyer decision process model? a. Need recognition b. Information search c. Evaluation of alternatives d. Post purchase behavior
d. Post purchase behavior
R&D and engineering first produce the product concept into a physical product during which of the following stages of the new product development process? a. Concept development and testing b. Marketing strategy c. Business analysis d. Product development
d. Product development
The use of price points for reference to different levels of quality for a company's related products is typical of which product-mix pricing strategy? a. Optional-product pricing b. Captive-product pricing c. By-product pricing d. Product line pricing
d. Product line pricing
Which of the following is an example of a high-velocity automated decision process? a. Strategic decision making b. Operational decision making c. Credit granting decisions d. Providing online search results e. Discovering and identifying the nature of a decision problem
d. Providing online search results
_________ beliefs and values are open to some degree of change. a. Crucial b. Core c. Primary d. Secondary
d. Secondary
When companies make marketing decisions by considering consumers' wants and the long-run interests of the company, consumer, and the general population, they are practicing which of the following principles? a. Innovative marketing b. Consumer-oriented marketing c. Value marketing d. Societal marketing
d. Societal marketing
Which of the following types of computers are used for weather forecasting on a national or worldwide scale? a. Mainframe b. Server c. Minicomputer d. Supercomputer e. PC
d. Supercomputer
Pricing to cover variable costs and some fixed costs, as in the case of some automobile distributorships that sell below total costs, is typical of which of the following pricing objectives? a. Current profit maximization b. Product quality leadership c. Market share leadership d. Survival
d. Survival
If a firm were to bid to do a "turnkey" operation where they would choose a building site, designing a cement factory to build the plant, hire construction crews, assemble materials and equipment to run the new factory, and turn over the finished factory ready to operate to the owners, the firm would be using which of the following? a. Core process products selling b. Design products selling c. Reciprocal selling d. Systems selling
d. Systems selling
In an example discussed in your text, Johnson & Johnson's recall of their Tylenol product following the discovery that several bottles of Tylenol had been laced with cyanide is consistent with which business philosophy? a. The marketing concept. b. The product concept. c. The selling concept. d. The societal marketing concept.
d. The societal marketing concept.
Pre-configured hardware-software systems that use both relational and non-relational technology optimized for analyzing large data sets are referred to as: a. hybrid DBMS b. Hadoop c. BI d. analytic platforms e. data marts
d. analytic platforms
One of the most promising developments in multivariable segmentation is called where a host of demographic and socioeconomic factors are used. a. terragraphic segmentation b. fermagraphic segmentation c. geothermy segmentation d. geodemographic segmentation
d. geodemographic segmentation
All of the following are criticisms leveled against marketing by critics EXCEPT : a. harming consumers through high prices. b. harming consumers through deceptive practices. c. harming consumers through high-pressure selling. d. harming consumers through too many product choices.
d. harming consumers through too many product choices.
When Coca-Cola and Nestle formed a joint venture to market a ready-to-drink coffee and tea worldwide, the type of marketing system that was formed would best be described as being a(n): a. vertical marketing system b. parallel marketing system c. diversified marketing system d. horizontal marketing system
d. horizontal marketing system
When hackers gain access to a database containing your personal private information, this is an example of: a. phishing b. spoofing c. social engineering d. identity theft e. pharming
d. identity theft
A negative value for a correlation indicates which of the following? a. much stronger relationship than if the correlation were positive b. a much weaker relationship than if the correlation were positive c. increases in X tend to be accompanied by increases in Y d. increases in X tend to be accompanied by decreases in Y
d. increases in X tend to be accompanied by decreases in Y
A(n) _________ are computerized collections of information obtained from data sources within the company. a. retrieval systems b. marketing research reports c. flow diagrams and PERT charts d. internal databases
d. internal databases
Joining with foreign companies to produce or market products and services is called: a. direct exporting. b. indirect exporting. c. licensing. d. joint venturing.
d. joint venturing.
Successful depends on how well a company blends its people, organizational structure, decision and reward systems, and company culture into a cohesive program that supports its strategies. a. marketing strategy b. marketing control c. marketing analysis d. marketing implementation
d. marketing implementation
It is a fact that there are 24 million left-handed people in the United States, however, most marketers do not attempt to appeal to or design products for this group because there is little in the way of census data about this group. Therefore, this group fails in one of the requirements for effective segmentation. Which of the following is most likely to apply in this case? a. actionable b. substantial c. differentiable d. measurable
d. measurable
If a government uses barriers to foreign products such as biases against a foreign company's bids, or product standards that go against a foreign company's product features, the government is using: a. protectionism. b. exchange controls. c. exchange facilitators. d. nontariff trade barriers.
d. nontariff trade barriers.
The fact that services cannot be stored for later use or sale is evidence of their: a. intangibility. b. inseparability. c. variability. d. perishability.
d. perishability.
When Michael Jordan and Tiger Woods use marketing to promote their careers and improve their impact and incomes, they are using: a. cause-related marketing. b. idea marketing. c. nonprofit marketing. d. person marketing.
d. person marketing.
A ______________ is a good offered either free or at low cost as an incentive to buy a product. a. patronage reward b. spiff c. price pack d. premium
d. premium
The primary reason that many companies work to become the "low-cost producers" in their industry is because: a. they can generate more advertising. b. they can please top management. c. they can gain tax advantages. d. they can set lower prices that result in greater sales and profits.
d. they can set lower prices that result in greater sales and profits.
A client computer networked to a server computer, with processing split between the two types of machines, is called a(n) ________ architecture. a. service-oriented b. on-demand c. multi tiered client/server d. two tiered client/server e. grid
d. two tiered client/server
When producers, wholesalers, and retailers act as a unified system, they comprise a: a. conventional marketing system. b. power-based marketing system. c. horizontal marketing system. d. vertical marketing system.
d. vertical marketing system.
Wal-Mart owned Sam's club is an example of a retail form called a(n): a. factory outlet. b. super specialty store. c. seconds store. d. warehouse club.
d. warehouse club.
Of the following z-score values, which one represents the most extreme location on the left-hand side of the distribution? a. z = +1.00 b. z = +2.00 c. z = −1.00 d. z = −2.00
d. z = -2.00
When a hacker discovers a security hole in software that is unknown to the software vendor it is an example of: a. sniffing b. social engineering c. phishing d. zero-day engineering e. snooping
d. zero-day engineering
JIT considers waste anything that a) Fits in a waste basket b) Reduces production capacity c) Has been discarded d) Cannot be recycled e) Does not add value
e) Does not add value
What was the first US company to receive the Deming Prize? a) IBM b) Microsoft c) Wal-Mart d) AT&T e) Florida Power & Light
e) Florida Power & Light
JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line. a) First b) Bottleneck c) Dominant d) Most expensive e) Last
e) Last
Which activity appears to be most frequently outsourced by large companies? a) Purchasing b) Marketing c) Finance d) Accounting e) Manufacturing
e) Manufacturing
Every business is managed through what three major functions? a) accounting, finance, and marketing b) engineering, finance, and operations management c) accounting, purchasing, and human resources d) accounting, engineering, and marketing e) finance, marketing, and operations management
e) finance, marketing, and operations management
Vertical integration is a good strategic option for a manufacturing company when a) it needs several different parts and subassemblies b) it makes many different products c) its facilities are obsolete d) it uses distributed processing e) it needs one input material in large volumes
e) it needs one input material in large volumes
A higher level of vertical integration implies: a) more outsourcing and more insourcing. b) less outsourcing. c) more insourcing. d) less insourcing. e) less outsourcing and more insourcing.
e) less outsourcing and more insourcing.
What are the Institute for Supply Management's principles of ethical supply chain management conduct? a) objectivity always, loyalty to your organization, and faith in your profession b) objectivity always, justice to those with whom you deal, and faith in your profession c) objectivity always, justice to those with whom you deal, and loyalty to your organization d) objectivity always, know the law, and justice to those with whom you deal e) loyalty to your organization, justice to those with whom you deal, and faith in your profession
e) loyalty to your organization, justice to those with whom you deal, and faith in your profession
In what area does General Motors earn its highest return on capital? a) selling cars b) selling logo merchandise c) financing d) selling racing engines e) post-sales parts and service
e) post-sales parts and service
Service design differs from product design by including _____________ . a) customer needs b) marketing personnel in the decision making process c) speed d) quality e) the esthetic and psychological benefits of the product
e) the esthetic and psychological benefits of the product
What are the two key components of the operations strategy of Federal Express? a) they own their own fleet of tractor trailers, and they use a sophisticated bar code technology b) they own their own fleet of tractor trailers, and they have a large warehouse in every state c) they own their own fleet of airplanes, and they have a large warehouse in every state d) they use a sophisticated bar code technology, and they have a large warehouse in every state e) they own their own fleet of airplanes, and they use a sophisticated bar code technology
e) they own their own fleet of airplanes, and they use a sophisticated bar code technology
What percent of the Fortune 500 companies uses Twitter to communicate with their customers? a. 20 percent b. 40 percent c. 50 percent d. 60 percent e. 80 percent
e. 80 percent
Implementation controls: a. can be classified as input controls, processing controls, and output controls. b. govern the design, security, and use of computer programs and the security of data files in general throughout the organization. c. apply to all computerized applications and consist of a combination of hardware, software, and manual procedures that create an overall control environment. d. include software controls, computer operations controls, and implementation controls. e. Audit the systems development process at various points to ensure that the process is properly controlled and managed.
e. Audit the systems development process at various points to ensure that the process is properly controlled and managed.
Which of the following is considered to be the fastest-growing form of computing? a. Wearable computing b. Green computing c. Nanocomputing d. Enterprise computing e. Cloud Computing
e. Cloud Computing
Which of the following would not be classified as a knowledge work system? a. Computer-aided design b. 3D visualization system c. Investment workstations d. Virtual reality system e. Digital asset management system
e. Digital asset management system
Currently, the protocols used for secure information transfer over the Internet are: a. TCP/IP and SSL. b. S-HTTP and CA. c. HTTP and TCP/IP. d. S-HTTP and SHTML. e. SSL, TLS, and S-HTTP.
e. SSL, TLS, and S-HTTP.
Comprehensive security management products, with tools for firewalls, VPNs, intrusion detection systems, and more, are called ________ systems. a. DPI b. MSSP c. NSP d. PKI e. UTM
e. UTM
The smallest unit of data a computer can handle is called a: a. file b. record c. field d. byte e. bit
e. bit
Data mining is a tool for allowing users to: a. quickly compare transaction data gathered over many years. b. perform multidimensional data analysis. c. obtain online answers to ad hoc questions in a rapid amount of time. d. summarize massive amounts of data into much smaller, traditional reports. e. find hidden relationships in data.
e. find hidden relationships in data.
Concerns that the manufacturers of harmful products such as tobacco have influence on lawmakers to the detriment of the public interest is used as evidence of which criticism of marketing? a. Too much advertising. b. Too few social goods. c. Cultural pollution. d. Too much political power.
d. Too much political power.
Which of the following is foreign owned (even though it is traditionally thought of as a U.S. company)? a. IBM b. Xerox c. Kodak d. Universal Studios
d. Universal Studios
If Honda uses its company name to cover such different products as its automobiles, lawn mowers, and motorcycles, it is practicing which of the following strategies? a. new brand strategy b. line extension strategy c. multibrand strategy d. brand extension strategy
d. brand extension strategy
The place in the business buying behavior model where interpersonal and individual influences might interact is called the: a. environment. b. response. c. stimuli. d. buying center.
d. buying center.
A child in the United States is normally exposed to all of the following values EXCEPT : a. achievement and success. b. activity and involvement. c. material comfort. d. collectivism.
d. collectivism.
Data mining is more ________ than OLAP. a. data-focused b. multidimensional c. query oriented d. discovery driven e. streamlined
d. discovery driven
If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it has ever done before) with new products as a means to stimulate growth, the company would be following which of the following general strategies? a. market penetration b. market development c. product development d. diversification
d. diversification
The major advantage of survey research is its: a. simplicity. b. structure. c. organization. d. flexibility.
d. flexibility.
A _______ is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything. a. demand b. basic staple c. product d. service
d. service
In the general linear equation, Y = bX + a, what is the value of b called? a. X intercept b. Y intercept c. correlation between X and Y d. slope
d. slope
According to the text, the most dramatic of the environments that affect marketing and appears to be now shaping our world is the________________ environment. a. natural b. demographic c. economic d. technological
d. technological
If the field sales force has been supplied with new leads (via the telephone) that have been qualified, they have probably been assisted by: a. master salespersons. b. sales assistants. c. technical support persons. d. telemarketers.
d. telemarketers.
The Internet evolved from a network created by during the 1960s. a. the Commerce Department b. the Massachusetts Institute of Technology (MIT) c. Northwestern University d. the Defense Department
d. the Defense Department
All of the following are thought to be sources of new product ideas EXCEPT: a. internal sources. b. customers. c. competitors. d. the local library.
d. the local library.
The course of a product's sales and profits over its lifetime is called: a. the sales chart. b. the dynamic growth curve. c. the adoption cycle. d. the product life cycle.
d. the product life cycle.
Operational efficiency is: a) driving the business strategy b) ensuring the right tasks are performed c) decreasing the firm's input requirements d) increasing the firm's output e) performing operations tasks well
e) performing operations tasks well
What service converts IP addresses into more recognizable alphanumeric names? a. html b. FTP c. IP d. HTTP e. DNS
e. DNS (Domain Name System)
Which of the following involves slicing digital messages into parcels, transmitting them along different communication paths, and reassembling them at their destinations? a. Multiplexing b. packet shifting c. packet routing d. ATM e. Packet switching
e. Packet switching
An inference engine is: a. a data mining strategy used by intelligent agents. b. the programming environment of an expert system. c. a method of organizing expert system knowledge into chunks. d. a set of rules used to model human knowledge in an expert system. e. a strategy used to search through the rule base in an expert system.
e. a strategy used to search through the rule base in an expert system.
In a table for customers, the information about a single customer would reside in a single: a. field b. entity c. column d. table e. row
e. row
Upper and lower control limits are usually set at ± how many standard deviations from the mean? a) 0.5 b) 1.0 c) 2.0 d) 3.0 e) 6.0
d) 3.0
In six-sigma the level of defects is reduced to approximately a) 0 b) 1.4 parts per million c) 2.4 parts per million d) 3.4 parts per million e) 4.4 parts per million
d) 3.4 parts per million
41. If the telecommunication company sold $10,000,000 of internet service using $50,000 of labor, $25,000 of leased bandwidth, $45,000 service fees, and $80,000 or replacement parts, what is the telecommunication multifactor productivity? a) 35 b) 40 c) 45 d) 50 e) 55
d) 50
_____________ describes changes in an individual's behavior arising from experience. a. Modeling b. Motivation c. Perception d. Learning
d. Learning
________ are an essential component of a knowledge work system. a. Computer-aided design tools b. Three-dimensional modeling tools c. Tagging and classification tools d. Links to external knowledge bases e. Virtual reality tools
d. Links to external knowledge bases
A hospital is an example of which layout type? a) inverted b) hybrid c) process d) fixed position e) product
c) process
When testing for independence in a contingency table with 3 rows and 4 columns, there are degrees of freedom. A) 5 B) 6 C) 7 D) 12
B) 6
A selection of raffle tickets from a large bowl is an example of A) simple probability B) sampling without replacement C) subjective probability D) None of the above
B) sampling without replacement
When the output of some units can be used as inputs to other units, or if two organizations pool markets and expertise that result in lower costs and generate profits, ________ are created. A. value webs B. value chains C. synergies D. core competencies E. benchmarks
C. synergies
At the beginning of Year 1, $100,000 is invested at 5% interest, compounded annually. What amount of interest is earned in Year 2? A. $5,000.00 B. $5,512.50 C. $5,250.00 D. $10,000.00
C. $5,250.00
A company has equity of $9,000. Long-term debt is $1,900. Net working capital, other than cash, is $2,500. Fixed assets are $2,200. What amount of cash does the company have? A. $7,400 B. $6,800 C. $6,200 D. $2,400
C. $6,200
All of the following are factors in U.S. federal sentencing guidelines with respect to business executives except: A. the monetary value of the crime B. the presence of a conspiracy to prevent discovery of the crime C. the use of technology to commit the crime D. the use of structured financial transactions to hide the crime E. the failure to cooperate with prosecutors
C. the use of technology to commit the crime
Using the capital asset pricing model (CAPM), the required rate of return for a firm with a beta of 1.25 when the market return is 14% and the risk-free rate is 6% is A. 6.0% B. 7.5% C. 17.5% D. 16.0%
D. 16.0%
A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches. To test this claim against the alternative that the actual proportion of doctors who recommend aspirin is less than 0.90, a random sample of 100 doctors was selected. Suppose you reject the null hypothesis. What conclusion can you reach? A) There is not sufficient evidence that the proportion of doctors who recommend aspirin is not less than 0.90. B) There is sufficient evidence that the proportion of doctors who recommend aspirin is not less than 0.90. C) There is not sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90. D) There is sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90.
D) There is sufficient evidence that the proportion of doctors who recommend aspirin is less than 0.90
Which of the following ethical guidelines suggests that you put yourself in the place of others, and think of yourself as the object of the decision? A. Kant's categorical imperative B. the risk aversion principle C. the utilitarian principle D. the Golden rule E. the "no free lunch" rule
D. the Golden rule
A ________ provides information to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention. A. Transaction processing system (TPS) B. Management information system (MIS) C. Executive support system (ESS) D. CPS E. Customer relationship management (CRM) system
E. Customer relationship management (CRM) system
The FIP principle of Notice/Awareness states that: A. customers must be allowed to choose how their information will be used for secondary purposes other than the supporting transaction. B. data collectors must take responsible steps to assure that consumer information is accurate and secure from unauthorized use. C. there must be a mechanism in place to enforce FIP principles. D. consumers should be able to review the data collected about them. E. websites must disclose their information practices before collecting data
E. websites must disclose their information practices before collecting data
What is the term for the probability that a value falling outside the control limits is still due to normal variation? a) Type I error b) Type II error c) Normalization anomaly d) Beta risk e) Standard deviation irregularity
Type I error
When were the Hawthorne Studies conducted? a) 1770s b) 1830s c) 1930s d) 1960s e) 1980s
c) 1930s
The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. Relative Time (in Minutes) Frequency 0 but less than 5 0.37 5 but less than 10 0.22 10 but less than 15 0.15 15 but less than 20 0.10 20 but less than 25 0.07 25 but less than 30 0.07 30 or more 0.02 If 100 calls were randomly sampled, how many calls lasted 15 minutes or longer? a) 10 b) 14 c) 26 d) 74
c) 26
Raissa's Pizza parlor has an average monthly demand of 1200 pizzas. Statistically, each employee can produce 10 pizzas per hour. The parlor is open 20 days each month. How many employees must they need to meet the demand using a level aggregate plan? a) 4 b) 5 c) 6 d) 7 e) 8
c) 6
You are currently holding a call option on a stock with an exercise price of $100. If the current stock price is $90, your net proceeds by exercising this option will be A. $(10) B. $10 C. $0 D. $90
A. $(10)
The difference between the required rate of return on a given risky investment and that on a riskless investment with the same expected return is the A. Risk premium. B. Coefficient of variation. C. Standard deviation. D. Beta coefficient.
A. Risk premium.
A firm that invests in an information system because it is a necessity of doing business does so because it is seeking to achieve which of the following business objectives? A. Survival B. Improved decision making C. Competitive advantage D. Operational excellence E. Customer intimacy
A. Survival
Management's financial estimates are based on all of the following except A. Knowledge. B. Experience. C. Assumptions. D. Prespecifications.
D. Prespecifications.
A corporation has $50,000 in equity and a debt-to-total-assets ratio of 0.5. The firm wants to reduce this ratio to 0.2 by selling new common stock and using the proceeds to repay principal on outstanding long-term debt. What amount of additional equity financing must the corporation obtain to accomplish this objective? A. $20,000 B. $30,000 C. $80,000 D. $100,000
B. $30,000
Sharif Co. has total debt of $420,000 and equity of $700,000. Sharif is seeking capital to fund an expansion. Sharif is planning to issue an additional $300,000 in common stock and is negotiating with a bank to borrow additional funds. The bank requires a debt-to-equity ratio of .75. What is the maximum additional amount Sharif will be able to borrow? A. $225,000 B. $330,000 C. $525,000 D. $750,000
B. $330,000
A company purchased $10,000 of merchandise inventory on May 1. The terms of the purchase were 2/10, net 30. The company would pay what amount on May 9? A. $7,000 B. $9,800 C. $9,980 D. $10,000
B. $9,800
Verizon's implementation of a web-based digital dashboard to provide managers with real-time information, such as customer complaints, is an example of: A. improved flexibility B. improved decision making C. competitive advantage D. supplier intimacy E. a new product
B. improved decision making
When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ________ strategy. A. product differentiation B. market niche C. mass customization D. process efficiency E. market transparency
B. market niche
The ________ strategy concentrates financial management and control out of a central home base while decentralizing production, sales, and marketing operations to units in other countries. A. domestic exporter B. multinational C. franchise D. transnational E. virtual company
B. multinational
When a cookie is created during a website visit, it is stored: A. on the website's server B. on the hard drive of the visitor's computer C. on the ISP's servers D. in the browser's application settings E. nowhere, because they are only used during a visit and are discarded once a visitor leaves the Web site
B. on the hard drive of the visitor's computer
Walmart exemplifies the power of information systems coupled with excellent business practices and supportive management to achieve which of the following? A. new business models B. operational efficiency C. customer intimacy D. competitive advantage E. survival
B. operational efficiency
The U.S. CAN-SPAM Act: A. makes spamming illegal B. requires commercial email senders to identify themselves C. has dramatically cut down spamming D. does not override state anti-spamming laws E. does not outlaw the use of fake return addresses
B. requires commercial email senders to identify themselves
At the end of the current year, B Co. had total assets of $2,500,000, current liabilities of $500,000, and long-term liabilities of $750,000. What is B Co.'s debt-to-equity ratio? A. 0.5 B. 2.0 C. 1.0 D. 5.0
C. 1.0
The relationship of the total debt to the total equity of a corporation is a measure of A. Liquidity. B. Profitability. C. Creditor risk. D. Break even.
C. Creditor risk.
As described in the chapter case, which of the following constitutes a people element of the UPS tracking system? A. The web-based Post Sales Order Management System B. The ability to provide package status reports to customers C. The decision to use automation D. The implementation of in-house package tracking software E. The ability to embed UPS functions in external sites
C. The decision to use automation
To assist in an investment decision, Gift Co. selected the most likely sales volume from several possible outcomes. Which of the following attributes would that selected sales volume reflect? A. The midpoint of the range. B. The median. C. The greatest probability. D. The expected value.
C. The greatest probability.
To make sure it stocks clothes that its customers will purchase, a department store implements a new application that analyzes spending levels at its stores and cross-references this data to popular clothing styles. Which of the following business objectives is this information intended to support? A. new products B. survival C. customer intimacy D. improved decision making E. operational excellence
C. customer intimacy
Through the use of decision models, managers thoroughly analyze many alternatives and decide on the best alternative for the company. Often the actual results achieved from a particular decision are not what was expected when the decision was made. In addition, an alternative that was not selected would have actually been the best decision for the company. The appropriate technique to analyze the alternatives by using expected inputs and altering them before a decision is made is A. Expected value analysis. B. Linear programming. C. Program evaluation review technique (PERT). D. Sensitivity analysis.
D. Sensitivity analysis.
Which of the following replaced the U.S. Department of Commerce safe harbor framework that enabled U.S. businesses to legally use personal data from EU countries? A. COPPA B. P3P C. PGP D. FIP E. Privacy Shield
E. Privacy Shield
The fundamental set of assumptions, values, and ways of doing things that has been accepted by most of a company's members is called its: A. business process B. environment C. atmosphere D. values E. culture
E. culture
All of the following could be considered substitute products for industrial electricity generation except: A. solar B. wind C. coal D. hydro-power E. ethanol
E. ethanol
Computer-aided manufacturing is an example of what? a) process technology b) information technology c) environmental technology d) safety technology e) product technology
a) process technology
Scatter diagrams are particularly useful in detecting the amount of __________, or the degree of linear relationship, between two variables. a) Correlation b) Heteroscedasticity c) Agreement d) Disagreement e) Causality
a) Correlation
Which of the following would imply that data observations are closely clustered around the mean? a) Small range and small standard deviation b) Small range and large standard deviation c) Large range and small standard deviation d) Large range and large standard deviation e) Neither range nor standard deviation has anything to do with "clustering."
a) Small range and small standard deviation
In testing a hypothesis using the c 2 test, the theoretical frequencies are based on the a) null hypothesis b) alternative hypothesis c) normal distribution d) None of the above
a) null hypothesis
What costs are considered in the basic EOQ model? a) annual ordering costs + annual holding costs b) annual purchasing costs + annual holding costs c) annual ordering costs + annual holding costs + annual shortage costs d) annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs e) ordering costs per order + annual holding costs
a) annual ordering costs + annual holding costs
_____________________ is a philosophy holding that a company's marketing should support the best long-run performance of the marketing system. a. Enlightened marketing b. Myopic marketing c. Fundamental marketing d. Conceptual marketing
a. Enlightened marketing
____________ is a principle of enlightened marketing that requires that a company seek real product and marketing improvements. a. Innovative marketing b. Consumer-oriented marketing c. Value marketing d. Sense-of-mission marketing
a. Innovative marketing
How does increasing the sample size influence the likelihood of rejecting the null hypothesis and the power of the hypothesis test? a. The likelihood of rejecting H0 and the power of the test both increase. b. The likelihood of rejecting H0 and the power of the test both decrease. c. The likelihood of rejecting H0 increases but the power of the test is unchanged. d. The likelihood of rejecting H0 decreases but the power of the test is unchanged.
a. The likelihood of rejecting H0 and the power of the test both increase.
Which of the following would you use to find patterns in user interaction data recorded by web servers? a. Web usage mining b. Web server mining c. Web structure mining d. Web content mining e. Web protocol mining
a. Web usage mining
Technological advances, shifts in consumer tastes, and increased competition, all of which reduce demand for a product are typical of which stage in the PLC? a. decline stage b. introduction stage c. growth stage d. maturity stage
a. decline stage
Sellers that handle their own exports are engaged in: a. direct exporting. b. indirect exporting. c. licensing. d. contract manufacturing.
a. direct exporting.
You are answering phones for a local utilities provider and are speaking with an extremely angry customer. Because your company manual advises employees to transfer hostile calls to a superior, you do this. What quality dimension of decisions does your action reflect? a. due process b. justice c. fairness d. coherence e. accuracy
a. due process
A firewall allows the organization to: a. enforce a security policy on data exchanged between its network and the Internet. b. check the accuracy of all transactions between its network and the Internet. c. create an enterprise system on the Internet. d. check the content of all incoming and outgoing email messages. e. create access rules for a network.
a. enforce a security policy on data exchanged between its network and the Internet.
Costs that do not vary with production or sales levels are called: a. fixed costs. b. variable costs. c. standard costs. d. independent costs.
a. fixed costs.
What measures the central tendency of a set of data? a) Coefficient of variation b) Variance c) Standard deviation d) Mean e) Range
d) Mean
If we are testing for the difference between the means of 2 independent populations presuming equal variances with samples of n1 = 20 and n2 = 20, the number of degrees of freedom is equal to a) 39 b) 38 c) 19 d) 18
b) 38
Who wrote The Wealth of Nations in 1776, describing division of labor? a) James Watt b) Adam Smith c) Eli Whitney d) Henry Ford e) Frederick Taylor
b) Adam Smith
How many tissues should the Kimberly Clark Corporation package of Kleenex contain? Researchers determined that 60 tissues is the mean number of tissues used during a cold. Suppose a random sample of 100 Kleenex users yielded the following data on the number of tissues used during a cold: X = 52, S = 22. Give the null and alternative hypotheses to determine if the number of tissues used during a cold is less than 60. a) H0 : m £ 60 and H1 : m > 60 b) H0: x>_60 and H1: X<60 c) H0 : X ³ 60 and H1 : X < 60 d) H0 : X = 52 and H1 : X ¹ 52
b) H0: x>_60 and H1: X<60
Where is the Deming prize awarded? a) U.S. b) Japan c) England d) Germany e) Canada
b) Japan
The Japanese term for continuous improvement is a) Poka-yoke b) Kaizen c) Kanban d) Muda e) Automation
b) Kaizen
What measures symmetry of a distribution? a) Range b) Skewness c) Standard deviation d) Mean e) Variance
b) Skewness
Which of the arithmetic mean, median, mode, and geometric mean are resistant measures of central tendency? a) The arithmetic mean and median only b) The median and mode only c) The mode and geometric mean only d) The arithmetic mean and mode only
b) The median and mode only
The important thing in Quality Function Deployment competitive evaluation is a) To evaluate the financial strength of competitors b) To identify customer requirements that should be pursued and how we fare relative to our competitors c) Speed of introduction d) The number of competitors e) Knowing our product well
b) To identify customer requirements that should be pursued and how we fare relative to our competitors
The objective of quality at the source is not only to identify a quality problem, but also to a) Determine its extent b) Uncover its root cause c) Rate its seriousness d) Place blame e) Categorize it
b) Uncover its root cause
The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) Operation Desert Storm
b) World War II
To monitor campus security, the campus police office is taking a survey of the number of students in a parking lot each 30 minutes of a 24-hour period with the goal of determining when patrols of the lot would serve the most students. If X is the number of students in the lot each period of time, then X is an example of a) a categorical variable b) a discrete variable c) a continuous variable d) a statistic
b) a discrete variable
Which of the following is not primarily performed by the operation management function? a) job design and work measurement b) advertising strategy c) location analysis d) quality management e) facility layout
b) advertising strategy
Which set of factors would produce the narrowest confidence interval for estimating a population mean? a. A large sample and a large percentage of confidence b. A large sample and a small percentage of confidence c. A small sample and a large percentage of confidence d. A small sample and a small percentage of confidence
b. A large sample and a small percentage of confidence
__________ factors are the most popular bases for segmenting customer groups. a. Geographic b. Demographic c. Psychographic d. Behavioral
b. Demographic
Which of the following is not a type of input device? a. Digital scanner b. Flat panel (LCD) display screen c. Trackball d. Keyboard e. Sensor
b. Flat panel (LCD) display screen
___________________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes. a. Product differentiation b. Market segmentation c. Market targeting d. Market positioning
b. Market segmentation
A company is practicing _______________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits. a. micromarketing b. niche marketing c. mass marketing d. segment marketing
b. niche marketing
The data for a chi-square test for goodness of fit are called _________. a. observed proportions b. observed frequencies c. expected proportions d. expected frequencies
b. observed frequencies
The purpose of strategic planning is to find ways in which the company can best: a. overcome losses. b. use its strengths to take advantage of attractive opportunities in the environment. c. avoid paying taxes. d. avoid the expense of costly research and development while still getting the benefits.
b. use its strengths to take advantage of attractive opportunities in the environment.
Conflicts between different levels of the same channel of distribution are referred to as: a. horizontal conflicts. b. vertical conflicts. c. layer-based conflicts. d. parallel conflicts.
b. vertical conflicts.
In determining sales force size, when a company groups accounts into different size classes and then determines the number of salespeople needed to call on them the desired number of times, it is called the: a. key-size approach. b. work-load approach. c. product-need approach. d. call-service approach.
b. work-load approach.
A __________ shows the frequency distribution of observed values of a variable. a) Scatter diagram b) Control chart c) Histogram d) Flow chart e) Process chart
c) Histogram
Which famous economist once suggested that, "The production problem has been solved."? a) John Nash b) Irving Fisher c) John Kenneth Galbraith d) Adam Smith e) John Maynard Keynes
c) John Kenneth Galbraith
Which measure of central tendency can be used for both numerical and categorical variables? a) Arithmetic mean b) Median c) Mode d) Geometric mean
c) Mode
The Malcolm Baldrige Award criteria include categories for all of the following except a) Leadership b) Process management c) Product design d) Customer and market focus e) Business results
c) Product design
Which of the following is a continuous quantitative (numerical) variable? a) The color of a student's eyes b) The number of employees of an insurance company c) The amount of milk in a 2-liter carton. d) The number of gallons of milk sold at the local grocery store yesterday
c) The amount of milk in a 2-liter carton
Which of the following would be an appropriate null hypothesis? a) The population proportion is less than 0.65 b) The sample proportion is less than 0.65 c) The population proportion is not less than 0.65 d) The sample proportion is no less than 0.65
c) The population proportion is not less than 0.65
When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota? a) benchmarking b) hired some of their employees c) reverse engineering d) copied their quality management techniques e) bought some of their dealerships
c) reverse engineering
Researchers are concerned that the weight of the average American school child is increasing implying, among other things, that children's clothing should be manufactured and marketed in larger sizes. If X is the weight of school children sampled in a nationwide study, then X is an example of a) a categorical variable b) a discrete variable c) a continuous variable d) a table of random numbers
c) a continuous variable
The challenge in process layouts is to arrange resources to maximize __________ and minimize ___________. a) movement, effectiveness b) effectiveness, efficiency c) efficiency, waste of movement d) efficiency, effectiveness e) efficiency, labor cost
c) efficiency, waste of movement
What term describes the process of obtaining goods or services from an outside provider? a) outproviding b) transferization c) outsourcing d) subsourcing e) supersourcing
c) outsourcing
According to JIT, workers should perform a) system specification development b) as directed by the supervisor c) routine preventive maintenance activities d) poka-yoke designs e) quality program development
c) routine preventive maintenance activities
A restaurant client has asked you to develop a system that would provide smartphone alerts about special discounts to potential customers in the vicinity. Which of the following tools will provide the solution? a. Genetic algorithms b. Neural Networks c. Location analytics d. Operational analytics e. Big Data Analytics
c. Location analytics
If a consumer describes a car as being the "most economical car on the market," then this descriptor is a: a. rule. b. attitude. c. belief. d. cue.
c. belief.
A manufacturer has four sponsorship options. A _____________ is a brand created and owned by a reseller of a product or service. a. licensed brand b. manufacturer's brand c. private brand d. co-brand
c. private brand
If Toyota describes one of its cars of the future as being "a moderately priced subcompact designed as a second family car to be used around town; the car is ideal for running errands and visiting friends," then the company has just stated a potential new product in terms of a(n): a. product idea b. product image c. product concept d. product feature
c. product concept
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a(n): a. idea. b. demand. c. product. d. service.
c. product.
The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier. Relative Time (in Minutes) Frequency 0 but less than 5 0.37 5 but less than 10 0.22 10 but less than 15 0.15 15 but less than 20 0.10 20 but less than 25 0.07 25 but less than 30 0.07 30 or more 0.02 If 1,000 calls were randomly sampled, how many calls lasted under 10 minutes? a) 220 b) 370 c) 410 d) 590
d) 590
What percentage of total non-farm jobs in the U.S. economy comes from service-producing industries? a) 20% b) 50% c) 60% d) 80% e) 95%
d) 80%
Thirty-six of the staff of 80 teachers at a local intermediate school are certified in Cardio- Pulmonary Resuscitation (CPR). In 180 days of school, about how many days can we expect that the teacher on bus duty will likely be certified in CPR? a) 5 days b) 45 days c) 65 days d) 81 days
d) 81 days
Assuming that data exhibit a normal distribution, control limits set at ± 3 standard deviations from the mean capture how much common variation? a) 50.00% b) 80.00% c) 95.44% d) 99.74% e) 99.99%
d) 99.74%
A quality circle is a) An approach for the use of control charts b) An award for quality improvements c) An inspection stamp found on meat d) A team of volunteer production employees and their supervisors who meet regularly to solve quality problems e) A symbol used on flow charts
d) A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
The standard error of the mean a) is never larger than the standard deviation of the population. b) decreases as the sample size increases. c) measures the variability of the mean from sample to sample. d) All of the above.
d) All of the above
In a perfectly symmetrical bell-shaped "normal" distribution a. the arithmetic mean equals the median b. the median equals the mode c. the arithmetic mean equals the mode d) All the above
d) All the above
In 1997, who performed a large benchmarking study for IBM? a) Boston Consulting Group b) Anderson Consulting c) i2 Technologies d) Mercer Management Consultants e) Manugistics
d) Mercer Management Consultants
Which of the following statistics is not a measure of central tendency? a) Arithmetic mean b) Median c) Mode d) Q3
d) Q3
Which of the following is not one of the four major causes of the bullwhip effect? a) Demand forecast updating b) Order batching c) Price fluctuations d) The business cycle e) Rationing and shortage gaming
d) The business cycle
Which of the following is a discrete quantitative (numerical) variable? a) The Dow Jones Industrial average b) The volume of water released from a dam c) The distance you drove yesterday. d) The number of employees of an insurance company
d) The number of employees of an insurance company
Which company is widely considered to be the leader of just-in-time production? a) Ford b) Timex c) Gateway d) Toyota e) Sony
d) Toyota
If inputs increase by 30% and outputs increase by 15%, what is the percentage change in productivity? a) 50.00% decrease b) 88.46% increase c) 88.46% decrease d) 11.54% increase e) 11.54% decrease
e) 11.54% decrease
According to several studies, what are the three most important criteria for selecting suppliers? a) Price, quality, fast delivery b) Quality, fast delivery, on-time delivery c) Price, flexibility, on-time delivery d) Quality, flexibility, fast delivery e) Price, quality, on-time delivery
e) Price, quality, on-time delivery
According to JIT, by eliminating inventory we can clearly identify __________ and work on eliminating them. a) Obsolete products b) Malfunctioning machines c) Grievances d) Product imperfections e) Problems
e) Problems
What is a distribution called when the same numbers of observations are below the mean as are above the mean? a) Proportional b) Equalized c) Wholly Uniform d) Balanced e) Symmetric
e) Symmetric
In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric
e) Western Electric
Which of the Malcolm Baldrige Award criteria is allocated the most points? a) leadership b) information and analysis c) human resource focus d) process management e) business results
e) business results
Which of the following is a reason capacity and location decisions are usually made simultaneously? a) in order to get them in the operating budget on a consistent basis b) it makes it easier to understand capacity c) often there is not enough time available to separate them d) they require the same types of information e) the size of a new facility may affect its location
e) the size of a new facility may affect its location
Costs that are proportional to the amount of units produced, such as materials and labor, are a) fixed costs b) marginal revenue c) sunk costs d) cost drivers e) variable costs
e) variable costs
