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Which of the following is not a type of qualitative​ forecasting? Part 2 A. market survey B. jury of executive opinion C. sales force composite D. moving average . E. Delphi method

Moving average

In PERT​ analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. Part 2 True False

true

Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model. Part 2 True False

true

The sales force composite forecasting method relies on​ salespersons' estimates of expected sales. Part 2 True False

true

One advantage of exponential smoothing is the limited amount of record keeping involved. Part 2 True False

truw

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 25​% in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only thing to be changed.​ (Productivity remains the​ same.) ​(Hint: Each worker works 160 hours per​ month.) Part 2 If the bakery currently makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor​ hour, then Lackey will need to add 11 ​worker(s) to meet the increased demand ​(recall that each worker works 160 hours per month and round your response up to the next whole​ number).

1

A c​-chart is based on the Part 2 A. Erlang distribution. B. Poisson distribution. C. normal distribution. D. binomial distribution.

b

A fundamental distinction between trend projection and linear regression is​ that: Part 2 A. trend projection uses two smoothing​ constants, not just one. B. in trend projection the independent variable is​ time; in linear regression the independent variable need not be​ time, but can be any variable with explanatory power. C. trend projection uses least squares while linear regression does not. D. only linear regression can have a negative slope. E. trend projection can be a function of several​ variables, while linear regression can only be a function of one variable.

b

An activity on a PERT network has these time​ estimates: optimistic​ = 2, most likely​ = 3, and pessimistic​ = 8. What is its expected activity time and variance​? Part 2 A. ​4.33; 1 B. ​3.67; 1 C. ​3.67; 6 D. ​4.33; 6 E. None of the above

b

The shortest of all paths through the network is the critical path. Part 2 True False

false

Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. Part 2 True False

false

n a regression equation where ​y-hat is demand and x is​ advertising, a coefficient of determination ​(R2​) of .70 means that​ 70% of the variance in advertising is explained by demand. Part 2 True False

false

In location planning, environmental regulations, cost and availability of utilities, and taxes are

regional/community factors

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2

true

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2 True False

true

A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2 True. False

true

1. Industrial location analysis typically attempts to

reduce costs

Competing on differentiation is Part 2 A. concerned with uniqueness. B. based upon​ low-cost leadership. C. concerned with reliability of scheduling. D. based upon flexibility.

A

Retail layouts are based on the notion​ that: Part 2 A. sales and profitability vary directly with customer exposure to products. B. storage costs should be minimized. C. handling costs should be minimized. D. average customer visit duration should be maximized. E. space used should be minimized.

A

Which of these factors would be considered when making a location decision at the site​ level? Part 2 A. zoning regulations B. cost and availability of utilities C. proximity to raw materials and customers D. cultural and economic issues E. government​ rules, attitudes,​ stability, incentives

A

Which of these is NOT one of the basic functions of the management​ process? Part 2 A. inspecting B. staffing C. leading D. controlling

A

Geographic information systems can assist the location decision​ by: Part 2 A. updating transportation method solutions. B. combining geography with demographic analysis. C. automating​ center-of-gravity problems. D. providing good Internet placement for virtual storefronts. E. computerizing​ factor-rating analysis.

B

The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as Part 2 A. marketing. B. operations management. C. supply chain management. D. finance.

B

Which of these is NOT one of the 10 strategic OM​ decisions? Part 2 A. layout strategies B. marketing C. managing quality D. scheduling

B

Currency risk is based on what​ assumption? Part 2 A. The value of one dollar today is greater than the value of one dollar to be received one year from now. B. The U.S. stock market fluctuates daily. C. Values of foreign currencies continually rise and fall in most countries. D. Changing product lines by reacting to every current trend may alienate the customer base. E. Firms that do not continuously innovate will lose market share.

C

The disadvantages of​ process-oriented layout come​ from: Part 2 A. the use of special purpose equipment. B. the use of specialized material handling equipment. C. the​ general-purpose use of the equipment. D. the need for stable demand. E. machine​ maintenance, which tends to seriously degrade the capacity of the entire system.

C

The main difference between PERT and CPM is​ that: Part 2 A. CPM assumes activity durations can vary. B. PERT ignores activity costs. C. PERT employs three time estimates for each activity. D. PERT assumes that activity durations are known. E. PERT is more accurate than CPM.

C

Which one of the following is NOT common to repetitive and​ product-oriented layouts? Part 2 A. standardized products B. a high rate of output C. ability to adjust to changes in demand D. specialized equipment E. low unit costs

C

A successful quality strategy begins with Part 2 A. engaging employees in the necessary activities to implement quality. B. satisfying customers and obtaining a competitive advantage. C. an understanding of the principles of quality. D. an organizational culture that fosters quality.

D

If two variables were perfectly​ correlated, what would the coefficient of correlation r​ equal? Part 2 A. 0 B. −1 C. 1 D. B or C E. None of the above

D

The two popular measures for quantitatively determining if a process is capable are Part 2 A. process mean and range. B. process mean and standard deviation of the process population. C. upper specification and lower specification. D. process capability ratio and process capability index.

D

The​ center-of-gravity method is used primarily to determine what type of​ locations? Part 2 A. call center locations B. service locations C. manufacturing locations D. distribution center locations E. supplier locations

D

The​ fixed-position layout would be MOST appropriate in which of the following​ settings? Part 2 A. a casual dining restaurant B. a​ fast-food restaurant C. a​ doctor's office D. a cruise ship assembly facility E. a washing machine assembly line

D

Which of the following is NOT a common TQM​ tool? Part 2 A. scatter diagrams B. histograms C. check sheets D. queuing models

D

Which of the following organizations does NOT require​ operations? Part 2 A. Walmart B. American Red Cross C. Washington State University D. All of the above require operations

D.

Which of the following uses three types of​ participants: decision​ makers, staff​ personnel, and​ respondents? Part 2 A. Delphi method B. sales force composite C. time series D. jury of executive opinion E. associative models

Delphi method

The objective of layout strategy is​ to: Part 2 A. maximize worker satisfaction. B. minimize space used. C. maximize flexibility. D. minimize cost. E. develop an effective and efficient layout that will meet the​ firm's competitive requirements.

E

A location decision for an appliance manufacturer would tend to have a(n) : a. cost focus b labor focus c. revenue focus d. environmental focus e. education focus

a

Balancing​ low-cost storage with​ low-cost material handling is important in which of the​ following? Part 2 A. repetitive and​ product-oriented layout B. warehouse layout C. office layout D. ​process-oriented layout E. ​fixed-position layout

b

A successful quality strategy begins with Part 2 A. an organizational culture that fosters quality. B. engaging employees in the necessary activities to implement quality. C. satisfying customers and obtaining a competitive advantage. D. an understanding of the principles of quality.

a

Competing on differentiation is Part 2 A. concerned with uniqueness. B. based upon flexibility. C. concerned with reliability of scheduling. D. based upon​ low-cost leadership.

a

For which of the following operations would a​ fixed-position layout be MOST​ appropriate? Part 2 A. constructing a highway tunnel B. assembling automobiles C. producing TV sets D. running an insurance agency E. refining of crude oil

a

One use of​ short-range forecasts is to​ determine: Part 2 A. job assignments. B. capital expenditures. C. research and development plans. D. facility location. E. planning for new products.

a

Process capability Part 2 A. means that the natural variation of the process must be small enough to produce products that meet the standard. B. is assured when the process is statistically in control. C. exists only in​ theory; it cannot be measured. D. exists when CPK is less than 1.0.

a

The objective of a statistical process control​ (SPC) system is to Part 2 A. provide a statistical signal when assignable causes of variation are present. B. assess customer expectations. C. provide a statistical signal when natural causes of variation are present. D. eliminate natural variations.

a

The objective of layout strategy is​ to: Part 2 A. develop an effective and efficient layout that will meet the​ firm's competitive requirements. B. maximize worker satisfaction. C. minimize cost. D. minimize space used. E. maximize flexibility.

a

The reason fast food restaurants often are found in close proximity to each other​ is: Part 2 A. location clustering near high traffic flows. B. they enjoy competition. C. availability of skilled labor. D. low cost. E. All of the above.

a

What layout strategy deals with​ low-volume, high-variety​ production? Part 2 A. ​process-oriented layout B. retail layout C. warehouse layout D. ​fixed-position layout E. office layout

a

Which of the following is NOT among the eight determinants of revenue and volume for a service​ firm? Part 2 A. shipment cost of finished goods B. uniqueness of the​ firm's and the​ competitors' locations C. purchasing power of the​ customer-drawing area D. competition in the area E. quality of management

a

Which of these is a reason why outsourcing continues to​ expand? Part 2 A. increased technological expertise and specialization B. less reliable transportation C. rapid development and deployment of advancements in automation D. more expensive transportation

a

In a PERT​ network, non-critical activities that have little slack need to be monitored​ closely: Part 2 A. because slack is undesirable and needs to be eliminated. B. because​ near-critical paths could become critical paths with small delays in these activities. C. because they have a high risk of not being completed. D. because PERT treats all activities as equally important. E. because they are causing the entire project to be delayed.

b

In acceptance​ sampling, the​ producer's risk is the risk of having a Part 2 A. bad lot rejected. B. good lot rejected. C. bad lot accepted. D. good lot accepted.

b

Increasing the number of periods in a moving average will accomplish greater​ smoothing, but at the expense​ of: Part 2 A. accuracy. B. sensitivity to real changes in the data. C. stability. D. manager understanding. E. All of the above are diminished when the number of periods increases

b

Increasing the number of periods in a moving average will accomplish greater​ smoothing, but at the expense​ of: Part 2 A. manager understanding. B. sensitivity to real changes in the data. C. accuracy. D. stability. E. All of the above are diminished when the number of periods increases.

b

The assumptions necessary for a successful​ product-oriented layout include all EXCEPT which of the​ following? Part 2 A. adequate volume for high equipment utilization B. volatile product demand C. standardized product D. adequately standardized supplies of raw materials and components E. All of the above are appropriate assumptions.

b

The central problem in​ product-oriented layout planning​ is: Part 2 A. maximizing equipment utilization. B. minimizing the imbalance in the workloads among workstations. C. equalizing the space allocated to the different workstations. D. minimizing labor movement between workstations. E. minimizing material handling within workstations.

b

The central problem in​ product-oriented layout planning​ is: Part 2 A. minimizing labor movement between workstations. B. minimizing the imbalance in the workloads among workstations. C. minimizing material handling within workstations. D. maximizing equipment utilization. E. equalizing the space allocated to the different workstations.

b

The forecasting technique that pools the opinions of a group of experts or managers is known​ as: Part 2 A. market survey. B. jury of executive opinion. C. the expert judgment model. D. multiple regression. E. management coefficients.

b

The major problem addressed by the warehouse layout strategy​ is: Part 2 A. balancing product flow from one work station to the next. B. addressing​ trade-offs between space and material handling. This is the correct answer. C. requiring frequent close contact between forklift drivers and item pickers. D. locating the docks near a convenient access point to the closest highway. E. minimizing difficulties caused by material flow varying with each product.

b

The most common tactic followed in​ process-layout planning is to arrange departments or work centers so​ they: Part 2 A. are equally allocated within the available space. B. minimize the costs of material handling. C. maximize the machine utilization. D. produce a perfectly balanced assembly line. E. minimize the cost of skilled labor.

b

The phases of project management​ are: Part 2 A. different for manufacturing projects than for service projects. B. ​planning, scheduling, and controlling. C. ​planning, organizing,​ staffing, leading, and controlling. D. ​GANTT, CPM, and PERT. E. ​planning, programming, and budgeting.

b

The reason fast food restaurants often are found in close proximity to each other​ is: Part 2 A. availability of skilled labor. B. location clustering near high traffic flows. C. low cost. D. they enjoy competition. E. All of the above.

b

When making a location decision at the country​ level, which of these would be​ considered? Part 2 A. ​land/construction costs B. location of markets C. ​air, rail,​ highway, waterway systems D. zoning restrictions E. corporate desires

b

Which of the following OM decisions determines how a good or service is produced and commits management to specific​ technology, quality, human​ resources, and capital​ investment? Part 2 A. design of goods and services B. process and capacity design C. human resources and job design D. managing quality

b

A project organization works best for an organization when the project resides in only one of its functional areas. Part 2 True False

false

Which of the following is NOT a characteristic of​ services? Part 2 A. unique B. standardized product C. intangible D. produced and consumed simultaneously

b

Which of the following is most likely to affect the location strategy of a manufacturing​ firm? Part 2 A. parking availability B. utility costs C. competition in the area D. ​appearance/image of the area E. purchasing power of drawing area

b

A jewelry store is more likely than a jewelry manufacturer to consider​ ________ in making a location decision. Part 2 A. transportation costs B. quality of life C. ​appearance/image of the location D. cost of raw materials E. taxes

c

A location decision for a traditional department store (Macy's) would tend to have a(n): a. cost focus b. labor focus c. revenue focus d. environmental focus e. education focus

c

A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of​ analysis? Part 2 A. assembly line balancing B. linear programming C. ​center-of-gravity method D. locational​ cost-volume analysis E. ​load-distance analysis

c

A way to identify those elements in the​ product/service chain that uniquely add value is referred to as Part 2 A. supply chain management. B. the resources view. C. ​value-chain analysis. D. the five forces model

c

Cause-and-effect diagrams are also known as Part 2 A. flowcharts. B. Pareto charts. C. ​fish-bone charts. D. target specification graphs.

c

Governmental attitudes toward issues such as private​ property, intellectual​ property, zoning,​ pollution, and employment stability may change over time. What is the term associated with this​ phenomenon? Part 2 A. legislative risk B. judicial risk C. political risk D. democratic risk E. bureaucratic risk

c

The creation of a unique advantage over competitors is referred as Part 2 A. response. B. differentiation. C. competitive advantage. D. experience differentiation.

c

The economic activities that typically produce an intangible product are referred to as Part 2 A. products. B. goods. C. services. D. phantoms.

c

The fundamental difference between cycles and seasonality is​ the: Part 2 A. magnitude of the variation. B. ability to attribute the pattern to a cause. C. duration of the repeating patterns. D. All of the above. E. None of the above.

c

The service sector constitutes what percentage of employment in the United​ States? Part 2 A. between​ 70% to​ 80% B. between​ 50% to​ 60% C. between​ 80% to​ 90% D. between​ 60% to​ 70%

c

What is the percentage defective in an average lot of goods inspected through acceptance​ sampling? Part 2 A. LTPD B. OC curve C. AOQ D. AQL

c

Which of the following best defines​ scheduling? Part 2 A. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. B. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. D. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.

c

Which of the following does not represent competing on​ response? Part 2 A. based on quickness B. concerned with reliability of scheduling C. based on providing uniqueness D. based on flexibility

c

Which of the following is the Japanese term used to describe continuous improvement​ efforts? Part 2 A. six sigma B. ​poka-yoke C. kaizen D. kanban

c

Which of the following methods best considers intangible costs related to a location​ decision? Part 2 A. crossover methods B. ​center-of-gravity method C. ​factor-rating method D. the transportation method E. locational​ cost-volume analysis

c

Traffic counts and demographic analysis of drawing area are associated​ with: Part 2 A. the​ center-of-gravity method. B. manufacturing location decisions. C. the transportation model. D. service location decisions. E. locational​ cost-volume analysis.

d

Which of the following statements regarding CPM is​ true? Part 2 A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. B. The critical path is that set of activities that has positive slack. C. The critical path is the shortest of all paths through the network. D. All activities on the critical path have their ES equal to their LF. E. Some networks have no critical path.

c

Which of the following statements regarding critical paths is​ true? Part 2 A. Every network has only one critical path. B. The shortest of all paths through the network is the critical path. C. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration. D. Some activities on the critical path may have slack. E. The duration of the critical path is the average duration of all paths in the project network.

c

Which of the following techniques uses variables such as price and promotional​ expenditures, which are related to product​ demand, to predict​ demand? Part 2 A. moving average B. exponential smoothing C. associative models D. weighted moving average E. trend projection

c

he R​-chart Part 2 A. control limits are computed using sample standard deviations. B. is used to measure changes in the central tendency. C. is used to indicate gains or losses in dispersion. D. generally uses control limits set at plus or minus 2 standard deviations of the​ distribution, rather than plus or minus​ 3, which is commonly used on the x​-bar chart.

c

The R​-chart Part 2 A. control limits are computed using sample standard deviations. B. is used to measure changes in the central tendency. C. is used to indicate gains or losses in dispersion. D. generally uses control limits set at plus or minus 2 standard deviations of the​ distribution, rather than plus or minus​ 3, which is commonly used on the x​-bar chart.

c]C

A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as Part 2 A. ​value-chain analysis. B. five forces analysis. C. competitive advantage. D. resources view.

d

A successful quality strategy begins with Part 2 A. satisfying customers and obtaining a competitive advantage. B. an understanding of the principles of quality. C. engaging employees in the necessary activities to implement quality. D. an organizational culture that fosters quality.

d

Activity R on a CPM network has predecessors M and​ N, and has successor S. R has duration 5.​ N's late finish is​ 18, while​ M's is 20.​ S's late start is 14. Which of the following is definitely​ true? Part 2 A. N is a critical activity. B. S is a critical activity. C. R is critical and has zero slack. D. The set of times cannot all be possible. E. R has no slack but is not critical.

d

Disney differentiates itself by not simply having customers go on a​ ride, but instead immersing them in the experience. What is the name for this type of​ differentiation? Part 2 A. Unique differentiation B. Immersion differentiation C. Active differentiation D. Experience differentiation

d

If two variables were perfectly​ correlated, what would the coefficient of correlation r​ equal? Part 2 A. 0 B. −1 C. 1 D. B or C E. None of the above.

d

The degree or strength of a relationship between two variables is shown by​ the: Part 2 A. alpha. B. cumulative error. C. mean. D. coefficient of correlation. E. mean absolute deviation.

d

The main goal of retail layout​ is: Part 2 A. minimizing customer confusion regarding location of items. B. minimizing space required. C. minimizing storage costs. D. maximizing profitability per square foot of floor space. E. minimizing material handling cost.

d

The production process at Hard Rock Cafe does NOT include which of the following​ activities? Part 2 A. cooking B. placing raw materials in cold storage C. receiving D. advertising

d

The project organization works best when which of the following conditions are​ satisfied? I. Work tasks can be defined with a specific goal and deadline. II. The job is typical and familiar to the existing organization. III. The work contains interrelated tasks requiring specialized skills. IV. The project is temporary but unimportant to​ long-term organizational success. V. The project cuts across organizational lines. Part 2 A. ​I, II,​ III, IV, V B. None of the above conditions need to be satisfied. C. ​I, II,​ III, V D. ​I, III, V E. ​I, III,​ IV, V

d

The​ fixed-position layout would be MOST appropriate in which of the following​ settings? Part 2 A. a casual dining restaurant B. a​ doctor's office C. a washing machine assembly line D. a cruise ship assembly facility E. a​ fast-food restaurant

d

Which of the following is NOT a common TQM​ tool? Part 2 A. scatter diagrams B. histograms C. check sheets D. queuing models

d

Which of the following is one of the main advantages of a product−oriented ​layout? Part 2 A. low capital cost B. employability of highly skilled labor C. high customer exposure rates D. low variable cost per unit E. high flexibility

d

Which of the following statements regarding​ "proximity" in the location decision is​ FALSE? Part 2 A. Manufacturers want to be near customers when their product is​ bulky, heavy, or fragile. B. Reduction in bulk is a good reason for a manufacturer to locate near the supplier. C. Clustering among​ fast-food chains occurs because they need to be near high traffic flows. D. Service organizations find that proximity to suppliers is the most critical primary location factor. E. Perishability of raw materials is a good reason for manufacturers to locate near the​ supplier, not the customer.

d

Which operations function at a manufacturing facility strives for the efficient use of​ machines, space, and​ personnel? Part 2 A. production and inventory control B. design C. process analysis D. industrial engineering

d

​Exponential smoothing may not be an appropriate method to use for the​ check-processing center​ because: A. the​ check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. B. the​ check-processing center should observe a cyclical trend in its processing requirements. C. the​ check-processing center should observe an increasing trend in its processing requirements. D. the​ check-processing center should observe seasonality in its processing requirements.

d

​Taguchi's quality loss function is based on a Part 2 A. linear equation. B. binomial distribution. C. negative exponential distribution. D. quadratic equation.

d

2. Service location decisions typically attempt to a. minimize costs b. consider global implications c. decrease labor costs d. be environmentally friendly e none of the above

e

A good layout requires​ determining: Part 2 A. capacity and space requirements. B. material handling equipment. C. environment and aesthetics. D. cost of moving between various work areas. E. All of the above.

e

Cross-docking refers to which of the​ following? Part 2 A. Docks are placed in the warehouse according to the direction​ (north, south,​ east, or​ west) from which the truck is arriving. B. Warehouse docks are designed in the shape of a cross. C. The same docks can be used either incoming or outbound shipments. D. The same dock is used to unload and then reload the same truck. E. Avoid placing materials or supplies in storage by processing them as they are received.

e

The transportation​ model, when applied to location​ analysis: Part 2 A. maximizes revenues. B. minimizes total fixed costs. C. minimizes the movement of goods. D. minimizes total transportation costs. E. minimizes total production and transportation costs.

e

The typical goal used when developing a​ process-oriented layout strategy is​ to: Part 2 A. minimize the level of operator skill necessary. B. maximize the number of different tasks that can be performed by an individual machine. C. minimize the distance between adjacent departments. D. maximize job specialization. E. minimize the material handling costs.

e

What is the primary reason why retailers tend to locate​ high-draw items around the periphery of the​ store? Part 2 A. There will be less congestion of customers than there would be in the middle. B. This arrangement allows customers to travel through the store as quickly as possible. C. More shelf space for those popular items is available around the periphery. D. It is easier to put large advertisement signs on the outside walls right next to the items. E. This arrangement will help to maximize customer exposure to other items in the store.

e

Which of the following is among the eight determinants of revenue and volume for a service​ firm? Part 2 A. uniqueness of the​ firm's and the​ competitors' locations B. purchasing power of the​ customer-drawing area C. quality of the competition D. quality of management E. All of the above.

e

Which of the following seeks the best personnel and machine utilization in repetitive or continuous​ production? Part 2 A. fixed position layout B. ​process-oriented layout C. work cell layout D. retail layout E. ​product-oriented layout

e

Which of these factors would be considered when making a location decision at the site​ level? Part 2 A. proximity to raw materials and customers B. cultural and economic issues C. cost and availability of utilities D. government​ rules, attitudes,​ stability, incentives E. zoning regulations

e


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