Quick Check ?s
Examples of wide-area networks (WANs) are
Extranets and intranets
"Bonds issued by states, cities, counties, and other state and local government agencies are government securities"
False
"In site selection, close proximity to competitors would make a site undesirable."
False
"Sales made, but for which payment has not yet been collected, are called accounts payable."
False
"Technology can cause creative destruction, but trade cannot."
False
"The balance sheet summarizes the firm s revenues, expenses, and total profit or loss over a period."
False
"The five P's are product, promotion, price, people, and possession."
False
"The income statement is a summary of the money flowing into and out of a firm during a certain period, typically one year."
False
"The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activity for internal use is financial accounting."
False
Customer satisfaction is the ration of benefits for the customer to the sacrifice necessary to obtain those benefits
False
Customer value is the customers feeling that a product has met or exceed expectations
False
Just-in-time is a process eliminating steps in the production process that do not add benefits to customers
False
Lean manufacturing is a system where materials arrive exactly when they are needed for production
False
The generally accepted accounting principles are the global accounting standards following by all firms.
False
The income statement summarizes a firm s financial position at a specific point in time.
False
Which of the following is NOT a current trend in production and operations management?
Fast manufacturing systems (FMS)
Gross Domestic Product
GDP is the total market value of all final goods and services produced within a nations borders each year
Why is creative destruction a good thing?
It is the source of new products and services.
_____ management focuses on gathering and sharing an organization s collective knowledge to improve productivity and foster innovation.
Knowledge
_____ is streamlining of production process that do not add benefits that customers are willing to pay for
Lean manufacturing
Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:
Mass production
A group of two or more computer systems linked together by communications channels to share data and information is called a computer:
Network
"In a mixed economy, businesses are"
Privately owned with regulation
"The purchasing function, sometimes called _____, is an important part of any firm's production strategy."
Procurement
Packing is part of the
Product strategy
"When a thermometer manufacturer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:"
Production
When a thermometer combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometer, it is an example of:
Production
"In a Capitalist economy, workers have a strong incentive to innovate."
True
"The conversion process includes planning, control, and improving."
True
"chewing gum, flashlight batteries sewing needles, and adhesive tape are considered convenience products"
True
Flexible manufacturing systems combine automated workstations with computer-controlled transportation devices that move materials between workstations and into and out of the system.
True
Information management involves processing information
True
A computer program that copies itself into other software and can spread to other computer systems is called:
a computer virus
Which of the following factors will be important in the selection of a site for a production facility?
all the above
"Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country s poor human rights record. However, China is also an inexpensive place to manufacture clothing, and despite its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?"
availability of production inputs
The _____ summarizes an organization's financial status at the end of an accounting period"
balance sheet
The _____ summarizes an organization's financial status at the end of an accounting period.
balance sheet
Free trade policies
bring small benefits to many and high costs to a few
Which of the following is a current trend in production and operations management?
business process management (BPM)
"Investments in long-lived assets, such as land, buildings, machinery, equipment, and information services, that are expected to provide benefits over a period longer than one year."
capital expenditures
A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:
collateral
The set of values, ideas, attitudes, and symbols created to shape human behavior is
culture
Raw unorganized facts that can be moved and stored
data
Informed decision making flows from
data to information to knowledge
A retail manager who wants to know how his store s sales would be affected if he reduces the number of different national brands the store carries would use what type of information system?
decision support system
Computer-aided manufacturing (CAM) uses computers to:
develop and control production process
Computer-aided manufacturing (CAM) uses computers to:
develop and control production processes
Information management focuses on fostering innovation.
false
The five P's are product, promotion, price, people, and possession
fasle
There are no significant differences between the consumer market and the business-to-business market
fasle
An example of process manufacturing is
gasoline
"According to the Index of Economic Freedom, since 1995 global trade restrictions have"
generally decreased
"In a Socialist or Communist economy, businesses are"
government-owned or nationalized
Comparative advantage leads to
greater product variety and lower prices
The idea behind_____ is to take the massive amounts of idle capacity sitting on desktops and in server farms and put it to use performing complex calculations that would otherwise have to be done on very large parallel supercomputers that would cost millions of dollars.
grid computing
Good routing procedures:
increase productivity
Cost-push Inflation
inflation that occurs when increases in production costs push up the prices of final goods and services
"The equipment and techniques needed to manage, and process information is"
information technology
Market structure
is defined by the number of suppliers in a market
Which of the following is true about creative destruction?
it can lead to business failure
The process of creative destruction
leads to improvement in products and processes
_____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.
lean manufacturing
Trade restrictions lead to
less competition for producers and higher prices for consumers
Financial managers often shift temporary funds from checking accounts to _____ securities to earn higher interest returns.
marketable
"The _____ is the belief that the firm should dedicate all its planning, policies, operations, and efforts to the satisfaction of the customer."
marketing concept
The ability to manufacture many goods at once is called ______ production
mass
Packaging is part of the
product strategy
"Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _____ strategy."
promotion
Personal selling, advertising, public relations, and sales promotions are decisions made when the _____strategy
promotion
Personal selling is part of the
promotion strategy
What is Six Sigma?
quality control process
customer satisfaction
refers to customers feeling that a product has met or exceeded expectations
Customer satisfaction:
refers to the customer s feeling that a product has met or exceeded expectations
"In seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the concept of _____ trade-off."
risk-return
Instagram is an example of
the creative side of creative destruction
A product provides customer value if
the market price is below the customer value
Which type of information system is used only by operational managers?
transaction processing system
Flexible manufacturing systems combine automated workstations with computer- controlled transportation devices that move materials between work stations and into and out of the system
true
Information management involves processing information.
true
Knowledge management focuses on gaining a competitive advantage.
true
Productivity is the number of goods and services one worker can produce?
true
One useful tool for routing is _____, where production managers map the flow from suppliers through the factory to customers.
value-stream mapping
The nature of jobs and the workplace is changing.
All of the above.
which of the following is an example of a data security issue?
All the above
Enterprise portals can take one of three forms. They are:
"B2B, B2E, and B2C"
Profit is the
"amount of money remaining from a firm s sales revenue after it deducts production costs, interest costs, and taxes"
The four traditional factors of production are
"natural resources, labor, capital, and entrepreneurship"
Which of the following statements about computer networks is true?
A computer network is a group of two or more computers linked together by communications channels to share data and information.
An example of an assembly process is
Cars
Mutually advantageous trades are determined based on
Comparative advantage
The quantity of a good or service that people are willing to buy at various prices is
Demand
A CAD/CAM system:
Does all of the above
In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards Mastercard and The Home Depot Business Rewards MasterCard allow consumers and business owners to earn rewards for everyday purchases. The Home Depot is engaged in:
Relationship Marketing
What does the number of airplane workers reveal about creative destruction?
That creative destruction can free up labor for new pursuits
What does the number of American airplane manufacturing workers reveal about creative destruction?
That creative destruction can free up labor for new pursuits.
What does the American rose industry reveal about creative destruction?
That even trade can cause creative destruction
What does the American rose industry reveal about creative destruction?
That even trade can cause creative destruction.
What are both Kodak and Polaroid examples of?
The painful side of creative destruction.