Business Principles
Which of the following BEST describes an international organizational structure?
A firm that starts in a single country but in time sells products all over the world
Which of the following is the BEST description of a master operations schedule?
A top-level schedule showing which products will be produced, and when, in upcoming time periods
How is a functional organization divided?
According to group activities
Which of the following BEST describes make-to-stock operations?
Activities for producing standardized products for mass consumption
Which of the following is included in the production, or operations, process?
All the processes involved in making a good or service available for consumption
Mikel is allowed to make decisions and resolve problems when working with his customers. Which type of delegation has Mikel been granted?
Authority
In which step of the supply chain is one likely to find raw-material suppliers?
Before production begins
Due to a slump in the economy, a manufacturer of microwave ovens, gas and electric ranges, and outdoor grills has seen sales steadily decline. During the planning phase, which major operational category should be addressed first?
Capacity
Which of the following terms refers to the reporting relationships within the company, that is, who reports to whom?
Chain of command
Referring to the scenario above, as Sara's manager, what could Simon do to BEST improve this situation?
Create accountability
What is the process of grouping jobs into logical units after jobs are specialized?
Departmentalization
An appliance manager has separate business units for microwave ovens, gas and electric ranges, and outdoor grills. Each of these business units markets and produces its own products. Which organizational structure would this reflect?
Divisional structure
Which of the following is the organizational structure that relies on product departmentalization?
Divisional structure
In which of the following scenarios would the manager need to use a Gantt chart?
Edith is in charge of building a professional theatre production set and needs to determine which tasks must be done, by when, and which tasks can be overlapped.
Which of the following would be an example of an informal group?
Employees at Hawkeye Products get together during the lunch break each Friday for a book club.
Which of the following BEST describes supply chain management?
Evaluating and improving the overall stream of goods and processes among multiple companies that contribute to a finished product
A small real estate development firm has a sales manager with three employees, a two-person finance department that manages financial transactions, and five project managers, including the owner of the company, who hire subcontractors and oversee the actual building of the homes. What is the MOST LIKELY form of organizational structure?
Functional
Which of the following is the organizational structure in which authority is determined by the relationships between group functions and activities?
Functional
As a project manager responsible for bringing a time-sensitive new product to market, your BEST choice for staying on track would be a _______.
Gantt chart
As CEO of a major manufacturing company, your tactical plan is based on flexibility. Which of the following strategies would be the BEST focus for the tactical plan?
Hire personnel who thrive on change.
Which of the following managers would likely have staff authority rather than line authority?
Human resources manager
Which of the following terms is the process of receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?
Inventory control
What is the process of identifying specific jobs that need to be done and designating the people who will perform them?
Job specialization
Which of the following actions represents the first step in the delegation process — assigning responsibility?
Laurel has given the task of redesigning the company newsletter to the newest intern, Jake.
Which of the following illustrates a fixed-position layout?
Liam runs a carpet cleaning business where he goes from one location to the next cleaning carpets with the equipment he keeps in his van.
At a discount grocery store, customers may not find the best selection of goods, and the store may not always have adequate stock of items or have the most attractive displays, but its prices are the best in town. Based on this description, which business strategy does the company use for attracting customers?
Low cost
Which of the following is a TRUE statement about grapevines?
Managers can use the grapevine to improve decision making.
Which of the following is a characteristic of a centralized firm with a tall organizational structure?
Many layers of communication and authority
Which of the following examples BEST demonstrates line authority?
Nasir's company, which makes rugged watches for underwater use, follows a direct chain of command from top to bottom, with Nasir at the top.
Your small soap manufacturing company with 10 employees just produced a video that has gone viral, boosting orders by 1,000 percent. Your current manufacturing process cannot handle the volume. Which of the following possible management positions would be BEST to add immediately to your organization?
Operations manager
Which of the following BEST describes the specification of the jobs to be done within an organization and the ways in which they relate to one another?
Organizational structure
Which of the following describes a product layout?
Organizing production steps for a single product created in a fixed sequence and according to production requirements
For a large project, managers should use a to identify the sequence of activities, the time needed to perform the various activities, and the most time-consuming set of activities within the sequence.
PERT chart
Which of the following scheduling tools is a graphical illustration of a project's schedule, showing the sequence of tasks to be performed in completing the project?
PERT chart
Which of the following types of departmentalization is achieved by dividing the organization according to the production methods used to create a good or service?
Process
You can go online now and order a Ferrari 812 GT, a car customized to your specifications based on a menu of options. It is then assembled and shipped to you from Europe. If you were part of the Ferrari layout planning team, which is the MOST LIKELY layout alternative?
Process
Which of the following layouts is defined as the physical arrangement of production activities that groups equipment and people according to function?
Process layout
Which of the following can be defined as the process of dividing an organization according to specific goods or services being created?
Product departmentalization
Which of the following materials management functions is responsible for the acquisition of all the raw materials and services that a company needs to produce its products?
Purchasing
Toyota prides itself on the fact that all assembly is to specification, that its products have the highest reliability in the industry, and that its cars are defect- and blemish-free when they leave the manufacturing floor. Based on this description, which business strategy does Toyota use for attracting customers?
Quality
Which of the following is NOT an aspect of materials management?
Quality control
Which of the following is indicated by the chain of command within the organization?
Reporting relationships
is authority based on expertise that usually involves counseling and advising line managers.
Staff authority
Which of the following is used to show upcoming work shifts for a firm's employees?
Staff schedule
Which type of corporate structure would utilize a narrower span of control?
Tall
Which of the following BEST describes departmentalization?
The grouping of jobs into logical units after jobs are specialized
Which of the following is the BEST description of a low-contact system?
The level of customer contact in which the customer need not be part of the system to receive the service
Burton works in a flat organization. Which of the following describes his span of control?
The number of employees supervised
Which of the following is the BEST description of a matrix organizational structure?
The organizational structure created by superimposing one form of structure onto another
Which of the following BEST describes a divisional organizational structure?
The organizational structure in which products are produces and markets by different business units in the organization
Which of the following BEST describes intrapreneuring?
The process of creating and maintaining innovation and flexibility within a large organization
Which of the following is the BEST description of geographic departmentalization?
The process of dividing an organization according to the areas of the country or the world served by a business
Which of the following is the BEST description of customer departmentalization?
The process of dividing an organization to offer products and meet needs for identifiable buyers
Within the organization, what are line departments directly linked to?
The production and sales of a specific product
In the process of materials management, what is the goal of purchasing?
To acquire needed raw materials
As a staff member, Mariah counsels Noah on personnel procedures, but she isn't in charge of making any of the final decisions for his department. What is the role of a staff member in the organization?
To help line departments in making decisions
What is the purpose of a staff schedule?
To show upcoming work shifts for a firm's employees
Which of the following BEST describes the purpose of an organizational chart?
To show where employees fit within the organization's structure
Which of the following is an example of a service operations activity?
Tutoring
Which area of materials management involves the storage of goods in an organization's distribution centers?
Warehousing
A once-popular French restaurant hires you to help improve sagging sales. It is the only restaurant of its kind in the area, but customers have complained of slow service and inconsistent quality. This business would best benefit from implementing _______.
business process reengineering
McDonald's uses ___________ as a way to maintain standardization. All restaurants must follow precise steps in buying products and making and packaging menu items. Most advertising is handled at the corporate level, and any local advertising must be approved.
centralization
Kaden is a restaurant manager for a national chain. In addition to the standard dessert menu, Kaden has the freedom to offer key lime pie, a local favorite. Kaden works for a .
decentralized organization
In an organizational structure that relies on product departmentalization, the framework is based on .
divisions
Dividing an organization according to groups' activities is known as departmentalization.
functional
In an organization that uses _______ departmentalization, groups of employees are segregated based upon the tasks or activities they perform.
functional
A(n) is an example of a high-contact system.
hair salon
Charity owns a hair salon that specializes in unusual cuts and color. Her business is considered a because customers need to be present during the entire point of service.
high-contact system
The social interactions that take place in a company between employees at various levels, on an everyday basis, is considered to be the company's
informal organization
The most important "inventory" used for many high-contact services is not physical goods but exists in the form of _______ about service product offerings, clients, their interests, needs, activities, and even their plans for interactions with other clients.
information
Many firms, including Rubbermaid, DreamWorks Animation, 3M, and Xerox, encourage and support creating and maintaining the innovation and flexibility of a small-business environment within a large, bureaucratic structure. This BEST describes _________.
intrapreneuring
Natural Foods is a nationwide grocery chain specializing in organic and fair trade products. Rather than make all purchasing decisions at headquarters, managers in each store are given considerable discretion to stock fresh produce and other products that reflect the preferences of customers and the availability of products in that area. Based on this, it would appear that Natural Foods _______.
is a decentralized organization
The main task of American Airlines is to transport passengers and their luggage from one airport to another. The main task of Sprint is to provide telecommunications services. These are examples of __________.
job specialization
In the automotive industry, parts are brought together from all over the world to create a final product. To reduce storage time, lessen warehouse space, and save money, many car manufacturers engage in .
just-in-time (JIT) production
With regard to materials management, a will eliminate excess inventory.
lean production system
Keeping track of thousands of moving parts — planning, organizing, and controlling the flow of these parts — is known as .
materials management
Ford used ________ organization to design the 2020 Mustang. A design team composed of people with engineering, marketing, operations, and finance expertise was created to design the car. After the work was done, team members moved back to their permanent jobs.
matrix
Many factors play a part in determining an organization's optimal structure. Chief among them are the organization's ____________.
mission and strategy
When a company beats its competition through optimizing its flexibility in production capacity, this is an example of .
operations capability
A(n) _____________ is used to clarify structure and to show employees where they fit into a firm's operations.
organization chart
Although its products are assembled in the United States, a company chooses to hire a firm in Portugal to handle ongoing technical support and customer service issues. This is an example of _______.
outsourcing
Making shoelaces is a specific process that Nike needs as part of its shoes, but it can be done cheaper in Bangladesh where the cost of labor is significantly less than the United States. The action of moving shoelace production is known as .
outsourcing
FedEx Office stores use _______ layouts for a variety of tasks. Activities such as photocopying, computing, binding, and laminating are performed in separate, specialized areas. Walk-in customers move from area to area performing self-service tasks.
process
The Kraft Heinz Company divides up its departments. The Oscar Mayer division focuses on hot dogs and lunch meats, the Kraft Cheese division focuses on cheese products, and the Maxwell House and Planters divisions focus on coffee and packaged nuts. This is an example of _________ departmentalization.
product
At Petsmart, the grooming, food, and toy departments may be viewed as separate company units or , each responsible for its own revenue and budgeting.
profit centers
Performance and consistency are two key dimensions of .
quality
As a consultant for the federal government tasked with coming up with education and business incentives to decrease unemployment, the BEST place to focus your efforts would be the ____________ sector.
service
Your instructors, the bus driver, the messaging provider, and the music provider all work in ______. They provide intangible and tangible service products, such as entertainment, transportation, education, and communications services.
service operations
In the United States, _______ generate more of the private-sector national income than any other sector.
services
Burton works in a flat organization, so when it comes to the distribution of authority, his encompasses several employees.
span of control
As the new head of the recently created quality control department for a manufacturing firm, you would first establish ___________.
specific standards and measures
Angelina is responsible for ensuring that she has adequate nursing coverage on all shifts in a large rehabilitation and health care center. This task would require that Angelina complete a _______.
staffing schedule
Evaluating and improving the overall stream of goods and processes among multiple companies that contribute to a finished product is called .
supply chain management
Retailers order hand sanitizer that is poured into containers and labeled, packed in boxes, shipped to a distribution center, and delivered to retailers. Suppose the cardboard box company was affected by COVID-19 and closed its doors for several weeks. This example shows that, during the 2020 COVID-19 pandemic, there was a breakdown of _______.
the supply chain
The Cinemark theater offers midday, afternoon, and evening movies seven days a week. This creates _______ utility by making movies available when different consumers want them.
time
When a theater offers midday, afternoon, and evening shows seven days a week, it creates utility; it adds customer value by making products available when consumers want them.
time
A _______ organization has little or no formal structure. Typically, it has only a handful of permanent employees and a modest administrative facility. Its managers bring in temporary workers, lease facilities, and outsource services to meet the demands of each unique situation.
virtual
_______ brings together all needed materials at the precise moment they are required for each production stage, not before, thus creating fast and efficient responses to customer orders.
Just-in-time (JIT) production
At the University of Texas Gift Shop, you choose the item you wish to buy, such as a T-shirt or tote bag, then personalize it with a character, color, and name so that your product is truly one of a kind. This BEST describes which production process?
Make-to-order operations
_______ analysis involves the evaluation of company policies, materials flows, and work activities to determine whether these contribute to customer appeal or worth.
Value-added
