MANAGEMENT TEST
Kaia has been analyzing the company's various financial statements. She knows that the value of the company's assets would more than cover the purchase price of some new equipment, but she needs to determine how quickly she can turn some of those assets into cash. Which type of ratio should she calculate? a.Liquidity b.Coverage c.Operating d.Debt
A
What is the best way to integrate planning and control? a.By accounting for control as plans develop b.By developing controls that support plans c.By preparing to accommodate change d.By preparing plans and controls as quickly as possible
A
Which business segment is the fastest-growing segment of small-business enterprise, with fewer than 20 employees? a.Service b.Retailing c.Construction d.Finance
A
Why are small businesses important to big businesses? a.Most of the products made by big manufacturers are sold to consumers by small businesses. b.Small businesses provide services instead of products. c.Big businesses provide small businesses with the services, supplies, and raw materials they need. d.Small companies outsource packaging, delivery, and distribution to large companies.
A
Yui runs a manufacturing facility that produces seat belts for the automotive industry. She finds that she occasionally has too much of some parts, and not enough of others, and is considering implementing a just-in-time (JIT) inventory management system. What would be an advantage of Yui adopting a JIT inventory management method? a.Costs tied up in raw material inventory would be transferred backward in the supply chain. b.High-level production scheduling systems would no longer be necessary. c.Shortages of work-in-process inventories would be eliminated. d.Product distribution processes would be streamlined.
A
Avner and Karen are getting ready to open a new restaurant. One of the decisions they need to make is how many patrons they want to be able to seat at a time. Which type of decision is this? a.Capacity b.Location c.Inputs d.Layout
A
A new employee training program represents which form of operations control? a.Preliminary b.Standard c.Screening d.Postaction
A
Cantwell Kitchens (CK) is a company that designs, builds, and installs new kitchens in residential homes. Some customers hire CK to perform one of these functions, while others contract all three functions as a package deal. Each function is structured with its own operational unit so that management can focus on specific requirements for maximizing performance.At Cantwell Kitchens, project design, construction estimates, and installation estimates are intangible results that create value for the customer, also referred to as _____. a.outputs b.inputs c.utilities d.resources
A
Hiring only qualified employees and ordering parts that meet high quality standards are two examples of which type of control? a.Preliminary b.Screening c.Output d.Postaction
A
When Mikel began the redesign of the plant floor layout, he knew some employees would resist the changes he was likely to propose. What should Mikel do to overcome this resistance? a.Encourage employee participation. b.Provide information as quickly as possible. c.Develop verification procedures. d.Limit flexibility in the design plan.
A
One of Amina's employees reported increased customer satisfaction levels and reductions in the time it took to handle customer complaints. However, Amina's employee overinflated these claims, and they were simply inaccurate. What is the likely result of this inaccurate information for Amina? a.Overcontrol b.Inappropriate managerial action c.Too much accountability d.Reward for inefficiency
B
Supply chain management is the process of _____. a.ensuring that necessary materials arrive as soon as they are needed so that the production process is not interrupted. b.managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness. c.managing the organization's raw materials, work in process, finished goods, and products in transit. d.buying the materials and resources needed to produce products and services.
B
When is a control system considered to be flexible? a.When there is little linkage between control and planning b.When it can accommodate change c.When less frequent measurement is needed d.When information is quite subjective
B
Which of the following is a disadvantage to owning a franchise? a.Lack of big-business management skills b.Start-up costs c.Building the business step by step d.Lack of training in running the business
B
Which of the following is true of job creation? a.Small firms are the last to hire in times of economic recovery. b.Small firms eliminate jobs at a faster rate. c.Large firms hire at a faster rate than smaller firms. d.It is influenced more by business size than business success.
B
Arayla owns a small printing firm, and she needs a better way to determine which projects to work on and when. Which of the following can Arayla use to improve the control of finished goods inventory? a.Purchasing models b.Shop-floor systems c.Production scheduling systems d.Distribution systems
C
Medlo Medical Center allows patients to schedule appointments, review test results, and communicate with caregivers through a web-based system. This is an example of _____. a.computer-integrated manufacturing b.advancement in manufacturing technology c.advancement in service technology d.computer-aided design
C
Middleboro, VT, has experienced a recent upsurge in new business development. Some of the economic progress has been the result of a community partnership with the local college that was created to stimulate entrepreneurship in the community. The most likely reason that the partnership chose entrepreneurship as a method of boosting the health of the town's economy was because it _____. a.generates state funding b.reduces business risk c.creates new jobs d.attracts large businesses
C
MollyMaids, a small business that cleans houses, is in which industry group? a.Retailing b.Transportation c.Services d.Construction
C
When Hua opened his small business, he immediately had several regular clients, and the business was growing. Despite all this, Hua found that he was not making enough money to cover all expenses, let alone turn a profit. After three months, he couldn't pay supplies or pay his employees and he closed the business. What led to this business failure? a.Lack of drive and determination b.Lack of analysis of market conditions c.Lack of capital d.Lack of luck
C
Approximately what percent of U.S. workers are employed by companies that have fewer than 20 people? a.10.5 percent b.15.5 percent c.32.5 percent d.23.5 percent
D
Cantwell Kitchens (CK) is a company that designs, builds, and installs new kitchens in residential homes. Its Kitchen Design unit uses desktop technologies to produce digital project design plans, construction estimates, and installation estimates for its customers. The use of new technologies in this fashion is referred to as _____. a.computer-integrated manufacturing b.robotics c.agrimation d.computer-aided design
D
In which way can a service organization take advantage of the lessons learned by manufacturing firms? a.Computer-assisted production b.Automation technologies c.Cellular layouts d.Procedures for purchasing raw materials
D
Junhua would like to start a business to sellcarry-out food in grocery stores and is looking for sources of financing. Junhua took out a second mortgage on his house and tapped into his savings to finance the new business. In this scenario, Junhua's source of financing falls into the category of _____. a.strategic alliances b.small business investment company c.crowdfunding d.personal resources
D
Quality assurance testing of the gold master version of a software program is an example of which type of control? a.Preliminary b.Screening c.Standard d.Postaction
D
The most important source of money for people starting up a new business is _____. a.venture capitalists b.loans c.crowdfunding d.personal resources
D
The quality dimension of perceived quality refers to the quality of the product or service as seen by _____. a.the owner b.the general public c.company employees d.a customer
D
When Lupita has a question about her work, she finds that she has a difficult time determining where to go for help. Sometimes she is directed to ask her manager, sometimes a client, and sometimes a coworker. Which element of control is ineffective in Lupita's department? a.Operations b.Financial c.Strategic d.Structural
D
Which of the following provides a comparison across departments, between levels of the organization, and from one time period to the next? a.Audits b.Balance sheets c.Income statements d.Budgets
D
Which type of control has the goal of employee compliance? a.Strategic b.Decentralized c.Operating d.Bureaucratic
D
Yui would like some advice about potentially starting a small business. Where could she go for free advice from retired executives who understand her industry? a.An advisory board b.A venture capital company c.A strategic alliance partner d.A SCORE counselor
D
After a firm decides its product-service mix, what is the logical next step? a.Designing an efficient operations system b.Determining the location of production facilities c.Deciding on effective product layouts d.Determining capacity
a
Agrimation is an automated farming technique that harvests fruit from trees using _____. a.robotics b.sensors c.computer-aided design d.flexible manufacturing systems
a
Arayla plans to open a small business and estimates that the new operation will require $800,000 during the first three years. She has $100,000 in personal savings to invest in the new venture. The balance will be borrowed from the Second State Bank. Arayla is in the process of _____. a.financing the business b.choosing the industry c.writing a business plan d.franchising
a
GE wants to change the interior of its dishwashers to create better and more efficient water flow and hold more dishes. What can GE use to determine what the new machine should look like in the preliminary stages? a.Computer-aided design b.Automation c.Computer-assisted manufacturing d.Robotics
a
In which of the following areas is the just-in-time method used? a.Inventory management b.Quality management c.Automation d.Computer-integrated manufacturing
a
Jacob's Kosher Deli ensures that all ingredients and food products that come into the restaurant are kosher. Which type of control is Jacob's Kosher Deli using? a.Preliminary b.Screening c.Output d.Postaction
a
Managers at Sparky's Auto Parts decided to broaden their product line beyond spark plugs. They decided on the level of sales they wanted for each product for each of the next five years. How has Sparky's linked their control system? a.By integrating it with planning b.By incorporating flexibility c.By using accurate measures d.By using subjective goals
a
Manoj wants to be able to choose lenders, equipment, inventories, locations, and other aspects of his new business. When starting his business, Manoj should _____. a.start from scratch b.buy an existing business c.form a strategic alliance d.open a franchise
a
Most successful entrepreneurs _____. a.carefully analyze market conditions b.launch their ventures in their spare time c.succeed alone d.succeed straight out of college
a
Olesia put up her personal money to start a business and hired a professional manager to run it. What can be said of Olesia? a.She is assuming the risk of the venture. b.She is considered to be a true entrepreneur. c.She hired an entrepreneur to run the business. d.She is most likely to be the one who operates the business.
a
On the production line, all employees must have a quality level of 99 percent or higher. Which of the following elements of control is this? a.Standard b.Measure c.Strategic d.Comparison
a
Raj has been hired to review the financial records for a mid-sized company in the area. The company hired Raj to ensure the organization's accounting proceed and financial statements are compiled accurately, and information can be verified. What has this company asked Raj to conduct on its behalf? a.An external audit b.An internal audit c.A ratio analysis d.A balance sheet review
a
The choice of creating an entrepreneur-friendly environment is good public policy because small businesses _____. a.are an important source of new jobs b.eliminate jobs at a slower rate than large businesses c.are the last to lay off workers during a downturn d.rarely eliminate jobs
a
What is the process of designing work so that it can be completely or almost completely performed by machines? a.Automation b.Cellular layout c.Process layout d.Manufacturing technology
a
Which of the following is one of the aspects of strategic control? a.Leadership b.Bureaucratic control c.Decentralization d.Auditing
a
Which of the following is true of small businesses' role in the economy? a.Small business is a strong presence in the U.S. economy, as well as in virtually all of the world's mature economies. b.Small business is a strong presence in the U.S. economy, but weak in virtually all of the world's mature economies. c.Small business is a weak presence in the U.S. economy, as well as in virtually all of the world's mature economies. d.Small business is a weak presence in the U.S. economy, but strong in virtually all of the world's mature economies.
a
Which of the following is true of technology? a.It is used to convert resources into products. b.It is not used by service organizations. c.It is the arrangement of equipment within facilities. d.It is the physical locations where products are created.
a
All of the following are reasons for success EXCEPT _____. a.dedication and drive b.poor analysis of market conditions c.luck d.managerial competence
b
Broadside Farms, a 40-acre peach orchard, uses automated devices to fill and label packaged products—a function that used to be performed by human beings. The use of automated devices to artificially perform human activities is known as _____. a.computer-integrated manufacturing b.robotics c.agrimation d.computer-aided design
b
Cantwell Kitchens (CK) is a company that designs, builds, and installs new kitchens in residential homes. Cantwell only accepts a total of 60 design, build, and install projects annually. Which type of decision is this? a.Product-service mix b.Capacity c.Facility d.Process
b
Cantwell Kitchens (CK) is a company that designs, builds, and installs new kitchens in residential homes. Some customers hire CK to perform one of these functions, while others contract all three functions as a package deal. Each function is structured with its own operational unit so that management can focus on specific requirements for maximizing performance.At Cantwell Kitchens, project requirements, customer preferences, and space considerations are resources that are transformed into value for the customer, also referred to as _____. a.outputs b.inputs c.utilities d.forms
b
Dezmon works for a large company, but lately he has been thinking about starting his own small manufacturing company. What should Dezmon keep in mind about the ability of small business owners to succeed in the manufacturing field? a.Manufacturers require few resources to start up operations. b.It is not uncommon for small manufacturers to outperform big business in innovative-driven industries. c.Manufacturers represent the fastest-growing segment of small-business enterprise. d.Manufacturers offer a higher return on time invested than any other industry group.
b
Master Tractor Ltd. is an international tractor supply and equipment company with production facilities in three countries and 112 international distribution outlets. Master Tractor can improve its control of work-in-process inventories by dividing stages of production into manageable sizes. Which source of control would Master Tractor use to do this? a.Purchasing models b.Shop-floor control systems c.Production scheduling systems d.Distribution systems
b
RadTrek makes several different models of bicycles with similar parts. There are designated areas on the production floor for making pedals, handlebars, and the like. These parts are then delivered to the appropriate product layout assembly areas to be assembled into the various bicycle models. Which type of layout does RadTrek use to assemble their products? a.Fixed-position b.Cellular c.Process d.Product
b
Under which system of strategic control will managers from the home office visit foreign branches to observe firsthand how the units are functioning? a.Decentralized b.Centralized c.Limited d.Bureaucratic
b
Which of the following is a type of technology that is used to design and build products using computers? a.Flexible manufacturing systems b.Computer-assisted manufacturing c.Robotics d.Computer-integrated manufacturing
b
Which of the following statements about small businesses in the United States is true? a.Small businesses are not able to sell products made by larger companies to the end user. b.Major innovations are as likely to come from small businesses (or individuals) as from big businesses. c.Small businesses hire at a slower rate than big companies. d.Small businesses are the least likely to lay off workers during an economic downturn.
b
Which type of activities of a business combines and transforms resources into tangible outcomes sold to others? a.Resource acquisition b.Manufacturing c.Inventory management d.Procurement
b
Which type of decision involves choosing how much of a good or service to produce? a.Location b.Capacity c.Layout d.Storage
b
Why should a firm periodically examine its structure? a.To evaluate its capital expenditures b.To determine whether it is facilitating the attainment of its strategic goals c.To increase shareholder value d.To evaluate the competition
b
Another term for purchasing management is _____. a.automation b.quality control c.procurement d.computer-aided management
c
As a surgeon, Woojin must use precise techniques when in surgery. What can Woojin use that will increase the precision with which he operates? a.Computer-assisted manufacturing b.Computer-aided design c.Robots d.Flexible manufacturing systems
c
Atmir is reviewing financial statements to understand the effectiveness of each specific functional area. Which type of ratio should Atmir review? a.Liquidity b.Coverage c.Operating d.Debt
c
Control systems are more effective when they are timely, meaning that information is shared _____. a.as quickly as possible b.on a regularly scheduled basis c.as often as necessary d.at the same time each day
c
Geert is in charge of ensuring that all products produced in his division meet the established standards for design and operating characteristics. Which dimension of quality is Geert responsible for? a.Performance b.Reliability c.Conformance d.Aesthetics
c
Gnomatics relies on numerous rules to regulate employee travel, expense accounts, and other expenses. Its performance appraisal system precisely specifies minimally acceptable levels of performance for everyone. These are characteristics of which approach to organizational design? a.Decentralized control b.Screening control c.Bureaucratic control d.Preliminary control
c
Lack of effective control systems leads to what problem that causes businesses to fail? a.Managers are not able to make basic business decisions. b.Managers do not understand the basic concepts of management. c.Managers may be in serious trouble before more visible difficulties alert them. d.Entrepreneurs devote only a limited amount of time to a new business.
c
Moto To Go, a large rental car company, recently increased its fleet by purchasing a significant number of SUVs. Rentals have not increased as forecast because of the high cost of fuel, and many of these SUVs sit on the lots. A market review indicated that, while SUVs were quite popular the year the new vehicles were purchased, consumers are now looking for more fuel-efficient rental vehicles. This illustrates the need for control systems that _____. a.limit accumulation of error b.minimize cost c.adapt to environmental change d.cope with organizational complexity
c
Nour is planning to open a small retail shop in her town. Although she does not need to borrow money, a friend suggested she develop a business plan. What will a business plan help Nour accomplish? a.Capitalizing on finding a niche market b.Creating economies of scale in her business c.Crystallizing her thinking about how to launch the business successfully d.Creating a first-mover advantage
c
Paramita, a recent college graduate, opened a small sandwich shop just off campus. She had never done this kind of thing before, but she enjoyed cooking and putting together creative combinations. Paramita did her research and knew what services to offer at what prices, and she was willing to put in the time and effort needed to succeed. Despite all this, her business failed. What reason for success is missing from this picture? a.Hard work b.Careful analysis of market conditions c.Managerial competence d.Drive and dedication
c
Raphael is evaluating products during the production process so that needed changes can be made. Which aspect of statistical quality control is Raphael using? a.Acceptance sampling b.Six Sigma c.In-process sampling d.Benchmarking
c
Tariq finished his current project four days ahead of schedule. This is the second time this year he has beat his deadline. However, rather than turning in the completed work and securing his next assignment, Tariq holds on to the project until the due date. He is concerned that if he consistently beats his deadlines, the manager will start giving him shorter schedules on all his projects. Tariq's resistance to control is based on _____. a.overcontrol b.inappropriate focus c.rewards for inefficiency d.too much accountability
c
What is created by a firm when it exploits an opportunity before any other firm? a.Niche market b.Distinctive competencies c.First-mover advantage d.Industry creation
c
What is the basic functional purpose of operations systems within an organization? a.To perform and coordinate functions ordinarily thought to be appropriate for human beings b.To manage purchasing and inventory c.To control transformation processes to ensure goals are met d.To use resources and activities to achieve primary goals
c
Which area of quality control uses acceptance sampling of finished goods to manage quality? a.Benchmarking b.Six Sigma c.Statistical quality control d.ISO 9000
c
Which of the following best describes an organization's facilities? a.The geographic site where products and services are created, stored, and distributed b.The act of creating a variety of products or activities that combine to form a product c.The place where products or services are created, stored, and distributed d.The centralization of a task in a single workstation or department
c
Which of the following is true of trends in small businesses? a.Minorities and women are starting fewer businesses. b.The failure rate among small businesses has been increasing. c.Small businesses suffer a higher mortality rate than larger concerns. d.The percentage of online retail sales is decreasing.
c
Which of the following people is most likely to be an entrepreneur? a.Darien is a reporter for Channel 11 news. b.Jewel uses 10 percent of her income to buy stock in blue chip companies. c.Myrna used her savings to start a computer repair service. d.Armen is a teacher at a small private school.
c
Why should an organization carefully consider the use of a CAD system before buying one? a.They must be linked with computer-integrated manufacturing systems. b.They must create new prototypes before use. c.They can raise the breakeven point for firms. d.They only work well at low levels of production.
c
Within operations, what is not possible for managerial control to ensure? a.The achievement of primary goals based on available resources b.The goal of a high percentage of on-time deliveries c.The goal of low product reliability d.The goal of stable unit production cost
c
Aaliyah is reviewing a list of the assets and liabilities that the company currently holds. What is Aaliyah looking at? a.An external audit b.An income statement c.An operating ratio d.A balance sheet
d
As a growing sector of the U.S. economy, how much did the service sector contribute to the private-sector gross domestic product (GDP) in 2018? a.35 percent of GDP b.50 percent of GDP c.65 percent of GDP d.80 percent of GDP
d
Aviva is attempting to establish control standards for her department. What should Aviva include in the standards she develops? a.Levels of control b.Responsibilities for control c.Standards that exceed organizational goals d.Standards that are expressed in measurable terms Feedback: Incorrect. Control standards should also be consistent with the organization's goals.
d
Before the control process can be implemented, a firm needs to set a target against which it will compare performance. What needs to be established? a.Change of organizational goals b.Performance indicators c.Performance measures d.Control standard
d
Bureaucratic control is an approach to organization design that is characterized by _____. a.rewards for group performance b.a relatively flat structure c.widespread employee participation d.formal and mechanistic structural arrangements
d
During a review, Zereth found that the established standards were too difficult to reach without sacrificing quality. What should Zereth do about the current standards? a.Maintain the status quo. b.Correct the deviation. c.Develop a new timetable. d.Change the standard.
d
Even though internal audits are more expensive than external audits, many employers do them. What is the advantage to an internal audit? a.Ability to assure investors that financial reports are reliable b.Understanding of how documents are prepared c.Specialization in types of review, such as legal, staffing, or manufacturing d.Identification of significant aspects of accounting systems, other than technical correctness
d
Mica was employed by the regional hospital system and decided to start her own business in the medical support field. She plans to make use of her extensive experience to succeed at this small-business start-up. Which type of entrepreneurial trend does this represent? a.Franchising agreement b.Emergence of e-commerce c.Collaborative networking d.Crossover from big business
d
Raphael started a new financial consulting business on the side, with the hopes that it would someday become his full-time work. He had a lot of experience in this field before launching his company. He did his research and knew what services to offer at what prices. Raphael lined up a number of clients and hired workers to service the accounts. In spite of all this, his business failed. What led to this business failure? a.Managerial inexperience b.Lack of analysis of market conditions c.Lack of capital d.Neglect
d
Sources of advice regarding management include all EXCEPT _____. a.advisory boards b.networking c.management consultants d.information technology professionals
d
What does research suggest about the potential of success for new businesses and entrepreneurship? a.Entrepreneurship requires strong innovation capabilities to succeed. b.Entrepreneurship increases the risk of takeover by big business. c.Entrepreneurship depends upon professional managers to succeed. d.Entrepreneurship yields a high level of business failure.
d
What is the process of combining resources from a variety of places and transforming them into something else that can then be sold to others? a.Product layout b.Product-service mix c.Operations management d.Manufacturing
d
Which of the following is a potential disadvantage of using a budget? a.Organizational performance is measured against the budget. b.Budgets eliminate effective control measures because all controls have dollar values. c.They do not work well with the planning process. d.The budget can be applied too rigidly.
d
Which of the following is the most important source of money for financing a new business? a.SBA financial programs b.Venture capital companies c.Strategic alliances d.Personal resources
d
Which of the following is true of screening control? a.It focuses on outputs after the transformation process is complete. b.It monitors the quality of resources before they enter the organization. c.It does not make use of feedback processes. d.It is useful in identifying the causes of problems.
d
Which of the following is true regarding job creation? a.Business size is directly related to job creation. b.Business size is inversely related to job creation. c.Firms in complex and dynamic environments consistently add more jobs. d.Jobs are created by entrepreneurial companies of all sizes.
d
Which type of control can alert managers that an employee has exceeded expectations and deserves recognition? a.Preliminary b.Screening c.Output d.Postaction
d
Why is it important to provide checks and balances in control systems? a.When control is highly integrated with planning functions b.When control measurements are objective c.When there is little resistance to control d.To verify the accuracy of performance indicators
d
One of the current trends in small business start-ups includes which group starting more new businesses? a.Men b.Women c.Franchisees d.Families
B
