POBM final

Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's production facility just as they are needed. This type of inventory control is known as

* a. a purchase planning
* b. flexible manufacturing
* c. just-in-time inventory control
* d. materials resource planning

c

You have decided to open a pet store and have engaged in a contract with PET INC Centers, Inc. You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, PET INC is the __________ and you are the __________.

* a. entrepreneur; corporation
* b. franchisor; franchisee
* c. employee; employer
* d. entrepreneur; local chain

b

______________ means tailoring products to meet the needs of a large number of individual customers.  

* a. Mass customization
* b. Mass production
* c. Competing in time
* d. Feedback response production

a

The type of utility on which production and operations management focuses is _________ utility.

* a. place
* b. time
* c. form
* d. posession

c

When demand exceeds capacity, all of the following are reasonable options for the firm except ____________.

* a. operating overtime hours to meet the demand
* b. starting a second or third shift
* c. subcontracting part of the work to other producers
* d. turning away some long-time customers

d

What are the two types of costs associated with inventory?

* a. Holding costs and selling costs
* b. Stock-out costs and holding costs
* c. Shipping and handling costs and holding costs
* d. Overstock costs and stock-out costs

b

An unfavorable balance of trade occurs when the value of ___________.

* a. imports equal the value of exports
* b. imports exceed the value of exports
* c. cash inflows are equal to the value of cash outflows
* d. exports exceed the value of imports

b

When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as ______________.

* a. offshore procurement
* b. domestic outsourcing
* c. foreign distribution
* d. offshore outsourcing

d

By definition, every country has a(n. __________ advantage in some products.

* a. Relative
* b. Absolute
* c. Comparative
* d. superior

c

Purchasing products or materials in other nations and bringing them into one's own country is ______________.

* a. trading
* b. balancing
* c. exporting
* d. importing

d

The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n) _____________.

* a. import duty
* b. foreign exchange control
* c. import quota
* d. embargo

c

__________ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

* a. Licensing
* b. Exporting
* c. Joint venture
* d. Countertrade

a

The __________________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

* a. trade cartel
* b. multinational corporation
* c. host company
* d. import trading company

b

The three countries participating in the USMCA (formerly NAFTA) are:

* a. Canada, Panama, and the United States.
* b. Mexico, Panama, and the United States.
* c. Canada, Nicaragua, and Mexico.
* d. Canada, Mexico, and the United States

d

The electronic storage of large amounts of data by a business is known as __________.

* a. data mining
* b. data warehousing
* c. information
* d. data sharing

b

A collection of facts that managers analyze to make decisions about an organization are known as _______________.

* a. data
* b. information
* c. data warehousing
* d. data sharing

a

The production of large items, such as airplanes or ships, will most likely be produced in which type of facility layout?

* a. Fixed-position
* b. cellular
* c. process
* d. product

a

_________ is the use of computer systems or workstations to aid in the creation, modification, analysis, or optimization of a design.

* a. Computer-aided manufacturing
* b. Computer-aided design
* c. 3D printing
* d. Computer-integrated manufacturing

b

Kia utilizes __________________, which uses computers to control the entire production process.

* a. computer-aided design
* b. computer-aided manufacturing
* c. 3D printing
* d. computer-integrated manufacturing

d

Which of the following is an advantage of franchising to the franchisor?

* a. Cash flow for operations
* b. Lack of control
* c. Brand dilution
* d. More risk

a

Which of the following is a disadvantage of franchising to the franchisor?

* a. Lack of control
* b. Less risk
* c. Cash flow for operations
* d. Access to capital

a

Which of the following is an advantage of franchising to the franchisee?

* a. Brand recognition
* b. cost
* c. unequal partnership
* d. strict rules

a

A ___________ form of business ownership often costs anywhere from $20,000 to over $1 million in fees to start.

* a. sole proprietorship
* b. franchise
* c. partnership
* d. corporation

b

Economists define a _____________ as two consecutive three-month periods of decline in a country’s gross domestic product.

* a. repression
* b. prosperity
* c. recession
* d. trough

c

 _____________ is an economic system in which individuals own and operate the majority of businesses that provide goods and services. It stems from the theories of economist Adam Smith.

* a. Capitalism
* b. Communism
* c. Command Economy
* d. Socialism

a

The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period is called ____________.

* a. Productivity
* b. Gross Domestic Product (GDP)
* c. Consumer Price Index (CPI)
* d. CPI

b

The price at which the quantity demanded is exactly equal to the quantity supplied is the ___________.

* a. market price
* b. perfect price
* c. liquidity
* d. penetration price

a

The resources that contribute to the creation of wealth are known as ______________.

* a. production coefficients
* b. factors of production
* c. production technologies
* d. production aggregates

b

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in a large city is an example of _______________.

* a. monopolistic competition
* b. perfect competition
* c. an oligopoly
* d. an anarchy

a

Cultural diversity represents ____________.

* a. a business theory that is no longer valid
* b. the differences among people in the workforce
* c. a technical skill
* d. a statistical method used to project sales revenues and profits for global companies

b

Which of the following government agencies is responsible for encouraging the development of small business?

* a. Small Business Administration
* b. Federal Trade Commission
* c. Entrepreneur Assistance Center
* d. Federal Microloan Authority

a

Our nation’s economy fluctuates rather than grows at a steady pace every year. These fluctuations which include the recurrence of periods of growth and recession in the economy are generally referred to as _______________.

* a. monetary policy
* b. fiscal policy
* c. the business cycle
* d. the economic equalizer of profits

c

An important provision of the Sarbanes-Oxley Act is that it __________________.

* a. approves corporate loans to directors of the company
* b. encourages the destruction of financial documents
* c. requires the CEO and CFO of corporations to certify the accuracy of financial reports
* d. encourages outside corporations to use the same CPA firm to conduct their audits for at least 10 years

c

Which view of social responsibility holds that business should emphasize not only profits but also the impact of its decisions on society?

* a. economic model of social responsibility
* b. socioeconomic model of social responsibility
* c. profit model of social responsibility
* d. fundamental model of social responsibility

b

Congress created the ____________________, which has the power to investigate complaints of employment discrimination and the power to sue firms that practice it.

* a. Equal Employment Opportunity Commission (EEOC)
* b. Hard-core Unemployed
* c. Equity in Employment Office of Consumerism (EEOC)
* d. Dodd-Frank Employment Commission (DFEC)

a

A guide to acceptable and ethical behavior as defined by the organization is called _____________.

* a. code of ethics
* b. whistle-blowing
* c. a business plan
* d. consumerism

a

_______________ consists of all activities undertaken to protect the rights of consumers.

* a. A code of ethics
* b. Consumerism
* c. Plagiarism
* d. Ethical issue

b

The Latin phrase caveat emptor means ___________.

* a. let the buyer beware
* b. the invisible hand
* c. let them do
* d. only one may prevail

a

A small business is one which is independently owned and operated for profit and is _________.

* a. not dominant in its field
* b. not financially sound
* c. organized to provide a social, educational, religious, or other service rather than to earn a profit
* d. exempt from state taxes

a

Unlimited liability, which is a major disadvantage to a sole proprietorship, means ____________________.

* a. there is no limit on the amount an owner can borrow
* b. creditors will absorb any loss from nonpayment of debt
* c. the business can borrow money for any type of purchase
* d. the business owner is personally responsible for all the debts of the business

d

The top governing body of a corporation is known as the______________.

* a. incorporators
* b. stockholders
* c. officers
* d. board of directors

d

A ___________ invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership

* a. franchise
* b. general partner
* c. limited partner
* d. solo partner

c

A merger between two firms that make and sell similar products in similar markets is known as a _________________.

* a. horizontal merger
* b. cooperative
* c. joint venture
* d. vertical manager

a

Fred, Wilma, Barney, and Betty own all shares of the stock in the Bedford Stone Corporation. The stock of this corporation is not sold to the general public because the corporation is a(n)

* a. limited liability company
* b. master limited partnership
* c. alien corporation
* d. closed corporation

d

The Morgan Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by _______________.

* a. location
* b. function
* c. taste
* d. product

b

The simplest and oldest form of organizational structure in which the chain of command goes directly from person to person throughout the organization is called the _________.

* a. line structure
* b. matrix structure
* c. network structure
* d. box structure

a

An incorporated business is called a domestic corporation in the state in which it is incorporated. In all other states where it does business, it is called a ___________.

* a. foreign corporation
* b. alien corporation
* c. out-of-state correlating corporation
* d. limited liability corporation

a

A market segment toward which a company directs its marketing effort is called a ___________.

* a. marketing group
* b. marketing sample
* c. taget market
* d. consumer market

c

The elements of the marketing mix are ______________.

* a. product, price, merchandising, and promotion
* b. markets, goods, pricing, and transportation
* c. product, buyers, sellers, and price
* d. product, price, distribution, and promotion

d

In which order do the stages of the product life cycle occur?

* a. growth, introduction, maturity, decline
* b. introduction, maturity, slowdown, decline
* c. innovation, distribution, maturity, decline
* d. introduction, growth, maturity, decline

d

In which order do the stages of the product life cycle occur?

* a. growth, introduction, maturity, decline
* b. introduction, maturity, slowdown, decline
* c. innovation, distribution, maturity, decline
* d. introduction, growth, maturity, decline

d

Bread and chewing gum are examples of a ___________ because they are bought frequently and consumers desire to purchase these goods with a minimum amount of effort.  

* a. business product
* b. shopping product
* c. specialty product
* d. convenience product

d

The Arizona Jean Co. brand of jeans, owned by JC Penney, is a(n) __________ brand.

* a. generic
* b. private or store
* c. national
* d. individual

b

A sequence of marketing organizations that directs a product from the producer to the ultimate user is a ______________.

* a. distribution channel
* b. middleman
* c. wholesale channel
* d. marketing mix

a

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____________.

* a. penetration pricing
* b. price skimming
* c. prestige pricing
* d. sample pricing

b

The process of shipping flowers from California to Indiana gives _______ utility to flowers.

* a. form
* b. time
* c. place
* d. possession

c

Which retail marketing intermediary is a large self-service store that sells primarily food and household products?

* a. discount store
* b. second-hand store
* c. supermarket
* d. off-price retailer

c

For any product, the breakeven quantity is the ______________.

* a. dollar volume of total sales
* b. total number produced to equal the total resources available to the producer
* c. number of units that must be sold for the total revenue (from all units sold) to equal the total cost (of all units sold)
* d. number of products needed to be sold in order to make a reasonable profit

c

Costs that depend on the number of units produced are called ________________.

* a. variable costs
* b. markup
* c. fixed cost
* d. operational expenses

a

Which financial ratio measures a firm’s ability to pay its debts?

* a. return on sales
* b. current ratio
* c. inventory turnover
* d. balance ratio

b

A(n)________________ occurs when a corporation sells common stock to the general public for the first time.

* a. initial public offering (IPO)
* b. over-the counter (OTC) market
* c. securities exchange
* d. primary public offering (PPO)

a

A firm's ________ reports the profit or loss for the firm over a specified time period.

* a. income statement
* b. balance sheet
* c. statement of cash flows
* d. bank statement

a

A budgeting approach in which every expense in every budget must be justified is ___________.

* a. debt capital
* b. traditional budgeting
* c. zero-based budgeting
* d. cash to capital budgeting

c

According to the accountant for Michael's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is correct?

Equaiton (Assets-Liabilities=Owners Equity)

* a. The owners' equity is $155,000.
* b. The owners' equity is $93,000.c. The firm's current assets are $62,000.
* d. The firm's current liabilities are $24,000.

b

Which of the following represents method of long-term debt financing for a corporation?

* a. trade credit
* b. commercial paper
* c. factoring
* d. corporate bonds

d

Manufacturers and wholesalers often provide financial aid to retailers by allowing them 30 to 60 days (or more) in which to pay for merchandise. This delayed payment is known as ___________.

* a. trade credit
* b. commercial paper
* c. factoring
* d. securities exchange

a

_______________ refers to how quickly an asset can be converted into cash.

* a. Liquidity
* b. Velocity
* c. Fundability
* d. Accessibility

a

Borrowed money that will be used for more than one year is called ____________.

* a. trade credit
* b. long-term financing
* c. equity capital
* d. recurred financing

b

A government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination is known as the ___________.

* a. Better Business Bureau
* b. National Alliance of Business
* c. Civil Service Commission
* d. Equal Employment Opportunity Commission

d

Lois walked into ABC Company to pick up an application for a secretarial job. When she asked about the duties and working conditions, the busy receptionist handed her a document that gave her a clear picture of the position. The receptionist gave Lois a job ____________.

* a. description
* b. specification
* c. analysis
* d. orientation

a

All of the following are sources of external recruiting EXCEPT ______________.

* a. newspaper advertising
* b. recruiting on college campuses
* c. using employment agencies
* d. using recommendations of present employees

d

Usually, the human resources department administers a(n) __________ program to introduce new employees to the organization.

* a. job selection
* b. orientation
* c. employee training
* d. On-the-job training

b

Title VII of the Civil Rights Act of 1964 _______________________________.

* a. gives all citizens over the age of 18 the right to vote regardless of race, religion, sex, or creed
* b. prohibits firms from using employment testing as a means of selecting employees and determining which employees should be promoted
* c. requires all firms with over 100 employees to have an affirmative action plan
* d. prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation

d

At an architectural firm, all employees except administrative staff are allowed to work whatever hours they choose from Monday through Saturday between 7 a.m. and 10 p.m., as long as they put in forty hours per week. This plan is called ____________.

* a. flextime
* b. job-sharing
* c. part-time
* d. flex-share

a

Dana is a supervisor at a small manufacturing plant. Her pay starts at $635 per week. Dana is paid on a(n) ______________.

* a. salary pay system
* b. commission pay plan
* c. rolling rate system
* d. income averaging plan

a

All employers are required by law to provide certain benefits to their employees. An example of such a benefit would be _____________.

* a. 403b
* b. unemployment insurance
* c. reduced-price cafeterias
* d. pension programs

b

__________ is the process of establishing and maintaining contacts with key managers in one's own organization and in other organizations, and using those contacts to establish strong relationships that serve as informal development systems.

* a. Training and development
* b. Social integration
* c. Orienteering
* d. Networking

d

Tamika is preparing a presentation for a client meeting, but she has never led a meeting before and is very nervous. What is one thing that Tamika should not do?

* a. Fill the presentation slides up with trade lingo and jargon so she appears very smart to her client.
* b. Dress professionally and show confidence
* c. Maintain eye contact and connect with the audience
* d. Rehearse the presentation and make sure the videos and weblinks are functional

a

Shawn is newly establishing his career as a sales associate at XPC Components. Over the next few years he will _______________.

* a. postpone saving for retirement
* b. receive an automatic promotion to senior-level management within 5 years
* c. not rely on a mentor’s advice
* d. take on new positions with increasing responsibility

d

Anna is beginning to explore a career in business and is preparing to attend an on-campus job fair with many employers in the community. What should she not do to prepare?

* a. Get a good night’s rest the night before
* b. Prepare a cover letter and resume
* c. Come directly after work in her jeans
* d. Plan to connect with employers on social media networks before the job fair

c

Students aspiring to be business leaders in the global marketplace should do all of the following except _________________.

* a. study foreign languages
* b. take global business courses
* c. only consider the American way of business culture
* d. travel, read, and learn about foreign cultures

c

Planning, organizing, leading/motivating, and controlling make up the ____________.

* a. four organizational goals every firm wants to achieve
* b. step-by-step management procedure
* c. four basic functions in the management process
* d. process of coordinating people and other resources to achieve the goals of the organization

c

Flavio, CEO of Fabulous Frozen Custard believes that alternate plans are almost as important as the primary operational plans because external circumstances such as the weather, competitor moves, and even economic conditions make it important to have a Plan B. Flavio endorses ___________.

* a. tactical planning
* b. retroactive planning
* c. concurrent planning
* Selected:d. contingency planning

d

A manager who has the ability to see the big picture of an organization and to understand how the various parts of the organization can fit together has __________ skills.

* a. leadership
* b. technical
* c. interpersonal
* d. conceptual

d

 _____________ means giving employees the authority and responsibility to respond quickly to customer requests.

* a. Restructuring
* b. Delineating
* c. empowering
* d. Intrapreneuring

c

The leadership style advocating that a leader makes all decisions and tells subordinates what to do and how to do it is called ______________.

* a. laissez-faire
* b. participative
* c. democratic
* d. authoritarian

d

Generally speaking, a narrow span of management implies that the height of the organization will be __________; a wide span of management implies that the height of the organization will be __________.  

* a. tall; flat
* b. tall; sloped
* c. flat; tall
* d. short; tall

a

The line of authority that moves from the top of a hierarchy to the lowest level is called the ______________.

* a. chain of logic
* b. chain of command
* c. organizational design
* d. delegation of contingent authority

b

Which of the following statements about communicating in today’s workplace is most accurate?

* a. Today's emphasis on teams means more face-to-face communication and less writing.
* b. Communication typically flows one way: from businesses to consumers.
* c. Writing skills are more important today than ever because online media requires more writing, not less.
* d. Increasing numbers of workers are enjoying more defined working hours.

c

Which of the following is NOT a way to improve intercultural written communication?

* a. Adjust your writing style and tone.
* b. Include humor to build rapport.
* c. Avoid ambiguous expressions.
* d. Use short sentences and short paragraphs.

b

The hierarchy of human needs was developed by ___________.

* a. Maslow
* b. Taylor
* c. McGregor
* d. Herzberg

a

The idea that satisfaction and dissatisfaction are distinct dimensions is referred to as ____________.

* a. the hierarchy of needs
* b. Theory X and Theory Y
* c. scientific management
* d. motivation-hygiene theory

b

Due to more emphasis on empowerment and more talented and better-educated lower level management, span of control in organizations has ____________.

* a. increased
* b. decreased
* c. become an obsolete term in organization design
* d. led to tall organizations

a

________________ represents the most basic form of corporate company ownership and includes voting rights and dividends, if and when the firm elects to pay dividends.

* a. Capital stock
* b. Common stock
* c. preferred stock
* d. Carrier stock

b

The movement of money into and out of an organizations is __________.

* a. speculative production
* b. cash flow
* c. money markets
* d. liquidity

b

After going to the grocery store, you notice that there is a customer satisfaction survey on your sales receipt. If you complete the brief survey, you will be entered into a drawing to win $250. The results of the survey will help managers make decisions on how to improve customer service.  The results of the survey are an example of ___________ collection.

* a. data
* b. employee
* c. customer resource managment
* d. point-of-sale

a

Which of the following is true of franchises?

* a. Franchises provide a proven product, business model, and brand to the franchisee.
* b. Franchises remove all risks associated with starting a business.
* c. Franchises are best suited for individuals with little personal capital.
* d. Franchises offer extreme flexibility in product choice.

a

A McDonald’s franchisee does not do a good job managing food safety and consequently, many people get ill from eating expired chicken.  This example illustrates ________________.

* a. An advantage for the franchisor.
* b. A disadvantage for the franchisor.
* c. An advantage for the franchisee.
* d. How one franchise location has no impact on other locations

b

A private network that is contained within the organization is known as ___________.

* a. an intranet
* b. an internet
* c. data
* d. information

a

When using presentation software, which of the following is true?

* a. It is best to fit as many words as possible onto each slide.
* b. It is best to only include keywords on each slide.
* c. It is best to read each slide to your audience.
* d. It is best to never include pictures in your presentation.

b