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Q:
Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
Q:
Assets that can be converted to cash relatively quickly are said to be liquid.
a. True
b. False
Q:
Ownership equity represents the owners investment in the company, which can be either his/her cash invested in the company or money borrowed from a bank to purchase fixed assets.
a. True
b. False
Q:
Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
Q:
Kaizen is similar to TQM in that both are focused on continuous improvement.
Q:
A conventional measure of a firm's liquidity is a comparison of current assets to current liabilities.
a. True
b. False
Q:
Continuous improvement is based on the philosophy that any aspect of an operation can be improved.
Q:
A profitable company will always have positive cash flows.
a. True
b. False
Q:
The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.
Q:
Jans bank has asked her to show them how her firms financial position has changed in the past year. She should provide the companys balance sheet.
a. True
b. False
Q:
TQM is important because each of the ten decisions made by operations managers deals with some aspect of identifying and meeting customer expectations.
Q:
In order to determine the cash flows from day-to-day operations, the firm must convert the companys income statement from a cash basis to an accrual basis.
a. True
b. False
Q:
Quality is mostly the business of the quality control staff, not ordinary employees.
Q:
The income statement shows a firm's financial position on a specific date.
a. True
b. False
Q:
Describe how ISO 9000 has evolved in the past several years.
Q:
John created Acme Online to allow paper suppliers to compete for manufacturers' orders over the Internet in live auctions. This model would best be described as
a. B2B.
b. B2C.
c. C2B.
d. C2C.
Q:
Which statement is true about location decisions?
a. Franchisers assist entrepreneurs with location decisions.
b. Location decisions have an temporary effect on business operations.
c. Location decisions should be made independently of consumer needs.
d. The location decision is equally critical to all types of businesses.
Q:
The focus of ISO 9000 is to enhance success through what eight quality management principles?
Q:
In a sentence or two, summarize the contribution of Philip Crosby to quality management.
Q:
Businesses that operate in the home
a. can increase profits by decreasing costs.
b. require customer traffic.
c. are called family businesses.
d. are less common today than they were 10 years ago.
Q:
Quality has at least three categories of definitions; identify them. Provide a brief explanation of each.
Q:
Bettina has found a relatively inexpensive building that is a converted service station. Before she signs the lease, she should ask:
a. How is the location zoned?
b. What happened to previous businesses at that location?
c. What are the real estate taxes on the property?
d. Is street parking allowed?
Q:
State the American Society for Quality's definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain.
Q:
Juanita is considering locating her a consulting business in her home. Which consideration is the greatest challenge?
a. The increased time needed to get the business running
b. Her business image may not be perceived as highly as a brick and mortar business
c. The higher cost she may face for equipment and technology
d. The decreased time she will have with friend
Q:
Why are gas stations frequently located at the interchanges of interstate highways?
a. The site provides easy access to raw materials
b. The site is easy to find at night.
c. The site provides tax incentives because many are in rural areas.
d. The site provides easy access to both customers and transportation.
Q:
Identify the four costs of quality. Which one is hardest to evaluate? Explain.
Q:
Rachel is starting a daycare at her home in a suburban area. Which professional should she contact first before starting?
a. The citys planning and zoning board to make sure she can have a business in the home
b. Her CPA to determine if she can claim a tax deduction for the business
c. Her insurance agent to increase the policy for coverage on the equipment and business activities on site
d. All of the professionals are equally important and should be contacted before she starts the business.
Q:
Not only customers, but stockholders, suppliers, and others, are among the ________ whose values must be protected in making ethical decisions concerning the quality of products.
Q:
Genevieve just completed her residency and is ready to open her medical office. The image her office should convey is:
a. trendy, minimalist, futristic with bold colors and modern art.
b. old-fashioned, dark, somber with dark colors and heavy furniture.
c. solid, trustworthy, confident with neutral colors and comfortable furniture.
d. light-hearted and whimsical with pastel colors and playful art.
Q:
The work by ________ regarding how people learn from each other's successes led to the field of cross-functional teamwork.
Q:
The major difference between the information-based model and the content-based model is:
a. the presence of ads in the content-based model
b. the ability to contact the site developoer in the information-based model.
c. the presence of an order-processing feature in the information-based model.
d. the ability for the visitor to post comments on the content-based model.
Q:
________ costs result from production of defective parts or services before delivery to the customer.
Q:
ShoeBiz produces shoes that until recently have been available only at the most exclusive stores. ShoeBiz decided to create its own website and sell directly to the consumer. This strategy is known as:
a. intermediation.
b. disintermediation.
c. disinterment.
d. dismantling the distribution chain.
Q:
What is a set of quality standards developed by the International Organization for Standardization?
A) Malcolm Baldrige National Quality Award
B) Deming Prize
C) ISO 14000
D) IOS 2009
E) ISO 9000
Q:
To become ISO 9000 certified, organizations must:
A) document quality procedures.
B) have an onsite assessment.
C) have an ongoing series of audits of their products or service.
D) all of the above
E) none of the above
Q:
Basic considerations that enter into the selection of a location for a manufacturing business normally include
a. availability of raw materials.
b. customer accessibility.
c. neighborhood conditions.
d. federal income taxes.
Q:
Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:
A) determine whether any of the organization's stakeholders are being wronged by poor quality products.
B) gain ISO 9000 certification for the organization.
C) obtain a product safety certificate from the Consumer Product Safety Commission.
D) have the organization's legal staff write disclaimers in the product instruction booklets.
E) compare the cost of product liability to the external failure cost.
Q:
E-commerce refers to
a. B2B models of doing business.
b. the facilitation of business by making initial contact by electronic means.
c. the buying and selling of products or services over the Internet
d. a form of business that involves online trades and auctions.
Q:
Stakeholders who are affected by the production and marketing of poor quality products include:
A) stockholders, employees, and customers.
B) suppliers and creditors, but not distributors.
C) only stockholders, creditors, and owners.
D) suppliers and distributors, but not customers.
E) only stockholders and organizational executives and managers.
Q:
Harry is starting a business where he restores homes built before 1900 and is purchasing used equipment, specifically lathes, planing mills, and drill presses. This equipment is would be an example of what type?
a. Special-purpose
b. Product-layout
c. General-purpose
d. Automated
Q:
"Quality Is Free," meaning that the costs of poor quality have been understated, is the work of:
A) W. Edwards Deming.
B) Joseph M. Juran.
C) Philip B. Crosby.
D) Crosby, Stills, and Nash.
E) Armand Feigenbaum.
Q:
Annie is starting her photography business and is locating it in her family home. Which aspect is critical in the balance between her business and her family?
a. Making sure family members dont spoil the image of the business when clients arrive
b. Having a professional studio area that is separate from the family area
c. Shielding her family from the business taking over the home
d. All of the above statements are true.
Q:
"The employee cannot produce products that on average exceed the quality of what the process is capable of producing" expresses a basic philosophy in the writings of:
A) Vilfredo Pareto.
B) Armand Feigenbaum.
C) Joseph M. Juran.
D) W. Edwards Deming.
E) Philip B. Crosby.
Q:
Helen is planning to open a high-fashion clothing store for young professional women. Which descriptor is the most important consideration for the fixtures?
a. Economical
b. Elegant
c. Feminine
d. Practical
Q:
Which of the following statements is NOT true?
A) Self-promotion is not a substitute for quality products.
B) Inferior products harm a firm's profitability and a nation's balance of payments.
C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
D) Qualitybe it good or badwill show up in perceptions about a firm's new products, employment practices, and supplier relations.
E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.
Q:
Reliable Construction created a website to post photos of some of their completed projects and display their address and phone number along with a list of the types of projects they can complete. Reliable has used the ___________ model.
a. transaction-based
b. content-based
c. information-based
d. customer-relationship-based
Q:
GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?
A) PDCA
B) internal failure costs
C) appraisal costs
D) cost of poor quality is underestimated
E) prevention costs
Q:
Amazon.com represents the classic ____ firm.
a. B2B
b. B2C
c. C2C
d. Auction site
Q:
A good reason for relocating a typical manufacturing business is to
a. stabilize income taxes.
b. increase customer traffic.
c. be closer to raw materials.
d. provide free-flow space.
Q:
Which of the four major categories of quality costs is particularly hard to quantify?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
E) None is hard to quantify.
Q:
Callista can locate her business in any state regardless of its weather because she sells:
a. air conditioners.
b. outdoor swimming pools.
c. consumer yard irrigation systems.
d. mattresses.
Q:
All of the following costs are likely to decrease as a result of better quality EXCEPT:
A) customer dissatisfaction costs.
B) inspection costs.
C) scrap costs.
D) warranty and service costs.
E) maintenance costs.
Q:
Which of the following is NOT one of the major categories of costs associated with quality?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
E) None of the above; they are all major categories of costs associated with quality.
Q:
Bart is ready to look for a site for his new business. To help him in his search he should:
a. contact a local real estate agent.
b. check property for sale ads in the local newspaper.
c. check into site selection software.
d. check with the local small business development office.
Q:
According to the manufacturing-based definition of quality:
A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
B) quality depends on how well the product fits patterns of consumer preferences.
C) even though quality cannot be defined, you know what it is.
D) quality is the degree to which a specific product conforms to standards.
E) quality lies in the eyes of the beholder.
Q:
Jason has neither a website nor a storefront. Instead, he lists his products for sale on a site that provides customers with the ability to list products for potential buyers. Jason is using a ______ site.
a. C2C
b. C2B
c. B2C
d. B2B
Q:
Tracy is looking for a building for her shoe store. A major consideration would be:
a. the building should have a welcoming exterior.
b. the building should be on one level.
c. the building should accommodate the growth she anticipates in the next five years.
d. the building should be located in a shopping mall.
Q:
Three broad categories of definitions of quality are:
A) product quality, service quality, and organizational quality.
B) user based, manufacturing based, and product based.
C) internal, external, and prevention.
D) low-cost, response, and differentiation.
E) Pareto, Shewhart, and Deming.
Q:
Zoning ordinances
a. may limit what type of business can be located on the property.
b. will prevent commercial signs.
c. typically will allow parking of customers but not employees.
d. All of the above statements are true about zoning ordinances.
Q:
"Making it right the first time" is:
A) an unrealistic definition of quality.
B) a user-based definition of quality.
C) a manufacturing-based definition of quality.
D) a product-based definition of quality.
E) the definition of quality proposed by the American Society for Quality
Q:
Melissa would like to reduce the number of phone calls she gets from customers who want to place orders. Which model would best work for Melissa?
a. The information-based model
b. The content-based model
c. The transaction-based model
d. The customer relationsship-based model
Q:
"Quality lies in the eyes of the beholder" is:
A) an unrealistic definition of quality.
B) a user-based definition of quality.
C) a manufacturing-based definition of quality.
D) a product-based definition of quality.
E) the definition of quality proposed by the American Society for Quality.
Q:
Site-related factors that should be taken into consideration when selecting a manufacturing location include
a. future advertising costs.
b. access to key suppliers.
c. raw material availability.
d. customer accessibility.
Q:
Improved quality can increase profitability via allowing flexible pricing.
Q:
An example of special-purpose equipment for a carbonated beverage company is a
a. refrigerator that keeps the product at the appropriate temperature.
b. bottling machine that adjusts pressure for different flavors.
c. an assembly line moving the beverages to the loading dock.
d. mixer that combines the ingredients in the proper order.
Q:
Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications.
Q:
Calvert is contemplating building an aluminum smelting plant. The ratio of bauxite, the raw material from which aluminum is extracted, to aluminum is two to one. It takes two tons of bauxite to product oen tone of usable aluminum. Where should Calvert locate his smelting plant?
a. Close to his customers
b. Close to the bauxite mine
c. Close to transportation
d. Close to an area with a suitable labor supply
Q:
Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."
Q:
Internal failure costs are associated with scrap, rework, and downtime.
Q:
How does electronic commerce benefit small firms?
a. Small firms are often more "tech savvy" allowing quicker adoption of innovations.
b. Large firms may not push the consumer towards the Internet resulting in small firms being able to gain customers.
c. E-commerce allows small firms to expand beyond local markets without having to make a large investment.
d. The government has committed significant resources to encourage small firms to adopt an e-commerce business model.
Q:
Conforming to standards is the focus of the product-based definition of quality.
Q:
The basis of eCRM is a
a. focus on customization.
b. conscientious work force.
c. flexible distribution system.
d. consumer-centric data warehouse.
Q:
The definition of quality adopted by The American Society for Quality is a customer-oriented (i.e., user based) definition.
Q:
Online businesses that begin as a part-time venture enjoy a lower risk of failure.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
Arnold Palmer Hospital uses ________ to seek new ways to reduce readmission rates.
Q:
While one of the six key factors in determining a good business location may be more important in a given situation, each factor will always have some influence.
a. True
b. False
Q:
Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?
A) flexible pricing
B) increased productivity
C) lower rework and scrap costs
D) lower warranty costs
E) All of the above are aspects of reduced costs by quality improvements.
Q:
To maximize sales and profits, a discount shoe store should create an atmosphere similar to higher price point shoe stores as the customers will expect the same atmosphere.
a. True
b. False
Q:
A successful quality strategy features which of the following elements?
A) an organizational culture that fosters quality
B) an understanding of the principles of quality
C) engaging employees in the necessary activities to implement quality
D) A and C
E) A, B, and C
Q:
A brick-and-mortar store is actually a general term that refers a retail outlet dealing in building supplies.
a. True
b. False