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Q:
Quality function deployment (QFD):
A) determines what will satisfy the customer.
B) translates customer desires into the target design.
C) is used early in the design process.
D) is used to determine where to deploy quality efforts.
E) all of the above
Q:
An entrepreneur can best build social capital by:
a. joining several social networking sites. b. building contacts through community organizations.
c. letting others know when the company has done something well. d. using reciprocation.
Q:
Reducing the complexity of a product and improving a product's maintainability are activities of:
A) product lifecycle management (PLM).
B) product-by-value analysis.
C) manufacturability and value engineering.
D) organizing for product development.
E) design for destruction (DFD).
Q:
Fiction County Sheltered Workshop is a 501(c)(3) corporation. Day Services, a C corporation operating in the same county, has offered to buy FCSW. If this transaction occurs, what happens to the money Day Services will pay for FCSW?
a. The money will go to another nonprofit corporation. b. The money will be distributed to the founders of FCSW.
c. The money will be distributed to the clients of FCSW. d. The money will go to the federal government.
Q:
Which of the following is true regarding value engineering?
A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
C) Value engineering is oriented toward improvement of design.
D) Value engineering occurs during production when it is clear the product is a success.
E) Value engineering can save substantial amounts of product cost, but quality suffers.
Q:
A corporate charter should:
a. be detailed. b. be in accord with state law.
c. include bylaws. d. indicate profit potential.
Q:
Quality function deployment refers to both (1) determining what will satisfy the customer and
(2) translating those customer desires into a target design.
Q:
Jeanne, a Canadian citizen, would like to invest in Ingrids startup. If Ingrid organizes her business as a(n) ________________________, Jeanne is prohibited from investing.
a. sole proprietorship b. partnership
c. S corporation d. limited liability company
Q:
Aggressive new product development requires that organizations build structures internally that contain what features?
Q:
Zeno, Zella, and Zorro wish to form a partnership. Zeno is putting up 60% of the capital; Zella is putting up 40%, and Zorro is putting in no capital but will manage the business. In the absence of a provision in the partnership agreement, how will the liability and profits be distributed?
a. According to the input of capital b. According to the amount of work each does in the business
c. Equally d. According to the laws of the state where the partnership is formed
Q:
Sam does not want to share the fruits of his labor with anyone. It is important to him that he have total control over his new business. Which form of ownership would you recommend for Sam?
a. Partnership b. Sole proprietorship
c. Corporation d. Limited liability partnership
Q:
Provide some examples of recent product changes, i.e. new products that are replacing older ones.
Q:
Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was:
a. reducing its overall profit potential. b. increasing his taxable income.
c. exposing himself to unlimited personal liability. d. violating an existing partnership agreement.
Q:
Identify factors that influence new product opportunities.
Q:
The two dimensions of management control of a small corporation usually involves which individuals?
a. stockholders owning the majority of the voting common stock b. corporate officers in conducting daily operations
c. both stockholders and corporate officers d. neither the stockholders nor the corporate officers
Q:
Which of the following represents an opportunity for generating a new product?
A) understanding the customer
B) demographic change, such as decreasing family size
C) changes in professional standards
D) economic change, such as rising household incomes
E) All of the above are such opportunities.
Q:
Trevor is in his early 60s but still wants to strike out on his own by starting a new business. One roadblock he may face is:
a. resistance from creditors to lend money for the enterprise. b. resistance from his heirs about the distribution of assets at his death.
c. resistance from customers who fear he may become ill and unable to fulfill their orders. d. resistance from the federal government regarding his tax identification number.
Q:
Which of the following would likely cause a change in market opportunities based upon levels of income and wealth?
A) economic change
B) sociological and demographic change
C) technological change
D) political change
E) legal change
Q:
Glenda, an employee of a corporation, caused a traffic accident while on company business. Who will pay for the damages?
a. the stockholders b. the board of directors
c. the founder d. the corporation
Q:
Operations managers must be able to anticipate changes in which of the following?
A) product mix
B) product opportunities
C) the products themselves
D) product volume
E) all of the above
Q:
Is it possible for a product's life cycle stage to affect its product strategy? In particular, describe how one product in growth and another in maturity might have different product strategies.
Q:
For a small firm, which step will increase the chance for success of a strategic alliance?
a. Be protective of any proprietary materials shared with the other company. b. Discuss the proposed alliance in enough detail that limited adjustments are needed after beginning the alliance.
c. Make sure the alliance is clearly a win-win opportunity. d. All of these steps will increase success.
Q:
Which legal form allows owners to contribute no capital but still play a part in managing the business and share in its profits?
a. S corporation b. C corporation
c. partnership d. sole proprietorship
Q:
"With respect to the product decision, managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions, given all the powerful tools and carefully built systems that support that decision.
Q:
One benefit of an S corporation is that it allows shareholders to receive dividends without:
a. paying taxes. b. penalties and interest.
c. double taxation. d. partnership taxation.
Q:
What is a product-by-value analysis, and what type of decisions does it help managers make?
Q:
What is the objective of the product decision?
Q:
Upton was surprised to find his partner had signed an agreement to sell product to a customer at below cost. He tried to cancel the contract but found out that:
a. partners have legal power of attorney to do as they please. b. each partner is in essence a sole proprietor.
c. partners are seldom trustworthy. d. any partner can legally bind the company without the consent of any other partner.
Q:
Upon the death of the majority stockholder in a corporation, direct control may pass to:
a. an heir's dependents. b. an executor.
c. the founder of the firm. d. employees as directed by an employee stock ownership plan.
Q:
________ lists products in descending order of the individual dollar contribution to the firm.
Q:
Lothian has asked five of his friends to serve on the board of directors of his new corporation. Why is this not a good idea?
a. Friends are too dispassionate about the operations of the corporation. b. Friends are unlikely to disagree with the owner on matters brought before the board.
c. Only stockholders can elect the board of directors so it is illegal for the owner to invite friends. d. Friends will find out too much about Lothians personal business.
Q:
In the ________ phase of the product life cycle, the product design has begun to stabilize.
Q:
To maintain status as a corporation, the corporation must:
a. reapply for a charter annually. b. submit its bylaws to the secretary of the state of incorporation every year.
c. hold annual meetings of both the shareholders and the board of directors. d. properly declare annual dividends.
Q:
Regal Marine's use of ________ has reduced product development time and reduced problems with tooling and production.
Q:
A strategic alliance is:
a. an organizational relationship that links two separate businesses. b. an unimportant organizational form in today's business environment.
c. an attempt to duplicate efforts between two firms. d. a strategy that, as a result of its unwieldy nature, is falling from practice.
Q:
What percentage of sales from new products is indicative of industry leaders?
A) 50%
B) 7.5%
C) 10 to 15%
D) above 75%
E) 20 to 25%
Q:
Which group best defines a partnership?
a. A business owned and operated by one person who hires part time employees b. A voluntary association of two persons to have a business for profit
c. The governing body for a corporation d. A group of three persons in which each person has limited personal liability
Q:
________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated.
A) Value analysis
B) Value engineering
C) Financial analysis
D) Product-by-value analysis
E) Product cost justification
Q:
Linda has assembled a list of potential directors for her board. Whom should she not include?
a. her attorney b. an owner of a small non-competing company
c. her college professor d. an executive at a large non-competing company
Q:
At which stage of the product life cycle is product strategy likely to focus on improved cost control?
A) introduction
B) growth
C) maturity
D) saturation
E) inflation
Q:
A typical common stockholder of a corporation:
a. has the right to act for the firm. b. has the right to receive declared dividends.
c. can always buy new stock in proportion to stock already owned. d. can fire employees of the corporation.
Q:
The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:
A) decision tree analysis.
B) Pareto analysis.
C) breakeven analysis.
D) product-by-value analysis.
E) product life cycle analysis.
Q:
Which organizational type results in the business owner having unlimited liability?
a. sole proprietorship b. LLC
c. limited partnership d. corporation
Q:
When should product strategy focus on forecasting capacity requirements?
A) at the introduction stage of the product life cycle
B) at the growth stage of the product life cycle
C) at the maturity stage of the product life cycle
D) at the decline stage of the product life cycle
E) at the saturation stage of the product life cycle
Q:
The strategic alliance between The Center for Systems Management and Technovative Marketing is an example of how:
a. success can be obtained when a large and a small firm combine technological expertise. b. difficulties of two cultures can be overcome when a common goal is desired.
c. an alliance was formed due to a third party bringing two companies together. d. the flexibility of a small company can be combined with the financial backing of a larger firm.
Q:
A product's life cycle is divided into four stages, which are:
A) introduction, growth, saturation, and maturity.
B) introduction, growth, stability, and decline.
C) introduction, maturity, saturation, and decline.
D) introduction, growth, maturity, and decline.
E) incubation, growth, maturity, and decline.
Q:
In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market?
A) introduction
B) growth
C) maturity
D) decline
E) incubation
Q:
The limited liability company form of organization
a. avoids the double taxation of C corporations. b. affords less protection from liability than partnerships.
c. is a poor choice for new businesses. d. can offer stock incentives to employees.
Q:
The three major elements of the product decision are:
A) selection, definition, and design.
B) goods, services, and hybrids.
C) strategy, tactics, and operations.
D) cost, differentiation, and speed of response.
E) legislative, judicial, and executive.
Q:
Any person capable of ____ may legally become a business partner.
a. assenting to liability b. contracting
c. contributing capital d. having a claim on assets
Q:
Regal Marine:
A) no longer builds boats with any wooden parts.
B) has replaced all human labor with robots.
C) treats the product design decision as critical to its success.
D) gets its competitive advantage by being the low-cost producer of boats designed by others.
E) designs several new boats each year, but contracts other firms for their manufacture.
Q:
An owner in a professional corporation is shielded from:
a. their own liability. b. the liability of other owners.
c. both their own liability and the liability of others. d. none of the above.
Q:
Which of these statements regarding Regal Marine is TRUE?
A) Product design is a critical decision for the firm.
B) Regal uses a three-dimensional CAD system to shorten product development time.
C) Regal still uses some wooden parts and hand-produces some components.
D) Regal's use of CAD has resulted in a superior product.
E) All of the above are true.
Q:
Which organizational form would be best if the new company owners intend to provide extensive fringe benefits for owners or employees that would not be treated as taxable income to employees?
a. sole proprietorship b. partnership
c. C corporation d. limited liability company
Q:
3M's goal is to produce 30% of its profit from products introduced in the last 4 years.
Q:
A corporate charter should be:
a. very detailed. b. prepared by the founder.
c. broad in the statement of the firm's power. d. lengthy and precise.
Q:
Relatively few new product ideas, perhaps only 1 in 250, become successfully marketed products.
Q:
To be eligible to be an S corporation, a firm must:
a. have more than 75 stockholders. b. have no nonresident alien stockholders.
c. have two or more classes of stock outstanding. d. be international in scope.
Q:
In the maturity stage of the product life cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.
Q:
Frank would like to avoid personal financial loss if his business idea does not work. Which form of ownership would you suggest?
a. sole proprietorship b. partnership
c. professional corporation d. corporation
Q:
The four phases of the product life cycle are incubation, introduction, growth, and decline.
Q:
What form of corporate structure is used by a company that equally concerns itself with making money and doing good in the world?
a. limited partnership b. B corporation
c. nonprofit corporation d. S corporation
Q:
The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.
Q:
Evan has received permission from his state to form a corporation for his startup, expecting his liability would be limited to the amount of his investment. But his bank asked him to assume personal liability before it would grant him a business loan. Why would the bank make this demand?
a. Evan did not invest enough into the business. b. Evan is the only stockholder.
c. Evan has more assets than the business. d. Evans business has no credit history.
Q:
A basic legal principle involving stockholders is that:
a. an ownership interest in a corporation does not confer a legal right to manage the firm. b. the board of directors cannot elect the principal owner as president.
c. all dividends are nontaxable. d. stockholders cannot buy new stock until it is offered for public sale.
Q:
Product strategy may focus on developing a competitive advantage via differentiation, low cost, rapid response, or a combination of these.
Q:
Taco Bell's unique employee scheduling practices are partly the result of using:
A) point-of-sale computers to track food sales in 15 minute intervals.
B) focus forecasting.
C) a six-week moving average forecasting technique.
D) multiple regression.
E) A and C are both correct.
Q:
Larry Knave, MD, is an owner in a professional corporation. If Dr. Knave is sued for malpractice, what is the liability of the rest of the owners?
a. They are protected from liability for his actions. b. They are responsible for his actions.
c. The professional corporation is liable for his actions. d. No one is responsible for Dr. Knaves actions.
Q:
Hannah makes delicious baked goods but has no retail space. She has contracted with a local grocer to sell her wares in the grocery store. This arrangement is known as a(n):
a. professional company. b. joint venture.
c. strategic alliance. d. partnership.
Q:
Many services maintain records of sales noting:
A) the day of the week.
B) unusual events.
C) the weather.
D) holiday impacts.
E) all of the above.
Q:
Unlimited liability for business debts is imposed on
a. shareholders in a C corporation. b. shareholders in an S corporation.
c. sole proprietors. d. limited partners.
Q:
Jim's department at a local department store has tracked the sales of a product over the last ten weeks. Forecast demand using exponential smoothing with an alpha of 0.4, and an initial forecast of 28.0 for period 1. Calculate the MAD. Calculate the tracking signal. What do you recommend? Period
Demand 1
24 2
23 3
26 4
36 5
26 6
30 7
32 8
26 9
25 10
28
Q:
Effective leadership is more important for prospective managerial personnel than for investors.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
What is focus forecasting?
Q:
Sole proprietors often benefit from fringe benefits such as tax-free insurance plans.
a. True
b. False
Q:
What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.
Q:
An approach to exponential smoothing in which the smoothing constant is automatically changed to keep errors to a minimum is called ________.
Q:
The management team of a small business should focus on competent insiders as opposed to outside specialists.
a. True
b. False
Q:
________ forecasting tries a variety of computer models and selects the best one for a particular application.
Q:
A professional corporation shields owners from liability of other individuals in certain professional practices.
a. True
b. False