Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
How are outsourcing and vertical integration related? Can a single firm successfully do both?
Q:
What is a keiretsu?
Q:
Identify the advantages and disadvantages of using the "few suppliers" sourcing strategy.
Q:
Identify and describe briefly the six sourcing strategies.
Q:
Virtual companies are also known as ________ .
Q:
________ rely on a variety of supplier relationships to provide services on demand.
Q:
________ is a Japanese term that describes suppliers who become part of a company coalition.
Q:
________ is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor.
Q:
Management and labor share the labor cost reductions in which of these compensation schemes?
A) bonus system
B) quota system
C) Scantron plan
D) Scanlon plan
E) measured day work plan
Q:
Which of the following is not a limitation of job expansion?
A) higher capital cost
B) higher wage rates
C) smaller labor pool
D) higher training costs
E) All of the above are limitations of job expansion.
Q:
When a worker obtains clear and timely information about his/her performance, his/her job includes which of the following characteristics?
A) feedback
B) skill variety
C) job identity
D) job significance
E) autonomy
Q:
The difference between job enrichment and job enlargement is that:
A) enlarged jobs involve vertical expansion, while enriched jobs involve horizontal expansion.
B) enriched jobs enable an employee to do a number of boring jobs instead of just one.
C) job enlargement is more psychologically satisfying than job enrichment.
D) job enrichment is suitable for all employees, whereas job enlargement is not.
E) enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion.
Q:
Which of the following statements describes job rotation?
A) The job contains a larger number of similar tasks.
B) The job includes some planning and control necessary for job accomplishment.
C) The operator works on different shifts on a regular basis.
D) The operator's schedule is flexible.
E) The operator is allowed to move, for example, from one type of CNC machine to another.
Q:
Which of the following terms implies an increase in responsibility and control in the vertical direction?
A) job rotation
B) job enrichment
C) job re-design
D) job enlargement
E) job satisfaction
Q:
Which of Hackman and Oldham's five job characteristics refers to providing a worker a say in the work methods that he/she wishes to utilize?
A) skill variety
B) job identity
C) job significance
D) feedback
E) autonomy
Q:
What is the behavioral approach to job design that involves giving the worker more tasks requiring similar skills?
A) job enlargement
B) job enrichment
C) job enhancement
D) job rotation
E) job involvement
Q:
Four of the components of job design are:
A) employment stability, work schedules, work sampling, and motivation & incentive systems.
B) job specialization, job expansion, psychological components, and self-directed teams.
C) labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling.
D) ergonomics and work methods, method time measurement, work schedules, and incentive systems.
E) labor specialization, time studies, work sampling, and pre-determined time standards.
Q:
Profit-sharing is a motivation and incentive system where executives receive stock options.
Q:
Job expansion can lead to increased labor cost because of the extra workers hired in the expansion.
Q:
Total quality management emphasizes:
A) the responsibility of the quality control staff to identify and solve all quality-related problems.
B) a commitment to quality that goes beyond internal company issues to suppliers and customers.
C) a system where strong managers are the only decision makers.
D) a process where mostly statisticians get involved.
E) ISO 14000 certification.
Q:
Suppose that a firm has historically been achieving "Three Sigma" quality. If the firm later changes its quality management practices such that it begins to achieve "Six Sigma" quality, which of the following phenomena will result?
A) The average number of defects will be cut in half.
B) The specification limits will be moved twice as far from the mean.
C) The average number of defects will be cut by 99.9997%.
D) The average number of defects will be cut by 99.87%.
E) The average number of defects will be cut by 99.73%.
Q:
Jackie owns a building in a downtown area. Her building is used for office space and is rented to a current business tenant. What kind of risk is associated with this property and is this type of risk insurable?
Q:
Regal Marine's attempts to keep in touch with customers and respond to the marketplace are made impossible because consumer tastes change and maritime engineering improves.
Q:
After discussing the risk management process, list specific areas of concern for each step.
Q:
Transition to production refers to the act of moving a product to production from what?
A) inventory
B) the supplier
C) the market
D) development
E) the wholesaler
Q:
Discuss advantages and disadvantages to a company obtaining a BOP policy.
Q:
A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $40,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of $70,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder), should the company outsource design or do it in-house?
Q:
Minimizing potential losses by preventing, avoiding, and/or reducing risk
Q:
A company looking for venture capitalist funding is deciding on the design of its operating system (OS) for its new phone. The first option is to simply buy the OS from another company. This would result in sales of either 10,000 units if the market is not crowded with similar phones, or sales of only 3,000 units if the market is crowded. If the company decides to design its own OS, the phone would have sales of 70,000 units if the OS was popular, but sales of only 2,000 if the OS was a failure. Suppose that to recoup the cost of designing their own OS the company would need to sell twice as many phones as when they simply buy the OS for the profit from the scenarios to be equal. Which option should the company choose if the probability that the market is crowded is 50% and the probability that the OS is popular is 75%?
Q:
Land and anything physically attached to the land, such as buildings
Q:
Financing loss intentionally through a firms cash flows
Q:
A company is deciding if it should design an advertising system for use on Twitter. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. The final choice is System B, which would increase sales by $20,000 under both good and bad conditions. Suppose that good conditions are twice as likely as bad conditions. Which option should the company pursue if developing a system costs $25,000?
Q:
Buying insurance or making contractual arrangements that transfer risk to others
Q:
A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has universal appeal but faces a crowded market. This app, A, would have sales of 100,000 copies at $1 each under ideal conditions, but under tough conditions would have sales of only 60,000 copies at $.80 each. The other app, B, would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions. If ideal and rough conditions occur with the same frequency, which app should the company produce? Note: both apps cost the same amount to develop.
Q:
Wrongful acts or omissions for which an injured party can take legal action against the wrongdoer for monetary damages
Q:
A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $100,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $75,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and it has a 33% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10-year mark. If both options are acceptable to the swim club, which one minimizes their cost?
Q:
A company manufactures specialty pollution-sensing devices for the offshore oil industry. One particular device has reached maturity, and the company is considering whether to replace it with a newer model. Technologies have not changed dramatically, so the new device would have similar functionality to the existing one, but would be smaller and lighter in weight. The firm's three choices are: (1) keep the old model, (2) design a replacement device with internal resources, (3) and purchase a new design from a firm that is one of its suppliers. The market for these devices will be either "receptive" or "neutral" of the replacement model. The financial estimates are as follows: Keeping the old design will yield a profit of $6 million dollars. Designing the replacement internally will yield $10 million if the market is "receptive," but a $3 million loss if the market is "neutral." Acquiring the new design from the supplier will profit $4 million under "receptive," $1 million under "neutral." The company feels that the market has a 70 percent chance of being "receptive" and a 30 percent chance of being "neutral." Draw the appropriate decision tree. Calculate expected value for all courses of action. What action yields the highest expected value?
Q:
Making funds available to cover losses that cannot be eliminated by risk control
Q:
Ways of coping with risk that are designed to preserve the assets and earning power of a firm
Q:
Tri-products is trying to decide whether to make or buy an accessory item for one of their products. It is projected that this item will sell for $10 each. If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have two choices. Process A requires an investment of $120,000 for design and equipment, but results in a $4 per unit cost. Process B requires only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 50,000 units, and a 50% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and EMV, what is their best choice?
Q:
Coverage that designates part of a firms earnings as a cushion against possible future losses
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:
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:
A lease on a real property structure will relieve the lessee of any damage or loss to the leased premises.
a. True
b. False
Q:
What is focus forecasting?
Q:
Partially self-funded insurance programs that limit the self-insured portion of an employees medical coverage to a specific amount is commonly referred to as an aggregate stop loss limit.
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:
Small businesses are particularly vulnerable to employee fraud because of weak financial controls.
a. True
b. False
Q:
________ forecasting tries a variety of computer models and selects the best one for a particular application.
Q:
The companys ability to absorb losses will determine what smaller potential losses will be insured.
a. True
b. False
Q:
Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of:
A) exponential smoothing including trend.
B) adaptive smoothing.
C) trend projection.
D) focus forecasting.
E) multiple regression analysis.
Q:
A consulting firm that typically does not have clients visit its business location would have minimal premises liability exposure.
a. True
b. False
Q:
Property insurance that covers all direct damage to property except damage caused by perils specifically excluded is called CGL.
a. True
b. False
Q:
The tracking signal is the:
A) standard error of the estimate.
B) absolute deviation of the last period's forecast.
C) MAD.
D) ratio of cumulative error / MAD.
E) MAPE.
Q:
Business interruption insurance pays for lost income following the interruption of business operations.
a. True
b. False
Q:
The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate:
A) qualitative methods.
B) adaptive smoothing.
C) slope.
D) bias.
E) trend projection.
Q:
Business risks can be classified into two broad categoriesasset risk and pure risk.
a. True
b. False
Q:
Focus forecasting tries a variety of computer models and selects the best one for a particular application.
Q:
Real property risks include damage to buildings.
a. True
b. False
Q:
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased.
Q:
Risk financing is the action of making funds available to cover losses that could not be eliminated by risk control.
a. True
b. False
Q:
Indemnification clauses should be reviewed by an insurance agent or broker to limit liabilities to a small business.
a. True
b. False
Q:
A company should pay accounts payable on Day 30 if funds are available.
a. True
b. False
Q:
Days sales outstanding should be decreased to increase accounts receivable conversion.
a. True
b. False
Q:
Improperly managed and uncontrolled stockpiling may greatly increase inventory-carrying costs and place a heavy drain on the funds of a small business.
a. True
b. False
Q:
The goal of the cash conversion period is to have as few days as possible in the process so as to be able to finance other activities with working capital.
a. True
b. False
Q:
Inventory is a concern only for manufacturing companies.
a. True
b. False
Q:
A advantage of the accounting return on investment technique is that it ignores the time value of money.
a. True
b. False
Q:
Factoring account receivables involves the business selling its accounts receivable to a finance company, and the finance company assumes any bad-debt risk.
a. True
b. False
Q:
The goal of the cash conversion period is convert paid-for inventory and accounts receivables into cash as quickly as possible.
a. True
b. False
Q:
Capital budgeting primarily involves short-term decisions on the part of management.
a. True
b. False
Q:
Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
A) 2
B) 3
C) 4
D) 8
E) 16
Q:
A firm's working capital cycle refers to the flow of cash to purchase and sell fixed assets.
a. True
b. False
Q:
The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
A) estimate the trend line.
B) eliminate forecast errors.
C) measure forecast accuracy.
D) seasonally adjust the forecast.
E) remove random variations.
Q:
A forecasting method has produced the following over the past five months. What is the mean absolute deviation? Actual
Forecast
Error
|Error| 10
11
-1
1 8
10
-2
2 10
8
2
2 6
6
0
0 9
8
1
1 A) -0.2
B) -1.0
C) 0.0
D) 1.2
E) 8.6
Q:
A firms cost of capital is simply the interest rate it must pay on its loans.
a. True
b. False
Q:
Which of the following values of alpha would cause exponential smoothing to respond the SLOWEST to forecast errors?
A) 0.10
B) 0.2246
C) 0.50
D) 0.90
E) cannot be determined
Q:
Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing?
A) 45.5
B) 57.1
C) 58.9
D) 61.0
E) 65.5
Q:
A forecast based on the previous forecast plus a percentage of the forecast error is a(n):
A) qualitative forecast.
B) naive forecast.
C) moving average forecast.
D) weighted moving average forecast.
E) exponential smoothing forecast.