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Q:
Success in school often requires a person to be a ________, while success in the workplace often requires the same person to be a ________.
A) specialist; generalist
B) specialist; conformist
C) generalist; specialist
D) conformist; nonconformist
Q:
Generally speaking, the more ________ a job requires that you have actually acquired, the better off you are.
A) technical skill
B) writing skill
C) speaking skill
D) training
Q:
It is best to try to cultivate a competitive advantage in job skills that are ________.
A) technical
B) interpersonal
C) scarce
D) common
Q:
Mentors have been shown to be especially helpful to ________.
A) doctors and nurses
B) women and minorities
C) older employees
D) experienced employees
Q:
A more senior person than yourself who guides you through your career is known as ________.
A) a protg
B) a mentor
C) a teacher
D) a friend
Q:
A research scientist who needs a job is likely to accomplish this by giving a talk or poster presentation at a professional meeting.
A) increase salary
B) directly create job opportunities
C) increase visibility
D) get new research ideas
Q:
An advantage of an online networking community such as LinkedIn is that you can search for people according to their ________.
A) skills, experience, and interests
B) personality and temperament
C) reputation within the industry
D) organizational performance reviews
Q:
To extend the reach of their networks, people should do all of the following EXCEPT ________.
A) take networking classes
B) go to college alumni functions
C) attend conferences
D) join virtual business communities
Q:
Networking is useful ________.
A) only before you have a job
B) only after you have a job
C) both before and after you have a job
D) only for people who want to change jobs
Q:
In a short essay, explain how carrying costs and ordering costs change with order size in EOQ (economic order quantity) analysis.
Q:
In a short essay, explain what the value of P in queuing theory provides for a manager.
Q:
Q:
In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).
Q:
A payoff matrix features strategies S1, S2, S3, and S4 and competitive strategies CA1, CA2, and CA3. In a short essay, explain how maximum regret can be calculated for an S1 strategy.
Q:
Q:
Q:
The purchase price of a product has no influence on calculating EOQ.
Q:
In the economic order quantity (EOQ) model, decreasing the order size will increase carrying costs.
Q:
In the economic order quantity (EOQ) model, increasing the order size will decrease ordering costs.
Q:
In the economic order quantity (EOQ) model, the optimum order quantity is obtained by identifying where the total cost curve and the ordering costs curve intersect.
Q:
The goal of the economic order quantity (EOQ) model is to maximize the total costs that are categorized as carrying costs and ordering costs.
Q:
In the economic order quantity (EOQ) model, one of the costs that gets considered for analysis is the carrying costs of tying up money with inventory.
Q:
Using a fixed-point reordering system, a business might order new inventory when it is down to about one-third of its maximum stock.
Q:
A queuing theory analysis for bank teller windows comes up with a value of 0.10 for P, indicating that customers are likely to wait about 10 minutes for each transaction.
Q:
Another term for queuing theory is "waiting line" theory.
Q:
Production data for Streaks is shown. Using linear programming, if the plant makes 100 pairs of running shoes and 100 pairs of soccer shoes, it ends up with $3600 in profit.
Monthly Product Running
Soccer
Capacity (Hours) Design
5
3
750 Manufacture
1.5
1.5
400 Profit per unit
$20
$16
Q:
Production data for Streaks is shown. Using linear programming, the maximum number of running shoes that the plant can make is 250.
Monthly Product Running
Soccer
Capacity (Hours) Design
5
3
750 Manufacture
1.5
1.5
400 Profit per unit
$20
$16
Q:
Production data for Streaks is shown. Using linear programming, the maximum number of soccer shoes that the plant can make is 250.
Monthly Product Running
Soccer
Capacity (Hours) Design
5
3
750 Manufacture
1.5
1.5
400 Profit per unit
$20
$16
Q:
Production data for Streaks is shown. Using linear programming, if running shoes are represented by R and soccer shoes by S, 5R + 3S < 750 is the correct constraint equation for design.
Monthly Product Running
Soccer
Capacity (Hours) Design
5
3
750 Manufacture
1.5
1.5
400 Profit per unit
$20
$16
Q:
Production data is shown for the number of hours required per unit for the Running and Soccer versions of Streaks, custom made athletic shoes. Using linear programming, if running shoes are represented by R and soccer shoes by S, the expression $16R + $20S is equal to the maximum profit that can be made.
Monthly Product Running
Soccer
Capacity (Hours) Design
5
3
750 Manufacture
1.5
1.5
300 Profit per unit
$20
$16
Q:
A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.
Q:
Return on investment measures the ratio of total profits to total assets.
Q:
An organization with a high leverage ratio has usually been overly cautious and conservative in its borrowing.
Q:
A current ratio of 1.5 to 1 for an organization suggests that the organization will not be able to meet its short-term debt obligations.
Q:
Liquidity is a measure of an organization's ability to access cash to meet its debt obligations.
Q:
Reducing the value of VC in a break-even analysis means that the business needs to sell fewer units to turn a profit.
Q:
The greater the ratio of TFC to (P - VC) is means that the business needs to sell fewer units to make a profit.
Q:
The break-even point is computed by the formula BE = [TFC/(P - VC)].
Q:
A manager uses break-even analysis to find out how many units of a product he needs to sell to make a profit of zero.
Q:
The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. The shop is likely to make $105,000, the sum of both projections.
Q:
The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. Overall, the shop is expected to make $32,000.
Q:
The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. If the economy is weak, the shop is likely to make 60 percent of a $25,000 profit, or $15,000.
Q:
The decision tree shows the profit outcomes for a sandwich shop in a strong and a weak economy. If the economy is strong, the shop is likely to make an $80,000 profit.
Q:
Decision trees are unreliable for making pricing decisions.
Q:
This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. A minimax Bigg manager choosing S3 would have a greatest possible regret of 2. CA1
CA2
CA3 S1
5
5
3 S2
9
6
1 S3
10
2
5
Q:
This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. The maximum regrets for this table are S1 = 5, S2 = 9, S3 = 12. CA1
CA2
CA3 S1
5
5
3 S2
9
6
1 S3
10
2
5
Q:
This regret matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. A minimax Bigg manager would choose S2 because it has the smallest maximum regret of 1. CA1
CA2
CA3 S1
5
5
3 S2
9
6
1 S3
10
2
5
Q:
This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg's point of view, the S3 maximum regret is 1. CA1
CA2
CA3 S1
8
5
12 S2
9
14
3 S3
16
13
20
Q:
This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg's point of view, the S2 maximum regret is 9. CA1
CA2
CA3 S1
8
5
12 S2
9
14
3 S3
16
13
20
Q:
This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg's point of view, the S1 maximum regret for CA2 is 8. CA1
CA2
CA3 S1
8
5
12 S2
9
14
3 S3
16
13
20
Q:
This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company. From Bigg's point of view, the S1 maximum regret for CA1 is 8. CA1
CA2
CA3 S1
8
5
12 S2
9
14
3 S3
16
13
20
Q:
Regret is computed by subtracting the value of a possible strategy from the greatest value in the entire matrix.
Q:
With choice S1, a manager sees gains of $10 million and $6 million. With choice S2, a manager sees gains of $12 million and $8 million. Only a pessimistic manager would choose S1.
Q:
With choice S1, a manager sees gains of $10 million and $6 million. With choice S2, a manager sees gains of $12 million and $8 million. S2 might be the choice of a pessimistic manager.
Q:
With choice S1, a manager sees gains of $10 million and $6 million. With choice S2, a manager sees gains of $12 million and $3 million. The manager chooses S2, so she must be optimistic.
Q:
A pessimistic manager will typically follow a minimin choice.
Q:
An optimistic manager will typically follow a maximax choice.
Q:
A new upgrade for a product is expected to increase demand by a factor of 4. If all other factors remain equal, how is EOQ likely to change?
A) EOQ will double.
B) EOQ will increase by 50 percent.
C) EOQ will decrease by 50 percent.
D) EOQ will not change.
Q:
Mia, a manager at Best Buy, should be able to find Q, the most economic order size for a product, by ________.
A) locating where the carrying costs curve and the total costs curve intersect
B) locating where the carrying costs curve and the ordering costs curve intersect
C) locating where the carrying costs curve and the ordering costs curve are parallel
D) locating where the total costs curve and the ordering costs curve are parallel
Q:
Mia, a manager at Best Buy, increases the order size for a product that the company sells, which will ________.
A) increase both ordering costs and carrying costs
B) increase ordering costs and decrease carrying costs
C) decrease both ordering costs and carrying costs
D) decrease ordering costs and increase carrying costs
Q:
Which of the following identifies the goal of managers who use the economic order quantity (EOQ) model?
A) minimizing carrying costs and ordering costs
B) maximizing carrying costs and ordering costs
C) maximizing carrying costs and minimizing ordering costs
D) maximizing carrying costs and total costs
Q:
Jeff, a manager at the Flux Soap Store, lowered the reorder point for Butterscotch-Lemon soap from 33 percent of maximum to 20 percent of maximum. What is Jeff likely to observe?
A) The level of Butterscotch-Lemon soap in stock should increase.
B) Sales of Butterscotch-Lemon soap should decrease.
C) Sales of Butterscotch-Lemon soap should increase.
D) The level of Butterscotch-Lemon soap in stock should drop.
Q:
Jeff, a manager at the Flux Soap Store, notices that the store regularly runs out of Jasmine-Berry soap. Currently, the reorder point is fixed when inventory reaches 40 percent of maximum. Which adjustment should Jeff make in a fixed-point reordering system?
A) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 30 percent of maximum.
B) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at 10 percent of maximum.
C) Jeff should raise the reorder level to a point where inventory of Jasmine-Berry soap is at 50 percent of maximum.
D) Jeff should lower the reorder level to a point where inventory of Jasmine-Berry soap is at half of the previous level.
Q:
How does a fixed-point reordering system work?
A) When inventory level reaches 50 percent of maximum, the system orders new inventory.
B) When inventory level reaches 33 percent of maximum, the system orders new inventory.
C) At some preestablished inventory level, the system automatically orders new inventory.
D) At some random inventory level, the system automatically orders new inventory.
Q:
A queuing theory analysis for the Department of Motor Vehicles determines that customers typically wait for 8 minutes and that the agency should strive never to exceed more than 5 customers in a single line. An analysis comes up with a value for P of 0.125. What does this P value mean?
A) that customers will wait an average of 12.5 minutes
B) that the chances that a customer will need to wait for more than 5 people in line are 1 in 8
C) that customers will wait an average of 0.125 minutes
D) that the chances that a customer will need to wait for more than 5 people in line are 1 in 12.5
Q:
A queuing theory analysis for the Department of Motor Vehicles determines that customers typically wait for 8 minutes and that the agency should strive never to exceed more than 5 customers in a single line. What is the maximum amount of time that customers should be expected to wait?
A) 8 minutes
B) 40 minutes
C) 20 minutes
D) 24 minutes
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides exclusively to make either the maximum number of iPhone components or the maximum number of Droid phones. Which choice will result in the greater profit?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) Making Droid units will result in $4000 more profit.
B) Making iPhone units will result in $250 more profit.
C) Making Droid units will result in $250 more profit.
D) Making iPhone units will result in $3750 more profit.
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones. How much profit will it make?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) $3750
B) $1500
C) $5250
D) $4000
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones. How many of each type of phone will it make?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) 375 iPhone units and 625 Droid units
B) 500 iPhone units and 500 Droid units
C) 1000 iPhone units and 1000 Droid units
D) 625 iPhone units and 375 Droid units
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of Droid units that the factory can make?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) 625
B) 1000
C) 5000
D) 800
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of iPhone units that the factory can make?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) 625
B) 1000
C) 5000
D) 800
Q:
Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. What is the maximum number of units that the factory can make of either type of phone component?
Monthly Product Droid
iPhone
Capacity (Hours) Design
5
8
5000 Manufacture
2.5
2.5
2500 Profit per unit
$4
$6 A) 2500
B) 2000
C) 500
D) 1000
Q:
Which of the following would cause a well-run company to become highly leveraged?
A) when the money that the company can earn investing the money that it borrows is equal to the cost of borrowing
B) when the money that the company can earn investing the money that it borrows is significantly less than the cost of borrowing
C) when the money that the company can earn investing the money that it borrows is significantly greater than the cost of borrowing
D) when the money that the company can earn investing the money that it borrows is equal to more than half of the cost of borrowing
Q:
Which of the following characterizes a highly leveraged company?
A) high total assets relative to total debt
B) high total debt relative to total assets
C) high total debt relative to inventories
D) high total interest payments relative to total debt
Q:
When is the acid test an especially important test for a company's liquidity?
A) when the economy is slow and inventory is not selling
B) when the economy is robust and inventory is selling fast
C) with companies that exclusively sell services and therefore do not have any inventory
D) with companies that exclusively sell services to the wealthy and therefore are not subject to economic downturns
Q:
A company has a current ratio of 0.85 to 1. What should a manager in the company worry about?
A) The company has too many assets and is not using them efficiently.
B) The company has too much inventory.
C) The company may start to have trouble paying salaries.
D) The company is paying salaries that are too high.
Q:
A company has a current ratio of 2.75 to 1. What should a manager in the company conclude?
A) The company is getting the best possible return on its assets.
B) The company has too many liabilities.
C) The company is not getting the best possible return on its assets.
D) The company is not getting the best possible return on its liabilities.
Q:
Fixed costs for a product are $30,000. The product itself sells for $3.00 and it costs $1.50 to make each product. How can the plant decrease the break-even point by 5000 units?
A) Increase P, the price of the item, by $0.50.
B) Increase TFC, the fixed costs for item, by $5000.
C) Decrease P, the price of the item, by $0.50.
D) Decrease TFC, the fixed costs for item, by $5000.
Q:
Fixed costs for a product are $60,000. The product itself sells for $4.00 and it costs $1.00 to make each product. How will the break-even point for the product change if the variable cost per unit goes up to $1.50?
A) The break-even point will increase by 4000.
B) The break-even point will increase by 24,000.
C) The break-even point will decrease by 4000.
D) The break-even point will increase by 20,000.
Q:
Fixed costs for a product are $50,000. The product itself sells for $5.00 and it costs $3.00 to make each product. What is the break-even point for the product?
A) 100,000
B) 10,000
C) 50,000
D) 25,000