Q1. Present value and compound interest are based on the same underlying formula, where the formula’s terms have been moved around.
a. true
b. false
Q2. LLC:
a. Long-term view of operations
b. One way enterprises become lean
c. Similar to S-corporation
Q3. Being a good manager is a precondition to being a good leader.
a. true
b. false
Q4. Zero defects:
a. Number of goods ordered for inventory
b. One way enterprises become lean
c. A goal of production processes
Q5. In the earliest stages of estimating costs of a new venture, estimators will likely depend upon:
a. conceptual estimates
b. preliminary estimates
c. definitive estimates
d. bottom-up estimates
Q6. Management by exception is a control methodology.
a. true
b. false
Q7. All decision making entails a measure of risk. Why?
a. All work efforts entail a degree of physical danger to employees
b. Even good decisions may have negative impacts on profitability
c. We never have perfect information upon which we can base our decisions
d. In making decisions, we rarely have full backing from all the stakeholders
Q8. Pro forma cash flow statements:
a. can be built directly from balance sheets
b. enable us to identify which assets are productive and which are not
c. show us month-by-month whether our cash position is positive or negative
d. are crucial in calculating net working capital
Q9. Inverted pyramid:
a. Bosses visit employees on the floor
b. Senior management supports employees
c. Structuring the work environment
Q10. It is during the start-up stage of the product life cycle that profits grow most rapidly.
a. true
b. false
Q11. According to Katzenbach and Smith in their book, The Wisdom of Teams, the primary way to assess the value of a team is to determine:
a. whether team members have learned to cooperate with each other
b. whether team members know how to handle conflict in order to minimize disruptions to team efforts
c. whether the team achieved its performance objectives
d. whether team members value service to the team more highly than serving their self-interests
Q12. What does “360 degree review” refer to?
a. Profits are examined from the perspective of all players participating in business processes
b. The process of having key stakeholders assess business cases entailing investment in new business opportunities
c. Employees and managers evaluate each others’ performance
d. An inspection of the quality of products by key stakeholders
Q13. According to MBO principles, “Bob will get the job done as quickly as possible” is a good statement of an objective.
a. true
b. false
Q14. When we refer to operations as a “transforming process,” we mean that through operations activities:
a. we transform our views of business activity from traditional perspectives to current perspectives
b. we transform the equipment and tools we use from obsolete equipment and tools to state-of-art equipment and tools
c. we transform raw materials into finished products
d. we transform ideas into action
Q15. Which of the following categories of investors has first priority when it comes to being paid back by an enterprise?
a. Bond holders
b. Common stockholders
c. Preferred stockholders
d. Speculators
Q16. Having a high proportion of equity financing is more risky to the viability of a typical enterprise than having a high proportion of debt financing.
a. true
b. false
Q17. Strategic planning:
a. Long-term view of operations
b. Predetermined bonus tied to performance
c. A goal of production processes
Q18. Which of the following management techniques does not directly lead to empowerment?
a. Business process re-engineering
b. MBO
c. Self-managed teams
d. Management by exception
Q19. Just-in-time (JIT) management focuses primarily on:
a. reducing inventory stores
b. providing customers the finished products they desire according to a schedule
c. using PERT/CPM charts to schedule activities accurately
d.
avoiding schedule delays
Q20. MBO is an important evaluation tool.
a. true
b. false
Q21. Which of the following is not generally considered a cost of inventory?
a. Cost of spoilage
b. Cost of delivery of goods
c. Ordering cost
d. Storage cost
Q22. In legal systems found in democracies, the articulation of laws is carried out:
a. by the police
b. by legislatures
c. by the courts
d. by the executive branch
Q23. Your budget for task activities in October is $25,000. You find that the actual expenditures for October is $27,000. What are the management implications of the data?
a. You spent too much in October and face a cost overrun
b. You spent too much in October, but the overrun is not major, so you need not be too concerned
c. You need to cut back on scope in order to bring costs into line with the budget
d. You do not have enough information to determine the true cost status of the October work effort
Q24. Which of the following is not a direct consequence of empowerment?
a. You gain employee commitment to doing a good job
b. Your costs drop while your revenues increase
c. You enable employees to make decisions
d. Your enterprise can function more nimbly, because decisions are made by employees interacting directly with customers
Q25. Contract incentive fees:
a. One way enterprises become lean
b. Predetermined bonus tied to performance
c. What do customers want?
Q26. In business finance, the ownership share of an enterprise’s owners can be determined from:
a. total assets
b. owner’s equity plus retained earnings
c. retained earnings alone
d. stock price
Q27. Organizational design:
a. Long-term view of operations
b. Structuring the work environment
c. What do customers want?
Q28. When applied to sales, the 80:20 Rule holds that:
a. eighty percent of our customers generate twenty percent of our revenue. Special attention should focus on satisfying these people
b. twenty percent of our customers generate eighty percent of our revenue. Special attention should focus on satisfying these people.
c. eighty percent of our customers return to the retailer twenty percent of the goods they purchase
d. twenty percent of our customers express satisfaction with the buying experience at our store eighty percent of the time
Q29. The ISO 9000 quality standards holds that “quality is conformance to specifications.”
a. true
b. false
Q30. By adopting flattened organizational structures, business enterprises can speed up decision making.
a. true
b. false
Q31. The “Can’t we agree to disagree?” perspective best reflects which conflict management strategy?
a. Withdrawal
b. Smoothing
c. Problem solving
d. Compromise
Q32. To establish a corporation, one need only begin business operations.
a. true
b. false
Q33. The fundamental accounting relationship underlying balance sheet analysis is:
a. Total assets = Fixed assets plus short term assets
b. Total liabilities = Total liabilities plus total equity
c. Operating revenue = Total sales minus cost of operations
d. Total assets = Total liabilities plus total equity
Q34.
A leading source of business failure is poor cash flow management.
a. true
b. false
Q35. Market research:
a. One way enterprises become lean
b. Number of goods ordered for inventory
c. What do customers want?
Q36. Process innovation is important because:
a. it can yield dramatic cost savings in business operations
b. it leads to the development of new products
c. expenses incurred lead to tax write-offs
d. it enables companies to charge higher prices for their products
Q37. Downsizing:
a. One way enterprises become lean
b. Predetermined bonus tied to performance
c. A goal of production processes
Q38. Strategic plans should focus on details in order to enable enterprises to deal with long term events.
a. true
b. false
Q39. A distinguishing feature of business process reengineering is:
a. it provides engineering departments with greater authority to make non-technical decisions
b. it entails streamlining the organization’s operating processes
c. it strengthens morale among employees, because it defines job roles more clearly
d. it encourages job enrichment
Q40. The inverted pyramid concept holds that the basic job of today’s managers is:
a. to direct the activities of their employees
b. to control the activities of their employees
c. to develop strategic visions of the enterprise’s future directions
d. to support their employees so that they can do a better job
