Q1. When considering the 4Ps of marketing,placerepresents:

a. the category of location where goods are sold

b. distribution channels

c. promotional efforts that must be made

d. determining the proper price for a new product

Q2. 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

Q3. In legal systems found in democracies, thearticulationof laws is carried out:

a. by the police

b. by legislatures

c. by the courts

d. by the executive branch

Q4. The current ratio provides a more accurate assessment of a company's net working capital position than the quick ratio.

a. true

b. false

Q5. In many enterprises, training initiatives and processes fall under the purview of what department?

a. Information technology

b. Sales

c. Human resources

d. Operations

Q6.Problem solvingis the best conflict management strategy.

a. true

b. false

Q7. 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

Q8. Strategic plans should focus on details in order to enable enterprises to deal with long term events.

a. true

b. false

Q9. Contract incentive fees:

a. One way enterprises become lean

b. Predetermined bonus tied to performance

c. What do customers want?

Q10. The ISO 9000 quality standards holds that "quality is conformance to specifications."

a. true

b. false

Q11. 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

Q12. 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

Q13. Economic order quantity (EOQ):

a. Number of goods ordered for inventory

b. One way enterprises become lean

c. A goal of production processes

Q14. Management by exception is a control methodology.

a. true

b. false

Q15. Inverted pyramid:

a. Bosses visit employees on the floor

b. Senior management supports employees

c. Structuring the work environment

Q16. 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

Q17. 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

Q18. 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

Q19. 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

Q20. Market research:

a. One way enterprises become lean

b. Number of goods ordered for inventory

c. What do customers want?

Q21. You have been asked to outline a business plan for a new half million dollar venture that will be carried out by your company. In putting together the business plan, what consideration can you ignore?

a. The impact of the venture on the company's stock price

b. Cash flow requirements of the venture

c. Operational issues associated with the venture

d. Human resource requirements associated with the venture

Q22. Zero defects:

a. Number of goods ordered for inventory

b. One way enterprises become lean

c. A goal of production processes

Q23. 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

Q24. 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

Q25. 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

Q26. Which of the following isnota source of capital that enterprises can tap into?

a. Equity finance

b. Delayed payment terms arranged with suppliers

c. Treasury bills

d. Loans

Q27. By adopting flattened organizational structures, business enterprises can speed up decision making.

a. true

b. false

Q28. The "Can't we agree to disagree?" perspective best reflects which conflict management strategy?

a. Withdrawal

b. Smoothing

c. Problem solving

d. Compromise

Q29. Which of the following is a negative trait of outsourcing?

a. More expensive than using the company?s own resources

b. The organization may encounter a "hollowing" of its technical capabilities

c. Increased burden of indirect costs

d. It results in limited choice in skills that can be employed

Q30. 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

Q31. Which of the following management techniques doesnotdirectly lead to empowerment?

a. Business process re-engineering

b. MBO

c. Self-managed teams

d. Management by exception

Q32. A leading source of business failure is poor cash flow management.

a. true

b. false

Q33. 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

Q34. We run a consulting company. We would like to expand our business and increase revenues. We know from past experience that the price elasticity of demand for our services is 0.70. It is tempting to reduce the price of our services. If we do, what consequence can we anticipate?

a. Business volume and revenue will increase dramatically

b. Business volume and revenue will increase modestly

c. Business volume would not change significantly; the primary consequence of lowering price will be to experience a loss of revenue

d. Business volume and revenue would both drop

Q35. Activities carried out by firms in areas like R&D and strengthening corporate infrastructure should be tracked as profit and loss activities.

a. true

b. false

Q36. Being a good manager is a precondition to being a good leader.

a. true

b. false

Q37. Which of the following isnota characteristic of a general partnership?

a. Limited liability

b. Partners share benefits

c. Actions of one partner commit all partners

d. If partnership agreement does not exist, partnership rules revert to rules established by the state

Q38. Management by walking around:

a. Bosses visit employees on the floor

b. Senior management supports employees

c. Employees walk from workstation to workstation

Q39. MBO is an important evaluation tool.

a. true

b. false

Q40. 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