ABC1-Set1 Marks: 86

Number of Questions: 86

ABC1

ABC1-Set1

1.

Item code: 964.1.1-01.1

One employee in a company always seems willing to help other employees with aspects of their own jobs. This employee is

a positive force and a "team player" within the organization.

Which dimension of organizational citizenship behavior does this employee demonstrate?

Choose 1 answer

a) Altruism

b) Courtesy

c) Civic virtue

d) Sportsmanship

e) Conscientiousness

Answer: Altruism,

2.

Item code: 964.1.1-02.3

A manager rates one of his/her employees very highly on all dimensions of job performance, including some dimensions

(such as creativity) for which there was no observed behavior.

These ratings most likely reflect what type of rating error?

Choose 1 answer

a) Halo

b) Logical

c) Central tendency

d) Positive leniency

e) Negative leniency

Answer: Halo,

3.

Item code: 964.1.1-03.3

A company requires job applicants to lift 50 pounds over their head as part of the selection process. While most jobs do not

require any lifting, the company wants all its employees to be "physically fit." This selection procedure results in a greater

percentage of females than males failing the selection test.

Which type of employment discrimination is this?

Choose 1 answer

a) Quid pro quo

b) Adverse impact

c) Adverse treatment

d) Disparate treatment

e) Hostile work environment

Answer: Adverse impact,

4.

Item code: 964.1.1-04.3

An employee reports losing motivation on the job because other employees with lesser qualifications are getting promoted

ahead of him.

What is this loss in motivation is an example of?

Choose 1 answer

a) Force

b) Valence

c) Inequity

d) Expectancy

e) Instrumentality

Answer: Inequity,

5.

Item code: 964.1.1-06.1

Groupthink is a phenomenon observed in some teams that are characterized by very high levels of _____.

Choose 1 answer

a) Trust

b) Cohesion

c) Conflict

d) Diversity

e) Communication

Answer: Cohesion,

6.

Item code: 964.1.1-07.2

A company's workday ends at 5:00 p.m. However, the employees in the marketing department do not leave for home until

their work is completed for the day, which is often around 5:30.

What concept differentiates the employees in the marketing department from the other employees of this company?

Choose 1 answer

a) Roles

b) Norms

c) Cultures

d) Formal rules

Answer: Norms,

7.

Item code: 964.1.1-08.1

Consultation, reasoning, friendliness, and inspirational appeals among people at work are examples of _____.

Choose 1 answer

a) Influence tactics

b) Transactional costs

c) Transformational factors

d) Leadership characteristics

Answer: Influence tactics,

8.

Item code: 964.1.1-09.1

What is the personality of an individual analogous to in an organization?

Choose 1 answer

a) Role

b) Norm

c) Culture

d) Demeanor

e) Function

Answer: Culture,

9.

Item code: 964.1.1-10.3

What is the production department in a manufacturing organization known as?

Choose 1 answer

a) The line function

b) The staff function

c) Centralized structure

d) The span of control

e) Decentralized structure

Answer: The line function,

10.

Item code: 964.1.1-11.3

What is the most critical difference between Western and Eastern cultures in the conduct of business?

Choose 1 answer

a) Importance of money

b) Achievement motives

c) Individualism vs. collectivism

d) Emphasis placed on organizational success

Answer: Individualism vs. collectivism,

11.

Item code: 964.1.1-12.3

Successful consultants who enter into brief relationships with client organizations are regarded as having what type of

power?

Choose 1 answer

a) Expert

b) Referent

c) Reward

d) Coercive

e) Legitimate

Answer: Expert,

12.

Item code: 964.1.1-13.1

What are individuals who are highly prone to job stress, are highly competitive, are aggressive, and feel under chronic time

pressures classified as?

Choose 1 answer

a) Fast-trackers

b) Type A personalities

c) Obsessive-compulsive

d) Emotionally underdeveloped

Answer: Type A personalities,

13.

Item code: 964.1.1-14.1

What type of justice is manifested by the fair assignment of pay raises to equally worthy employees?

Choose 1 answer

a) Distributive

b) Procedural

c) Interactional

d) Interpersonal

e) Informational

Answer: Distributive,

14.

Item code: 964.1.1-17.5

What is the purpose of the cut score on a personnel selection test?

Choose 1 answer

a) Separates true negatives from true positives

b) Separates false negatives from false positives

c) Separates people who are accepted versus rejected in the job

d) Separates people who succeed from those that fail on the job

Answer: Separates people who are accepted versus rejected in the job,

15.

Item code: 964.1.1-18.1

Some organizations have 50% female employees at lower organizational ranks but only 5% at the top management ranks.

What is this known as?

Choose 1 answer

a) Bona fide selection

b) Disparate treatment

c) Glass ceiling phenomenon

d) Evidence of internal selection

e) Evidence of external selection

Answer: Glass ceiling phenomenon,

16.

Item code: 964.1.1-19.3

What is the legal status of job analysis as a component of an employment procedure?

Choose 1 answer

a) Optional

b) Highly recommended

c) Required by state law

d) Required by federal law

Answer: Highly recommended,

17.

Item code: 964.1.1-20.1

In general, what is the basis for recruiting external candidates over internal candidates to fill a position?

Choose 1 answer

a) It enhances employee commitment to the organization.

b) The needed skills are not found in the current workforce.

c) The hiring of external candidates increases employee morale.

d) Organizations are often highly displeased with the quality of their employees.

e) Organizations place more confidence in judging test scores than job performance.

Answer: The needed skills are not found in the current workforce.,

18.

Item code: 964.1.1-21.2

What are job applicants asked to do in a situational employment interview?

Choose 1 answer

a) Perform a work sample

b) Explain how their personality fits with the current job opening

c) Explain how they would respond to a hypothetical work scenario

d) Explain their attitude toward diversity in employment

e) Verify information received on them from other sources

Answer: Explain how they would respond to a hypothetical work scenario,

19.

Item code: 964.1.1-22.3

What is transfer of training?

Choose 1 answer

a) The extent to which trainees apply learning from training back to the job

b) The extent to which the value of the training to the organization exceeds its cost

c) The extent to which trainees can effectively pass a knowledge test at the end of training

d) The extent to which a training program used in one organization can be used in another organization

Answer: The extent to which trainees apply learning from training back to the job,

20.

Item code: 964.1.1-24.1

How should disagreements across types of raters be regarded in the interpretation of 360 feedback assessments of

employees?

Choose 1 answer

a) As evidence of systematic bias on the part of supervisors

b) As potentially valuable insights from differing perspectives

c) As evidence of potential unreliability of the system of measurement

d) As evidence that subordinates are reluctant to express their actual opinions

e) As evidence that self-evaluations are invariably lower than evaluations from others

Answer: As potentially valuable insights from differing perspectives,

21.

Item code: 964.1.1-25.3

What is the most frequently encountered type of alleged employment discrimination pertaining to compensation?

Choose 1 answer

a) Race

b) Sex

c) Age

d) Handicap

e) National origin

Answer: Sex,

22.

Item code: 964.1.1-26.2

What is the primary means of assessing external equity in a compensation system?

Choose 1 answer

a) Job analysis

b) Job evaluation

c) Wage survey

d) Performance appraisal

e) Company-based manual

Answer: Wage survey,

23.

Item code: 964.1.1-28.2

Which piece of federal legislation served to definitively clarify and strengthen the area of worker health and safety?

Choose 1 answer

a) ADA

b) OSHA

c) Workers' Compensation

d) Civil Rights Act of 1964

Answer: OSHA,

24.

Item code: 964.1.1-29.2

Research on violence in the workplace often reveals that the perpetrators of the violence felt a lack of _____ in the

company.

Choose 1 answer

a) Procedural justice

b) Equal opportunity

c) Workplace safety

d) Promotional opportunities

Answer: Procedural justice,

25.

Item code: 964.1.1-30.5

What is the decision among union workers to no longer have a particular union represent them called?

Choose 1 answer

a) Injunction election

b) Expulsion election

c) Disablement election

d) Decertification election

Answer: Decertification election,

26.

Item code: 964.1.2-01.1

What are the decisions and actions that a company's management pursues in staking out a market position, conducting

operations, attracting and retaining customers, and competing to achieve overall objectives referred to as?

Choose 1 answer

a) Vision

b) Strategy

c) Business model

d) Long-term business mission

Answer: Strategy,

27.

Item code: 964.1.2-02.5

What should a good strategy be concerned with?

Choose 1 answer

a) Value creation and value capture

b) Value creation but not value capture

c) Value capture but not value creation

d) Neither value creation nor value capture

Answer: Value creation and value capture,

28.

Item code: 964.1.2-03.3

What is the concern of functional level strategy?

Choose 1 answer

a) Exploiting the firm's competitive advantage

b) Developing synergies across business units

c) Assessing the quality of the portfolio of businesses in which the firm competes

d) Developing and sustaining activities that support a business' competitive advantage

Answer: Developing and sustaining activities that support a business' competitive advantage,

29.

Item code: 964.1.2-07.4

What happens if the minimum efficient scale is large relative to industry demand?

Choose 1 answer

a) It can reduce threat of entry.

b) It can increase threat of entry.

c) It is irrelevant to threat of entry.

d) It has no impact on threat of entry.

Answer: It can reduce threat of entry.,

30.

Item code: 964.1.2-08.4

What is one reason for a company to pursue vertical integration?

Choose 1 answer

a) Increase its market power by acquiring its direct and indirect competitors

b) Strengthen its position in all its businesses through geographical expansion

c) Strengthen its position in its core business by acquiring its direct competitors

d) Increase market power over its competitors by increasing control of key inputs

Answer: Increase market power over its competitors by increasing control of key inputs,

31.

Item code: 964.1.2-11.3

What is the difference between a company's strategy and a business model?

Choose 1 answer

a) The strategy is the plan to please customers, while the business model is the plan to satisfy employees and stakeholders.

b) A company's strategy is the plan for achieving the corporate vision, while the business model is the plan for achieving

the financial vision.

c) The strategy is the management plan for achieving overall objectives, while the business model is the plan for achieving

the financial objectives.

d) The strategy includes the plans and actions to achieve overall objectives, while the business model refers to the

anticipated revenues and costs to demonstrate that the business can be profitable and viable.

Answer: The strategy includes the plans and actions to achieve overall objectives, while the business model refers to the

anticipated revenues and costs to demonstrate that the business can be profitable and viable.,

32.

Item code: 964.1.2-13.2

What does the structure-conduct-performance paradigm suggest?

Choose 1 answer

a) Firms in an oligopoly will always perform well.

b) A firm operating in an industry with many competitors will be driven to an efficient cost structure and price close to

cost.

c) A firm operating in an industry with many competitors will be successful because no single competitor controls the

market.

d) A firm operating in an industry with many competitors will attempt to convince others that it is in their best interest to

cooperate.

Answer: A firm operating in an industry with many competitors will be driven to an efficient cost structure and price close

to cost.,

33.

Item code: 964.1.2-14.7

What characteristic should a firm seek out when considering entry into a particular industry through acquisition?

Choose 1 answer

a) A high entry barrier

b) A single large supplier

c) A few large customers

d) Readily available substitutes

e) A high mobility barrier but a low entry barrier

Answer: A high entry barrier,

34.

Item code: 964.1.2-15.3

You are the CEO of a beer producer with dominant market share. The Justice Department threatens you with an antitrust

lawsuit.

What argument is your best defense?

Choose 1 answer

a) You should not be penalized for success because you did not do anything illegal.

b) Your company's share should be measured relative to the competition in the liquor business.

c) Your company's share should be measured relative to the competition in the alcoholic beverage business.

d) Your company is being targeted because it is making products that are seen as "sinful" by conservative government

bureaucrats.

Answer: Your company's share should be measured relative to the competition in the alcoholic beverage business.,

35.

Item code: 964.1.2-16.2

What are firms in a strategic group with high mobility barriers likely to have?

Choose 1 answer

a) Lower average costs than firms in strategic groups with lower mobility barriers

b) Lower average profits than firms in strategic groups with lower mobility barriers

c) Higher average costs than firms in strategic groups with lower mobility barriers

d) Higher average profits than firms in strategic groups with lower mobility barriers

Answer: Higher average profits than firms in strategic groups with lower mobility barriers,

36.

Item code: 964.1.2-17.3

Which statement is true about the growth stage of an industry?

Choose 1 answer

a) A dominant design has not yet been established.

b) Incumbents and newcomers find it difficult to coexist.

c) Competition is relatively muted because of strong demand.

d) Competition is intense because everyone wants to steal customers from competitors.

Answer: Competition is relatively muted because of strong demand.,

37.

Item code: 964.1.2-21.3

Which statement is true about network effects?

Choose 1 answer

a) They typically increase switching costs.

b) They typically decrease switching costs.

c) They have no impact on switching costs.

d) They do not create barriers to entry for a competitor.

Answer: They typically increase switching costs.,

38.

Item code: 964.1.2-22.1

What does a firm in a perfectly competitive industry have?

Choose 1 answer

a) No opportunity to earn excess profits

b) Limited opportunity to earn excess profits

c) Significant opportunities to earn excess profits at the expense of its customers

d) Significant opportunities to earn excess profits at the expense of its competitors

Answer: No opportunity to earn excess profits,

39.

Item code: 964.1.2-23.3

What is important to do when analyzing the value chain of a firm?

Choose 1 answer

a) Focus on the primary activities

b) Examine the linkages among the activities

c) Look for synergies with competitors' activities

d) Focus on the ethical implications of decisions

e) Identify the legal ramifications of the product or service produced

Answer: Examine the linkages among the activities,

40.

Item code: 964.1.2-25.1

What does the existence of a performance gap signal?

Choose 1 answer

a) The need to reevaluate the strategy

b) The need to diversify into other businesses

c) The need to immediately change the strategy

d) No indication of problems if it happens only once

Answer: The need to reevaluate the strategy,

41.

Item code: 964.1.2-27.4

Why is it important to identify critical success factors?

Choose 1 answer

a) The performance of a firm depends on them.

b) The profitability of an industry depends on them.

c) The growth potential of a firm depends on them.

d) The growth potential of an industry depends on them.

Answer: The performance of a firm depends on them.,

42.

Item code: 964.1.2-28.1

According to Porter, what competitive strategy describes the ability of a firm to design, produce, and market products more

efficiently than any of its competitors?

Choose 1 answer

a) Cost focus

b) Differentiation

c) Focused differentiation

d) Overall cost leadership

Answer: Overall cost leadership,

43.

Item code: 964.1.2-29.2

According to Porter, how is it possible for a firm to get "stuck in the middle"?

Choose 1 answer

a) By providing products of sufficient value to a very narrow customer base

b) By providing products of sufficient value to a very diverse customer base

c) By providing relatively low cost products that have some differentiating features

d) By adopting a focus strategy, while competitors adopt a strategy of broad differentiation

Answer: By providing relatively low cost products that have some differentiating features,

44.

Item code: 964.1.2-31.2

Vertical integration generally _____.

Choose 1 answer

a) Decreases a firm's strategic flexibility

b) Decreases a firm's control over inputs

c) Decreases a firm's control over outputs

d) Has no impact on a firm's strategic flexibility

Answer: Decreases a firm's strategic flexibility,

45.

Item code: 964.1.2-34.4

Which is a form of nonequity alliance?

Choose 1 answer

a) Franchising

b) Vertical acquisition

c) Horizontal acquisition

d) Exclusive distribution agreement

Answer: Exclusive distribution agreement,

46.

Item code: 964.1.2-37.1

A multidomestic/multilocal strategy is one where _____.

Choose 1 answer

a) Strategic decisions are delegated to country units

b) Strategic decisions are centralized at corporate headquarters

c) There is significant concern with achieving economies of scale

d) There is significant concern with achieving economies of scope

Answer: Strategic decisions are delegated to country units,

47.

Item code: 964.1.2-38.4

An industry has a fairly standardized product, high economies of scale, and low weight to value ratio.

What would most likely be an effective strategy for firms in this industry?

Choose 1 answer

a) Global

b) Polycentric

c) Transnational

d) Multidomestic

Answer: Global,

48.

Item code: 964.1.2-39.3

Which factor was given limited attention by dot.com entrepreneurs in formulating their strategy?

Choose 1 answer

a) Venture capital funding

b) Developing attractive business models

c) Continuing relevance of "brick and mortar" assets

d) Attaining a critical mass in the shortest possible time

Answer: Continuing relevance of "brick and mortar" assets,

49.

Item code: 964.1.2-41.4

A turnaround strategy _____.

Choose 1 answer

a) Is a form of divestment

b) Emphasizes improving operational efficiency

c) Occurs when a corporation pursues entirely new markets

d) Occurs when the corporation reduces the scope of its functional activities

Answer: Emphasizes improving operational efficiency,

50.

Item code: 964.1.4-01.4

Which manufacturing process type would normally be chosen to produce products to order in a low volume that are often

significantly customized to the individual customer?

Choose 1 answer

a) Batch

b) Job shop

c) Assembly line

d) Continuous flow

e) Automated work cell

Answer: Job shop,

51.

Item code: 964.1.4-02.3

What type of process typically produces a limited variety of standard products in small quantities?

Choose 1 answer

a) Job shop

b) Assembly line

c) Continuous flow

d) Batch processing

Answer: Batch processing,

52.

Item code: 964.1.4-03.3

What does an "ABC" inventory analysis do?

Choose 1 answer

a) Guarantees improved customer service

b) Replaces all other inventory control methods

c) Focuses the attention of management on the most critical inventory items

d) Ranks the square feet of warehouse space taken up by the most overstocked raw materials

Answer: Focuses the attention of management on the most critical inventory items,

53.

Item code: 964.1.4-04.1

Where:

EOQ = Economic order quantity

D = Demand (per time period)

C = Unit cost

S = Setup or ordering cost

i = Inventory holding cost percentage (per time period)

What is the formula used to calculate the optimum lot (batch) size, given information about inventory carrying cost per unit

and the cost of acquiring (purchasing or setting up to manufacture) a batch of raw material or product?

Choose 1 answer

a) EOQ = [(2 x D x S) / (C x i)]1/2

b) EOQ = [(2 x D x S) x (C x i)]1/2

c) EOQ = [(2 x D x S) + (C x i)]1/2

d) EOQ = [(2 x D x S) (C x i)]1/2

Answer: EOQ = [(2 x D x S) / (C x i)]1/2,

54.

Item code: 964.1.4-05.2

What is the inventory model that provides an optimal lot (batch) size, given information about inventory carrying cost per

unit and the cost of acquiring (purchasing or setting up to manufacture) a batch of raw material or product?

Choose 1 answer

a) Fishburn Inventory model

b) Last-in-first-out Inventory model

c) First-in-first-out Inventory model

d) Economic Order Quantity model

e) Material Requirements Planning model

Answer: Economic Order Quantity model,

55.

Item code: 964.1.4-06.3

Consider the bill of materials diagram with the number used of each item (shown in parentheses).

Demand for item E is said to be _____.

Choose 1 answer

a) Dependent

b) Redundant

c) Recursive

d) Conditional

e) Inconsistent

Answer: Dependent,

56.

Item code: 964.1.4-07.2

Consider the bill of materials diagram with the number used of each item (shown in parentheses).

You want to produce 5 units of end item A.

How many units of component item G does this require?

Choose 1 answer

a) 3

b) 15

c) 16

d) 20

e) 100

Answer: 100,

57.

Item code: 964.1.4-09.3

Which precedence table portrays the relationships shown in this diagram?

Choose 1 answer

a) A

b) B

c) C

d) D

Answer: A,

58.

Item code: 964.1.4-10.3

In the exhibit, the estimates of activity duration are:

Activity Duration

A 5 weeks

B 2 weeks

C 9 weeks

D 2 weeks

E 3 weeks

F 1 week

What is the critical path for this project?

Choose 1 answer

a) A-C-F

b) A-B-E-F

c) A-B-D-F

d) A-C-D-E-F

e) A-B-D-E-F

Answer: A-C-F,

59.

Item code: 964.1.4-12.1

Given these estimates of duration and costs of "crashing" or speeding up activities:

Cost to reduce time

Activity Duration one week two weeks

A 5 weeks $2,000 $6,000

B 6 weeks $1,000 $2,000

C 8 weeks $1,000 $4,000

D 5 weeks $3,000 $8,000

E 2 weeks $9,000 infeasible

F 1 week infeasible infeasible

What is the minimum cost of shortening the duration of the entire project by two weeks?

Choose 1 answer

a) $3,000

b) $4,000

c) $6,000

d) $20,000

e) infeasible

Answer: $4,000,

60.

Item code: 964.1.4-13.2

Consider the process in the exhibit represented by the linked activities A, B, C, and D. Next to each activity is the amount of

product that can pass through each activity in an hour.

What is the bottleneck of this process?

Choose 1 answer

a) Activity A

b) Activity B

c) Activity C

d) Activity D

Answer: Activity D,

61.

Item code: 964.1.4-14.2

Consider the process represented by the linked activities in the diagram. In each activity box is a number representing the

hourly capacity of that activity.

If actual production is 1,000 units in an eight-hour day, what is the excess capacity in units per eight-hour day?

Choose 1 answer

a) 200

b) 600

c) 800

d) 1,200

Answer: 200,

62.

Item code: 964.1.4-15.2

Consider the process represented by the linked activities A, B, C and D. Next to each activity is the amount of product that

can pass through each activity in an hour and the number and cost of the equipment devoted to each activity.

What is the minimum capital cost of adding equipment to double the capacity of this process? (Note: Labor is readily

available.)

Choose 1 answer

a) $0

b) $1,533,333

c) $2,000,000

d) $4,600,000

e) $5,000,000

Answer: $5,000,000,

63.

Item code: 964.1.4-16.2

What is a histogram in Total Quality Management (TQM)?

Choose 1 answer

a) A diagram that relates a key quality problem to its potential causes

b) A bar chart on which the factors leading to quality failures are plotted in

c) A chart showing the frequency distribution of the measurement of a quality

d) A chart that plots measures of two factors to determine whether there is a relationship between the factors

Answer: A chart showing the frequency distribution of the measurement of a quality,

64.

Item code: 964.1.4-17.3

Why are Pareto charts useful?

Choose 1 answer

a) They identify action to rectify problems.

b) They integrate the opinions of divergent factions.

c) They improve quality of output by resolving quality problems.

d) They focus attention on the relatively few causes of most of the quality problems.

Answer: They focus attention on the relatively few causes of most of the quality problems.,

65.

Item code: 964.1.4-19.2

In statistical quality control, the term "six-sigma" refers to _________.

Choose 1 answer

a) A technique that works well to control service operations processes, but which is difficult to apply in manufacturing

b) The insistence that a process operate so precisely that design tolerances are six standard deviations from the process

output mean

c) A statistical acceptance sampling scheme that specifies the sample size and sampling frequency based on the usage (or

sales) of an item

d) A common process improvement goal that many firms aspire to, but which is all but impossible to achieve except in a

few very well-defined and limited circumstances

Answer: The insistence that a process operate so precisely that design tolerances are six standard deviations from the

process output mean,

66.

Item code: 964.1.4-20.1

A firm is seeking to produce at a constant output rate (e.g., use a "level" aggregate plan).

During a slack season it may plan to _____.

Choose 1 answer

a) Use overtime

b) Build inventory

c) Lay off workers

d) Stretch out delivery time

e) Increase reliance on subcontractors and outsourcing

Answer: Build inventory,

67.

Item code: 964.1.4-25.3

A waiting line problem requires that data be gathered on a number of parameters such as number of servers, size of

population to be served, average service (handling) time, and the average inter-arrival interval.

The shape of the distribution of the inter-arrival intervals is usually assumed to be a _____.

Choose 1 answer

a) Beta distribution

b) Normal distribution

c) Poisson distribution

d) Uniform distribution

e) Binomial distribution

Answer: Poisson distribution,

68.

Item code: 964.1.4-26.3

Call

Center

Number

of calls

Average call

handling time

Number of

operators

Average wait

time before

phone

answered

A 35,000/day 3.0 minutes 560 32 seconds

B 35,000/day 3.0 minutes 580 29 seconds

C 35,000/day 3.0 minutes 600 27 seconds

D 35,000/day 3.0 minutes 620 24 seconds

The exhibit shows the operating results of four call centers handling customer inquiries.

In which call center are the operators working the highest percentage of time?

Choose 1 answer

a) Call center A

b) Call center B

c) Call center C

d) Call center D

Answer: Call center A,

69.

Item code: 964.1.4-32.3

A measure of a process' ability to produce output while meeting specified tolerance targets is called _______.

Choose 1 answer

a) Six-sigma

b) Producer's risk

c) Goodness of fit

d) The Taguchi index

Answer: Six-sigma,

70.

Item code: 964.1.4-33.1

Which statement is true about Quality Circles?

Choose 1 answer

a) They are possible only in manufacturing firms emphasizing kaizen.

b) They are small groups of employees meeting periodically to share ideas.

c) They are the re-emergence of a quality problem after it was thought to be resolved.

d) They are the compact-disks (CD) on which quality data is collected and disseminated.

e) They are a circular control chart used with an automated control chart plotter.

Answer: They are small groups of employees meeting periodically to share ideas.,

71.

Item code: 964.1.4-34.1

Which firm would most likely develop an efficient (versus responsive) supply chain?

Choose 1 answer

a) A university hospital

b) A global fashion clothing firm

c) A low cost superstore retailer

d) A luxury automobile manufacturer

Answer: A low cost superstore retailer,

72.

Item code: 964.1.4-35.2

What does the term process postponement mean?

Choose 1 answer

a) Delaying processing and payment of invoices to improve cash flow

b) That a process will resume at a later date; it is not cancelled completely

c) Delaying the start-up of a new process until the workforce is completely trained

d) Waiting to start a process step until an adequate amount of raw material is on hand

e) Positioning the process step that differentiates a product to as late in the supply chain as possible

Answer: Positioning the process step that differentiates a product to as late in the supply chain as possible,

73.

Item code: 964.1.4-36.2

Increasing volatility of activity in supply chain stages that are successively further removed from ultimate consumer demand

is called a(n) _____.

Choose 1 answer

a) Shotgun pattern

b) Scatter diagram

c) Bullwhip effect

d) Inconsistency index

e) Efficiency/responsiveness trade-off

Answer: Bullwhip effect,

74.

Item code: 964.1.1-15.3

What are critical features of an organizational culture change?

Choose 3 answers

a) The organization is open to learn, adapt, and grow.

b) Leaders are willing to alter their views to accommodate the needs of others.

c) New work procedures are developed in congruence with new organizational values.

d) A clear vision exists of what needs to be done and the direction where the organization is headed.

Answer: The organization is open to learn, adapt, and grow.,, New work procedures are developed in congruence with new

organizational values., and A clear vision exists of what needs to be done and the direction where the organization is

headed.,

75.

Item code: 964.1.1-23.3

Which of the following should a professionally sound performance appraisal system include?

Choose 3 answers

a) A job analysis to develop the system

b) Multiple, diverse, and unbiased raters

c) Written instructions on the training of raters

d) Factors that represent desirable traits rather than behaviors

Answer: A job analysis to develop the system,, Multiple, diverse, and unbiased raters, and Written instructions on the

training of raters,

76.

Item code: 964.1.2-05.3

Which of the following are true according to the resource-based model?

Choose 2 answers

a) A firm develops unique capabilities over time.

b) Capabilities become weaker through continuous use.

c) Individual resources alone may not yield a competitive advantage.

d) A firm's external environment is more important than the internal environment for strategy.

Answer: A firm develops unique capabilities over time., and Individual resources alone may not yield a competitive

advantage.,

77.

Item code: 964.1.2-06.2

What can synergy be achieved through?

Choose 3 answers

a) Outsourcing

b) Sharing know-how

c) Vertical integration

d) Pooled negotiating power

Answer: Sharing know-how,, Vertical integration, and Pooled negotiating power,

78.

Item code: 964.1.2-18.2

What are examples of a positional advantage?

Choose 3 answers

a) Core competencies

b) Geographic incumbency

c) Customer relationships

d) Government protection

Answer: Geographic incumbency,, Customer relationships, and Government protection,

79.

Item code: 964.1.2-32.2

What are common objectives for acquisitions?

Choose 3 answers

a) Increase market power

b) Increase speed to market

c) Gain access to new products

d) Broaden the shareholder base

Answer: Increase market power,, Increase speed to market, and Gain access to new products,

80.

Item code: 964.1.2-33.2

Which of the following are reasons why most acquisitions fail to deliver on their promise?

Choose 3 answers

a) Companies neglect contingency planning.

b) Companies tend to overpay for acquisitions.

c) Companies find it difficult to achieve expected synergies.

d) Ease of integrating the acquisition is often overestimated.

Answer: Companies tend to overpay for acquisitions.,, Companies find it difficult to achieve expected synergies., and Ease

of integrating the acquisition is often overestimated.,

81.

Item code: 964.1.2-35.1

Which of the following are reasons for forming a strategic alliance?

Choose 2 answers

a) To overcome transfer pricing problems

b) To decrease the threat of complements

c) To facilitate the development of new competencies

d) To share risks and resources required to enter international markets

Answer: To facilitate the development of new competencies, and To share risks and resources required to enter

international markets,

82.

Item code: 964.1.2-36.2

What are the factors contributing to globalization?

Choose 3 answers

a) Declining product life cycles

b) The declining cost of coordinating dispersed activities

c) The rapid conversion of planned economies to market based economies

d) The decreasing levels of investment required to deploy new technologies

Answer: Declining product life cycles,, The declining cost of coordinating dispersed activities, and The rapid conversion of

planned economies to market based economies,

83.

Item code: 964.1.2-40.1

Which of the following are causes of organizational decline?

Choose 2 answers

a) The firm not having a set of core values

b) Markets evolving away from a firm's distinctive competencies

c) Managers becoming overly sensitive to competitive dynamics

d) Managers attempting to apply their distinctive competencies to inappropriate markets

Answer: Markets evolving away from a firm's distinctive competencies, and Managers attempting to apply their distinctive

competencies to inappropriate markets,

84.

Item code: 964.1.4-08.3

Which of the following costs are associated with carrying too much inventory?

Choose 3 answers

a) Lost sales

b) Storage costs

c) Inventory taxes

d) Customer service

e) Opportunity cost

Answer: Storage costs,, Inventory taxes, and Opportunity cost,

85.

Item code: 964.1.4-18.2

A particular control chart has all of its observations between the UCL and the LCL. It also has a pattern of movement

downward of the variable being measured.

What should the operator do?

Choose 2 answers

a) Look for a reason for this change

b) Continue to sample and chart results from this process

c) Place a "quality hold" on recent output from that process

d) Do nothing as the operation is still in statistical control

Answer: Look for a reason for this change, and Continue to sample and chart results from this process,

86.

Item code: 964.1.4-23.5

Increasing the time service personnel spend interacting with individual customers will, in general, _____.

Choose 2 answers

a) Lower efficiency

b) Reduce the need for staff training

c) Result in lower customer satisfaction

d) Provide additional opportunities for sales

Answer: Lower efficiency, and Provide additional opportunities for sales,