How companies gather and interpret information about their competitors is called _____.
Answer: competitor analysis
How companies gather and interpret information about their competitors is called _____.
The _____ is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms.
The _____ is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms.
Answer: industry environment
The _____ is composed of dimensions in the broader society that influence an industry and the firms within it.
The _____ is composed of dimensions in the broader society that influence an industry and the firms within it.
Answer: general environment
____ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.
____ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.
Answer: Vision
A _____ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
A _____ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
Answer: strategy
The _____ is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
The _____ is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
Answer: strategic management process
_____ are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission.
_____ are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission.
Answer: Strategic leaders
_____ is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
_____ is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
Answer: Strategic flexibility
____ is achieved when a firm successfully formulates and implements a value creating strategy.
____ is achieved when a firm successfully formulates and implements a value creating strategy.
Answer: Strategic competitiveness
_____ are the individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance.
_____ are the individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance.
Answer: Stakeholders
______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment.
______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment.
Answer: Risk
____ are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
____ are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
Answer: Resources
____ refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business.
____ refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business.
Answer: Organizational culture
A _____ specifies the businesses in which the firm intends to compete and the customers it intends to serve.
A _____ specifies the businesses in which the firm intends to compete and the customers it intends to serve.
Answer: mission
_____ describes competition that is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape.
_____ describes competition that is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape.
Answer: Hypercompetition
A _____ is one in which goods, services, people, skills, and ideas move freely across geographic borders.
A _____ is one in which goods, services, people, skills, and ideas move freely across geographic borders.
Answer: global economy
___ are capabilities that serve as a source of competitive advantage for a firm over its rivals.
___ are capabilities that serve as a source of competitive advantage for a firm over its rivals.
Answer: Core competencies
A firm has a _____ when it implements a strategy that creates superior value for customers and that competitors are unable to duplicate or find it too costly to try to imitate.
A firm has a _____ when it implements a strategy that creates superior value for customers and that competitors are unable to duplicate or find it too costly to try to imitate.
Answer: competitive advantage
A _____ is the capacity for a set of resources to perform a task or an activity in an integrative manner.
A _____ is the capacity for a set of resources to perform a task or an activity in an integrative manner.
Answer: capability
_____ are returns equal to those an investor expects to earn from other investments with a similar amount of risk.
_____ are returns equal to those an investor expects to earn from other investments with a similar amount of risk.
Answer: average returns
_____ are returns in excess of what an investor expects to earn from other investments with a similar amount of risk
_____ are returns in excess of what an investor expects to earn from other investments with a similar amount of risk
Answer: above average returns
All else constant, which one of the following will increase the internal rate of growth?
All else constant, which one of the following will increase the internal rate of growth?
-Decrease in the retention ratio.
-Decrease in net income.
-Increase in the dividend payout ratio.
-Decrease in total assets.
-Increase in cost of goods sold.
Answer: Decrease in total assets
Blasco Industries is currently at full-capacity sales. Which one of the following is limiting sales to this level?
Blasco Industries is currently at full-capacity sales. Which one of the following is limiting sales to this level?
-Net working capital.
-Long-term debt.
-Inventory.
-Fixed assets.
-Debt-equity ratio.
Answer: Fixed assets
A firm's external financing need is financed by which of the following?
A firm's external financing need is financed by which of the following?
-Retained earnings.
-Net working capital and retained earnings.
-Net income and retained earnings.
-Debt or equity.
-Owners' equity, including retained earnings.
Answer: debt or equity
Which one of the following will increase the maximum rate of growth a corporation can achieve?
Which one of the following will increase the maximum rate of growth a corporation can achieve?
-Avoidance of external equity financing.
-Increase in corporate tax rates.
-Increase in the retention ratio.
-Increase in the dividend payout ratio.
-increase in sales forecast.
Answer: Increase in the retention ratio
The plowback ratio is:
The plowback ratio is:
-Equal to net income divided by the change in total equity.
-The percentage of net income available to the firm to fund future growth.
-Equal to one minus the retention ratio.
-The change in retained earnings divided by the dividends paid.
-The dollar increase in net income divided by the dollar increase in sales.
Answer: The percentage of net income available to the firm to fund future growth
Which one of the following capital intensity ratios indicates the smallest need for fixed assets per dollar of sales?
Which one of the following capital intensity ratios indicates the smallest need for fixed assets per dollar of sales?
-.07
-.86
-.39
-1.00
-1.15
Answer: .07
A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
A firm is currently operating at full capacity. Net working capital, costs, and all assets vary directly with sales. The firm does not wish to obtain any additional equity financing. The dividend payout ratio is constant at 40 percent. If the firm has a positive external financing need, that need will be met by:
-Accounts payable.
-Long-term debt.
-Fixed assets.
-Retained earnings.
-Common stock.
Answer: long-term debt
A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume that the firm:
A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume that the firm:
-Is projected to grow at the internal rate of growth.
-Is projected to grow at the sustainable rate of growth.
-Currently has excess capacity.
-Is currently operating at full capacity.
-Retains all of its net income.
Answer: Is currently operating at full capacity
When constructing a pro forma statement, net working capital generally:
When constructing a pro forma statement, net working capital generally:
-Remains fixed.
-Varies only if the firm is currently producing at full capacity.
-Varies only if the firm maintains a fixed debt-equity ratio.
-Varies only if the firm is producing at less than full capacity.
-Varies proportionally with sales.
Answer: Varies proportionally with sales
Which one of the following is correct in relation to pro forma statements?
Which one of the following is correct in relation to pro forma statements?
-Fixed assets must increase if sales are projected to increase.
-Net working capital is affected only when a firm's sales are expected to exceed the firm's current production capacity.
-The addition to retained earnings is equal to net income less cash dividends.
-Long-term debt varies directly with sales when a firm is currently operating at maximum capacity.
-Inventory changes are not proportional to sales changes.
Answer: The addition to retained earnings is equal to net income less cash dividends
When utilizing the percentage of sales approach, managers:
When utilizing the percentage of sales approach, managers:
I. Estimate company sales based on a desired level of net income and the current profit margin.
II. Consider only those assets that vary directly with sales.
III. Consider the current production capacity level.
IV. Can project both net income and net cash flows.
-I and II only.
-II and III only.
-III and IV only.
-I, III, and IV only.
-II, III, and IV only.
Answer: III and IV only
Which one of the following statements is correct?
Which one of the following statements is correct?
-Pro forma statements must assume that no new equity is issued.
-Pro forma statements are projections, not guarantees.
-Pro forma statements are limited to a balance sheet and income statement.
-Pro forma financial statements must assume that no dividends will be paid.
-Net working capital needs are excluded from pro forma computations.
Answer: Pro forma statements are projections, not guarantees
You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process?
You are getting ready to prepare pro forma statements for your business. Which one of the following are you most apt to estimate first as you begin this process?
-Need for additional fixed assets.
-Current fixed costs.
-Projected sales.
-Desired net income.
-Desired dividend payments.
Answer: projected sales
Financial planning:
Financial planning:
-Focuses solely on the short-term outlook for a firm.
-Is a process that firms employ only when major changes to a firm's operations are anticipated.
-Is a process that firms undergo once every five years.
-Considers multiple options and scenarios.
-Provides minimal benefits for firms that are highly responsive to economic changes.
Answer: Considers multiple options and scenarios
You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan?
You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan?
I. How much net working capital will be needed?
II. Will additional fixed assets be required?
III. Will dividends be paid to shareholders?
IV. How much new debt must be obtained?
-I and IV only.
-II and III only.
-I, III, and IV only.
-II, III, and IV only.
-I, II, III, and IV.
Answer: I, II, III, and IV
The sustainable growth rate of a firm is best described as the:
The sustainable growth rate of a firm is best described as the:
-Minimum growth rate achievable assuming a 100 percent retention ratio.
-Minimum growth rate achievable if the firm maintains a constant equity multiplier.
-Maximum growth rate achievable excluding external financing of any kind.
-Maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
-Maximum growth rate achievable with unlimited debt financing.
Answer: Maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio
The internal growth rate of a firm is best described as the:
The internal growth rate of a firm is best described as the:
-Minimum growth rate achievable assuming a 100 percent retention ratio.
-Minimum growth rate achievable if the firm maintains a constant equity multiplier.
-Maximum growth rate achievable excluding external financing of any kind.
-Maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.
-Maximum growth rate achievable with unlimited debt financing.
Answer: Maximum growth rate achievable excluding external financing of any kind
Which one of the following ratios identifies the amount of total assets a firm needs in order to generate $1 in sales?
Which one of the following ratios identifies the amount of total assets a firm needs in order to generate $1 in sales?
-Return on assets.
-Equity multiplier.
-Retention ratio.
-Capital intensity ratio.
-Fixed asset turnover ratio.
Answer: capital intensity ratio
Which one of the following terms can be defined as the net income that a firm reinvests in itself?
Which one of the following terms can be defined as the net income that a firm reinvests in itself?
-Retention ratio.
-Dividend yield.
-Dividend payout ratio.
-Internal growth rate.
-Cash plowback.
Answer: retention ratio
Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?
Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?
-Percentage of sales method.
-Sales dilution method.
-Sales reconciliation method.
-Common-size method.
-Trend method.
Answer: percentage of sales method
The most acceptable method of evaluating the financial statements of a firm is to compare the firm's current:
The most acceptable method of evaluating the financial statements of a firm is to compare the firm's current:
-Financial ratios to the firm's historical ratios.
-Financial statements to the financial statements of similar firms operating in other countries.
-Financial ratios to the average ratios of all firms located within the same geographic area.
-Financial statements to those of larger firms in unrelated industries.
-Financial statements to the projections that were created based on Tobin's Q.
Answer: Financial ratios to the firm's historical ratios
The DuPont identity can be used to help managers answer which of the following questions related to a firm's operations?
The DuPont identity can be used to help managers answer which of the following questions related to a firm's operations?
I. How many sales dollars has the firm generated per each dollar of assets?
II. How many dollars of assets has a firm acquired per each dollar in shareholders' equity?
III. How much net profit is a firm generating per dollar of sales?
IV. Does the firm have the ability to meet its debt obligations in a timely manner?
-I and III only.
-II and IV only.
-I, II, and III only.
-II, III and IV only.
-I, II, III, and IV.
Answer: I, II, and III only
An increase in which of the following will increase the return on equity, all else constant?
An increase in which of the following will increase the return on equity, all else constant?
I. Total asset turnover.
II. Net income.
III. Total assets.
IV. Debt-equity ratio.
-I only.
-I and II only.
-I, II, and IV only.
-I, II, and III only.
-I, II, III, and IV.
Answer: I, II, and IV only
Which one of the following accurately describes the three parts of the DuPont identity?
Which one of the following accurately describes the three parts of the DuPont identity?
-Operating efficiency, equity multiplier, and profitability ratio.
-Financial leverage, operating efficiency, and profitability ratio.
-Equity multiplier, profit margin, and total asset turnover.
-Debt-equity ratio, capital intensity ratio, and profit margin.
-Return on assets, profit margin, and equity multiplier.
Answer: Equity multiplier, profit margin, and total asset turnover
Lenders probably have the most interest in which one of the following sets of ratios?
Lenders probably have the most interest in which one of the following sets of ratios?
-Return on assets and profit margin.
-Long-term debt and times interest earned.
-Price-earnings and debt-equity.
-Market-to-book and times interest earned.
-Return on equity and price-earnings.
Answer: Long-term debt and times interest earned
The price-sales ratio is especially useful when analyzing firms that have which one of the following?
The price-sales ratio is especially useful when analyzing firms that have which one of the following?
-Volatile market prices.
-Negative earnings.
-Positive PEG ratios.
-A negative Tobin's Q.
-Increasing sales.
Answer: negative earnings
Tobin's Q relates the market value of a firm's assets to which one of the following?
Tobin's Q relates the market value of a firm's assets to which one of the following?
-Initial cost of creating the firm.
-Current book value of the firm.
-Average asset value of similar firms.
-Average market value of similar firms.
-Today's cost to duplicate those assets.
Answer: Today's cost to duplicate those assets
If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:
If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:
-May have short-term, but not long-term debt.
-Is using its assets as efficiently as possible.
-Has no net working capital.
-Has a debt-equity ratio of 1.0.
-Has an equity multiplier of 1.0.
Answer: Has an equity multiplier of 1.0
Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to as _____ ratios.
Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to as _____ ratios.
-Asset management.
-Long-term solvency.
-Short-term solvency.
-Profitability.
-Turnover.
Answer: profitability
If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?
If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?
-0
-.5
-1.0
-1.5
-2.0
Answer: .5
Ratios that measure a firm's liquidity are known as _____ ratios.
Ratios that measure a firm's liquidity are known as _____ ratios.
-Asset management.
-Long-term solvency.
-Short-term solvency.
-Profitability.
-Book value.
Answer: short term solvency
An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio?
An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio?
-Accounts payable.
-Cash.
-Inventory.
-Accounts receivable.
-Fixed assets.
Answer: accounts receivable
An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.
An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.
-Increase in the cash ratio.
-Increase in the net working capital to total assets ratio.
-Decrease in the quick ratio.
-Decrease in the cash coverage ratio.
-Increase in the current ratio.
Answer: decrease in the quick ratio
Which of the following ratios are measures of a firm's liquidity?
Which of the following ratios are measures of a firm's liquidity?
I. Cash coverage ratio.
II. Interval measure.
III. Debt-equity ratio.
IV. Quick ratio.
-I and III only.
-II and IV only.
-I, II, and IV only.
-I, II, and III only.
-I, II, III, and IV.
Answer: II and IV only
On a common-size balance sheet all accounts for the current year are expressed as a percentage of:
On a common-size balance sheet all accounts for the current year are expressed as a percentage of:
-Sales for the period.
-The base year sales.
-Total equity for the base year.
-Total assets for the current year.
-Total assets for the base year.
Answer: Total assets for the current year
On the statement of cash flows, which of the following are considered financing activities?
On the statement of cash flows, which of the following are considered financing activities?
I. Increase in long-term debt.
II. Decrease in accounts payable.
III. Interest paid.
IV. Dividends paid.
-I and IV only.
-III and IV only.
-II and III only.
-I, III, and IV only.
-I, II, III, and IV.
Answer: I and IV only
Which one of the following is a use of cash?
Which one of the following is a use of cash?
-Decrease in fixed assets.
-Decrease in inventory.
-Increase in long-term debt.
-Decrease in accounts receivables.
-Decrease in accounts payable.
Answer: decrease in accounts payable
Which one of these identifies the relationship between the return on assets and the return on equity?
Which one of these identifies the relationship between the return on assets and the return on equity?
-Profit margin.
-Profitability determinant.
-Balance sheet multiplier.
-DuPont identity.
-Debt-equity ratio.
Answer: Dupont Identity
Relationships determined from a firm's financial information and used for comparison purposes are known as:
Relationships determined from a firm's financial information and used for comparison purposes are known as:
-Financial ratios.
-Identities.
-Dimensional analysis.
-Scenario analysis.
-Solvency analysis.
Answer: financial ratios
Which one of these is most apt to be a fixed cost?
Which one of these is most apt to be a fixed cost?
-Raw materials.
-Manufacturing wages.
-Management bonuses.
-Office salaries.
-Shipping and freight.
Answer: office salaries
The book value of a firm is:
The book value of a firm is:
-Equivalent to the firm's market value provided that the firm has some fixed assets.
-Based on historical cost.
-Generally greater than the market value when fixed assets are included.
-More of a financial than an accounting valuation.
-Adjusted to the market value whenever the market value exceeds the stated book value.
Answer: based on historical cost
The higher the degree of financial leverage employed by a firm is, the:
The higher the degree of financial leverage employed by a firm is, the:
-Higher is the probability that the firm will encounter financial distress.
-Lower is the amount of debt incurred.
-Less debt a firm has per dollar of total assets.
-Higher is the number of outstanding shares of stock.
-Lower is the balance in accounts payable.
Answer: Higher is the probability that the firm will encounter financial distress
Which one of the following accounts is the most liquid?
Which one of the following accounts is the most liquid?
-Inventory.
-Building.
-Accounts Receivable.
-Equipment.
-Land.
Answer: Accounts Receivable
Which one of the following will decrease the value of a firm's net working capital?
Which one of the following will decrease the value of a firm's net working capital?
-Using cash to pay a supplier.
-Depreciating an asset.
-Collecting an accounts receivable.
-Purchasing inventory on credit.
-Selling inventory at a loss.
Answer: Selling inventory at a loss
Which of the following are included in current liabilities?
Which of the following are included in current liabilities?
I. Note payable to a supplier in 13 months.
II. Amount due from a customer last week.
III. Account payable to a supplier that is due next week.
IV. Loan payable to the bank in 10 months.
-I and III only.
-III and IV only.
-I, II, and III only.
-I, III, and IV only.
-I, II, III, and IV.
Answer: III and IV only
Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?
Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?
-Real estate investment.
-Good reputation of the company.
-Equipment owned by the firm.
-Money due from a customer.
-An item held by the firm for future sale.
Answer: good reputation of the company
Which of the following are current assets?
Which of the following are current assets?
I. Cash
II. Trademark
III. Accounts receivable
IV. Notes payable
-II and III only.
-I and III only.
-I, II, and IV only.
-I, III, and IV only.
-II, III, and IV only.
Answer: I and III only
Which one of the following is classified as a tangible fixed asset?
Which one of the following is classified as a tangible fixed asset?
-Accounts receivable.
-Production equipment.
-Cash.
-Patent.
-Inventory
Answer: production equipment
Cash flow to stockholders is defined as:
Cash flow to stockholders is defined as:
-The total amount of interest and dividends paid during the past year.
-The change in total equity over the past year.
-Cash flow from assets plus the cash flow to creditors.
-Operating cash flow minus the cash flow to creditors.
-Dividend payments less net new equity raised.
Answer: Dividend payments less net new equity raised.
The cash flow related to interest payments less any net new borrowing is called the:
The cash flow related to interest payments less any net new borrowing is called the:
-Operating cash flow.
-Capital spending cash flow.
-Net working capital.
-Cash flow from assets.
-Cash flow to creditors.
Answer: cash flow to creditors
Which term relates to the cash flow that results from a firm's ongoing, normal business activities?
Which term relates to the cash flow that results from a firm's ongoing, normal business activities?
-Operating cash flow.
-Capital spending.
-Net working capital.
-Cash flow from assets.
-Cash flow to creditors.
Answer: operating cash flows
The cash flow of a firm that is available for distribution to the firm's creditors and stockholders is called the:
The cash flow of a firm that is available for distribution to the firm's creditors and stockholders is called the:
-Operating cash flow.
-Net capital spending.
-Net working capital.
-Cash flow from assets.
-Cash flow to stockholders.
Answer: cash flow from assets
The _____ tax rate is equal to total taxes divided by total taxable income.
The _____ tax rate is equal to total taxes divided by total taxable income.
-Deductible.
-Residual.
-Total.
-Average.
-Marginal.
Answer: average
The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.
The percentage of the next dollar you earn that must be paid in taxes is referred to as the _____ tax rate.
-Mean.
-Residual.
-Total.
-Average.
-Marginal.
Answer: marginal
Noncash items refer to:
Noncash items refer to:
-Accrued expenses.
-Inventory items purchased using credit.
-The ownership of intangible assets such as patents.
-Expenses which do not directly affect cash flows.
-Sales which are made using store credit.
Answer: Expenses which do not directly affect cash flows
Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?
Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?
-Income statement.
-Balance sheet.
-Statement of cash flows.
-Tax reconciliation statement.
-Market value report.
Answer: income statement
Which one of these sets forth the common set of standards and procedures by which audited financial statements are prepared?
Which one of these sets forth the common set of standards and procedures by which audited financial statements are prepared?
-The Matching Principle.
-The Cash Flow Identity.
-Generally Accepted Accounting Principles.
-Financial Accounting Reporting Principles.
-Standard Accounting Value Guidelines.
Answer: Generally Accepted Accounting Principles
Net working capital is defined as:
Net working capital is defined as:
-Total liabilities minus shareholders' equity.
-Current liabilities minus shareholders' equity.
-Fixed assets minus long-term liabilities.
-Total assets minus total liabilities.
-Current assets minus current liabilities.
Answer: Current assets minus current liabilities
Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?
Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?
-Income statement.
-Creditor's statement.
-Balance sheet.
-Statement of cash flows.
-Dividend statement.
Answer: balance sheet
Which form of business structure is most associated with agency problems?
Which form of business structure is most associated with agency problems?
-Sole proprietorship.
-General partnership.
-Limited partnership.
-Corporation.
-Limited liability company.
Answer: corporation
Decisions made by financial managers should primarily focus on increasing which one of the following?
Decisions made by financial managers should primarily focus on increasing which one of the following?
-Size of the firm.
-Growth rate of the firm.
-Gross profit per unit produced.
-Market value per share of outstanding stock.
-Total sales.
Answer: Market value per share of outstanding stock
Why should financial managers strive to maximize the current value per share of the existing stock?
Why should financial managers strive to maximize the current value per share of the existing stock?
-Doing so guarantees the company will grow in size at the maximum possible rate.
-Doing so increases employee salaries.
-Because they have been hired to represent the interests of the current shareholders.
-Because this will increase the current dividends per share.
-Because managers often receive shares of stock as part of their compensation.
Answer: Because they have been hired to represent the interests of the current shareholders
Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?
Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?
-Increase in the amount of the quarterly dividend.
-Decrease in the per unit production costs.
-Increase in the number of shares outstanding.
-Decrease in the net working capital.
-Increase in the market value per share.
Answer: Increase in the market value per share
Which one of the following best states the primary goal of financial management?
Which one of the following best states the primary goal of financial management?
-Maximize current dividends per share.
-Maximize the current value per share.
-Increase cash flow and avoid financial distress.
-Minimize operational costs while maximizing firm efficiency.
-Maintain steady growth while increasing current profits.
Answer: Maximize the current value per share
Which type of business organization has all the respective rights and privileges of a legal person?
Which type of business organization has all the respective rights and privileges of a legal person?
-Sole proprietorship.
-General partnership.
-Limited partnership.
-Corporation.
-Limited liability company.
Answer: corporation
Which one of the following business types is best suited to raising large amounts of capital?
Which one of the following business types is best suited to raising large amounts of capital?
-Sole proprietorship.
-Limited liability company.
-Corporation.
-General partnership.
-Limited partnership.
Answer: corporation
Which of the following individuals have unlimited liability based on their ownership interest?
Which of the following individuals have unlimited liability based on their ownership interest?
I. General partner
II. Sole proprietor
III. Stockholder
IV. Limited partner
-II only.
-I and II only.
-II and IV only.
-I, II, and III only.
-I, II, and IV only.
Answer: I and II only.
Which one of the following statements concerning a sole proprietorship is correct?
Which one of the following statements concerning a sole proprietorship is correct?
-A sole proprietorship is designed to protect the personal assets of the owner.
-The profits of a sole proprietorship are subject to double taxation.
-The owner of a sole proprietorship is personally responsible for all of the company's debts.
-There are very few sole proprietorships remaining in the U.S. today.
-A sole proprietorship is structured the same as a limited liability company.
Answer: The owner of a sole proprietorship is personally responsible for all of the company's debts
Which one of the following is a working capital management decision?
Which one of the following is a working capital management decision?
-Determining the amount of equipment needed to complete a job.
-Determining whether to pay cash for a purchase or use the credit offered by the supplier.
-Determining the amount of long-term debt required to complete a project.
-Determining the number of shares of stock to issue to fund an acquisition.
-Determining whether or not a project should be accepted.
Answer: Determining whether to pay cash for a purchase or use the credit offered by the supplier
The decision to issue additional shares of stock is an example of which one of the following?
The decision to issue additional shares of stock is an example of which one of the following?
-Working capital management.
-Net working capital decision.
-Capital budgeting.
-Controller's duties.
-Capital structure decision.
Answer: Capital structure decision
Which one of the following is a capital budgeting decision?
Which one of the following is a capital budgeting decision?
-Determining how many shares of stock to issue.
-Deciding whether or not to purchase a new machine for the production line.
-Deciding how to refinance a debt issue that is maturing.
-Determining how much inventory to keep on hand.
-Determining how much money should be kept in the checking account.
Answer: Deciding whether or not to purchase a new machine for the production line.
A stakeholder is:
A stakeholder is:
-A person who owns shares of stock.
-Any person who has voting rights based on stock ownership of a corporation.
-A person who initially founded a firm and currently has management control over that firm.
-A creditor to whom a firm currently owes money.
-Any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.
Answer: Any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.
Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
-Articles of incorporation.
-Corporate breakdown.
-Agency problem.
-Bylaws.
-Legal liability.
Answer: agency problem
A business created as a distinct legal entity and treated as a legal "person" is called a:
A business created as a distinct legal entity and treated as a legal "person" is called a:
-Corporation.
-Sole proprietorship.
-General partnership.
-Limited partnership.
-Unlimited liability company.
Answer: corporation
A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:
A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:
-General partner.
-Sole proprietor.
-Limited partner.
-Corporate shareholder.
-Zero partner.
Answer: limited partnership
A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:
A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:
-Corporation.
-Sole proprietorship.
-General partnership.
-Limited partnership.
-Limited liability company.
Answer: general partnership
A business owned by a solitary individual who has unlimited liability for its debt is called a:
A business owned by a solitary individual who has unlimited liability for its debt is called a:
-Corporation.
-Sole proprietorship.
-General partnership.
-Limited partnership.
-Limited liability company.
Answer: sole proprietorship
Which one of the following terms is defined as the mixture of a firm's debt and equity financing?
Which one of the following terms is defined as the mixture of a firm's debt and equity financing?
-Working capital management.
-Cash management.
-Cost analysis.
-Capital budgeting.
-Capital structure.
Answer: capital structure
Which one of the following terms is defined as the management of a firm's long-term investments?
Which one of the following terms is defined as the management of a firm's long-term investments?
-Working capital management.
-Financial allocation.
-Agency cost analysis.
-Capital budgeting.
-Capital structure.
Answer: Capital budgeting
The correct sequence from longest to smallest duration scheduling is:
The correct sequence from longest to smallest duration scheduling is:
A) capacity planning, aggregate planning, master schedule, short-term scheduling.
B) aggregate planning, capacity planning, master schedule, short-term scheduling.
C) master schedule, capacity planning, aggregate planning, short-term scheduling.
D) master schedule, aggregate planning, capacity planning, short-term scheduling.
E) capacity planning, master schedule, aggregate planning, short-term scheduling.
Answer: A) capacity planning, aggregate planning, master schedule, short-term scheduling.
What is the objective of scheduling?
What is the objective of scheduling?
A) maximize quality
B) minimize cost
C) minimize response time
D) prioritize and allocate demand to available facilities
E) minimize lead time
Answer: D) prioritize and allocate demand to available facilities
Process-focused facilities and repetitive facilities generate forward-looking schedules, but process-focused facilities do this with JIT and kanban while repetitive facilities generally use MRP.
Process-focused facilities and repetitive facilities generate forward-looking schedules, but process-focused facilities do this with JIT and kanban while repetitive facilities generally use MRP.
Answer: FALSE
One criterion for developing effective schedules is minimizing completion time.
One criterion for developing effective schedules is minimizing completion time.
Answer: TRUE
With forward scheduling, jobs are scheduled as late as possible within the time allowed by the customer due dates.
With forward scheduling, jobs are scheduled as late as possible within the time allowed by the customer due dates.
Answer: FALSE
Which of the following is NOT a key direct benefit from effective internal or external scheduling?
Which of the following is NOT a key direct benefit from effective internal or external scheduling?
A) lower cost
B) greater use of assets
C) more dependable delivery
D) higher quality
E) added flexibility
Answer: D) higher quality
Which of the following statements regarding scheduling at Delta Airlines is FALSE?
Which of the following statements regarding scheduling at Delta Airlines is FALSE?
A) About one flight in twenty is disrupted by weather events.
B) Schedule changes at one airport have a ripple effect that may have impacts in many others.
C) Delta's high-tech computer and communications system is located in Atlanta.
D) Delta's rapid rescheduling uses mathematical scheduling models.
E) Delta's rapid rescheduling promotes air safety and limits traveler inconvenience, but has not resulted in money savings for Delta.
Answer: E) Delta's rapid rescheduling promotes air safety and limits traveler inconvenience, but has not resulted in money savings for Delta.
The benefits of effective scheduling include lower cost, faster throughput, and dependable delivery.
The benefits of effective scheduling include lower cost, faster throughput, and dependable delivery.
Answer: TRUE
Short-term scheduling is important to efficiency and to cost reduction, but its impact is not of strategic importance.
Short-term scheduling is important to efficiency and to cost reduction, but its impact is not of strategic importance.
Answer: FALSE
Delta uses mathematical short-term scheduling techniques and a high-tech nerve center to manage the rapid rescheduling necessary to cope with weather delays and similar disruptions.
Delta uses mathematical short-term scheduling techniques and a high-tech nerve center to manage the rapid rescheduling necessary to cope with weather delays and similar disruptions.
Answer: TRUE
Leaders want ________ who are productive, reliable, honest, cooperative, proactive, and flexible.
Leaders want ________ who are productive, reliable, honest, cooperative, proactive, and flexible.
A. employers
B. clients
C. superiors
D. peers
E. followers
Answer: E
Research shows that followers seek and admire leaders who create feelings of
Research shows that followers seek and admire leaders who create feelings of
A. anticipation.
B. individualism.
C. clarity.
D. significance.
E. freedom.
Answer: D
____ have a global mind-set that recognizes that the Internet is opening new markets and recharging existing ones.
____ have a global mind-set that recognizes that the Internet is opening new markets and recharging existing ones.
A. Situational leaders
B. E-leaders
C. Shared leaders
D. Transactional leaders
E. Web-based leaders
Answer: B
Karen, the manager of a branch location of a large travel firm, treated company resources as if they were her own and her employees even better. She cared about the staff deeply and even organized international volunteering activities to promote their growth. Karen could best be described as which type of leader?
Karen, the manager of a branch location of a large travel firm, treated company resources as if they were her own and her employees even better. She cared about the staff deeply and even organized international volunteering activities to promote their growth. Karen could best be described as which type of leader?
A. Situational
B. Servant
C. Laissez-faire
D. Shared
E. Transactiona
Answer: B
Starbucks CEO Howard Schultz has made sure his employees have health insurance and work in a positive environment. He could best be described as which type of leader?
Starbucks CEO Howard Schultz has made sure his employees have health insurance and work in a positive environment. He could best be described as which type of leader?
A. Leader-member exchange
B. Situational
C. Servant
D. Shared
E. Transactional
Answer: C
A leader who focuses on providing increased service to others is called a
A leader who focuses on providing increased service to others is called a
A. charismatic leader.
B. transformational leader.
C. transactional leader.
D. servant leader.
E. situational leader
Answer: D
In the leader-member exchange model, the relationship between leader and follower that is characterized by mutual trust, respect, and liking is known as a(n) ________ exchange.
In the leader-member exchange model, the relationship between leader and follower that is characterized by mutual trust, respect, and liking is known as a(n) ________ exchange.
A. preferred coworker
B. servant
C. in-group
D. special
E. socialized
Answer: C
The ______ model of leadership emphasizes that leaders have different sorts of relationships with different subordinates.
The ______ model of leadership emphasizes that leaders have different sorts of relationships with different subordinates.
A. servant
B. contingency
C. Michigan
D. LMX
E. trait
Answer: D
Which of the following is not positively associated with transformational leadership, according to research?
Which of the following is not positively associated with transformational leadership, according to research?
A. Employee job satisfaction.
B. More employee identification with their immediate work groups.
C. Lower levels of internal competition.
D. Higher levels of group cohesion.
E. More work engagement
Answer: C
Employees at Central Plains Bank were really impressed with Jeff, the new CEO. He was the first person who had fully developed a vision for the company about where it could go, and had energized everyone to try to get there. Jeff is a ______ leader.
Employees at Central Plains Bank were really impressed with Jeff, the new CEO. He was the first person who had fully developed a vision for the company about where it could go, and had energized everyone to try to get there. Jeff is a ______ leader.
A. servant
B. transformational
C. transactional
D. shared
E. laissez-faire
Answer: B
Charismatic leadership is now considered part of ______ leadership.
Charismatic leadership is now considered part of ______ leadership.
A. transactional
B. shared
C. laissez-faire
D. servant
E. transformational
Answer: E
Which of the following is a characteristic of transformational leaders?
Which of the following is a characteristic of transformational leaders?
A. They are better in stable situations.
B. They clarify employees' roles.
C. They set goals and monitor progress toward their achievement.
D. They encourage people to do exceptional things.
E. They provide rewards in exchange for subordinates doing the work.
Answer: D
A transactional leader is most similar in focus to a
A transactional leader is most similar in focus to a
A. charismatic leader.
B. transformational leader.
C. servant leader.
D. situational leader.
E. manager.
Answer: E
According to the concept of full-range leadership, leadership behaviors vary along a range from ______ leadership at one extreme to transformational leadership at the other.
According to the concept of full-range leadership, leadership behaviors vary along a range from ______ leadership at one extreme to transformational leadership at the other.
A. transactional
B. shared
C. laissez-faire
D. servant
E. charismatic
Answer: C
Within the five steps used to apply situational theories, in which two ways can you "make the match?"
Within the five steps used to apply situational theories, in which two ways can you "make the match?"
A. Hire new employees or retrain the current ones.
B. Apply relationship-oriented behaviors or task-oriented behaviors.
C. Stabilize the situation or stir it up.
D. Change the manager or change the manager's behavior.
E. Be a transactional leader or a transformational one.
Answer: D
House's revision of his theory puts more emphasis on the need for leaders to foster
House's revision of his theory puts more emphasis on the need for leaders to foster
A. concrete rewards.
B. stress management techniques.
C. intrinsic motivation.
D. an external locus of control.
E. personal growth in management knowledge.
Answer: C
Faisal is something of a cheerleader around his team. He describes the great things he knows the group can accomplish, is quick to compliment the work of his staff, and is enthusiastic about their successes. According to revised path-goal theory, Faisal is using a(n) ______ leadership style.
Faisal is something of a cheerleader around his team. He describes the great things he knows the group can accomplish, is quick to compliment the work of his staff, and is enthusiastic about their successes.
According to revised path-goal theory, Faisal is using a(n) ______ leadership style.
A. value-based
B. path-goal clarifying
C. interaction facilitation
D. achievement-oriented
E. relationship-oriented
Answer: A
Andrew supervises a customer service unit that receives stress-producing calls from unhappy customers, and turnover has been high lately. Andrew is understanding and patient with the staff, and tells them he knows what they're going through since it wasn't so long ago that he took those calls. According to revised path-goal theory, Andrew is using a(n) ______ leadership style.
Andrew supervises a customer service unit that receives stress-producing calls from unhappy customers, and turnover has been high lately. Andrew is understanding and patient with the staff, and tells them he knows what they're going through since it wasn't so long ago that he took those calls. According to revised path-goal theory, Andrew is using a(n) ______ leadership style.
A. work facilitation
B. interaction facilitation
C. supportive
D. achievement-oriented
E. value-based
Answer: C
Michael runs a research and development department. He gets a lot out of his employees by setting lofty goals and expressing his belief that each of them is capable of doing his or her part. He expects their best work. According to revised path-goal theory, Michael is using a(n) ______ leadership style.
Michael runs a research and development department. He gets a lot out of his employees by setting lofty goals and expressing his belief that each of them is capable of doing his or her part. He expects their best work. According to revised path-goal theory, Michael is using a(n) ______ leadership style.
A. representation and networking
B. interaction facilitation
C. supportive
D. achievement-oriented
E. work facilitation
Answer: D
The leadership styles of ________ originally included supportive and achievement-oriented and two others, but was more recently revised to include a total of eight styles.
The leadership styles of ________ originally included supportive and achievement-oriented and two others, but was more recently revised to include a total of eight styles.
A. Greenleaf's servant leadership model
B. the LMX model of leadership
C. leader-member exchange model
D. Fiedler's contingency model
E. House's path-goal model
Answer: E
Which of the following is an employee characteristic of relevance in path-goal theory?
Which of the following is an employee characteristic of relevance in path-goal theory?
A. Position power
B. Work satisfaction
C. Need for achievement
D. Task awareness
E. Extroversion
Answer: C
According to House's revised path-goal theory, a leader's style should vary depending on which of the following?
According to House's revised path-goal theory, a leader's style should vary depending on which of the following?
A. Positional power
B. Environmental factors
C. Situational control
D. Organizational readiness
E. Leader-member relations
Answer: B
The model in which an effective leader makes desirable rewards available, clarifies how subordinates can achieve objectives, and provides them support in doing so is
The model in which an effective leader makes desirable rewards available, clarifies how subordinates can achieve objectives, and provides them support in doing so is
A. Greenleaf's servant leadership model.
B. the LMX model of leadership.
C. Leader-member exchange model.
D. Fiedler's contingency model.
E. House's path-goal model.
Answer: E
In the contingency model, if your leadership orientation does not match the situation in your workplace, Fiedler recommends that you
In the contingency model, if your leadership orientation does not match the situation in your workplace, Fiedler recommends that you
A. try to move to a more suitable situation.
B. alter your leadership style.
C. take management classes to improve your power.
D. get an assistant with the preferred orientation.
E. gradually change the makeup of your subordinates.
Answer: A
According to Fiedler's contingency model, ______ situation control favors a leader who is ______ oriented.
According to Fiedler's contingency model, ______ situation control favors a leader who is ______ oriented.
A. low; relationship
B. low; transformational
C. moderate; task
D. high; transformational
E. moderate; relationship
Answer: E
Marco supervises the pool of word processors serving the firm's lawyers. He gets along well with his people, and has created detailed procedures for all types of legal document they encounter. Marco hires and fires, and gives work assignments, performance appraisals, and promotions. According to the contingency model, the optimal leadership style is
Marco supervises the pool of word processors serving the firm's lawyers. He gets along well with his people, and has created detailed procedures for all types of legal document they encounter. Marco hires and fires, and gives work assignments, performance appraisals, and promotions. According to the contingency model, the optimal leadership style is
A. transformational.
B. team management.
C. task-oriented.
D. relationship-oriented.
E. consideration.
Answer: C
Leticia supervises a group of customer service representatives. Leticia is respected and well liked by her staff, and she has worked hard to make sure all of them known how to do the job very well. She is responsible for all staffing and reward decisions in her department. In the contingency model, Leticia has
Leticia supervises a group of customer service representatives. Leticia is respected and well liked by her staff, and she has worked hard to make sure all of them known how to do the job very well. She is responsible for all staffing and reward decisions in her department. In the contingency model, Leticia has
A. low task structure.
B. high situational control.
C. low leader-member relations.
D. low position power.
E. high expert power.
Answer: B
In assessing how much situational control he has, a manager should consider which of the following?
In assessing how much situational control he has, a manager should consider which of the following?
A. Amount of socialized power
B. Subordinate readiness
C. Level of transformation
D. Amount of task structure
E. Ability of staff
Answer: D
Savannah leads a task force charged with restructuring the order-processing system in the organization. The task force is composed of her peers over whom she has little control, and some of whom do not seem to respect her. According to the contingency model, Savannah should adopt a(n) ___________ leadership style.
Savannah leads a task force charged with restructuring the order-processing system in the organization. The task force is composed of her peers over whom she has little control, and some of whom do not seem to respect her. According to the contingency model, Savannah should adopt a(n) ___________ leadership style.
A. employee-centered
B. task-oriented
C. relationship-oriented
D. participatory
E. initiating structure
Answer: B
DeAndre leads a task force developing specifications for a new customer database to be used by several departments. DeAndre is an IT supervisor, but most of the others are directors of other departments. At the first meeting, a few of them asked him questions he couldn't answer. According to the contingency model, DeAndre's situational control likely
DeAndre leads a task force developing specifications for a new customer database to be used by several departments. DeAndre is an IT supervisor, but most of the others are directors of other departments. At the first meeting, a few of them asked him questions he couldn't answer. According to the contingency model, DeAndre's situational control likely
A. is low.
B. is moderate.
C. is high.
D. is extremely high.
E. cannot be determined from the information.
Answer: A
According to the contingency model, a relationship-oriented leadership style works best in ______ situations.
According to the contingency model, a relationship-oriented leadership style works best in ______ situations.
A. low control
B. high control
C. moderate control
D. uncontrolled
E. both high and low control
Answer: C
Liz is trying to lead a cross-functional team, but she is having some issues. Most members were other department managers at her level, and they saw no reason to do what she told them to. Here, Liz has
Liz is trying to lead a cross-functional team, but she is having some issues. Most members were other department managers at her level, and they saw no reason to do what she told them to. Here, Liz has
A. low tolerance for ambiguity.
B. high task structure.
C. weak referent power.
D. poor leader-member relations.
E. weak position power.
Answer: E
One of three dimensions of situational control in the contingency leadership model, ______ is the extent to which tasks are routine, unambiguous, and easily understood.
One of three dimensions of situational control in the contingency leadership model, ______ is the extent to which tasks are routine, unambiguous, and easily understood.
A. job mastery
B. task identity
C. position power
D. job design
E. task structure
Answer: E
Craig's peers were surprised when he received a promotion and suddenly became their supervisor. They thought he was rather unreliable and weren't sure he was up to the task. According to the contingency model, Craig has
Craig's peers were surprised when he received a promotion and suddenly became their supervisor. They thought he was rather unreliable and weren't sure he was up to the task. According to the contingency model, Craig has
A. poor leader-member relations.
B. weak position power.
C. poor worker facilitation.
D. low task structure.
E. unsuccessful leadership adaptation.
Answer: A
In Fiedler's contingency leadership model, the amount of influence a leader has in his or her immediate work environment is called his or her
In Fiedler's contingency leadership model, the amount of influence a leader has in his or her immediate work environment is called his or her
A. coercive power.
B. leadership style.
C. readiness.
D. situational control.
E. task structure
Answer: D
The questionnaire used in Fiedler's model to determine leadership orientation is called the
The questionnaire used in Fiedler's model to determine leadership orientation is called the
A. Myers-Briggs type inventory.
B. least preferred coworker scale.
C. tolerance of ambiguity questionnaire.
D. Type A behavior scale.
E. path-goal survey
Answer: B
The model that requires a manager to assess her own style and her situational control is
The model that requires a manager to assess her own style and her situational control is
A. Fiedler's contingency model.
B. shared leadership model.
C. the LMX model of leadership.
D. House's path-goal theory.
E. charismatic leadership theory
Answer: A
Fiedler's contingency leadership model determines if a leader's style is
Fiedler's contingency leadership model determines if a leader's style is
A. transactional or transformational.
B. directive, supportive, participative, or achievement oriented.
C. task oriented or relationship oriented.
D. telling, selling, participating, or delegating.
E. charismatic or noncharismatic.
Answer: C
Which of the following is a contingency approach to leadership?
Which of the following is a contingency approach to leadership?
A. Michigan model
B. Path-goal leadership model
C. Servant leadership model
D. Ohio State model
E. Leader-member exchange model
Answer: B
The approach to leadership that suggests that effective leadership behavior depends on the situation at hand is the ______ approach.
The approach to leadership that suggests that effective leadership behavior depends on the situation at hand is the ______ approach.
A. trait
B. transformational
C. circumstantial
D. behavioral
E. contingency
Answer: E
Lotina apologized to a subordinate for an e-mail that upset him. She said she had chosen an unfortunate way of stating her idea, and that she'd be happy to discuss it further. Lotina is
Lotina apologized to a subordinate for an e-mail that upset him. She said she had chosen an unfortunate way of stating her idea, and that she'd be happy to discuss it further. Lotina is
A. using a personal appeal.
B. initiating structure.
C. practicing shared leadership.
D. exercising personalized power.
E. expressing consideration behavior
Answer: E
The ______ leadership approaches attempt to determine the distinctive styles used by effective leaders.
The ______ leadership approaches attempt to determine the distinctive styles used by effective leaders.
A. behavioral
B. servant
C. shared
D. trait
E. contingency
Answer: A
_____ studies reveal that visionary and inspirational charismatic leaders who are good team builders generally are most desirable worldwide.
_____ studies reveal that visionary and inspirational charismatic leaders who are good team builders generally are most desirable worldwide.
A. Servant leader
B. E-leadership
C. Contingency model
D. Project GLOBE
E. Full-range approach
Answer: D
According to a BusinessWeek summary of management studies, which of the following is characteristic of men in the workplace, compared with women?
According to a BusinessWeek summary of management studies, which of the following is characteristic of men in the workplace, compared with women?
A. Being more collaborative.
B. Producing higher quality work.
C. Using a more autocratic style.
D. Generating more new ideas.
E. Being more effective.
Answer: C
Organizations may apply trait theory by
Organizations may apply trait theory by
A. considering the relationships among employees.
B. using personality assessments.
C. hiring only from top-ranked business schools.
D. doing a job audit.
E. empowering the HR department.
Answer: B
The ______ approach to leadership attempts to identify distinctive characteristics that account for the effectiveness of leaders.
The ______ approach to leadership attempts to identify distinctive characteristics that account for the effectiveness of leaders.
A. attribute
B. trait
C. behavior
D. quality
E. contingency
Answer: B
The influence tactic most likely to result in the enthusiastic commitment of employees is
The influence tactic most likely to result in the enthusiastic commitment of employees is
A. legitimating tactics.
B. consultation.
C. ingratiating tactics.
D. coalition tactics.
E. personal appeals.
Answer: B
When Nielle saw Laura in the stockroom stuffing her purse with expensive printer cartridges, Laura was quick to say, "We've been friends since first grade, so I'm sure you won't say anything about this." This is an example of using a(n)
When Nielle saw Laura in the stockroom stuffing her purse with expensive printer cartridges, Laura was quick to say, "We've been friends since first grade, so I'm sure you won't say anything about this." This is an example of using a(n)
A. personal appeal.
B. legitimating tactic.
C. pressure tactic.
D. coalition tactic.
E. exchange tactic.
Answer: A
Using threats or intimidation to persuade someone is which influence tactic?
Using threats or intimidation to persuade someone is which influence tactic?
A. Legitimating
B. Ingratiating
C. Pressure
D. Exchange
E. Personal appeals
Answer: C
Jesse brought his proposal to Erica even before the meeting saying, "I'm sure you have some ideas on this and we could try to get them incorporated upfront." Jesse is using which influence tactic?
Jesse brought his proposal to Erica even before the meeting saying, "I'm sure you have some ideas on this and we could try to get them incorporated upfront." Jesse is using which influence tactic?
A. Legitimating tactics
B. Inspirational appeals
C. Ingratiating tactics
D. Personal appeals
E. Consultation
Answer: E
Acting humble or friendly or making someone feel good or important before making a request are influence tactics known as
Acting humble or friendly or making someone feel good or important before making a request are influence tactics known as
A. coalition tactics.
B. inspirational appeals.
C. consultation.
D. ingratiating tactics.
E. personal appeals
Answer: D
The three least used influence tactics, according to a recent survey of employees, are
The three least used influence tactics, according to a recent survey of employees, are
A. legitimating, coalition tactics, and pressure tactics.
B. inspirational appeals, rational persuasion, and consultation.
C. rational persuasion, pressure tactics, and exchange.
D. rational persuasion, coalition tactics, and upward appeals.
E. inspirational appeals, coalition tactics, and pressure tactics
Answer: A
In recent studies, the generic influence tactic that employees cite as most used in the workplace is
In recent studies, the generic influence tactic that employees cite as most used in the workplace is
A. legitimating.
B. ingratiation.
C. coalition.
D. rational persuasion.
E. pressure
Answer: D
Tracy is outgoing, warm, and truly inspirational when she talks about where she wants to lead her division. Her employees seem eager to do anything she asks. Because of her personality and not her position, Tracy has ______ power.
Tracy is outgoing, warm, and truly inspirational when she talks about where she wants to lead her division. Her employees seem eager to do anything she asks. Because of her personality and not her position, Tracy has ______ power.
A. legitimate
B. referent
C. reward
D. coercive
E. expert
Answer: B
Power deriving from one's personal attraction is called ______ power.
Power deriving from one's personal attraction is called ______ power.
A. legitimate
B. referent
C. reward
D. coercive
E. personalized
Answer: B
_____ power results from one's specialized knowledge.
_____ power results from one's specialized knowledge.
A. Legitimate
B. Referent
C. Expert
D. Reward
E. Coercive
Answer: C
Karl was put on probation for a string of customer complaints about his service and professionalism. His supervisor was using ______ power.
Karl was put on probation for a string of customer complaints about his service and professionalism. His supervisor was using ______ power.
A. coercive
B. personalized
C. referent
D. reward
E. expert
Answer: A
Jennifer congratulated her staff when the team received an industry award for their project, and also sent a companywide e-mail announcing it. Here, Jennifer is using her ______ power.
Jennifer congratulated her staff when the team received an industry award for their project, and also sent a companywide e-mail announcing it. Here, Jennifer is using her ______ power.
A. personalized
B. referent
C. coercive
D. expert
E. reward
Answer: E
The power that managers have resulting from their formal positions within organizations is called ______ power.
The power that managers have resulting from their formal positions within organizations is called ______ power.
A. referent
B. legitimate
C. reward
D. coercive
E. expert
Answer: B
According to Frederick Smith, chair and CEO of FedEx, the primary task of leadership is to
According to Frederick Smith, chair and CEO of FedEx, the primary task of leadership is to
A. ensure progressive control and problem solving.
B. align resources within the organization.
C. inspire trust among all levels of employees.
D. communicate the vision and values of an organization.
E. oversee the success of an organization
Answer: D
Of the following, which is the best way for leaders to cope with change?
Of the following, which is the best way for leaders to cope with change?
A. Problem solving
B. Lobbying the government
C. Aligning people
D. Virtual planning
E. Watching current trends
Answer: C
According to Kotter, companies manage complexity in which of the following ways?
According to Kotter, companies manage complexity in which of the following ways?
A. Solving problems
B. Motivating people
C. Lobbying the government
D. Innovating new products
E. Setting a direction
Answer: A
_____ is about coping with complexity and ______ is about coping with change.
_____ is about coping with complexity and ______ is about coping with change.
A. Middle management; top management
B. Management; leadership
C. Attitude; perception
D. Leadership; management
E. Perception; attitude
Answer: B
According to Kotter, management and leadership are considered to be
According to Kotter, management and leadership are considered to be
A. opposing forces.
B. causal; here, management causes leadership.
C. equivalent to one another.
D. almost entirely unrelated.
E. complementary to each other
Answer: E
Managerial leadership is defined as the process of influencing others to understand and agree about what needs to be done and the process of
Managerial leadership is defined as the process of influencing others to understand and agree about what needs to be done and the process of
A. minimizing the impacts of environmental change on the organization.
B. facilitating individual and collective efforts to accomplish shared objectives.
C. motivating others to achieve extraordinary levels of performance.
D. creating a vision and a strategic plan for an organization.
E. striving for constructive change by setting a direction for the future.
Answer: B
Leadership is the ability to ______ employees to pursue organizational goals.
Leadership is the ability to ______ employees to pursue organizational goals.
A. force
B. reward
C. request
D. influence
E. compensate
Answer: D
Which of the following is not advice from career coach Richard Knowdell for staying ahead in the workplace of tomorrow?
Which of the following is not advice from career coach Richard Knowdell for staying ahead in the workplace of tomorrow?
A. Develop new and diverse capacities.
B. Anticipate, adapt to, and embrace change.
C. Focus on workplace learning rather than the classroom.
D. When considering a job or industry, don't rely on reputation.
E. Develop your communication skills
Answer: C
To use revenue management strategies, a business should have which combination of costs?
To use revenue management strategies, a business should have which combination of costs?
A) high variable and high fixed
B) low variable and high fixed
C) high variable and low fixed
D) low variable and low fixed
E) either A or B
Answer: B) low variable and high fixed
Industries in which revenue management techniques are easiest to apply are those where:
Industries in which revenue management techniques are easiest to apply are those where:
A) use tends to be predictable, and pricing tends to be fixed.
B) use tends to be predictable, and pricing tends to be variable.
C) use tends to be uncertain, and pricing tends to be fixed.
D) use tends to be uncertain, and pricing tends to be variable.
E) All of the above, i.e., there is no difference.
Answer: B) use tends to be predictable, and pricing tends to be variable.
Revenue (or yield) management is best described as:
Revenue (or yield) management is best described as:
A) a situation where management yields to labor demands.
B) a situation where the labor union yields to management demands.
C) a process designed to increase the rate of output.
D) allocation of scarce resources to customers at prices that will maximize revenue.
E) management's selection of a product mix yielding maximum profits.
Answer: D) allocation of scarce resources to customers at prices that will maximize revenue.
Revenue management is MOST likely to be used in which one of the following situations?
Revenue management is MOST likely to be used in which one of the following situations?
A) a fast food restaurant with wide demand fluctuations during the day
B) a dental clinic that wants to fill its appointment book
C) a firm with a good counterseasonal product mix
D) a shipping company that can change its fleet size easily
E) an airline attempting to fill "perishable" seats at maximum revenue
Answer: E) an airline attempting to fill "perishable" seats at maximum revenue
Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?
Which of the following characteristics makes revenue management UNATTRACTIVE to organizations that have perishable inventory?
A) demand can be segmented
B) service can be sold in advance of consumption
C) capacity is easily changed
D) variable costs are low and fixed costs are high
E) demand fluctuates
Answer: C) capacity is easily changed
A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.
A hotel room that goes unrented and an airline seat that goes unsold are both examples of perishable inventory in services.
Answer: TRUE
Aggregate planning for service firms that provide intangible output deals mainly with:
Aggregate planning for service firms that provide intangible output deals mainly with:
A) smoothing the production rate and finding the optimal size of the workforce.
B) capital investment decisions.
C) centralized purchasing.
D) centralized production.
E) planning for human resource requirements and managing demand.
Answer: E) planning for human resource requirements and managing demand.
Which of the following statements regarding aggregate planning in services is FALSE?
Which of the following statements regarding aggregate planning in services is FALSE?
A) Approaches to aggregate planning differ by the type of service provided.
B) Some service organizations conduct aggregate planning in exactly the same way as manufacturing firms, but with demand management taking a more active role.
C) Aggregate planning in some service industries may be easier than in manufacturing.
D) Labor is the primary aggregate planning vehicle.
E) Level scheduling is far more common than using a chase strategy.
Answer: E) Level scheduling is far more common than using a chase strategy.
Which of the following is NOT one of the successful techniques for controlling the cost of labor in services?
Which of the following is NOT one of the successful techniques for controlling the cost of labor in services?
A) accurate scheduling of labor-hours to assure quick response to customer demand
B) an on-call labor resource that can be added or deleted to meet unexpected demand
C) little flexibility in worker hours to decrease the burden on management
D) flexibility of individual worker skills that permits reallocation of available labor
E) flexibility in rate of output or hours of work to meet changing demand
Answer: C) little flexibility in worker hours to decrease the burden on management
Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.
Aggregate planning for fast food restaurants is very similar to aggregate planning in manufacturing, but with much smaller units of time.
Answer: TRUE
Techniques for controlling the cost of labor in services include accurate scheduling of labor hours to assure quick response to customer demand, on-call labor for unexpected demand, flexibility of labor skills for reallocation of available labor, and flexibility in rate of output or hours of work to meet changing demand.
Techniques for controlling the cost of labor in services include accurate scheduling of labor hours to assure quick response to customer demand, on-call labor for unexpected demand, flexibility of labor skills for reallocation of available labor, and flexibility in rate of output or hours of work to meet changing demand.
Answer: TRUE
A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1?
A manager is applying the transportation model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. If holding costs are $2 per unit each period, how many hours of regular employment should be used in period 1? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.)
A) 100
B) 125
C) 150
D) 50
E) none of the above
Answer: B) 125
Which of the following aggregate planning methods does not work if hiring and layoffs are possible?
Which of the following aggregate planning methods does not work if hiring and layoffs are possible?
A) the linear decision rule
B) simulation
C) the management coefficients model
D) the transportation method
E) graphical methods
Answer: D) the transportation method
A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that:
A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that:
A) the January requirement is below level production of 420 units.
B) level production is approximately 1000 units per day.
C) level production of 420 units per day is below the January requirement.
D) level production is approximately 420 units per month.
E) the firm must hire workers between December and January.
Answer: C) level production of 420 units per day is below the January requirement.
"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?
"An optimal plan for minimizing the cost of allocating capacity to meet demand over several planning periods" best describes which of the following?
A) the linear decision rule
B) simulation
C) the management coefficients model
D) the transportation method
E) graphical methods
Answer: D) the transportation method
A firm practices a pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?
A firm practices a pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900, 700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs?
A) $500
B) $2,500
C) $7,500
D) $7,000
E) $12,500
Answer: C) $7,500
The transportation method of linear programming is an optimizing approach to aggregate planning.
The transportation method of linear programming is an optimizing approach to aggregate planning.
Answer: TRUE
Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.
Graphical techniques are easy to understand and use, but are not well-suited for generating optimal strategies.
Answer: TRUE
Which of the following actions is consistent with the use of level scheduling?
Which of the following actions is consistent with the use of level scheduling?
A) use inventory to meet demand requirements
B) use overtime to meet higher-than-average demand requirements
C) vary production levels to meet demand requirements
D) vary work force to meet demand requirements
E) none of the above
Answer: A) use inventory to meet demand requirements
A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy?
A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy?
A) add 100 units to inventory in the next period
B) add 200 units to inventory in the next period
C) hire workers to match the 100-unit difference
D) lay off workers to match the 200-unit difference
E) implement a lower price point to increase demand
Answer: D) lay off workers to match the 200-unit difference
Which of the following is NOT an advantage of level scheduling?
Which of the following is NOT an advantage of level scheduling?
A) stable employment
B) lower absenteeism
C) matching production exactly with sales
D) lower turnover
E) more employee commitment
Answer: C) matching production exactly with sales
Which of the following is consistent with a pure chase strategy?
Which of the following is consistent with a pure chase strategy?
A) vary production levels to meet demand requirements
B) vary work force to meet demand requirements
C) vary production levels and work force to meet demand requirements
D) little or no use of inventory to meet demand requirements
E) All of the above are consistent with a pure chase strategy.
Answer: E) All of the above are consistent with a pure chase strategy.
Which of the following is NOT consistent with level scheduling?
Which of the following is NOT consistent with level scheduling?
A) varying the use of subcontracting
B) finding alternative work for employees during low-demand periods
C) using built-up inventory to meet demand requirements
D) varying production levels and/or work force to meet demand requirements
E) All of the above are inconsistent with the pure level strategy.
Answer: D) varying production levels and/or work force to meet demand requirements
In level scheduling, what is kept uniform from month to month?
In level scheduling, what is kept uniform from month to month?
A) product mix
B) inventory levels
C) production/workforce levels
D) demand levels
E) sub-contracting levels
Answer: C) production/workforce levels
Which of the following statements regarding aggregate planning is TRUE?
Which of the following statements regarding aggregate planning is TRUE?
A) In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon.
B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
C) Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
D) Because service firms have no inventory, the pure chase strategy does not apply.
E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.
Answer: C) Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
Which choice best describes level scheduling?
Which choice best describes level scheduling?
A) Daily production is variable from period to period.
B) Subcontracting, hiring, and layoffs manipulate supply.
C) Price points are calculated to match demand to capacity.
D) Inventory goes up or down to buffer the difference between demand and production.
E) Overtime is used to handle seasonal demand fluctuations.
Answer: D) Inventory goes up or down to buffer the difference between demand and production.
Which of the following statements about aggregate planning is TRUE?
Which of the following statements about aggregate planning is TRUE?
A) An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs.
B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.
C) A pure chase strategy allows lower inventories when compared to a pure level scheduling.
D) A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise.
E) The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small.
Answer: C) A pure chase strategy allows lower inventories when compared to a pure level scheduling.
Which choice below best describes the counter seasonal product demand option?
Which choice below best describes the counter seasonal product demand option?
A) producing such products as lawnmowers and sunglasses during the winter
B) developing a mix of products that smoothes out their demands
C) lowering prices when demand is slack
D) using subcontractors only when demand is excessive
E) the breaking of the aggregate plan into finer levels of detail
Answer: B) developing a mix of products that smoothes out their demands
In aggregate planning, which one of the following is not a basic option for altering demand?
In aggregate planning, which one of the following is not a basic option for altering demand?
A) promotion
B) subcontracting
C) back ordering
D) pricing
E) personal selling
Answer: B) subcontracting
Which of the following aggregate planning strategies is a demand option?
Which of the following aggregate planning strategies is a demand option?
A) changing price
B) subcontracting
C) varying production levels
D) changing inventory levels
E) using part-time workers
Answer: A) changing price
Which of the following aggregate planning options attempts to manipulate product or service demand?
Which of the following aggregate planning options attempts to manipulate product or service demand?
A) inventories
B) part-time workers
C) subcontracting
D) overtime/idle time
E) price cuts
Answer: E) price cuts
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?
Which of the following aggregate planning options is NOT associated with manipulation of product or service demand?
A) price cuts or discounts
B) promotion
C) subcontracting
D) counterseasonal products or services
E) advertising
Answer: C) subcontracting
Which of the following aggregate planning strategies is known to lower employee morale?
Which of the following aggregate planning strategies is known to lower employee morale?
A) yield management
B) counterseasonal product and service mixing
C) changing inventory levels
D) varying work force size by hiring or layoffs
E) back ordering during high demand periods
Answer: D) varying work force size by hiring or layoffs
Which of these aggregate planning strategies is a capacity option?
Which of these aggregate planning strategies is a capacity option?
A) back ordering
B) using part-time workers
C) counterseasonal product mixing
D) changing price
E) promotion
Answer: B) using part-time workers
Which of the following aggregate planning strategies is a capacity option?
Which of the following aggregate planning strategies is a capacity option?
A) influencing demand by changing price
B) counterseasonal product mixing
C) influencing demand by extending lead times
D) changing inventory levels
E) influencing demand by back ordering
Answer: D) changing inventory levels
In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?
In the service sector, which of the following aggregate planning strategies might direct your client to a competitor?
A) using part-time workers
B) subcontracting
C) changing inventory level
D) varying production rates through overtime or idle time
E) varying work force size by hiring or layoffs
Answer: B) subcontracting
Which of these is among the demand options of aggregate planning?
Which of these is among the demand options of aggregate planning?
A) subcontracting
B) back-ordering during high-demand periods
C) changing inventory levels
D) varying workforce size
E) varying production rates through overtime or idle time
Answer: B) back-ordering during high-demand periods
Dependence on an external source of supply is found in which of the following aggregate planning strategies?
Dependence on an external source of supply is found in which of the following aggregate planning strategies?
A) varying production rates through overtime or idle time
B) subcontracting
C) using part-time workers
D) back ordering during high demand periods
E) hiring and laying off
Answer: B) subcontracting
Finding an ideal mixed strategy is complicated by the huge number of possible strategies.
Finding an ideal mixed strategy is complicated by the huge number of possible strategies.
Answer: TRUE
Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon.
Answer: TRUE
The level scheduling strategy allows lower inventories than the pure chase strategy.
The level scheduling strategy allows lower inventories than the pure chase strategy.
Answer: FALSE
Because service firms do not inventory their output, a pure chase strategy is not appropriate.
Because service firms do not inventory their output, a pure chase strategy is not appropriate.
Answer: FALSE
Advertising and promotion are methods of manipulating product or service supply in aggregate planning.
Advertising and promotion are methods of manipulating product or service supply in aggregate planning.
Answer: FALSE
The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but it may also reduce quality levels.
The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but it may also reduce quality levels.
Answer: TRUE
One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.
One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization.
Answer: TRUE
When developing an aggregate plan, one of the adjustable elements of capacity is the extent of subcontracting.
When developing an aggregate plan, one of the adjustable elements of capacity is the extent of subcontracting.
Answer: TRUE
In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.
In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.
Answer: TRUE
The strategies of aggregate planning are broadly divided into demand options and capacity options.
The strategies of aggregate planning are broadly divided into demand options and capacity options.
Answer: TRUE
One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.
One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.
Answer: False
One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.
One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand.
Answer: TRUE
What directly results from disaggregation of an aggregate plan?
What directly results from disaggregation of an aggregate plan?
A) a master production schedule
B) priority scheduling
C) a transportation matrix
D) a capacity-demand matrix
E) detailed work schedules
Answer: A) a master production schedule
An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?
An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?
A) production rates
B) labor levels
C) inventory levels
D) overtime work
E) facility capacity
Answer: E) facility capacity
Aggregate planning would entail which of the following production aspects at BMW for a 12-month period?
Aggregate planning would entail which of the following production aspects at BMW for a 12-month period?
A) number of cars with a hi-fi stereo system to produce
B) number of two-door vs. four-door cars to produce
C) number of green cars to produce
D) total number of cars to produce
E) B, C, and D
Answer: D) total number of cars to produce
Disaggregation:
Disaggregation:
A) breaks the aggregate plan into greater detail.
B) transforms the master production schedule into an aggregate plan.
C) calculates the optimal price points for yield management.
D) converts product schedules and labor assignments to a facility-wide plan.
E) is an assumption required for the use of the transportation model in aggregate planning.
Answer: A) breaks the aggregate plan into greater detail.
The objective of aggregate planning is to meet forecast demand while ________ over the planning period.
The objective of aggregate planning is to meet forecast demand while ________ over the planning period.
A) minimizing cost
B) maximizing service level
C) minimizing stock out
D) minimizing fixed cost
E) all of the above
Answer: A) minimizing cost
Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the master production schedule.
Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the master production schedule.
Answer: TRUE
The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.
The objective of aggregate planning is usually to meet forecast demand while smoothing employment and driving down inventory levels over the planning period.
Answer: FALSE
Which of the following is NOT an input to S&OP?
Which of the following is NOT an input to S&OP?
A) capacity decisions
B) supply-chain support
C) workforce
D) inventory on hand
E) master production schedule
Answer: E) master production schedule
What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?
What is the effort to plan the coordination of demand forecasts with functional areas of the firm and its supply chain?
A) enterprise resource planning
B) material requirements planning
C) capacity planning
D) sales and operations planning
E) new product development
Answer: D) sales and operations planning
Which of the following is NOT one of the four things needed for aggregate planning?
Which of the following is NOT one of the four things needed for aggregate planning?
A) a logical overall unit for measuring sales and output
B) a method to determine the relevant costs
C) a mathematical model that will minimize costs over the intermediate planning period
D) an aggregate demand forecast for an intermediate planning period
E) All of these are needed for aggregate planning.
Answer: C) a mathematical model that will minimize costs over the intermediate planning period
Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?
Which of the following is the term used for intermediate-range capacity planning with a time horizon of three to eighteen months?
A) material requirements planning
B) enterprise resource planning
C) strategic planning
D) aggregate planning
E) job scheduling
Answer: D) aggregate planning
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