Question 1

The quality of a finished product depends on the quality of the raw materials used to make it.

Accepted Answer

A) True 
 B)False

Question 2

For service firms, the customer has to arrive before production begins, resulting in employee scheduling issues.

Accepted Answer

A) True 
 B)False

Question 3

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.

Accepted Answer

A)  equipment 
B)  fixed asset 
C)  labor 
D)  leasing 
A)  equipment 
B)  fixed asset 
C)  labor 
D)  leasing

Question 4

Ralph operates a computer-controlled machine. His jobs can be either large or small. To change the setup from one product to another usually requires only a change in programming. This type of manufacturing is known as _____ manufacturing.

Accepted Answer

A)  continuous 
B)  flexible 
C)  project 
D)  repetitive 
A)  continuous 
B)  flexible 
C)  project 
D)  repetitive

Question 5

The simplest method of inventory record-keeping is called cycle counting.

Accepted Answer

A) True 
 B)False

Question 6

Match the term with its definition. Some terms may not be used.
-Operational strategies used to stimulate customer demand when it is normally low

Accepted Answer

A) ABC method 
B) Associative forecasting 
C) Cooperative purchasing organization 
D) Cycle counting 
E) Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system 
A) ABC method 
B) Associative forecasting 
C) Cooperative purchasing organization 
D) Cycle counting 
E) Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Question 7

Cooperative purchasing organizations are firms that specialize in the purchasing function and provide this service to small businesses.

Accepted Answer

A) True 
 B)False

Question 8

Match the term with its definition. Some terms may not be used.
-Manufacturing operations that usually involve computer-controlled equipment that can turn out products in smaller or more flexible quantities

Accepted Answer

A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Question 9

The terms repetitive manufacturing and mass production are synonymous.

Accepted Answer

A) True 
 B)False

Question 10

If a small plumbing company is installing a TQM program, management should be aware that

Accepted Answer

A)  quality must become a very important goal of the entire business. 
B)  ISO 9000 will be the controlling criterion. 
C)  costs cannot be allowed to limit quality goals. 
D)  acceptance sampling may be necessary. 
A)  quality must become a very important goal of the entire business. 
B)  ISO 9000 will be the controlling criterion. 
C)  costs cannot be allowed to limit quality goals. 
D)  acceptance sampling may be necessary.

Question 11

To build a good relationship with a supplier and become more competitive, a small business should

Accepted Answer

A)  pay bills at the latest date possible. 
B)  ignore sales representatives until ready to buy. 
C)  browbeat the supplier into special concessions. 
D)  minimize abrupt cancellations of orders, particularly to gain temporary advantages. 
A)  pay bills at the latest date possible. 
B)  ignore sales representatives until ready to buy. 
C)  browbeat the supplier into special concessions. 
D)  minimize abrupt cancellations of orders, particularly to gain temporary advantages.

Question 12

Bottlenecks in a process are responsible for slower throughput times for the entire process.

Accepted Answer

A) True 
 B)False

Question 13

Outsourcing noncompetitive functions can free the entrepreneur to focus on his or her greatest strengths.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following of Kaoru Ishikawa's seven tools is most commonly used to see how often different values in a set of data occur?

Accepted Answer

A)  Check sheet 
B)  Histogram 
C)  Control chart 
D)  Pareto chart 
A)  Check sheet 
B)  Histogram 
C)  Control chart 
D)  Pareto chart

Question 15

The just-in-time inventory system classifies inventory into three categories based on value.

Accepted Answer

A) True 
 B)False

Question 16

When a company expands resources in response to a constraint, they are using the option of increasing efficiency.

Accepted Answer

A) True 
 B)False

Question 17

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a

Accepted Answer

A)  bottleneck. 
B)  constraint. 
C)  defect. 
D)  hazard. 
A)  bottleneck. 
B)  constraint. 
C)  defect. 
D)  hazard.

Question 18

While large corporations have access to data-mining techniques for insights into customer buying patterns, small companies typically cannot afford the software.

Accepted Answer

A) True 
 B)False

Question 19

Flexible manufacturing systems use a combination of repetitive and continuous manufacturing to lower costs while satisfying customer needs.

Accepted Answer

A) True 
 B)False

Question 20

Match the term with its definition. Some terms may not be used.
-Contracting with a third party to take on and manage one or more of a firm's functions

Accepted Answer

A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Exam 21: Managing Small Business Operations

The quality of a finished product depends on the quality of the raw materials used to make it.

For service firms, the customer has to arrive before production begins, resulting in employee scheduling issues.

Service businesses are typically more concerned with _____ costs than with the cost of materials for operations.

Ralph operates a computer-controlled machine. His jobs can be either large or small. To change the setup from one product to another usually requires only a change in programming. This type of manufacturing is known as _____ manufacturing.

The simplest method of inventory record-keeping is called cycle counting.

Match the term with its definition. Some terms may not be used. -Operational strategies used to stimulate customer demand when it is normally low

Cooperative purchasing organizations are firms that specialize in the purchasing function and provide this service to small businesses.

Match the term with its definition. Some terms may not be used. -Manufacturing operations that usually involve computer-controlled equipment that can turn out products in smaller or more flexible quantities

The terms repetitive manufacturing and mass production are synonymous.

If a small plumbing company is installing a TQM program, management should be aware that

To build a good relationship with a supplier and become more competitive, a small business should

Bottlenecks in a process are responsible for slower throughput times for the entire process.

Outsourcing noncompetitive functions can free the entrepreneur to focus on his or her greatest strengths.

Which of the following of Kaoru Ishikawa's seven tools is most commonly used to see how often different values in a set of data occur?

The just-in-time inventory system classifies inventory into three categories based on value.

When a company expands resources in response to a constraint, they are using the option of increasing efficiency.

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a

While large corporations have access to data-mining techniques for insights into customer buying patterns, small companies typically cannot afford the software.

Flexible manufacturing systems use a combination of repetitive and continuous manufacturing to lower costs while satisfying customer needs.

Match the term with its definition. Some terms may not be used. -Contracting with a third party to take on and manage one or more of a firm's functions

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing the Firms Assets

Managing Risk

Filters