Question 1

Which of the following is NOT the category of internal failure costs?

Accepted Answer

A)   Scrap and rework costs
B)   Costs of corrective action
C)   Downgrading costs
D)   Tests and Inspections costs D

Question 2

A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance is known as:

Accepted Answer

A)   On-time Program management
B)   Management by Objectives
C)   Management by Performance
D)   All of the above B

Question 3

Completing unfinished business, collecting debts, and distributing assets to creditors and partners is called:

Accepted Answer

A)   Bankruptcy
B)   Liquidation
C)   Insolvency
D)   All of the above B

Question 4

What is the owner's equity created by the business operations?

Accepted Answer

A)   Log-on earnings
B)   Sale earnings
C)   Retained earnings
D)   Transactional earnings

Question 5

The formula for Return on Investment is calculated as: A = operations costs for a new or enhanced system for the time period B = one-time cost of acquisition and implementation C = value if gains from productivity improvements for the time period

Accepted Answer

A)   Return on Investment = A / (B + 
C)  
B)   Return on Investment = (A + 
C)   / B
C)   Return on Investment = (A + 
B)   / C
D)   Return on Investment = C / (A + 
B)

Question 6

Many multinational corporations, in an attempt to facilitate planning for, organizing, and controlling interdependent businesses, critical resources, strategies and geographic regions, has adopted:

Accepted Answer

A)   Customer structure
B)   Matrix structure
C)   Mixed structure
D)   Area structure

Question 7

Who was the first PC manufacturer to use the Web to take customer orders?

Accepted Answer

A)   Dell
B)   Sony
C)   Toshiba
D)   Compaq

Question 8

Which of the following is NOT the type of partners?

Accepted Answer

A)   General partners
B)   Limited partners
C)   Dormant partners
D)   Legal partners

Question 9

A group of services provided to displace employees to give them support and assistance is known as:

Accepted Answer

A)   Outplacement
B)   Backing-up
C)   Assistance
D)   Referral workshops

Question 10

Leading companies identify important business processes throughout the supply chain that affect customer satisfaction, these fall into which of the following category?

Accepted Answer

A)   Product design processes
B)   Support processes
C)   Supplier and partnering processes
D)   All of the above

Question 11

An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error is called:

Accepted Answer

A)   Xeron-savvy
B)   Alex-degrade
C)   Poka-yoke
D)   Zulex-crew

Question 12

The ability of the organization to obtain from its environment scarce and valued resources, including financial resources, raw materials, human resources, knowledge and technology is called:

Accepted Answer

A)   Bargaining position
B)   Agreement indicator
C)   Covenant approach
D)   Convention

Question 13

Shiba quality model focus on which level of quality?

Accepted Answer

A)   Fitness to standard
B)   Fitness to needs
C)   Fitness of costs
D)   All of the above

Question 14

The ratio of total outputs to the inputs from labor, capital, materials, and energy is called total factor productivity.

Accepted Answer

A) True 
 B)False

Question 15

In _____________ database, different parts of the database are stored in the locations where they are accessed more often, but they continue to be fully accessible to others through telecommunications

Accepted Answer

A)   Distributed
B)   Partitioned
C)   Fragmented
D)   Spontaneous

Question 16

Michael E. Porter introduced a framework describing which three competitive strategies?

Accepted Answer

A)   Low-cost leadership, Productivity and Focus
B)   Low-cost leadership, Differentiation and Focus
C)   Official goals, Differentiation and Design
D)   Low-cost leadership, Differentiation and Effectiveness

Question 17

A tool for organizing a large number of ideas, opinions and facts relating to a broad problem or subject area is called:

Accepted Answer

A)   Interrelationship diagram
B)   Affinity diagram
C)   Kinship diagram
D)   Expansive diagram

Question 18

The determination and adjustment of the organization's ability to produce products and services to match customer demand is known as:

Accepted Answer

A)   Inventory planning
B)   Capacity planning
C)   Quality planning
D)   Evolutionary planning

Question 19

A long-term contract under which a borrower which a borrower agrees to make payments of interest and principal on specific dates to its holder is called:

Accepted Answer

A)   Bond
B)   Loan
C)   Mortgage
D)   Credit

Question 20

A separateness of corporation gives it which of the following advantages?

Accepted Answer

A)   A corporation can continue after its original owners and managers are deceased.
B)   Ownership interests can be divided into shares of stock.
C)   A corporation offers its owners limited liability.
D)   All of the above

Exam 1: Certified Business Manager