Q1. You have been asked to outline a business plan for a new half million dollar
ID: 358633 • Letter: Q
Question
Q1. You have been asked to outline a business plan for a new half million dollar venture that will be carried out by your company. In putting together the business plan, what consideration can you ignore?a. The impact of the venture on the company's stock price
b. Cash flow requirements of the venture
c. Operational issues associated with the venture
d. Human resource requirements associated with the venture
Q2. Activities carried out by firms in areas like R&D and strengthening corporate infrastructure should be tracked as profit and loss activities.
a. true
b. false
Q3. The ISO 9000 quality standards holds that "quality is conformance to specifications."
a. true
b. false
Q4. Which of the following is not a direct consequence of empowerment?
a. You gain employee commitment to doing a good job
b. Your costs drop while your revenues increase
c. You enable employees to make decisions
d. Your enterprise can function more nimbly, because decisions are made by employees interacting directly with customers
Q5. Organizational design:
a. Long-term view of operations
b. Structuring the work environment
c. What do customers want?
Q6. Which of the following is not a characteristic of a general partnership?
a. Limited liability
b. Partners share benefits
c. Actions of one partner commit all partners
d. If partnership agreement does not exist, partnership rules revert to rules established by the state
Q7. Economic order quantity (EOQ):
a. Number of goods ordered for inventory
b. One way enterprises become lean
c. A goal of production processes
Q8. Which of the following is not generally considered a cost of inventory?
a. Cost of spoilage
b. Cost of delivery of goods
c. Ordering cost
d. Storage cost
Q9. If I put $50,000 into a savings account that grows 5% a year (compounded annually), and if there are no administrative charges associated with my account, how much money will I have in the account at the end of four years?
a. $60,000
b. $61,250
c. $60,775
d. $62,225
Q10. Which of the following is a negative trait of outsourcing?
a. More expensive than using the company?s own resources
b. The organization may encounter a "hollowing" of its technical capabilities
c. Increased burden of indirect costs
d. It results in damage to the company's bottom line
Q11. The inverted pyramid concept holds that the basic job of today's managers is:
a. to direct the activities of their employees
b. to control the activities of their employees
c. to develop strategic visions of the enterprise's future directions
d. to support their employees so that they can do a better job
Q12. A distinguishing feature of business process reengineering is:
a. it provides engineering departments with greater authority to make non-technical decisions
b. it entails streamlining the organization's operating processes
c. it strengthens morale among employees, because it defines job roles more clearly
d. it encourages job enrichment
Q13. When a product reaches the mature stage in its product life cycle, it is usually a good idea for the company:
a. to begin developing new products to take up the slack when the old product declines
b. to spend more money advertising the product
c. to pull the product from the market, since the cost of maintaining it is greater than corresponding benefits
d. to emphasize that maturity is good -- it means that the product has withstood the test of time and is worth buying
Q14. Inverted pyramid:
a. Bosses visit employees on the floor
b. Senior management supports employees
c. Structuring the work environment
Q15. Downsizing:
a. One way enterprises become lean
b. Predetermined bonus tied to performance
c. A goal of production processes
Q16. Which of the following is not a function of the production/operations effort of a typical enterprise?
a. managing inventory
b. managing the supply chain
c. managing quality
d. managing financial strategy
Q17. LLC:
a. Long-term view of operations
b. One way enterprises become lean
c. Similar to S-corporation
Q18. Strategic planning:
a. Long-term view of operations
b. Predetermined bonus tied to performance
c. A goal of production processes
Q19. Market research:
a. One way enterprises become lean
b. Number of goods ordered for inventory
c. What do customers want?
Q20. According to MBO principles, "Bob will get the job done as quickly as possible" is a good statement of an objective.
a. true
b. false
Q21. It is during the start-up stage of the product life cycle that profits grow most rapidly.
a. true
b. false
Q22. When considering the 4Ps of marketing, place represents:
a. the category of location where goods are sold
b. distribution channels
c. promotional efforts that must be made
d. determining the proper price for a new product
Q23. Management by exception is a control methodology.
a. true
b. false
Q24. Process innovation is important because:
a. it can yield dramatic cost savings in business operations
b. it leads to the development of new products
c. expenses incurred lead to tax write-offs
d. it enables companies to charge higher prices for their products
Q25. What does "360 degree review" refer to?
a. Profits are examined from the perspective of all players participating in business processes
b. The process of having key stakeholders assess business cases entailing investment in new business opportunities
c. Employees and managers evaluate each others' performance
d. An inspection of the quality of products by key stakeholders
Q26. Which of the following categories of investors has first priority when it comes to being paid back by an enterprise?
a. Bond holders
b. Common stockholders
c. Preferred stockholders
d. Speculators
Q27. Problem solving is the best conflict management strategy.
a. true
b. false
Q28. A leading source of business failure is poor cash flow management.
a. true
b. false
Q29. Pro forma cash flow statements:
a. can be built directly from balance sheets
b. enable us to identify which assets are productive and which are not
c. show us month-by-month whether our cash position is positive or negative
d. are crucial in calculating net working capital
Q30. Being a good manager is a precondition to being a good leader.
a. true
b. false
Q31. Just-in-time (JIT) management focuses primarily on:
a. reducing inventory stores
b. providing customers the finished products they desire according to a schedule
c. using PERT/CPM charts to schedule activities accurately
d. avoiding schedule delays
Q32. Having a high proportion of equity financing is more risky to the viability of a typical enterprise than having a high proportion of debt financing.
a. true
b. false
Q33. Company ABC only supports projects whose anticipated benefit-cost ratios are 2.5 or greater. Three months into Project X (a nine month project), an evaluation of performance indicates that $1.5 million has been spent on the project to date. This is $200,000 larger than planned. It is anticipated that it will cost $5 million more to complete the project, which would result in a total cost overrun of $1 million. The market research group predicts that revenues from the project will total to $16 million within a year of the completion of the project effort. What benefit-cost ratio does ABC's senior managers encounter at this point to help them make a decision on whether to move forward with the project?
a. 3.20
b. 2.46
c. 3.00
d. There is not enough information to determine the benefit-cost ratio
Q34. In the earliest stages of estimating costs of a new venture, estimators will likely depend upon:
a. conceptual estimates
b. preliminary estimates
c. definitive estimates
d. bottom-up estimates
Q35. Zero defects:
a. Number of goods ordered for inventory
b. One way enterprises become lean
c. A goal of production processes
Q36. According to Katzenbach and Smith in their book, The Wisdom of Teams, the primary way to assess the value of a team is to determine:
a. whether team members have learned to cooperate with each other
b. whether team members know how to handle conflict in order to minimize disruptions to team efforts
c. whether the team achieved its performance objectives
d. whether team members value service to the team more highly than serving their self-interests
Q37. We run a consulting company. We would like to expand our business and increase revenues. We know from past experience that the price elasticity of demand for our services is 0.70. It is tempting to reduce the price of our services. If we do, what consequence can we anticipate?
a. Business volume and revenue will increase dramatically
b. Business volume and revenue will increase modestly
c. Business volume would not change significantly; the primary consequence of lowering price will be to experience a loss of revenue
d. Business volume and revenue would both drop
Q38. In business finance, the ownership share of an enterprise's owners can be determined from:
a. total assets
b. owner's equity plus retained earnings
c. retained earnings alone
d. stock price
Q39. When we refer to operations as a "transforming process," we mean that through operations activities:
a. we transform our views of business activity from traditional perspectives to current perspectives
b. we transform the equipment and tools we use from obsolete equipment and tools to state-of-art equipment and tools
c. we transform raw materials into finished products
d. we transform ideas into action
Q40. Which of the following management techniques does not directly lead to empowerment?
a. Business process re-engineering
b. MBO
c. Self-managed teams
d. Management by exception Q1. You have been asked to outline a business plan for a new half million dollar venture that will be carried out by your company. In putting together the business plan, what consideration can you ignore?
a. The impact of the venture on the company's stock price
b. Cash flow requirements of the venture
c. Operational issues associated with the venture
d. Human resource requirements associated with the venture
Q2. Activities carried out by firms in areas like R&D and strengthening corporate infrastructure should be tracked as profit and loss activities.
a. true
b. false
Q3. The ISO 9000 quality standards holds that "quality is conformance to specifications."
a. true
b. false
Q4. Which of the following is not a direct consequence of empowerment?
a. You gain employee commitment to doing a good job
b. Your costs drop while your revenues increase
c. You enable employees to make decisions
d. Your enterprise can function more nimbly, because decisions are made by employees interacting directly with customers
Q5. Organizational design:
a. Long-term view of operations
b. Structuring the work environment
c. What do customers want?
Q6. Which of the following is not a characteristic of a general partnership?
a. Limited liability
b. Partners share benefits
c. Actions of one partner commit all partners
d. If partnership agreement does not exist, partnership rules revert to rules established by the state
Q7. Economic order quantity (EOQ):
a. Number of goods ordered for inventory
b. One way enterprises become lean
c. A goal of production processes
Q8. Which of the following is not generally considered a cost of inventory?
a. Cost of spoilage
b. Cost of delivery of goods
c. Ordering cost
d. Storage cost
Q9. If I put $50,000 into a savings account that grows 5% a year (compounded annually), and if there are no administrative charges associated with my account, how much money will I have in the account at the end of four years?
a. $60,000
b. $61,250
c. $60,775
d. $62,225
Q10. Which of the following is a negative trait of outsourcing?
a. More expensive than using the company?s own resources
b. The organization may encounter a "hollowing" of its technical capabilities
c. Increased burden of indirect costs
d. It results in damage to the company's bottom line
Q11. The inverted pyramid concept holds that the basic job of today's managers is:
a. to direct the activities of their employees
b. to control the activities of their employees
c. to develop strategic visions of the enterprise's future directions
d. to support their employees so that they can do a better job
Q12. A distinguishing feature of business process reengineering is:
a. it provides engineering departments with greater authority to make non-technical decisions
b. it entails streamlining the organization's operating processes
c. it strengthens morale among employees, because it defines job roles more clearly
d. it encourages job enrichment
Q13. When a product reaches the mature stage in its product life cycle, it is usually a good idea for the company:
a. to begin developing new products to take up the slack when the old product declines
b. to spend more money advertising the product
c. to pull the product from the market, since the cost of maintaining it is greater than corresponding benefits
d. to emphasize that maturity is good -- it means that the product has withstood the test of time and is worth buying
Q14. Inverted pyramid:
a. Bosses visit employees on the floor
b. Senior management supports employees
c. Structuring the work environment
Q15. Downsizing:
a. One way enterprises become lean
b. Predetermined bonus tied to performance
c. A goal of production processes
Q16. Which of the following is not a function of the production/operations effort of a typical enterprise?
a. managing inventory
b. managing the supply chain
c. managing quality
d. managing financial strategy
Q17. LLC:
a. Long-term view of operations
b. One way enterprises become lean
c. Similar to S-corporation
Q18. Strategic planning:
a. Long-term view of operations
b. Predetermined bonus tied to performance
c. A goal of production processes
Q19. Market research:
a. One way enterprises become lean
b. Number of goods ordered for inventory
c. What do customers want?
Q20. According to MBO principles, "Bob will get the job done as quickly as possible" is a good statement of an objective.
a. true
b. false
Q21. It is during the start-up stage of the product life cycle that profits grow most rapidly.
a. true
b. false
Q22. When considering the 4Ps of marketing, place represents:
a. the category of location where goods are sold
b. distribution channels
c. promotional efforts that must be made
d. determining the proper price for a new product
Q23. Management by exception is a control methodology.
a. true
b. false
Q24. Process innovation is important because:
a. it can yield dramatic cost savings in business operations
b. it leads to the development of new products
c. expenses incurred lead to tax write-offs
d. it enables companies to charge higher prices for their products
Q25. What does "360 degree review" refer to?
a. Profits are examined from the perspective of all players participating in business processes
b. The process of having key stakeholders assess business cases entailing investment in new business opportunities
c. Employees and managers evaluate each others' performance
d. An inspection of the quality of products by key stakeholders
Q26. Which of the following categories of investors has first priority when it comes to being paid back by an enterprise?
a. Bond holders
b. Common stockholders
c. Preferred stockholders
d. Speculators
Q27. Problem solving is the best conflict management strategy.
a. true
b. false
Q28. A leading source of business failure is poor cash flow management.
a. true
b. false
Q29. Pro forma cash flow statements:
a. can be built directly from balance sheets
b. enable us to identify which assets are productive and which are not
c. show us month-by-month whether our cash position is positive or negative
d. are crucial in calculating net working capital
Q30. Being a good manager is a precondition to being a good leader.
a. true
b. false
Q31. Just-in-time (JIT) management focuses primarily on:
a. reducing inventory stores
b. providing customers the finished products they desire according to a schedule
c. using PERT/CPM charts to schedule activities accurately
d. avoiding schedule delays
Q32. Having a high proportion of equity financing is more risky to the viability of a typical enterprise than having a high proportion of debt financing.
a. true
b. false
Q33. Company ABC only supports projects whose anticipated benefit-cost ratios are 2.5 or greater. Three months into Project X (a nine month project), an evaluation of performance indicates that $1.5 million has been spent on the project to date. This is $200,000 larger than planned. It is anticipated that it will cost $5 million more to complete the project, which would result in a total cost overrun of $1 million. The market research group predicts that revenues from the project will total to $16 million within a year of the completion of the project effort. What benefit-cost ratio does ABC's senior managers encounter at this point to help them make a decision on whether to move forward with the project?
a. 3.20
b. 2.46
c. 3.00
d. There is not enough information to determine the benefit-cost ratio
Q34. In the earliest stages of estimating costs of a new venture, estimators will likely depend upon:
a. conceptual estimates
b. preliminary estimates
c. definitive estimates
d. bottom-up estimates
Q35. Zero defects:
a. Number of goods ordered for inventory
b. One way enterprises become lean
c. A goal of production processes
Q36. According to Katzenbach and Smith in their book, The Wisdom of Teams, the primary way to assess the value of a team is to determine:
a. whether team members have learned to cooperate with each other
b. whether team members know how to handle conflict in order to minimize disruptions to team efforts
c. whether the team achieved its performance objectives
d. whether team members value service to the team more highly than serving their self-interests
Q37. We run a consulting company. We would like to expand our business and increase revenues. We know from past experience that the price elasticity of demand for our services is 0.70. It is tempting to reduce the price of our services. If we do, what consequence can we anticipate?
a. Business volume and revenue will increase dramatically
b. Business volume and revenue will increase modestly
c. Business volume would not change significantly; the primary consequence of lowering price will be to experience a loss of revenue
d. Business volume and revenue would both drop
Q38. In business finance, the ownership share of an enterprise's owners can be determined from:
a. total assets
b. owner's equity plus retained earnings
c. retained earnings alone
d. stock price
Q39. When we refer to operations as a "transforming process," we mean that through operations activities:
a. we transform our views of business activity from traditional perspectives to current perspectives
b. we transform the equipment and tools we use from obsolete equipment and tools to state-of-art equipment and tools
c. we transform raw materials into finished products
d. we transform ideas into action
Q40. Which of the following management techniques does not directly lead to empowerment?
a. Business process re-engineering
b. MBO
c. Self-managed teams
d. Management by exception
Explanation / Answer
1 A)The impact of the venture on the company's stock price( because in preparing a business plan the considerations are operations, resources, management and finances related only to the new venture but not the stock price of the old one
2 B)False( as R&D serve a large purpose but not immediate profits or losses).
3 A)True( because according to ISO 9000 quality is adherence to the specifications).
4 B)Your costs drop while the revenue increases( this is not a direct consequence and it depends on many other factors not just empowerment while options a,c,d are the direct consequences of empowerment).
Note: All answers are to the best of my knowledge
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