MBA 705 Exam 3 Questions With Correct
Answers
Capital-Labor Substitution: - CORRECT ANSWER✔✔-An organization's ability to
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substitute labor for capital or vice versa as production increases.
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Experience Curve: - CORRECT ANSWER✔✔-ncreases. Experience Curve: The
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reduction in per-unit costs that occur as an organization gains experience
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producing a product or service.
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Functional Strategies: - CORRECT ANSWER✔✔-The strategies pursued by each
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functional area of a business unit, such as marketing, finance, or production.
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Human Capital: - CORRECT ANSWER✔✔-The sum of the capabilities of individuals
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in an organization.
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Just-In-Time (JIT) Inventory System: - CORRECT ANSWER✔✔-An inventory system,
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|popularized by the Japanese, in which suppliers deliver parts just at the time they
| | | | | | | | | | | | |
|are needed by the buying organization to use in its production process.
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Knowledge Management: - CORRECT ANSWER✔✔-People and their skills and
| | | | | | | | |
abilities (i.e., knowledge capital) represent the only resource that cannot readily
| | | | | | | | | | |
be reproduced by a firm's competitors. Knowledge capital must be effectively
| | | | | | | | | | |
leveraged if high-performing firms are to remain as such over the long term.
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,Learning: - CORRECT ANSWER✔✔-The increased efficiency that occurs when an
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employee performs a task repeatedly.
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Process R & D: - CORRECT ANSWER✔✔-R & D activities that seek to reduce the
| | | | | | | | | | | | | | |
costs of operations and make them more efficient.
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Product/Service R & D: - CORRECT ANSWER✔✔-R & D activities directed toward
| | | | | | | | | | | |
improvements or innovations in the quality or uniqueness of a company's
| | | | | | | | | | |
outputs.
Total Quality Management (TQM): - CORRECT ANSWER✔✔-A broad-based
| | | | | | | |
program designed to improve product and service quality and to increase
| | | | | | | | | | |
customer satisfaction by incorporating a holistic commitment to quality as seen
| | | | | | | | | | |
through the eyes of the customer.
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Because functional strategies should be designed to support corporate and
| | | | | | | | | |
business strategies, they should not be considered until corporate and business
| | | | | | | | | | |
strategies have been formulated.
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True or False - CORRECT ANSWER✔✔-False.
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Although functional strategies are formulated after the corporate and business
| | | | | | | | | |
strategies have already been established, one still needs to consider the
| | | | | | | | | | |
capabilities of the various functional areas when considering various corporate
| | | | | | | | | |
and business strategic options.
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, The most appropriate means of securing funds likely depends on the corporate
| | | | | | | | | | | |
and business strategies being pursued.
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True or False - CORRECT ANSWER✔✔-True.
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Some forms of raising capital tend to be more effective than others, depending
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on the strategy.
| |
The reduction in per-unit costs that occurs as an organization gains experience
| | | | | | | | | | | |
producing a product or service is known as economies of scale. Economies of
| | | | | | | | | | | | |
scale is one of the contributing factors to the experience curve.
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True or False - CORRECT ANSWER✔✔-False.
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The reduction in per-unit costs that occurs as an organization gains experience
| | | | | | | | | | | |
producing a product or service is known as the experience curve.
| | | | | | | | | |
The purchasing department in a low-cost business should always purchase raw
| | | | | | | | | | |
materials at the lowest possible cost.
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True or False - CORRECT ANSWER✔✔-False.
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Purchasing departments in low-cost businesses should seek the "best cost"—the
| | | | | | | | | |
lowest cost within an acceptable range of quality standards.
| | | | | | | |
Answers
Capital-Labor Substitution: - CORRECT ANSWER✔✔-An organization's ability to
| | | | | | | |
substitute labor for capital or vice versa as production increases.
| | | | | | | | |
Experience Curve: - CORRECT ANSWER✔✔-ncreases. Experience Curve: The
| | | | | | | |
reduction in per-unit costs that occur as an organization gains experience
| | | | | | | | | | |
producing a product or service.
| | | |
Functional Strategies: - CORRECT ANSWER✔✔-The strategies pursued by each
| | | | | | | | |
functional area of a business unit, such as marketing, finance, or production.
| | | | | | | | | | |
Human Capital: - CORRECT ANSWER✔✔-The sum of the capabilities of individuals
| | | | | | | | | |
in an organization.
| | |
Just-In-Time (JIT) Inventory System: - CORRECT ANSWER✔✔-An inventory system,
| | | | | | | |
|popularized by the Japanese, in which suppliers deliver parts just at the time they
| | | | | | | | | | | | |
|are needed by the buying organization to use in its production process.
| | | | | | | | | | |
Knowledge Management: - CORRECT ANSWER✔✔-People and their skills and
| | | | | | | | |
abilities (i.e., knowledge capital) represent the only resource that cannot readily
| | | | | | | | | | |
be reproduced by a firm's competitors. Knowledge capital must be effectively
| | | | | | | | | | |
leveraged if high-performing firms are to remain as such over the long term.
| | | | | | | | | | | |
,Learning: - CORRECT ANSWER✔✔-The increased efficiency that occurs when an
| | | | | | | | | |
employee performs a task repeatedly.
| | | |
Process R & D: - CORRECT ANSWER✔✔-R & D activities that seek to reduce the
| | | | | | | | | | | | | | |
costs of operations and make them more efficient.
| | | | | | |
Product/Service R & D: - CORRECT ANSWER✔✔-R & D activities directed toward
| | | | | | | | | | | |
improvements or innovations in the quality or uniqueness of a company's
| | | | | | | | | | |
outputs.
Total Quality Management (TQM): - CORRECT ANSWER✔✔-A broad-based
| | | | | | | |
program designed to improve product and service quality and to increase
| | | | | | | | | | |
customer satisfaction by incorporating a holistic commitment to quality as seen
| | | | | | | | | | |
through the eyes of the customer.
| | | | |
Because functional strategies should be designed to support corporate and
| | | | | | | | | |
business strategies, they should not be considered until corporate and business
| | | | | | | | | | |
strategies have been formulated.
| | |
True or False - CORRECT ANSWER✔✔-False.
| | | | |
Although functional strategies are formulated after the corporate and business
| | | | | | | | | |
strategies have already been established, one still needs to consider the
| | | | | | | | | | |
capabilities of the various functional areas when considering various corporate
| | | | | | | | | |
and business strategic options.
| | |
, The most appropriate means of securing funds likely depends on the corporate
| | | | | | | | | | | |
and business strategies being pursued.
| | | |
True or False - CORRECT ANSWER✔✔-True.
| | | | |
Some forms of raising capital tend to be more effective than others, depending
| | | | | | | | | | | | |
on the strategy.
| |
The reduction in per-unit costs that occurs as an organization gains experience
| | | | | | | | | | | |
producing a product or service is known as economies of scale. Economies of
| | | | | | | | | | | | |
scale is one of the contributing factors to the experience curve.
| | | | | | | | | |
True or False - CORRECT ANSWER✔✔-False.
| | | | |
The reduction in per-unit costs that occurs as an organization gains experience
| | | | | | | | | | | |
producing a product or service is known as the experience curve.
| | | | | | | | | |
The purchasing department in a low-cost business should always purchase raw
| | | | | | | | | | |
materials at the lowest possible cost.
| | | | |
True or False - CORRECT ANSWER✔✔-False.
| | | | |
Purchasing departments in low-cost businesses should seek the "best cost"—the
| | | | | | | | | |
lowest cost within an acceptable range of quality standards.
| | | | | | | |
