BMGT Final Exam UPDATED ACTUAL
Exam Questions and CORRECT Answers
primary activities of the value chain - CORRECT ANSWER - inbound logistics,
operations, outbound logistics, marketing and sales, service
The value chain - CORRECT ANSWER - firm infrasture, human resource management,
technology, procurement, inbound logistics, operations, outbound logistics, marketing and sales,
service
secondary activities of the value chain - CORRECT ANSWER - procurement, human
resources
define inbound Logistics - CORRECT ANSWER - arranging the inbound movement of
materials, parts, and/or finished inventory from suppliers
define operations - CORRECT ANSWER - manage the process that converts inputs (in the
forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services).
define outbound Logistics - CORRECT ANSWER - related to the storage and movement
of the final product
define marketing and Sales - CORRECT ANSWER - selling a product or service
define service - CORRECT ANSWER - all the activities required to keep the
product/service working effectively for the buyer after it is sold and delivered
define procurement - CORRECT ANSWER - acquisition of goods, services or works from
an outside external source
,define human resources Management - CORRECT ANSWER - involved in recruiting,
hiring, training, developing, compensating and firing
define Technological Development - CORRECT ANSWER - pertains to the equipment,
hardware, software, procedures and technical knowledge used by the firm
define infrastructure - CORRECT ANSWER - consists of activities such as accounting,
legal, finance, control, public relations, quality assurance and general (strategic) management
value chain example: Fen Side Golf Course is an internationally known Scottish golf facility. It
is not just an eighteen hole world-class golf course, it has a five star hotel with 250 luxury rooms,
and private leisure centre, indoor tennis courts, as well as a series of top-class restaurants.
A. All staff are trained to the highest industry standards.
B. The hotel management team focus on goals set out in their strategic plan.
C. All golf course fairways are trimmed and watered daily.
D. Fresh fruit and vegetables are delivered and prepared every day.
E. The hotel has an advanced room reservation system.
F. Fen Side is promoted through magazines targeted at the wealthy and influential.
G. The whole experience is based upon high quality, professional service at every stage.
H. Limousines are available to take guests to airports as they finish their stay.
I. Fen Side has a series of contracts with suppliers of - CORRECT ANSWER - a. human
resources
b. infrastructure
c. services
d. inbound logistics
e. technology
f. marketing
g. operations/Human Resources/Marketing- basically everyone
h. Outbound Logistics/service/procurement has to rent limousines/operations
I. Procurement/inbound logistics, marketing decides too
,define value chain - CORRECT ANSWER - set of activities that let firms produce, sell,
and support the goods and/or services that generate its profits
define nonprofit organization - CORRECT ANSWER - One that doesn't make money or
charge for its services? They generate revenue but not profit. They see gaps between revenue and
cost.Nonprofits often do make money, but they take that money and use it to advance a cause or
to improve their business
Pros and cons of working at or running a nonprofit as opposed to a for-profit business? -
CORRECT ANSWER - Benefit society and feel good about what you're doing, satisfied
taking a lower salary
define goods - CORRECT ANSWER - tangible products
define services - CORRECT ANSWER - intangible products
Right now, is the US economy more into goods or services? - CORRECT ANSWER -
services because its now cheaper to produce goods in other countries
what percent of the economy comes from services? - CORRECT ANSWER - 80%
define risk - CORRECT ANSWER - dictionary: possibility of loss or injury
finance: the chance that an investment's actual return will be different than expected
Suppose you invent a solar-powered car that costs $10,000 per car to make, and you are the only
manufacturer. How much would you charge? - CORRECT ANSWER - You have to figure
what most people can afford. Advertise how much people will be saving on gas by using the car
entrepreneurship vs. employment pros and cons - CORRECT ANSWER -
euntrepeunorship
, pros: Chance for larger profit, make your own business decisions
cons: Risky, might not get a salary for a while during company start up, no benefits and perks,
responsible if fails
employment
pros: Steady income, reliable, benefits and perks, hours, low liability
cons: low upside, expandable, boss, less control
what is the primary purpose of most businesses? - CORRECT ANSWER - profit
what type of relationship do risk and profit have? - CORRECT ANSWER - positive
what is the role of the law in the market? - CORRECT ANSWER - prevent fraud, protect
the honest
What is the concept of the invisible hand in? - CORRECT ANSWER - Wealth of Nations
by Adam Smith
5 factors of production - CORRECT ANSWER - land and natural resources, labor, capital,
entrepreneurship, knowledge
most important factors of production right now? - CORRECT ANSWER -
euntrepeunorship and knowledge
define demand - CORRECT ANSWER - relationship between the amount of product
consumers will purchase and the price for which it is sold
why is demand downward sloping? - CORRECT ANSWER - people buy when the price is
lower. More people value a product at a lower cost than those that value it at a high price.
Exam Questions and CORRECT Answers
primary activities of the value chain - CORRECT ANSWER - inbound logistics,
operations, outbound logistics, marketing and sales, service
The value chain - CORRECT ANSWER - firm infrasture, human resource management,
technology, procurement, inbound logistics, operations, outbound logistics, marketing and sales,
service
secondary activities of the value chain - CORRECT ANSWER - procurement, human
resources
define inbound Logistics - CORRECT ANSWER - arranging the inbound movement of
materials, parts, and/or finished inventory from suppliers
define operations - CORRECT ANSWER - manage the process that converts inputs (in the
forms of raw materials, labor, and energy) into outputs (in the form of goods and/or services).
define outbound Logistics - CORRECT ANSWER - related to the storage and movement
of the final product
define marketing and Sales - CORRECT ANSWER - selling a product or service
define service - CORRECT ANSWER - all the activities required to keep the
product/service working effectively for the buyer after it is sold and delivered
define procurement - CORRECT ANSWER - acquisition of goods, services or works from
an outside external source
,define human resources Management - CORRECT ANSWER - involved in recruiting,
hiring, training, developing, compensating and firing
define Technological Development - CORRECT ANSWER - pertains to the equipment,
hardware, software, procedures and technical knowledge used by the firm
define infrastructure - CORRECT ANSWER - consists of activities such as accounting,
legal, finance, control, public relations, quality assurance and general (strategic) management
value chain example: Fen Side Golf Course is an internationally known Scottish golf facility. It
is not just an eighteen hole world-class golf course, it has a five star hotel with 250 luxury rooms,
and private leisure centre, indoor tennis courts, as well as a series of top-class restaurants.
A. All staff are trained to the highest industry standards.
B. The hotel management team focus on goals set out in their strategic plan.
C. All golf course fairways are trimmed and watered daily.
D. Fresh fruit and vegetables are delivered and prepared every day.
E. The hotel has an advanced room reservation system.
F. Fen Side is promoted through magazines targeted at the wealthy and influential.
G. The whole experience is based upon high quality, professional service at every stage.
H. Limousines are available to take guests to airports as they finish their stay.
I. Fen Side has a series of contracts with suppliers of - CORRECT ANSWER - a. human
resources
b. infrastructure
c. services
d. inbound logistics
e. technology
f. marketing
g. operations/Human Resources/Marketing- basically everyone
h. Outbound Logistics/service/procurement has to rent limousines/operations
I. Procurement/inbound logistics, marketing decides too
,define value chain - CORRECT ANSWER - set of activities that let firms produce, sell,
and support the goods and/or services that generate its profits
define nonprofit organization - CORRECT ANSWER - One that doesn't make money or
charge for its services? They generate revenue but not profit. They see gaps between revenue and
cost.Nonprofits often do make money, but they take that money and use it to advance a cause or
to improve their business
Pros and cons of working at or running a nonprofit as opposed to a for-profit business? -
CORRECT ANSWER - Benefit society and feel good about what you're doing, satisfied
taking a lower salary
define goods - CORRECT ANSWER - tangible products
define services - CORRECT ANSWER - intangible products
Right now, is the US economy more into goods or services? - CORRECT ANSWER -
services because its now cheaper to produce goods in other countries
what percent of the economy comes from services? - CORRECT ANSWER - 80%
define risk - CORRECT ANSWER - dictionary: possibility of loss or injury
finance: the chance that an investment's actual return will be different than expected
Suppose you invent a solar-powered car that costs $10,000 per car to make, and you are the only
manufacturer. How much would you charge? - CORRECT ANSWER - You have to figure
what most people can afford. Advertise how much people will be saving on gas by using the car
entrepreneurship vs. employment pros and cons - CORRECT ANSWER -
euntrepeunorship
, pros: Chance for larger profit, make your own business decisions
cons: Risky, might not get a salary for a while during company start up, no benefits and perks,
responsible if fails
employment
pros: Steady income, reliable, benefits and perks, hours, low liability
cons: low upside, expandable, boss, less control
what is the primary purpose of most businesses? - CORRECT ANSWER - profit
what type of relationship do risk and profit have? - CORRECT ANSWER - positive
what is the role of the law in the market? - CORRECT ANSWER - prevent fraud, protect
the honest
What is the concept of the invisible hand in? - CORRECT ANSWER - Wealth of Nations
by Adam Smith
5 factors of production - CORRECT ANSWER - land and natural resources, labor, capital,
entrepreneurship, knowledge
most important factors of production right now? - CORRECT ANSWER -
euntrepeunorship and knowledge
define demand - CORRECT ANSWER - relationship between the amount of product
consumers will purchase and the price for which it is sold
why is demand downward sloping? - CORRECT ANSWER - people buy when the price is
lower. More people value a product at a lower cost than those that value it at a high price.
