Comprehensive Resource To Help You Ace 2026-2027
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100% Correct COMPLETE SOLUTIONS
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1. Which revenue model provides users with information on services and products while
offering suppliers the opportunity to advertise?
A. Subscription revenue model
B. Transaction fee revenue model
C. Advertising revenue model
D. Licensing revenue model
Correct Answer: C. Advertising revenue model
2. In which revenue model do companies earn a referral fee for directing business to another
firm?
A. Advertising revenue model
B. Affiliate revenue model
C. Brokerage revenue model
D. Subscription revenue model
Correct Answer: B. Affiliate revenue model
3. What type of quality cost is associated with identifying and uncovering defects?
A. Prevention cost
B. Appraisal cost
C. Internal failure cost
D. External failure cost
Correct Answer: B. Appraisal cost
,4. Automated order entry systems are best described as:
A. Manual processes using paper-based purchase orders
B. Systems using telephone models to transmit digital orders to suppliers
C. Inventory management tools used only within warehouses
D. Supplier evaluation platforms
Correct Answer: B. Systems using telephone models to transmit digital orders to suppliers
5. Which term refers to owning or controlling sources of raw materials and components?
A. Forward integration
B. Horizontal integration
C. Backward integration
D. Vertical outsourcing
Correct Answer: C. Backward integration
6. Benchmarking is the process of:
A. Auditing internal financial performance
B. Studying competitors’ pricing strategies
C. Studying other companies’ business practices for comparison
D. Measuring employee productivity
Correct Answer: C. Studying other companies’ business practices for comparison
7. What effect describes distorted demand information as it moves through a supply chain?
A. Bottleneck effect
B. Inventory turnover effect
C. Bullwhip effect
D. Scale effect
Correct Answer: C. Bullwhip effect
8. Business-to-Business (B2B) commerce refers to:
A. Businesses selling to government agencies
B. Businesses selling to individual consumers
C. Businesses buying and selling to other businesses
,D. Consumers selling products to businesses
Correct Answer: C. Businesses buying and selling to other businesses
9. Business-to-Consumer (B2C) commerce involves:
A. Consumers trading goods with each other
B. Businesses selling to individual consumers
C. Governments selling services to citizens
D. Nonprofit organizations selling services to businesses
Correct Answer: B. Businesses selling to individual consumers
10. Cause-and-effect diagrams are primarily used to:
A. Track employee productivity
B. Identify potential causes of quality problems
C. Measure customer satisfaction
D. Monitor inventory turnover
Correct Answer: B. Identify potential causes of quality problems
11. A checklist in quality management is best defined as:
A. A process flow illustration
B. A statistical sampling tool
C. A list of common defects and their frequency of occurrence
D. A supplier evaluation report
Correct Answer: C. A list of common defects and their frequency of occurrence
12. Conformance to specifications refers to:
A. How innovative a product design is
B. How well a product or service meets design targets and tolerances
C. Customer perception of value
D. Compliance with government regulations
Correct Answer: B. How well a product or service meets design targets and tolerances
, 13. Continuous improvement is best described as:
A. A one-time quality improvement initiative
B. A philosophy of ongoing, never-ending improvement
C. A compliance-driven inspection program
D. A cost-cutting strategy
Correct Answer: B. A philosophy of ongoing, never-ending improvement
14. Control charts are used to:
A. Compare supplier pricing
B. Track employee attendance
C. Evaluate whether a process operates within expected limits
D. Measure customer satisfaction
Correct Answer: C. Evaluate whether a process operates within expected limits
15. Cross-docking is a logistics practice that:
A. Maximizes long-term storage capacity
B. Eliminates storage and order-picking functions
C. Focuses on bulk inventory holding
D. Requires extensive warehousing infrastructure
Correct Answer: B. Eliminates storage and order-picking functions
16. Customer-defined quality emphasizes:
A. Meeting internal cost targets
B. Compliance with industry standards
C. Improving quality performance across all organizational levels
D. Reducing inspection activities
Correct Answer: C. Improving quality performance across all organizational levels
17. The Deming Prize is awarded to:
A. U.S. companies for financial performance
B. Japanese companies recognizing excellence in quality improvement
C. European firms for environmental sustainability