D080 Unit 1-6 Test QUESTIONS WITH COMPLETE SOLUTIONS

A global company that makes promotional products, like those for corporate gifts, allows customers to engrave their corporate name and logo onto finished products. The company then ships these products to the customers. Which production process is the company using? correct answer: Mass customization A high-end global computer company concludes that it needs to concentrate on gaining production efficiencies with its manufacturing processes. The company decides to outsource the manufacturing of key strategic parts of its products to Vietnam. Why does this company decide to utilize outsourcing? correct answer: To reduce costs A German company is considering outsourcing the manufacturing process to Japan. Some of the executive board directors are concerned that the Japanese company may not follow the exact production processes the German company normally uses. Which risk represents this concern? correct answer: Loss of control A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy? correct answer: Required to arrange for transportation Which distribution strategy has grown rapidly due to the increase in e-commerce? correct answer: Direct channel distribution Which source of funding uses technology platforms to invite consumers to invest small amounts in support of a business idea or venture? correct answer: Crowdsourcing