MGMT 461 Exam 3 - Chapter 15 question
with answers
Selecting the location for production facilities is an important strategic issue that managers must
consider. Which one of the following aspects of the business environment is a key factor to facilities
location planning?
A. Currency exchange rates
B. Organization chart
C. Cost and availability of labor and management
D. Make or buy decisions
E. Capital productivity - -C. Cost and availability of labor and management
-One company designed its precision ice hockey equipment in Sweden, obtained financing from Canada,
assembled it in the USA and Denmark, and marketed it in North America and Europe. This equipment
incorporated alloys whose molecular structure was researched and patented in Delaware and fabricated
in Japan. This an example of ________________.
A. production processed to be used
B. location economies
C. make or buy
D. centralized or decentralized
E. capacity planning - -B. location economies
-The process by which a company extends its control over additional stages of production, either inputs
or outputs is called ________.
A. standardization
B. centralization
C. capacity planning
D. vertical integration
E. licensing - -D. vertical integration
-Which one of the following is support for the reason to buy versus the reason to make?
A. Keep manufacturer's profit
B. Lower risk
C. Greater control over product design
D. Avoid modification costs
E. Protect company's proprietorship - -B. Lower risk
-_________ is a company-wide commitment to meet or exceed customer expectations through
continuous quality improvement efforts and processes.
A. TQM
B. ISO 9000
, C. JIT
D. Reinvestment versus divestment
E. Delight the customer - -A. TQM
-Which one of the following production techniques is a management technique that keeps inventory to
a minimum and inputs to the production process arrive exactly when they are needed?
A. Vertical integration
B. ISO 9000
C. Standardization
D. Capacity planning
E. Just-in-time - -E. Just-in-time
-Which one of the following financial options can be advantageous, especially when the value of the
local currency has fallen in comparison to that of the home country?
A. Transfer prices
B. Venture capital
C. Borrowing locally
D. Back-to-back loan
E. Issuing equity - -C. Borrowing locally
-________ is financing obtained from investors who believe that the borrower will experience rapid
growth and who receive equity (part ownership) in return.
A. Internal funding
B. Venture capital
C. Issuing equity
D. Capital structure
E. Borrowing locally - -B. Venture capital
-_________ is the process of assessing a company's ability to produce enough output to satisfy market
demand.
A. Process planning
B. Centralization
C. Capacity planning
D. Decentralized
E. Location economy - -C. Capacity planning
-Airplane manufacturer Boeing designed aircraft in the state of Washington and Japan and then
assembled it in Seattle with tail cones made in Canada, special tail sections made in China and Italy, and
engines made in Great Britain. This an example of _______________.
A. production processes to be used
B. centralized or decentralized
C. capacity planning
D. location economies
with answers
Selecting the location for production facilities is an important strategic issue that managers must
consider. Which one of the following aspects of the business environment is a key factor to facilities
location planning?
A. Currency exchange rates
B. Organization chart
C. Cost and availability of labor and management
D. Make or buy decisions
E. Capital productivity - -C. Cost and availability of labor and management
-One company designed its precision ice hockey equipment in Sweden, obtained financing from Canada,
assembled it in the USA and Denmark, and marketed it in North America and Europe. This equipment
incorporated alloys whose molecular structure was researched and patented in Delaware and fabricated
in Japan. This an example of ________________.
A. production processed to be used
B. location economies
C. make or buy
D. centralized or decentralized
E. capacity planning - -B. location economies
-The process by which a company extends its control over additional stages of production, either inputs
or outputs is called ________.
A. standardization
B. centralization
C. capacity planning
D. vertical integration
E. licensing - -D. vertical integration
-Which one of the following is support for the reason to buy versus the reason to make?
A. Keep manufacturer's profit
B. Lower risk
C. Greater control over product design
D. Avoid modification costs
E. Protect company's proprietorship - -B. Lower risk
-_________ is a company-wide commitment to meet or exceed customer expectations through
continuous quality improvement efforts and processes.
A. TQM
B. ISO 9000
, C. JIT
D. Reinvestment versus divestment
E. Delight the customer - -A. TQM
-Which one of the following production techniques is a management technique that keeps inventory to
a minimum and inputs to the production process arrive exactly when they are needed?
A. Vertical integration
B. ISO 9000
C. Standardization
D. Capacity planning
E. Just-in-time - -E. Just-in-time
-Which one of the following financial options can be advantageous, especially when the value of the
local currency has fallen in comparison to that of the home country?
A. Transfer prices
B. Venture capital
C. Borrowing locally
D. Back-to-back loan
E. Issuing equity - -C. Borrowing locally
-________ is financing obtained from investors who believe that the borrower will experience rapid
growth and who receive equity (part ownership) in return.
A. Internal funding
B. Venture capital
C. Issuing equity
D. Capital structure
E. Borrowing locally - -B. Venture capital
-_________ is the process of assessing a company's ability to produce enough output to satisfy market
demand.
A. Process planning
B. Centralization
C. Capacity planning
D. Decentralized
E. Location economy - -C. Capacity planning
-Airplane manufacturer Boeing designed aircraft in the state of Washington and Japan and then
assembled it in Seattle with tail cones made in Canada, special tail sections made in China and Italy, and
engines made in Great Britain. This an example of _______________.
A. production processes to be used
B. centralized or decentralized
C. capacity planning
D. location economies
