Page 1 of 178
OPSY 5315 - RAO- EXAM 1| MOST TESTED
QUESTIONS AND CORRECT ANSWERS LATEST
VERSION 2026 | BRAND NEW PDF!!!
1. Which of the following are the primary functions of all
organizations?
A) research and development, finance/accounting, and
purchasing
B) marketing, human resources, and finance/accounting
C) production/operations, marketing, and human resources
D) marketing, production/operations, and finance/accounting
E) sales, quality control, and production/operations
Answer: D) marketing, production/operations, and
finance/accounting
,Page 2 of 178
Rationale: All organizations perform three primary functions to
create value and sustain operations: marketing (generating
demand), production/operations (creating goods/services), and
finance/accounting (managing resources and tracking
performance) . These functions are interdependent—marketing
identifies customer needs, operations fulfills them, and finance
provides the resources.
2. A large percentage of the revenue of most firms is spent on
which function?
A) operations
B) marketing
C) finance
D) research and development
Answer: A) operations
,Page 3 of 178
Rationale: Operations typically accounts for the largest portion
of a firm's expenses, including labor, materials, equipment, and
facilities. This is why operational efficiency directly impacts
profitability .
3. The creation of goods and services is referred to as:
A) production
B) transformation
C) design
D) formation
Answer: A) production
Rationale: Production is the process of creating goods and
services through the transformation of inputs (materials, labor,
capital) into outputs. This transformation is the essence of
operations management .
, Page 4 of 178
4. The economic activities that typically produce an intangible
product are referred to as:
A) goods
B) services
C) products
D) phantoms
Answer: B) services
Rationale: Services are economic activities that produce
intangible products—you cannot touch, store, or inventory them.
Examples include healthcare, education, transportation, and
hospitality .
5. Which of the following is NOT a typical service attribute?
OPSY 5315 - RAO- EXAM 1| MOST TESTED
QUESTIONS AND CORRECT ANSWERS LATEST
VERSION 2026 | BRAND NEW PDF!!!
1. Which of the following are the primary functions of all
organizations?
A) research and development, finance/accounting, and
purchasing
B) marketing, human resources, and finance/accounting
C) production/operations, marketing, and human resources
D) marketing, production/operations, and finance/accounting
E) sales, quality control, and production/operations
Answer: D) marketing, production/operations, and
finance/accounting
,Page 2 of 178
Rationale: All organizations perform three primary functions to
create value and sustain operations: marketing (generating
demand), production/operations (creating goods/services), and
finance/accounting (managing resources and tracking
performance) . These functions are interdependent—marketing
identifies customer needs, operations fulfills them, and finance
provides the resources.
2. A large percentage of the revenue of most firms is spent on
which function?
A) operations
B) marketing
C) finance
D) research and development
Answer: A) operations
,Page 3 of 178
Rationale: Operations typically accounts for the largest portion
of a firm's expenses, including labor, materials, equipment, and
facilities. This is why operational efficiency directly impacts
profitability .
3. The creation of goods and services is referred to as:
A) production
B) transformation
C) design
D) formation
Answer: A) production
Rationale: Production is the process of creating goods and
services through the transformation of inputs (materials, labor,
capital) into outputs. This transformation is the essence of
operations management .
, Page 4 of 178
4. The economic activities that typically produce an intangible
product are referred to as:
A) goods
B) services
C) products
D) phantoms
Answer: B) services
Rationale: Services are economic activities that produce
intangible products—you cannot touch, store, or inventory them.
Examples include healthcare, education, transportation, and
hospitality .
5. Which of the following is NOT a typical service attribute?
