MANAGEMENT COMPREHENSIVE EXAM 2026
QUESTIONS AND ANSWERS 100% CORRECT
◉ Relative Advantage. Answer: Where one entity has an advantage
over another; will often trade their specialized products for those
that they do not produce; companies with a relative advantage are
able to produce products at a lower cost than their competitors.
◉ What is the percentage of businesses that operate within the
service sector?. Answer: 88 percent
◉ VIRAL. Answer: Value, Inimitable, rare, aptitude, and lifespan.
◉ SWOT Analysis. Answer: Analyzing the internal (strengths and
weaknesses) and external (opportunities and threats)
environments.
◉ Requirements for developing competitive advantage. Answer:
SWOT, business process, competitive capabilities, and customer
requirements.
◉ Matching. Answer: Matching strengths to opportunities.
,◉ Converting. Answer: Converting weaknesses or threats into
strengths or opportunities.
◉ Productivity. Answer: Output / Input; the goal is achieving more
output given the amount of inputs, thus saving money and reducing
production costs.
◉ Percent Change in Productivity. Answer: [(New Productivity - Old
Productivity)/Old Productivity] * 100
◉ Costs of Quality. Answer: Failure costs, appraisal costs, and
prevention costs.
◉ Failure Costs. Answer: Costs accrued by the organization or
customer as the result of a failure of the product.
◉ Appraisal Costs. Answer: Investments in measuring quality and
assessing customer satisfaction.
◉ Prevention Costs. Answer: Investments designed to prevent
defects from occurring.
, ◉ Poka-yoke. Answer: Mistake proofing; an approach to prevent
defects, such as color-coding parts so that customers assemble the
product correctly.
◉ Design for Manufacture and Assembly (DFMA). Answer: Products
should be designed so that they are simple and inexpensive to
produce.
◉ Design for Operations (DFO). Answer: Services should be simple
and inexpensive.
◉ Statistical Process Control (SPC). Answer: The use of statistical
methods to determine when a process that produces goods is getting
close to producing too many defects.
◉ Deming's 14 Points for the Transformation of Management.
Answer: The system, not employees, cause defects; management is
responsible for changing the system, and they must take
responsibility instead of blaming employees; Deming also stressed
the use of Statistical Process Control (SPC) and encouraged training
in its use. Other highlights include creating purpose, reduce fear,
provide training and leadership, break down barriers between
departments, and eliminate slogans, work standards, and quotas.
◉ Quality Planning. Answer: The development of products that
appeal to the changing wants and needs of customers.