Business Midterm 2

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T/F: The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control
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True
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Operations control includes all of the following except
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basic research
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In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.
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magnitude
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A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircraft. What type of layout is most likely in this factory?
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Fixed position
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During the process of operational planning, management must compare market demand with
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capacity
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Given that ABC is dedicated to operations control, the management must have incorporated all of these aspects of operations control except
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selling
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T/F: When compared to manufacturing resource planning (MRP II), enterprise resource planning (ERP) is more sophisticated and can even monitor inventory at a supplier’s location.
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True
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An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility. If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made. This process is called
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product design
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The period of time over which an operational plan will be in effect is known as a
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Planning Horizon
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Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer. Management appoints a team to convert this cat food idea into an actual product. This process is called
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design planning
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T/F: When using PERT, the critical path is the sequence of production activities that takes the longest time from start to finish.
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True
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Which of the following is not a possible cause of only a small increase in America’s recent productivity growth rate?
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Increased investment in new equipment
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To ensure that work flows according to schedules, operations managers use a procedure called
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follow up
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During the period after World War II, the United States was the most productive country in the world for approximately ____ years.
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30
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T/F: The cost of running out of inventory is referred to as a holding cost.
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False
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The major resource or resources that comprise the major input for a conversion process is often referred to as the
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focus
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When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using
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an analytical process
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The examination of work in process for the purpose of controlling quality is called
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inspection
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T/F: Automation is characterized by low initial costs and high operating costs.
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False
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T/F: Texaco uses a synthetic process when it refines crude oil
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False
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T/F: An FMS combines computer-related software and hardware into the service sector organizations.
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False
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The ____ is the sequence of production activities that takes the longest time from the beginning until completion.
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Critical Path
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For ABC, using the Baldrige award criteria could result in all of the following except
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Form Utility
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However, his excitement was overshadowed by the ____ cost resulting from lost sales that his division would suffer.
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stock-out
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T/F: In supplier selection, the main idea is to find the highest-quality materials available.
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False
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When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the ____ for a beauty salon.
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Focus
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T/F: An analytical process breaks raw materials into different component parts.
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True
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T/F: The Employee Retirement Income Security Act passed in 1974 requires firms to provide a retirement plan for their employees
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False
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T/F: Human resources planning and recruiting are two of the activities carried out during the development phase of human resources management.
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False
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All of the following are examples of employee benefits except
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an end of the year bonus
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A government agency has assigned a staff member to investigate complaints about employment discrimination at Shadows and Sun, Inc. The staff person probably works for the
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EEOC
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One organization carefully observes candidates’ mannerisms, another uses gut feelings, and still another compares the candidates’ grade point averages when making a ____ decision.
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Selection
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T/F: Job analysis is the list of qualifications required to perform a particular job.
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False
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Universal Dynamics Corporation recently was awarded a $150,000 federal contract. Thus, the government requires the corporation to engage in affirmative action related to
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Recruitment and Selection
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Two useful tools for estimating the supply of needed human resources are the
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replacement chart and skills inventory
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HRSI hopes that all companies can downsize simply by attrition, a word that, in this context, refers to
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people leaving the company
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T/F: Subjective appraisal methods use some measurable quantity, such as dollar volume of sales, as the basis for assessing performance.
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False
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T/F: No federal law forbids age discrimination against people younger than 40.
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True
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Maintaining human resources involves which of the following?
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Compensation
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The three types of performance feedback interviews are tell-and-listen, tell-and-sell, and
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Problem Solving
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T/F: OSHA is charged with enforcing Title VII
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False
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Critics of comparable worth argue that
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the market has determined the worth of certain female-dominated jobs
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Verizon employees who sell cellular phones and calling plans are evaluated based on their total sales per hour worked. This is a(n) ____ appraisal method.
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Objective
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The development phase of human resources management consists of two important activities: (1) training and development (2) and
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appraising performance
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Herzberg recognized only two dimensions:
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Motivation and Hygiene
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Which of the following is an example of Herzberg’s motivation factors?
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Responsibility
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To retain its key middle managers and to reduce the effect of a bank closure on its incomes, EastWest Bank has established a two-year severance pay package. Theoretically, the bank is motivating employees to stay with the company through
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Negative reinforcement
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A manager who believes that employee motivation depends on how much we want something and on how likely we think we are to get it is using
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Vroom’s expectancy theory.
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As the employees form teams at GRI, they should know that each person’s role within the group starts to become apparent during the ____ stage of team development
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Norming
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T/F: Frederick W. Taylor made his most significant contribution to management practice by his involvement with the Hawthorne studies
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False
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Jon has the chance to be promoted into a higher paid management position if he exceeds his goals in his current position. Thus, he has high ____. He loves the company and is excited about the new position opportunity. Thus, he also has high ____.
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motivation; morale
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All of the following are examples of Herzberg’s motivation factors except
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working conditions
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According to Ouchi, American industry is dominated by ____ firms. These firms emphasize short-term employment, individual decision making and responsibility, rapid evaluation and promotion, explicit control, and specialized career paths
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Type A
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The Hawthorne studies showed that ____ are equal to salary motivation
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Human Factors
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According to Theory X by McGregor, managers assume that employees
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dislike work and need to be controlled.
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The need for self-actualization concerns an employee’s desire for
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becoming the best there is.
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IBM, Eastman Kodak, and Hewlett-Packard are organizations that emphasize long-term employment, collective decision making, individual responsibility for the outcomes of decisions, and moderately specialized career paths. These companies are examples of ____ firms.
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type z
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T/F: According to the hierarchy of needs concept, people satisfy their needs in order of importance.
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True
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What is the main weakness of Maslow’s hierarchy of needs and Herzberg’s motivation-hygiene theory?
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They do not explain why or how motivation is developed and sustained.
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All of the following are examples of hygiene factors that can cause dissatisfaction except
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acheivment
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T/F: Goal-setting theory suggests that employees are more likely to experience a high degree of motivation when management assigns a series of specific goals for the employee to achieve.
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False
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T/F: Goal-setting theory suggests that employees are more likely to experience a high degree of motivation when management assigns a series of specific goals for the employee to achieve.
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False
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T/F: Goal-setting theory suggests that employees are more likely to experience a high degree of motivation when management assigns a series of specific goals for the employee to achieve.
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False

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