Deck 1: Certified Business Manager

Question 1

Which is NOT the tool used in six-sigma efforts?

A) Elementary statistical tools
B) Product processing time
C) Measurement
D) Implementation and teamwork

Answer 1

B

Question 2

A special type of data collection forms in which the results may be interpreted on the form directly without additional processing is called:

A) Mark sheets
B) Processing sheets
C) Check sheets
D) Restraint sheets

Answer 2

C

Question 3

An organization that is committed to total quality must apply it at which level?

A) organizational level
B) process level
C) job level
D) All of the above

Answer 3

D

Question 4

A basic statistical tool that graphically shows the frequency or number of observations of a particular value or within a specified group is called:

A) Histogram
B) Control chart
C) Power tool
D) Sway chart

Question 5

A tool for organizing a large number of ideas, opinions and facts relating to a broad problem or subject area is called:

A) Interrelationship diagram
B) Affinity diagram
C) Kinship diagram
D) Expansive diagram

Question 6

What are spreadsheets that graphically display relationships between ideas, activities, or other dimensions in such a way as to provide logical connecting points between each item?

A) Matrix diagrams
B) Matrix data analyzed charts
C) Arrow diagrams
D) Process diagrams

Question 7

Process of envisioning the organization's future and developing the necessary procedures and operations to achieve that future is called:

A) Foregoing planning
B) Strategic planning
C) Operational planning
D) Organizational planning

Question 8

A learning cycle has which of the following four stages?

A) Planning, Organizing, Measurement, Revision
B) Planning, Implementation, Assessment, Adjustment
C) Planning, Execution, Assessment, Revision
D) Planning, Execution, Evaluation, Improvement

Question 9

What refers to the basic management systems necessary to function effectively and carryout the principles of total quality?

A) Infrastructure
B) Practices
C) Processes
D) None of the above

Question 10

What refers to both incremental improvements that are small and gradual as well as break through, and large and rapid, improvement?

A) Continuous improvement
B) Re-growth
C) Streamlined improvement
D) Rationalized improvement

Question 11

Which of the following is NOT the element of infrastructure?

A) Customer leadership management
B) Quality planning
C) Leadership and strategic planning
D) Process management

Question 12

Effective leadership requires which core leadership skills?

A) vision, empowerment, intuition, self-understanding, and value congruence
B) vision, mission, intuition, process-control, and value congruence
C) mission, empowerment, perception, self-understanding, and value congruence
D) mission, presentiment, intuition, self-understanding, and correspondence

Question 13

What focuses on the roles of senior managers in guiding an organization to fulfill its missions and meet its goals?

A) Senior management
B) Operational control
C) Executive leadership
D) Board of Control

Question 14

A defect is any mistake or error that is passed on to the customer is known as:

A) Customer conformance
B) Consultant
C) Six-sigma terminology
D) X-bar terminology

Question 15

____________ are targets and tolerances determined by designers of products and services.

A) Terms
B) Specifications
C) Constraints
D) Provision

Question 16

Total quality is based on which of the following fundamental principle?

A) Focus on customers and stakeholders
B) Participation and teamwork by everyone in the organization
C) Process focus supported by continuous improvement and learning
D) All of the above

Question 17

A line graph in which data are plotted over time is known as:

A) run chart
B) flowchart
C) streamline chart
D) horizontal chart

Question 18

Which of the following is NOT the management and planning tool?

A) Affinity diagrams
B) Tree diagrams
C) Process decision program charts
D) Product manufacturing flow charts

Question 19

What include a wide variety of graphical and statistical methods to plan work activities, collect data, analyze results, monitor progress, and solve problems?

A) Statistics
B) Techniques
C) system
D) Tools

Question 20

What is based on the presumption that it is determined by what a customer wants?

A) Property
B) Trait
C) Superiority
D) Quality

Question 21

What clearly separates the vital few from the trivial many and provides direction for selecting projects for improvement?

A) Upgrading analysis
B) Expansion decision
C) Restitution analysis
D) Pareto analysis

Question 22

Measuring expected revenue gains against expected costs associated with quality efforts is known as:

A) effective quality gains
B) return on quality
C) quality index
D) None of the above

Question 23

How much of the current earnings to pay out as dividends rather than to retain and reinvest this is called:

A) Debt usage
B) Earnings debt streams
C) Dividend policy decision
D) Honeywell dividend policy

Question 24

Shiba quality model focus on which level of quality?

A) Fitness to standard
B) Fitness to needs
C) Fitness of costs
D) All of the above

Question 25

According to Juran's prescriptions, quality trilogy consists of:

A) Quality planning, quality disbursement, quality improvement
B) Quality planning, quality control, quality improvement
C) Quality planning, quality restrain, quality expansion
D) Quality planning, quality control, quality feedback

Question 26

What takes the opportunities and turns them into actions which, in turn, become values?

A) Evaluation
B) Execution
C) Continuous process improvement
D) Work structure

Question 27

Measuring your performance against that of best-in-class companies, determining how the best-in-class achieve those performance levels, and using the information as a basis for your own company's targets, strategies and implementation is called:

A) Benchmarking
B) Flowcharting
C) Reengineering
D) Redesign

Question 28

Leading companies identify important business processes throughout the supply chain that affect customer satisfaction, these fall into which of the following category?

A) Product design processes
B) Support processes
C) Supplier and partnering processes
D) All of the above

Question 29

When one or more people hire another person to perform a service and then delegate decision-making authority to that agent, then they are said to be in:

A) Charity relationship
B) Agency relationship
C) Group relationship
D) Intervention relationship

Question 30

The firm's stock price is dependent on which of the following factors?

A) Projected earnings per share
B) Riskiness of the projected earnings
C) Dividend Policy
D) All of the above

Question 31

Which of the following is NOT the category of internal failure costs?

A) Scrap and rework costs
B) Costs of corrective action
C) Downgrading costs
D) Tests and Inspections costs

Question 32

What translate into maximizing the value of the firm as measured by the price of the firm's common stock?

A) Stockholder wealth maximization
B) maximize goal achievement
C) Stock price maximization
D) Maximize profit investments

Question 33

An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error is called:

A) Xeron-savvy
B) Alex-degrade
C) Poka-yoke
D) Zulex-crew

Question 34

In which quality model, whole philosophy is summarized in three steps to quality, which include quality leadership, modern quality technology, and organizational commitments to continuous training and motivation of the entire workforce?

A) Ishikawa Model
B) Crosbyy Model
C) Taguchiy Model
D) Feigenbaum Quality Model

Question 35

Costs that are associated with efforts to ensure conformance to requirements, generally through measurement and analysis of data to detect non-conformances are called:

A) Appraisal costs
B) Prevention cost
C) Internal cost
D) Training cost

Question 36

The Australian Business Awards are administered by the Australian Quality Awards Foundation with which level?

A) Business Improvement level
B) Award Gold level
C) Australian Business Excellent prize
D) All of the above

Question 37

A Pareto diagram is a histogram of the data from the smallest frequency to the largest.

Question 38

The formula to calculate the return on quality is:

A) ROQ = (NPV of benefits / NPV of costs) - 1.00 * 365
B) ROQ = (NPV of benefits / NPV of costs) - 0.05
C) ROQ = (NPV of benefits / NPV of costs) - 1.00
D) ROQ = (NPV of benefits / NPV of costs) - 0.05 * 365 NPV = net present value

Question 39

Which of the following s NOT the category of quality costs?

A) Training cost
B) Prevention cost
C) Internal cost
D) Appraisal cost

Question 40

According to _______________, quality is innate excellence and can be recognized only through experience.

A) Awe-inspiring view
B) Transcendent view
C) Magnificent view
D) Uplifting view

Question 41

Sometimes cash balances are held to enable the firm to take advantage of bargain purchases that might arise, these funds are called:

A) Speculative balances
B) Cash flow balances
C) Check-clearing balances
D) Tentative balances

Question 42

Which mechanism is used to motivate managers to act in the shareholder's best interest?

A) threat of firing
B) threat of takeover
C) managerial compensation plans
D) All of the above

Question 43

The difference between the balance shown in a firm's checkbook and the balance in the bank's records is called:

A) Float
B) Soar
C) Glide
D) Drift

Question 44

The average length of time required converting materials into finished goods and then to sell those goods is called:

A) Inventory conversion period
B) Cash conversion cycle
C) receivables collection period
D) selling goods duration

Question 45

Target levels for each category of current assets and how current assets will be financed are the firm's basic policies for:

A) Net working capital
B) Working capital policy
C) Strategic policy decisions
D) Working capital management

Question 46

The average length of time between the purchase of raw materials and labor and the payment of cash for them is called:

A) Accounts payable period
B) Capital investment cycle
C) Payable deferral period
D) Purchase goods duration

Question 47

Cash balances associated with routine payments and collections are known as:

A) Compensating balances
B) precautionary balances
C) Transaction balances
D) None of the above

Question 48

When finances all of the temporary assets with short-term, non-spontaneous debt and finances its fixed assets with long-term capital, this leads to:

A) Aggressive approach
B) Long vs. short term debt
C) Conservative approach
D) Debt financing approach

Question 49

The aggressive policy calls for the greatest use of long-term debt, while the conservative policy requires the least, maturity matching falls in between.

Question 50

The formula to calculate the Cash conversion cycle is:

A) Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) - (Payable deferral period)
B) Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) - (receivables deferral period)
C) Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) - (Inventory conversion period)
D) Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) - (Payable deferral period)

Question 51

What calls for matching asset and liability maturities?

A) Short-term financing
B) Self-liquidating approach
C) Long-term financing
D) Equity spontaneous approach

Question 52

Creditors lend funds to the firm at rates that are based on:

A) riskiness of the firm's existing assets
B) expectations concerning the riskiness of future asset additions
C) firm's existing capital structure
D) All of the above

Question 53

Financial management decisions can be divided into the management of assets and liabilities in:

A) long term
B) short term
C) Both A and B
D) Neither A nor B

Question 54

A cash management arrangement used to mobilize funds from decentralized receiving locations, whether they are decentralized company locations, into one or more central cash pools is known as:

A) Payable Concentration
B) Concentration banking
C) Marketable Concentration
D) None of the above

Question 55

In ________________, managers of the acquired firm generally are fired, and who are able to stay on lose the power they had prior top the acquisition.

A) Prison pill
B) Hostile takeover
C) Adverse takeover
D) Antagonistic prison

Question 56

Accounts that are not funded until the day's checks are presented against the account is called:

A) Near-cash assets accounts
B) Preauthorized debit accounts
C) Disbursement floating accounts
D) Controlled disbursement accounts

Question 57

Greenmail, which is like blackmail, occurs when:

A) potential acquirer buys a block of stock in a company
B) the target company's management becomes frightened that the acquirer will make a tender offer and gain control of the company
C) head off a possible takeover, management offer to pay greenmail, buying the stock owned by the potential raider at a price above the existing market price
D) All of the above

Question 58

What refers to the process of evaluating the credit policy to determine if a shift in the customers' payment patterns has occurred?

A) Payables monitoring
B) Receivables monitoring
C) Transactional monitoring
D) Controlled monitoring

Question 59

Working capital management involves management of the current assets and the current liabilities of a firm.

Question 60

What requires customers to send their payments to a post office box located in the are near where they live rather than directly to the firm is called:

A) bolt-box system
B) padlock system
C) lockbox arrangement
D) intertwine arrangement

Question 61

The Single-A and triple-B bonds are strong enough to be called _______________, and they are the lowest-rated bonds that many banks and other institutional investors are permitted by law to hold.

A) Investment grade bonds
B) Public service bonds
C) Floating rate bonds
D) Coupon bonds

Question 62

Who was the first PC manufacturer to use the Web to take customer orders?

A) Dell
B) Sony
C) Toshiba
D) Compaq

Question 63

An option that gives the right to sell a stock at a specified price during some period in the future, this is called:

A) gets option
B) go option
C) put option
D) step option

Question 64

What is used to designate any debt sold in a country other than the one in whose currency the debt is denominated?

A) Euro-debt
B) Foreign debt
C) Bell debt
D) Exotic debt

Question 65

The heart of __________________ is the security agreement, a standardized document on which the specific pledged assets are listed.

A) Uniform Commercial Code
B) Factoring Account Code
C) Pledged Account Code
D) Crediting Resource Code

Question 66

Information system, that help seize opportunities are called:

A) Confiscate information systems
B) Strategic information systems
C) Appropriate information systems
D) Restore information systems

Question 67

Which element id needed for the establishment of a field warehouse?

A) public notification
B) physical control of the inventory
C) supervision by a custodian of the field warehousing concern
D) All of the above

Question 68

Which of the following is NOT the source of short-term funds?

A) Accruals
B) Letter of credit
C) Reverse repurchase agreement
D) Payable concentration

Question 69

For IS planning to be successful, top management must:

A) Recognize IT as an indispensable resource
B) Understand that IT is a complex resource
C) Regard ISs as a source for gaining strategic goals
D) All of the above

Question 70

A long-term contract under which a borrower which a borrower agrees to make payments of interest and principal on specific dates to its holder is called:

A) Bond
B) Loan
C) Mortgage
D) Credit

Question 71

A high-ranking officer, who commands sufficient political clout to promote the idea that a new system is needed and when the go-ahead is granted to remove obstacles as the project progresses, is known as:

A) Champion
B) Professional
C) Certified
D) Advocate

Question 72

What involves more trading monitoring of the portfolio and may be motivated by a philosophy that the investor can beat the market?

A) Yield-spread investment strategy
B) Passive investment strategy
C) Active investment strategy
D) None of the above

Question 73

If earnings are poor and stockholders are dissatisfied, an outside group might solicit the proxies in an effort to overthrow management and take control of the business, this is known as:

A) Poor Proxy
B) Proxy fight
C) Scrap proxy
D) stand-up fight Proxy

Question 74

A firm uses more short-term sources, its debt costs are low, profits are high and solvency is low with:

A) Aggressive strategy
B) Conservative financing strategy
C) Moderate financing strategy
D) Excess Liquidity strategy

Question 75

What refers to how easy it is to augment hardware and software and their use as the business grows?

A) Compatibility
B) Connectivity
C) Scalability
D) Functionality

Question 76

What involves the purchase of accounts receivables by the lender, generally without resource to the borrower?

A) Wal-Mart financing
B) Pledging
C) Factoring
D) Interest expense

Question 77

Information system (IS) planning includes which of the following sep that is part of any successful planning process?

A) Creating a corporate and IS mission statement
B) Articulating the vision for IT within the organization
C) Creating IS strategic and tactical plans
D) All of the above

Question 78

__________________ represents the average time it takes to collect credit accounts.

A) Days sales outstanding
B) Average sales outstanding
C) Collection policy
D) Accumulating time

Question 79

Banks sometimes require borrowers to maintain an average demand deposit balance equal to from 10 percent to 20 percent of the amount borrowed, this is called:

A) line of credit
B) compensating balance
C) commitment fee
D) revolving credit agreement

Question 80

The expenses incurred when a customer stops buying a product or service from one business and starts buying it from another are called:

A) Transferring costs
B) Switching costs
C) Change costs
D) Replacement costs