Deck 12: Choosing the Legal Form of Organization

Question 1

Offshore manufacturing is appropriate for all products.

Answer 1

False

Question 2

Identifying all the tasks in the production process makes it easier to determine what equipment and supplies are needed for completing the task.

Answer 2

True

Question 3

Inventory is defined as the stocks of items used to support production, associated activities, and ____.

A)logistics
B)customer service
C)customer demand
D)packaging
E)outsourcing

Answer 3

B

Question 4

Product- or project-focused organizations generally are highly ____ so that they can respond better to market demands.

A)functional
B)decentralized
C)centralized
D)mobile
E)None of these choices

Question 5

Management processes, business processes, and support processes are the three major processes that must be aligned in a company if quality is going to be the outcome.

Question 6

In general, manufacturing and production firms are organized as ____-focused or ____-focused organizations. ​

A)product / service
B)input / output
C)product / process
D)product / project
E)insourcing / outsourcing

Question 7

The best way for manufacturers to control quality is by arranging for products to be inspected at the end of the production process.

Question 8

Any business that purchases raw materials or parts for production of goods for resale must carefully consider the quality, quantity, and ____ of those purchases.

A)logistics
B)pricing
C)outsourcing
D)staffing
E)timing

Question 9

Entrepreneurs need to start thinking about the cost of operations when their products and services have become commoditized.

Question 10

The ____ process consists of a series of inputs, such as raw materials, labor, and machinery, which are then transformed through a series of processes into new products and services. ​

A)logistics
B)production
C)inventory
D)quality control
E)outsourcing

Question 11

To guard against contingencies, it is wise for a startup to use one supplier for about ____ percent of its needs and one or more additional suppliers for the rest.

A)50
B)50 to 60
C)60 to 70
D)70 to 80
E)80

Question 12

ISO 9001 is a series of international quality standards with a certification process.

Question 13

The primary reason to outsource manufacturing is to improve quality.

Question 14

Product-focused organizations generally are highly decentralized so that they can respond better to market demands.

Question 15

Good SCM enables your company to forecast demand, match supply with demand, and fulfill the demand through optimal distribution channels.

Question 16

The virtual ownership model is similar to the Japanese keiretsu in the automobile industry with the exception of ____.

A)financing
B)ownership
C)outsourcing
D)suppliers
E)None of these choices

Question 17

The quantity of raw materials or parts that are purchased is a function of ____, manufacturing capability, and storage capability.

A)logistics
B)cost
C)customer demand
D)market size
E)suppliers

Question 18

The goal in ____ is to provide the exact service the customer wants at minimal cost.

A)logistics
B)supply chain management
C)outsourcing
D)human resources
E)purchasing

Question 19

Production is managing the ____ of material and information from raw materials to finished goods. ​

A)financing
B)inventory
C)outsourcing
D)flow
E)None of these choices

Question 20

Today, product/service warranties are not a competitive marketing tool.

Question 21

A supply chain differs from a value chain in that:

A)It consists of upstream business activities
B)It consists of downstream business activities
C)It is a cooperative effort
D)It considers designing the product
E)It uses a decision tree

Question 22

____ is the management and control of the flow of goods and resources from the source of production to the marketplace.

A)Production
B)Logistics
C)Operations
D)Manufacturing
E)The just-in-time system

Question 23

Entrepreneurs who subscribe to ____ will probably wish to provide warranties with products and services.

A)continuous improvement
B)benchmarking
C)total quality management
D)Six Sigma
E)ISO 9000

Question 24

____ is/are used to demonstrate that a company stands behind what it produces and the work that it does.

A)ISO 9000
B)Warranties
C)Six Sigma
D)OEM
E)None of these choices

Question 25

Which of the following is not a decision that entrepreneurs must make regarding warranties?

A)Who executes the warranty
B)What components of the product or aspects of service will be covered
C)Product or process scope
D)Customer satisfaction
E)How to educate the public

Question 26

____ relies on statistical tools and specific processes to achieve the measureable goals of fewer defects, increased productivity, reduced waste, and superior products and processes.

A)Logistics
B)Benchmarking
C)Total quality improvement
D)Six Sigma
E)ISO 9000

Question 27

Identifying all the tasks in the production process makes it easier to determine what equipment and ____ will be needed for completing the tasks.

A)financing
B)employees
C)supplies
D)machinery
E)None of these choices

Question 28

Outsource when all efforts to boost ____ at home have been exhausted.

A)efficiency and innovation
B)sales and marketing
C)quality and efficiency
D)input and output
E)All of these choices

Question 29

Product- or project-focused organizations generally are highly ____ so that they can respond better to market demands.

A)functional
B)decentralized
C)centralized
D)mobile
E)None of these choices

Question 30

The real success or failure of the quality control effort is dependent on the ____ in the process. ​

A)logistics
B)benchmarking
C)technology element
D)continuous improvement
E)human element

Question 31

____ organizations are common among manufacturers with capital-intensive processes and among service companies.

A)Service-focused
B)Project-focused
C)Product-focused
D)Process-focused
E)None of these choices

Question 32

In some industries, particularly labor-intensive ones, the only way to achieve competitive costs is to manufacture in a country where ____.

A)labor costs are level
B)labor costs are low
C)labor costs are high
D)laborers are paid by the hour
E)None of these choices

Question 33

The production process consists of a series of:

A)Inputs
B)Outputs
C)Revisions
D)Quality control checks
E)None of these is correct.

Question 34

One advantage of using an inventory management company is: One advantage of using an inventory management company is: One advantage of using an inventory management company is:

A)They over see storage
B)They track inventory numbers
C)They ship devices
D)They allow inspection and control of inventory from any computer with Internet access
E)All of these are correct

Question 35

Today, thousands of manufacturers and producers have embraced the philosophy of quality first but have not focused particularly on: ​

A)Equipment
B)Processes
C)The human element
D)logistics
E)supply chain management

Question 36

____ is/are a strategic issue that is designed to bring about business profitability and positive cash flow.

A)Manufacturing
B)Vendor selection
C)Quality
D)Production systems
E)Business processes

Question 37

The process of reconciling product output with the standards set for that product is ____.

A)quality control
B)a just-in-time system
C)material requirement planning
D)the economic order quantity
E)ISO

Question 38

Outsourced staff typically have a high turnover rate because ____________, so it is important for the entrepreneur to create a culture that encourages the staff to stay with the business long term.

A)the average age is 25
B)of communication issues
C)there are not enough workers
D)equipment is too expensive
E)none of these are correct

Question 39

Building a complex production system while the company is in startup or later, while it is rapidly growing, is ____.

A)a recipe for disaster
B)highly recommended
C)recommended only for "born-global" companies
D)likely to be most effective in declining markets
E)the best way to improve quality

Question 40

A manufacturing firm is likely to use process-focused manufacturing if:

A)They are highly decentralized
B)They are distributed so that they can respond better to market demands
C)Manufacturing is capital-intensive
D)They act as separate company or profit centers
E)None of these choices

Question 41

Define operations management. ​

Question 42

Briefly discuss quality. ​

Question 43

What questions should you ask when considering a specific vendor as a source?

Question 44

How can entrepreneurs address the challenge of managing inventory as they move beyond startup? ​

Question 45

What decisions need to be made when considering warranting a product?

Question 46

Briefly discuss what a new venture will need if it is offering innovative new products?.

Question 47

Briefly discuss the benefits of quality programs. ​

Question 48

Why is it important to build a production system prior to launch rather than during the startup phase? ​

Question 49

Briefly discuss the production process.

Question 50

Discuss the advantages of utilizing a single vendor. ​