HSB Principles of Business Quiz 4C/4D

Operations managers have two main goals in mind—efficiency (keeping costs low) and 

• productivity (keeping business running fast).
• legality (keeping the business in good standing with the law).
• effectiveness (keeping customers satisfied).
• reputation (keeping up the business's good name). 

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality

• inspection.
• guarantee.
• delivery.
• assurance. 

Running out of inventory can result in more 

• lost sales.
• higher taxes.
• higher productivity.
• satisfied customers. 

Complying with environmental laws is part of which operations activity?

• Inventory control
• Logistics
• Purchasing
• Safety and security 

Because operations managers control so much of a business's money, they must focus on

• generating publicity.
• hiring the best employees.
• creating effective advertising campaigns.
• keeping costs low. 

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?  

• Business use
• Retail
• Industrial
• Wholesale

Which of the following is a detail that a buyer should know prior to placing an order for raw materials?

• Which employees will be converting the raw materials into finished products
• How the finished product will be marketed
• Whether the company has storage space for the raw materials
• Who will be purchasing the finished products 

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen?

• Donut sales will increase.
• Donut sales will decrease.
• The profit margin for donuts will increase.
• The profit margin for donuts will decrease. 

Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting

• a make-or-buy decision.
• negotiations.
• competitive bidding.
• retail buying. 

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered: 

• Check the supplier's credentials
• ontact the supplier's references
• Visit the supplier's plant
• Review the invoice