Bus Management Review

Which is often a factor that a business considers when evaluating a vendor’s performance?

• Business plan

• Order accuracy

• Invoice number

• Accounting methods

Increased consumer spending indicates that the economy is stable and growing because increased spending leads to an increase in:

• scarcity of resources.

• interest rates

• unemployment levels.

• demand for products

One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to:

• send daily opt-in e-mail messages to customers.

• maintain detailed information about customers’ transactions

• sell its customer list to third parties without permission

• implement a comprehensive customer privacy policy

Melanie’s supervisor made changes in some of Melanie’s tasks so that she could finish them more easily. The technique the supervisor used is:

• job simplification.

• mass production

• flextime.

• job orientation.

What do many businesses do with the money they have accumulated as a result of periods of positive cash flow?

• Spend all available cash

• Reinvest in the business

• Buy personal items

• Purchase excess inventory

Which is an example of a quality-control measure?

• Inspect purchased parts used to manufacture products.

• Analyze the cost of each type of equipment.

• Review the function of the production process

• Generate a list of potential customers in specific areas.

What often happens to businesses when interest rates rise?

• Consumer demand increases.

• Output decreases.

• Profits increase.

• Cost of goods decreases

Having thorough product knowledge may help the company achieve what goal?

• Decreasing customer service

• Achieving stability

• Increasing sales

• Supporting a cause

What is one of the main reasons why governments levy taxes?

• To limit salaries

• To control costs

• To regulate money

• To raise revenue

Which situations represents an absolute advantage for Country A?

• Country A produces scanners at the same cost as Country B

• Country A produces computers for $100 each, while Country B produces computers for $150 each

• Country B produces CDs at $3 each, while Country A produces CDs at $4 each.

• Country B produces printers, while Country A produces digital cameras.