WorksheetsCapacity Planning and Production Strategy Quiz
Total questions: 15
Worksheet time: 8mins
What is the main goal of capacity planning in production strategy?
Reducing employee salaries
Increasing financial investments
Ensuring enough output to meet market demand
Expanding into unrelated industries
Which factor is NOT considered when selecting a location for production facilities?
Political stability
Cost and availability of raw materials
Local cultural beliefs
Consumer buying habits
What is a location economy?
The economic benefits gained by locating production activities in optimal areas
A strategy to minimize government regulations
A financial system used only for global markets
The tax benefits offered by local governments
Which of the following describes process planning?
Deciding the best method for creating a product
Choosing the country to launch a product
Selecting a financial institution for business expansion
Determining the number of employees required for sales
What is a facilities layout plan?
A government regulation plan
A strategy for organizing production processes within a facility
A financial plan for international operations
A document detailing product pricing strategies
Which of the following is an advantage of vertical integration?
Reducing dependence on suppliers
Limiting product quality improvements
Increasing outsourcing costs
Reducing international market expansion
What is outsourcing?
Buying components or services from another company
Expanding production in domestic markets
Hiring employees from local communities
Increasing government taxation
Which of the following is a key concern in international production?
Quality improvement efforts
Avoiding automation in production
Reducing market size
Minimizing competition
Which factor would encourage a company to reinvest in a foreign market?
Unprofitable market outlook
High level of social unrest
Growing market potential
Declining consumer demand
Which financing method involves a parent company depositing money with a host-country bank to lend to its subsidiary?
Foreign direct investment
Back-to-back loan
International equity funding
Currency hedging
What is the main advantage of issuing equity for financing?
It allows a company to raise funds without increasing debt
It requires approval from government agencies
It increases interest expenses
It is only available to large multinational corporations
Why is internal funding considered important for international business operations?
It ensures financial stability without relying on external financing
It requires approval from international regulators
It is always more expensive than external funding
It limits the company’s ability to expand
Which of the following best describes capital structure?
The balance of equity, debt, and internally generated funds
A financial system used by domestic businesses only
A tax-saving method used by multinational corporations
A strategy to avoid investing in developing markets
Which factor increases shipping and inventory costs in international operations?
Shorter supply chains
High tariffs and complex customs procedures
Standardized global pricing strategies
Reduced reliance on technology
What is a potential disadvantage of divesting from a foreign market?
Losing potential long-term growth opportunities
Increasing the company’s debt
Strengthening brand reputation in global markets
Reducing government regulations
