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WorksheetsBM2 Units 2&3 Vocab Review
Total questions: 35
Worksheet time: 18mins
What is the term for raw materials, work-in-progress, and finished goods held by a business?
Assets
Inventory
Supplies
Logistics
Which of the following is a type of inventory used to separate different stages of production?
Cycle inventory
Decoupling inventory
Buffer inventory
Transit inventory
What type of inventory includes pens, toner cartridges, and printer paper?
MRO goods
Finished goods
Transit inventory
Work-in-process
A risk that involves natural disasters or injuries is categorized as a:
Strategic risk
Hazard risk
Operational risk
Financial risk
What is the purpose of the ADKAR model in risk management?
Managing budgets
Inventory planning
Supporting organizational change
Scheduling staff
Which inventory type refers to goods that are in the process of being manufactured but not yet finished?
Finished goods
Raw materials
MRO goods
Work-in-process
What is the likelihood that a risk event will occur called?
Impact
Mitigation
Probability
Avoidance
A system where inventory is received just before it is needed in production is called:
Perpetual inventory
Periodic inventory
Just-in-Time inventory
Predictive inventory
Which risk response strategy involves transferring the impact of risk to another party?
Avoidance
Transference
Acceptance
Mitigation
What kind of risk may result from poor product development or information management?
Operational risk
Hazard risk
Strategic risk
Financial risk
Why might a business maintain a buffer inventory?
To track employee productivity
To prevent theft of office supplies
To avoid disruptions in supply or production
To meet employee demands
What type of risk could include changing customer wants and new competitor products?
Operational risk
Hazard risk
Strategic risk
Financial risk
What is a disadvantage of the periodic inventory system?
Requires no physical counts
Inventory data is always up-to-date
Data is only accurate at specific intervals
It prevents shrinkage
Which of the following best defines mitigation in risk management?
Ignoring potential risks
Eliminating all risk entirely
Reducing the impact if a risk occurs
Outsourcing risk to a third party
Which document helps businesses track received goods and conditions upon arrival?
Receipt
Shipping manifest
Receiving record
Invoice
Which inventory type is most likely to include bolts, nuts, or cleaning supplies?
Raw materials
MRO goods
Finished goods
Transit inventory
Which control system updates inventory records in real-time?
Periodic
Just-in-Time
Perpetual
On-demand
Which quadrant on a risk impact/probability chart would contain the highest-priority risks?
High impact, low probability
Low impact, low probability
High impact, high probability
Low impact, high probability
A company wants to avoid potential legal issues from product recalls. Which strategy should it adopt?
Transference
Avoidance
Mitigation
Acceptance
If a company frequently runs out of toner and delays occur, what inventory improvement is most logical?
Increase buffer inventory
Eliminate all supply orders
Rely on employees to bring supplies
Switch to periodic inventory
A risk has a probability score of 4 and an impact score of 5. What is its severity?
9
20
45
10
You are creating a risk register for your school’s store. What should it include?
Completed sales
List of employee tasks
Inventory order history
All potential risks and their sources
Analyze why using a Just-in-Time inventory system might increase risk during global supply chain disruptions.
It increases warehouse space costs
It reduces production efficiency
It minimizes supplier accountability
It offers no buffer if shipments are delayed
Evaluate the effectiveness of using a risk impact/probability chart in prioritizing business risks.
It ensures a business avoids all risk
It helps visualize which risks need immediate attention
It only works with financial risks
It eliminates the need for a contingency plan
A business chooses to retain a minor risk to save costs. What must it also do to prepare responsibly?
Increase office supply orders
Create a fallback or contingency plan
Outsource its workforce
Reduce supplier count
True or False: Work-in-process inventory includes goods that are fully finished and ready for sale.
(a)
True or False: Strategic risks include damage to a company’s reputation and competitive threats.
(a)
True or False: Periodic inventory systems track every inventory change in real time.
(a)
True or False: MRO goods refer to items like tools, repair supplies, and maintenance materials.
(a)
True or False: Avoidance is a risk management strategy where a company stops doing something to eliminate risk.
(a)
True or False: Tangible inventory includes digital files and proprietary software.
(a)
True or False: Probability refers to the severity of a risk’s impact on business operations.
(a)
True or False: An Enterprise Risk Management (ERM) system helps manage risks across an entire organization.
(a)
True or False: Decoupling inventory is used to absorb fluctuations between production stages.
(a)
True or False: Buffer inventory is designed to keep just the minimum stock needed to meet production.
(a)
