2019 Flashcards

Question

Workers can demonstrate their honesty and integrity by giving a fair amount of ___________ for their pay. A. worry B. concern C. effort D. loyalty

Answer 1

C Effort. Honest employees work during all of the hours for which they are paid. They do their fair share of work no matter what their feelings of loyalty to the employer might be. Worry and concern are not indicative of honesty and integrity. SOURCE: EI:022 SOURCE: LAP-EI-138?Sincerely Yours (Demonstrating Honesty and Integrity)

Answer 2

C Controlling environmental distractions. By taking steps to minimize distractions, Jacob can focus his full attention on the most important work that he needs to accomplish. This helps him be more productive and manage all of his work commitments effectively. Although a ¡°to-do¡± list may help Jacob prioritize his work, he is not developing the list in the situation provided, nor is he delegating work to others. Jacob is not accepting telephone calls or checking email, but he may be using his computer to do other tasks such as writing a report, or he may be making outgoing calls. SOURCE: EI:077 SOURCE: LAP-EI-077?Commit to It! (Managing Commitments in a Timely Manner)

Answer 3

D It keeps you from taking yourself too seriously. Having a sense of humor helps you maintain a positive attitude because it keeps you from taking yourself too seriously. Being able to laugh at yourself and at annoying things that happen is very good for your positive attitude. It helps you keep things in perspective. Having a sense of humor does not have anything to do with hanging out with positive people, staying healthy, or giving your appearance the attention it deserves. SOURCE: EI:019 SOURCE: LAP-EI-003?Opt for Optimism (Positive Attitude)

Answer 4

D Make an effort to remain calm. In some cases, acting calm will actually help you be calmer. Using language to vent your anger indicates you have lost your self-control. Frowning and being defensive are negative responses that will not help you maintain your self-control. SOURCE: EI:025 SOURCE: LAP-EI-014?Control Yourself! (Demonstrating Self-Control)

Answer 5

B Yourself. Feedback is evaluative information about you, your behavior, or the results of your behavior. Internal feedback is feedback that comes from within yourself, and it may be negative or positive. Friends, teachers, and employers are external sources of feedback. SOURCE: EI:003 SOURCE: LAP-EI-015?Grin and Bear It (Using Feedback for Personal Growth)

Answer 6

C Joe needed a pen, so he opened Ali's desk drawer to look for one while she was away. Employees should not go through their coworkers' desks, files, correspondence, or personal belongings in the workplace. To do so is a violation of privacy. When employees respect the privacy of others in the workplace, they are more likely to gain the trust and respect of their coworkers and managers. Walking away from a serious discussion and changing a document with the writer's approval are not violations of privacy. Sending a personal email from work is not an invasion of privacy, but it is wasting company resources because it is not business-related. SOURCE: EI:029 SOURCE: Hamlin, K. (2017, July 5). Respecting a co-worker's personal space. Retrieved September 19, 2018, from https://careertrend.com/respecting-coworkers-personal-space-9496.html

Answer 7

D They can change over time. Secondary dimensions of diversity are differences that may change at various points throughout one's lifetime and include characteristics such as language, religion, income, geographic location, family status, work experience, communication style, and education level. Physical traits and mental aptitudes are primary dimensions of diversity, which are inborn differences that cannot be changed. These differences include gender, age, race/ethnicity, etc. Subculture is a secondary group within a dominant culture. For example, suppose that a U.S. citizen has parents of Chinese decent; the Western culture is most likely the person's dominant culture, while his/her Chinese heritage represents a subculture. A person's subculture may influence some of a person's secondary dimensions of diversity, but it does not determine these dimensions. SOURCE: EI:033 SOURCE: LAP-EI-033?Getting To Know You (Cultural Sensitivity)

Answer 8

B Acknowledging her efforts. One way to motivate team members is to acknowledge their work accomplishments either individually or in a group setting (e.g., meeting). When employees feel that management appreciates their contributions to the company, they are often motivated to keep up the good work. In this situation, Matthew is not providing Shelby with a monetary reward, giving Shelby new job responsibilities, or supporting Shelby's ideas. SOURCE: EI:059 SOURCE: Kostanyan, A. (2014, September 22). 15 effective ways to motivate your team. Retrieved September 19, 2018, from http://www.huffingtonpost.com/anush-kostanyan/15-effectiveways-to-moti_b_5854242.html

Answer 9

D Self-awareness. Frank is demonstrating self-awareness. Self-awareness is a person's knowledge of his/her own emotions. Each of us perceives the world through a unique set of values and beliefs. If you know what is important to you, your awareness will give you the confidence you need to respond appropriately. Self-management is the ability to direct and control one's emotions in a way that is purposeful. Social awareness is the ability to know and understand others' emotions. Social management is the ability to respond effectively to others' emotions. SOURCE: EI:009 SOURCE: LAP-EI-016?Lead the Way (Concept of Leadership)

Answer 10

C Generate innovative ideas. Collaboration involves working together in a cooperative manner. Colleagues from different departments often collaborate with one another to accomplish business goals. An advantage of collaboration is that colleagues from different departments have different perspectives, which can help generate innovative ideas for developing new products, improving processes, increasing productivity, and solving problems. Collaboration may reduce conflict, but it does not prevent it from ever happening. Although a little friendly competition among colleagues might positively affect some business activities, highly competitive attitudes tend to reduce trust and create a negative work environment. The goal of collaboration is interdependence (relying on one another) rather than acting independently (without others' input). SOURCE: EI:061 SOURCE: DuBrin, A. (2010). Leadership: Research findings, practice, and skills (6th ed.) [pp. 339-340]. Mason, OH: South-Western Cengage Learning.

Answer 11

B Foreign exchange rate fluctuations. Foreign exchange rate risk occurs when the value of an investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profits earned in the foreign country will decrease after being exchanged back to the domestic currency. John's profits were greater in the foreign currency than in domestic currency because of fluctuations in the exchange rate between the two currencies. International trade agreements, political unrest, and the cost of international unionized labor are all factors that business owners should consider before engaging in international business, but John did not experience them in this situation. SOURCE: EN:041 SOURCE: Beers, B. (2018, January 11). The risks businesses face in international finance. Retrieved September 19, 2018, from http://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp

Answer 12

C Account balance requirement. Financial institutions often require customers to maintain a certain amount of money in their bank accounts. The account holder may be charged fees if the minimal account balance requirements are not met. Direct payroll deposit, overdraft protection, and online transaction options are benefits or services that many types of checking-account products offer that customers may need to pay fees to obtain. SOURCE: FI:058 SOURCE: Zacks. (2018, May 10). Advantages and disadvantages of savings and checking accounts. Retrieved September 14, 2018, from https://finance.zacks.com/advantages-disadvantagessavings-checking-accounts-3843.html

Answer 13

A Time-value of money. Due to the time-value of money, any certain amount of money (such as Justine's $5,000) is worth more now than later as a result of its earning potential. Rather than letting her uncle keep the $5,000 until next year, Justine is wise to take the money now and put it in a deposit-bearing savings account. That way, Justine can earn more money ($300, to be precise) on the money from her uncle. A dividend reinvestment plan (also known as a DRIP) is a method used by many investors to grow their investments more quickly. It involves using stock dividends to purchase more shares of that stock. Capital budgeting is the process that a firm's financial managers use to determine which projects to invest in. The accrual accounting method involves recording transactions at the time they occur even if no money changes hands at the time. SOURCE: FI:270 SOURCE: Carther, S. (2017, May 18). Understanding the time value of money. Retrieved September 19, 2018, from http://www.investopedia.com/articles/03/082703.asp#axzz2BZGrTRpM

Answer 14

D Obtain a bank loan. Banks obtain credit reports to make decisions about providing loans; therefore, it is important for individuals to periodically review the accuracy of their credit reports. By obtaining copies of their credit reports from an authorized credit agency, individuals can identify problems and take corrective action. Information presented in a credit report does not affect an individual's ability to withdraw money from a savings account, pay monthly credit card balances, or earn interest on stock holdings. SOURCE: FI:072 SOURCE: Irby, L. (2018, May 1). What is a credit report and why is it important? Retrieved September 19, 2018, from https://www.thebalance.com/what-is-a-credit-report-and-why-is-it-important960448

Answer 15

D Obtain insurance. Risk is the possibility of loss. There are many ways to reduce the possibility of loss. One way to reduce the possibility of loss is by transferring the risk, which is done by obtaining insurance. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premium). Implementing security measures, checking for hazards, and screening employees are ways to control and prevent certain types of risks. SOURCE: FI:081 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials (pp. 807-808). Columbus, OH: Glencoe/McGraw-Hill.

Answer 16

A To compare estimated performance with actual performance. Businesses rely on accurate financial information to make sound business decisions. In the situation provided, Emma is comparing one financial report (budget) with another financial report (actual sales) to determine if the business performed as expected?if it achieved its sales goals. Although external economic conditions can affect sales, Emma is analyzing internal financial information rather than identifying external economic trends. Emma is not establishing new quality standards and benchmarks or analyzing the impact of aging accounts. SOURCE: FI:579 SOURCE: LAP-FI-009?By the Numbers (The Need for Financial Information)

Answer 17

D Keep this information confidential. Confidentiality is the practice of keeping information secret or private. Accountants have a legal responsibility to protect their clients' information. Tatiana should therefore keep information about her company's upcoming merger confidential. Tatiana does not necessarily have any control over whether or not the merger benefits the public interest. There is no indication that Tatiana has a conflict of interest that would require her to maintain her independence. Also, there is no indication that Tatiana should report the information about the merger to the SEC. SOURCE: FI:351 SOURCE: LAP-FI-351?With Due Care (The Role of Ethics in Accounting)

Answer 18

D Buildings, vehicles, and capital equipment. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. The balance sheet shows a business's assets, liabilities, and owner's equity. Long-term assets are items of value?buildings, vehicles, and capital equipment?that businesses use to generate revenue for more than a year. Inventory and cash are listed as current or short-term assets, which involve levels that tend to fluctuate. The mortgage is a long-term liability, and accounts payable (e.g., insurance premiums) are current liabilities. SOURCE: FI:093 SOURCE: LAP-FI-010?The Right Balance (The Nature of Balance Sheets)

Answer 19

C $545,100. A company's free cash flow represents the funds available for internal growth and expansion. It also indicates how well the company is managing its money. A positive free cash flow is usually a sign that the company is practicing responsible money management, which can result in increased shareholder yield. A negative free cash flow, however, indicates that the company needs to look for more and/or other sources of funding. To calculate the free cash flow, we first need to determine the company's capital expenditures by adding together the net cash used by investing and the net cash used by financing ($690,000 + $140,300 = $830,300). Finally, subtract the total capital expenditures from the cash flow from operations ($1,375,400 - $830,300 = $545,100). So, the company brought in $545,100 more than it spent. SOURCE: FI:541 SOURCE: Vane, J. (2017, September 26). How to calculate free cash flow. Retrieved September 19, 2018, from https://bizfluent.com/how-2364074-calculate-free-cash-flow.html

Answer 20

D Globalization. A growing trend toward globalization is one of many business trends that affects HR management activities. Costs of business are going up. Companies are often restructuring to save money. And, new technologies seem to pop up overnight. SOURCE: HR:410 SOURCE: LAP-HR-035?People Pusher (Nature of Human Resources Management)

Answer 21

A Shadowing a person in your desired career. "Shadowing" or following a person in your desired career as s/he moves through a work day (or week or month) is an example of receiving tacit knowledge. Tacit knowledge is hard to explain in words or through writing?being "on the job" with an expert is a great way to receive his/her knowledge by experiencing it firsthand. Reading a history textbook, listening to an instructor's lecture, and following a recipe are all examples of receiving explicit knowledge?knowledge that is easy to transfer through words. SOURCE: KM:001 SOURCE: LAP-KM-001?Know Go (The Nature of Knowledge Management)

Answer 22

D Self-interest can prevent effective knowledge management. While the benefits of sharing knowledge are undeniable, sometimes it can be tempting to keep your personal knowledge to yourself. Bailey is tempted to keep her digital marketing knowledge to herself because she doesn't want to lose her competitive edge. Therefore, she is not effectively sharing her knowledge with others. This is not an example of how it is impossible to get ahead in your career if you share knowledge. It is also not an example of how knowledge management prevents unethical behavior. Finally, this example does not demonstrate how sharing knowledge builds stronger relationships. SOURCE: KM:002 SOURCE: LAP-KM-002?Know What's Right (Ethics in Knowledge Management)

Answer 23

D Patent. Intellectual property is intangible business assets that result from thinking processes. Businesses can obtain legal protection of their intellectual property from the government. A patent is legal protection for a product or process, such as a production process. The patent is granted to the inventor or owner for a specific number of years and is a legal means of preventing the product from being recreated and distributed by unauthorized entities. Copyrights legally protect written documents and artistic compositions. A trademark is legal protection for a symbol, design, or word (name) that a business uses to identify its brand. SOURCE: KM:004 SOURCE: World Intellectual Property Organization. (n.d.). What is intellectual property? Retrieved September 19, 2018, from http://www.wipo.int/about-ip/en/

Answer 24

B Exit interview. The purpose of an exit interview is to gain feedback from an employee who is leaving the business. The feedback can provide managers with knowledge about how they can help replacements become acclimated to the job. The feedback can also provide management with ideas for improving processes and increasing efficiency and job satisfaction. Concept mapping is a method of clarifying and organizing ideas by using a graphic format to show relationships. Codification is the process of classifying or assigning value to certain ideas, statements, or data. Tammy may have used concept mapping or data codification techniques to organize Seth's feedback after the exit interview. Training involves providing new hires and employees with education to perform their jobs. SOURCE: KM:005 SOURCE: Knowledge Sharing Toolkit. (2018, July 8). Exit interviews. Retrieved September 19, 2018, from http://www.kstoolkit.org/Exit+Interviews

Answer 25

A Cultural influences. Cultural influences have the strongest effect on a consumer's buying behavior, even stronger than social influences, individual influences, and situational influences. SOURCE: MK:014 SOURCE: LAP-MK-006?Cause and Effect (Buying Behavior)

Answer 26

B Bob's new employer asks him to share confidential information about product-development processes that his previous employer uses. In many situations, employers require employees to sign a nondisclosure agreement, which is a promise to maintain the confidentiality of the business's trade secrets. Bob's new employer is asking him to break the promise that he made to his previous employer and share the information, which presents an ethical dilemma for Bob. Mailing a product catalog and price list to a customer, discussing work plans with coworkers, and providing a customer with accurate information about a company's privacy policy are ethical actions. SOURCE: NF:111 SOURCE: Rocket Lawyer. (2016). NDA 101: What is a non-disclosure agreement? Retrieved September 20, 2018 from https://www.rocketlawyer.com/form/non-disclosure-agreement.rl#/

Answer 27

A Maintain the confidentiality of the stored information. Businesses that store customers' personal banking information are legally required to keep the information confidential. It is illegal to provide personal bank account information with any other party without the customers' permission. SOURCE: NF:076 SOURCE: Federal Trade Commission. (2015, January 7). How to comply with the privacy of consumer financial information rule of the Gramm-Leach-Bliley Act. Retrieved September 19, 2018, from https://www.ftc.gov/tips-advice/business-center/guidance/how-comply-privacyconsumer-financial-information-rule-gramm

Answer 28

C Operating system. The computer's operating system consists of the components needed to run all of the computer applications and programs. The power cords connect the computer's central processing unit (CPU) to the electrical supply needed to turn on and operate the computer system. Navigation keys (e.g., arrow keys) are the function keys on the computer keyboard that enable a computer user to move around the computer screen. A modem is a device that connects the computer to the Internet. It sends and receives information via a telephone or cable line. SOURCE: NF:085 SOURCE: Goodwill Community Foundation. (1998-2016). Computer basics: Understanding operating systems. Retrieved September 19, 2018, from http://www.gcflearnfree.org/computerbasics/2

Answer 29

A Performs interrelated functions. Integrated software applications consist of two or more related computer programs that work together to record information or perform specific business tasks or functions. For example, Microsoft Office combines a variety of programs that perform word-processing, spreadsheet, slideshow presentation, desktop publishing, and database functions. Some integrated software packages are customized to perform interrelated activities for a specific industry, such as travel and hospitality. Not all integrated software packages calculate break-even points or include forecasting tools. Because integrated software options vary, the level of training that users need also varies. SOURCE: NF:088 SOURCE: Techopedia. (2018). Integrated software. Retrieved September 19, 2018, from https://www.techopedia.com/definition/7748/integrated-software

Answer 30

B Critical path. Many project-management software packages incorporate the critical path methodology into their programs. The critical path methodology uses algorithms to determine timelines, develops schedules for complex project activities, and proposes scheduling contingency plans, which reduce project delays. Presentation software creates computer-generated visual aids that support oral presentations. Demonstration and linear are not components of project management software. SOURCE: NF:130 SOURCE: Smartsheet. (2018, August 23). The ultimate guide to the critical path method. Retrieved September 19, 2018, from https://www.smartsheet.com/critical-path-method

Answer 31

D Forecast sales. An invoice is the formal, printed record of a sale that includes all necessary information as to the buyer, the seller, items purchased, amounts, prices, delivery date, credit or discount terms, etc. By analyzing past sales records such as invoices, a business can determine what its customers are buying, when they are buying, and how much they are buying. This helps a business forecast future sales so it can be prepared to offer the products that customers want. Businesses do not review their invoices to evaluate ideas, execute promotions, or improve service. SOURCE: NF:002 SOURCE: Burrow, J.L. (2012). Marketing (3rd ed.) [pp. 562-563]. Mason, OH: South-Western Cengage Learning.

Answer 32

C Cash flow. By monitoring its cash flow statement, Maxton Mart knows when it is running short on cash and can take needed steps to alleviate upcoming cash shortages. If necessary, Maxton Mart should be prepared to take out a short-term loan to cover inventory costs. The income statement provides a picture of a business's profit or loss conditions. The balance sheet shows a snapshot of the business's assets, liabilities, and owner's equity. Open-to-buy documents indicate how much money the business has to invest in additional inventory. SOURCE: NF:014 SOURCE: PowerHomeBiz.com. (2018). Good record keeping for your small business. Retrieved September 19, 2018, from https://www.powerhomebiz.com/financing-abusiness/accounting/good-record-keeping-for-your-small-business.htm

Answer 33

A Society and culture. Social trends currently affecting business decision-making include a growing need for convenience, increased concern for fitness and health, an emphasis on going green, and changing family roles, such as an increased number of fathers caring for their children. Demographics are the physical and social characteristics of the population, such as age, gender, income, employment status, etc. Personal finances may contribute to a father's decision to personally care for his children but do not represent an economic impact on a business. An increase in the number of fathers personally caring for their children does not represent competition for a business unless that business happens to be a day care service. SOURCE: NF:015 SOURCE: LAP-NF-015?Get the 4-1-1 (Conducting an Environmental Scan)

Answer 34

C Local building codes. Building codes govern the construction and maintenance of a facility's structure. Jurisdictions develop building codes to ensure that the facility meets a minimal set of standards to protect the safety of facility's occupants and visitors. Electrical wiring, water lines, the grade of construction materials, and the placement of the building's exits are types of things that building codes regulate and monitor. A business that fails to meet building codes may be fined and closed until the problems are fixed. Trade laws regulate the exchange of goods and services between jurisdictions (e.g., states/provinces, countries). Affirmative action is an effort to give special employment consideration to disadvantaged groups. Electronic communication regulations govern the appropriate use of electronic communication methods, such as telephone surveillance. SOURCE: OP:339 SOURCE: BuildingsGuide.com. (2018). State building codes. Retrieved September 19, 2018, from https://www.buildingsguide.com/blog/resources-building-codes-state/

Answer 35

D Padding an expense account. Employee pilferage involves the taking of small amounts or small articles without the consent of the company. That is what occurs when an employee pads his/her expense account. Having authorization to change the amount specified on a check is not pilferage. Installing personally owned software on your computer may violate company policies; however, it does not represent employee pilferage. Hacking into a competitor's computer network to obtain trade secrets is a computer crime, rather than pilferage. SOURCE: OP:013 SOURCE: Business Practical Knowledge. (2011, March 4). Employee theft. Retrieved September 19, 2018, from https://businesspracticalknowledge.wordpress.com/legal-security/employee-theft/

Answer 36

A Set the security alarm; locks the doors. Businesses install locks and security alarms to protect their facilities from theft and burglary. Depending on the business's procedures, the last employee to leave for the day should set the security alarm and lock the door. In some situations, the security alarm can be set with a remote device after the employee leaves the building and locks the doors. Turning off the lights and adjusting the thermostat will not protect the building from unlawful entry. Turning on a surveillance camera may deter and identify thieves and burglars, but this will not prevent them from entering the building. SOURCE: OP:152 SOURCE: WikiHow. (2018, March 7). How to protect your business property against theft. Retrieved September 19, 2018, from http://www.wikihow.com/Protect-Your-Business-Property-AgainstTheft

Answer 37

B Due dates of tasks. Prioritizing involves ranking things in the order of their relative importance. Employees evaluate many factors when prioritizing their work, including the task's due date and the time that it will take to complete the task. For example, if an employee needs to submit an advertisement to a publication by the end of the day, and it takes six hours to create the advertisement, then the employee will need to work on the advertisement before s/he works on anything else that takes a lot of time to complete. Task enjoyment, coworkers' opinions, and the employee's aptitude are not important factors that employees should consider when they prioritize their work tasks. SOURCE: OP:228 SOURCE: Cohen, J. (n.d.). How to prioritize all your work. Retrieved September 19, 2018, from http://www.solveyourproblem.com/time-management/how_to_prioritize_work.shtml

Answer 38

D Desired outcomes for the project. It is important for managers to clearly explain the desired outcomes and goals of each project that they delegate to other employees, or else employees will not know the purpose of their work. It would be inappropriate for a manager to include the staff rules and consequences for breaking them while explaining delegated assignments. It would also be inappropriate to explain the punishment for failing to meet an assignment's deadline, since this would most likely intimidate employees and place unnecessary pressure on them. A manager should not value the quantity of work over the quality of work; therefore, this would not be appropriate to say to employees. SOURCE: OP:354 SOURCE: Economy, P. (2018, May 31). Delegation is an art (and here are 9 simple ways to do it better). Retrieved September 19, 2018, from https://www.inc.com/peter-economy/delegationis-an-art-and-here-are-9-simple-ways-to-do-it-better.html

Answer 39

B Scope. A project's scope is what the project will and will not include. A plan is an outline of what will be done and how it will be accomplished. Risk is the possibility of loss or gain. Quality is the degree of excellence of a good or service. SOURCE: OP:519 SOURCE: LAP-OP-519?Plan On It! (Planning Projects)

Answer 40

A Planning. A project is any type of undertaking or task that has a distinct beginning and end. A project plan is a specific course of action (plan) for accomplishing the project's objectives. Project planning is the process of determining which resources (human, financial, materials) the business needs to complete the project and how those resources will be used. The advantage to project planning is that the business is more likely to achieve the project's objectives because the planner has obtained the necessary resources to complete the project before starting to work on it. Examples of projects that businesses plan might include training programs, marketing research, information analysis, and inventory control. SOURCE: OP:001 SOURCE: Project Management Institute (2013). A guide to the project management body of knowledge: PMBOK guide (5th ed.) [pp. 53-54]. Newtown Square, PA: Project Management Institute.

Answer 41

C Quality. Quality is the degree of excellence of a good or service. Purchasing personnel try to buy needed goods and services at the lowest possible price provided that quality does not suffer. Buying poor-quality goods at a low price is not efficient and may be costly to a business in terms of lost production or customer dissatisfaction. Loyalty is faithfulness. Security is safety from danger or risk. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company which receives it. SOURCE: OP:015 SOURCE: LAP-OP-002?Buy Right (Purchasing)

Answer 42

B Maintain long-term relationships. To establish favorable relationships with vendors, both the company and its vendors must receive something they want. Companies must be willing to work with vendors to achieve mutual goals. To achieve their mutual goals, the company and its vendors should be willing to share relevant information, negotiate fairly and compromise, and be trustworthy and reliable. By taking these actions, the company and its vendors are less likely to experience serious conflicts. A good working relationship can facilitate profitability for both the company and the vendor, but does not always double a company's profit margin. SOURCE: OP:241 SOURCE: Bolander, J. (2010, May 31). How to build strong vendor and supplier relationships. Retrieved September 19, 2018, from http://www.thedailymba.com/2010/05/31/how-to-buildstrong-vendor-and-supplier-relationships/

Answer 43

B The company will be able to purchase more materials and increase production. If a purchaser is able to negotiate lower prices for the necessary raw materials, the company will be able to purchase more materials for the same amount of money. Therefore, the company will be able to produce more products. Negotiating lower prices would not necessarily limit the type of materials that can be purchased. Increases in productivity do not necessarily lead to higher costs. Finally, communication processes do not necessarily improve based on the negotiation of lower prices. SOURCE: OP:247 SOURCE: Root, G.N. (2018). How can functions of the operations manager increase productivity? Retrieved September 19, 2018, from http://smallbusiness.chron.com/can-functionsoperations-manager-increase-productivity-11747.html

Answer 44

A To replenish its regularly-stocked items. A straight reorder is a purchase order in which the business orders normally-stocked items to replenish items that have been used or sold. Orders that are placed to accommodate customers' unique requests are special orders. A modified rebuy is a type of order in which there are changes in the quantities or styles of items that are routinely ordered. Seasonal merchandise includes items the businesses order and sell during specific times of the year when demand is high. Large retailers often use blanket orders to purchase seasonal goods (e.g., holiday gift-giving season). SOURCE: OP:250 SOURCE: Berman, B., & Evans, J.R. (2013). Retail management: A strategic approach (12th ed.) [pp. 417-418]. Upper Saddle River, NJ: Pearson Education, Inc.

Answer 45

D To sell it to end users. Businesses keep different types of inventory on hand for different reasons. If the business sells the goods that it buys to end users, it is resale stock. For example, an appliance-store chain (retailer) buys stoves, refrigerators, and dishwashers from manufacturers, and sells the items to consumers. Items such as parts (e.g., nails) and raw materials (e.g., wood) are used to produce manufactured goods. Businesses also maintain an inventory of supplies (office, cleaning) for employees to use to complete their work. SOURCE: OP:336 SOURCE: Reference for Business. (2018). Inventory types. Retrieved September 19, 2018, from http://www.referenceforbusiness.com/management/Int-Loc/Inventory-Types.html

Answer 46

C Assess vendors' strengths and weaknesses. By assessing a vendor's strengths and weaknesses before entering a negotiation, a business can plan strategies to use that will strengthen its own position during the negotiating process. Planning and developing effective strategies can help the business obtain desired discounts, favorable service options, or cooperative advertising support. And, the business may make fewer concessions during the negotiation because it analyzed the vendor's capabilities before beginning negotiations. To obtain a favorable agreement, the business should strive for a win-win attitude. Adopting a win-lose attitude and using overly aggressive tactics may backfire, and prevent both parties from getting what they want from the negotiation. SOURCE: OP:337 SOURCE: Young Entrepreneur Council. (2016). 13 tips for negotiating with suppliers. Retrieved September 18, 2018, from http://www.inc.com/young-entrepreneur-council/tips-fornegotiating-with-a-supplier.html

Answer 47

C Determining whether to approve or reject an entire batch of products. Acceptance sampling is a part of statistical quality control that involves taking a random sample and determining whether to accept or reject the entire batch of products. Filling out control charts is part of statistical process control. Identifying the cause of quality problems is not a part of acceptance sampling. Descriptive statistics are a separate part of statistical quality control. SOURCE: OP:163 SOURCE: LAP-OP-008?Take Control (Quality-Control Measures)

Answer 48

C Promotional needs. Business analysis is the process of investigating and evaluating an issue, problem, process, or approach that affects the business. Analysis can help a business determine how to achieve its goals. Because the data and information that Mitchell is evaluating is related to an advertising campaign, he is evaluating a promotional issue?he is determining the best way to communicate product information to the target market. Although available human (internal and external) and financial resources are factors that Mitchell might consider as part of the analysis, the primary purpose is promotional rather than evaluating the business's operating schedule or its human resources. SOURCE: OP:327 SOURCE: Gannon, D. (2011, August 11). How to choose an advertising agency. Retrieved September 14, 2018, from http://www.inc.com/guides/201108/how-to-choose-an-advertising-agency.html

Answer 49

D Human. People can have a large impact on the design of a process. Stress, employee morale, and fatigue are common human factors that can influence process design. If the Internet and cable company wants to increase its customer-service phone line hours, it will need to consider that its employees may not be able to take on any extra work or may become fatigued from the extra hours. Regulatory and environmental factors that affect process design include government regulations and the political or social environment surrounding a company. Technological factors include the cost of necessary equipment or technology. SOURCE: OP:475 SOURCE: Taylor, H. (2017, September 26). Factors that affect process design. Retrieved September 16, 2018, from http://www.ehow.com/list_7444011_factors-affect-process-design.html

Answer 50

D Allowing inventory to be monitored regularly. Technology such as enterprise resource systems allows inventory to be constantly monitored and automatically alerts businesses when levels are running low. Technology does not eliminate the need for supplier relationships, cause disruptions in the supply chain, or increase warehouse storage costs. SOURCE: OP:478 SOURCE: Business Development Bank of Canada. (n.d.) How to implement just-in-time inventory management. Retrieved September 16, 2018, from https://www.bdc.ca/en/articlestools/operations/inventory-management/pages/inventory-management-build-smoothersupply-chain.aspx

Answer 51

D Materials and information; organizations. Supply chain networks refer to the movement of supplies and knowledge among members of a network. Supply chain networks do not involve the movement of employees and customers among governments, government officials among Fortune 500 companies, or classified information among protest groups. SOURCE: OP:479 SOURCE: Adaptalift Hyster. (2011, September 27). What is a supply chain network? Retrieved September 13, 2018, from http://www.aalhysterforklifts.com.au/index.php/about/blogpost/what_is_a_supply_chain_network

Answer 52

D Language barriers. It is important for companies to consider the risks associated with global supply chain networks before engaging in international trade. In this example, the miscommunication between two individuals of different languages led to a delivery delay?in other words, there was a language barrier. Accountability and compliance, time zone differences, and cultural conflicts are all serious risks associated with global supply chains, but they are not illustrated in this example. SOURCE: OP:480 SOURCE: Brosch, A. (2015, July). 6 global supply chain challenges to ignore at your own risk. Retrieved September 13, 2018, from http://www.inboundlogistics.com/cms/article/6-globalsupply-chain-challenges-to-ignore-at-your-own-risk/

Answer 53

B An effective laptop security policy. Employees should be held accountable for the digital assets housed on their computers. One way to achieve this is by requiring employees to sign a detailed and effective laptop security policy that provides employees with best practices to ensure laptop security. Encryption software is more likely to protect digital assets from outsiders and/or criminals rather than holding employees accountable. Project management software is not necessarily related to protecting digital assets. Background checks will not necessarily help hold employees accountable for protecting digital assets. SOURCE: OP:517 SOURCE: WinEncrypt. (n.d.). Protecting digital assets in the modern organization. Retrieved September 13, 2018, from http://www.winencrypt.com/downloads/resources/whitepapers/WinEncrypt_protecting_digital _assets.pdf

Answer 54

D Scan the drive for viruses before opening it. External devices can carry viruses that can allow customer data to be exposed to threats. Scanning the USB for viruses can detect any threats before the data is exposed, protecting private customer information. Refusing to open the files isn't necessarily a reasonable action because Riley needs to view the files in one way or another. Deleting customer information is not practical because the information is probably necessary to the company's success. Finally, firing the design firm is an unreasonable response because the firm did not necessarily do anything to warrant such action. SOURCE: OP:518 SOURCE: StaySafeOnilne.org. (2018). Protect your customers. Retrieved September 18, 2018, from https://staysafeonline.org/business-safe-online/protect-your-customers

Answer 55

B Knowing how she works best. Olivia is taking steps to reduce distractions that may affect her ability to complete her work tasks in a timely manner. She is not dividing large projects into smaller parts, making the most of her down time, or focusing on personal goals rather than work tasks. SOURCE: PD:019 SOURCE: LAP-PD-001?About Time (Time Management)

Answer 56

B Allison focuses on her work tasks so she can meet her deadlines. Businesses have basic expectations regarding their employees' behavior in the workplace. Employers expect employees to arrive at work on time; perform their work accurately and efficiently; be honest; and exhibit respect for coworkers, customers, and company property. Because Allison is focused on her work and strives to meet her deadlines, she is meeting her employer's expectations. Engaging in idle chitchat and texting during a meeting are disrespectful actions that waste the company's time and money. Confiding in a customer about problems with coworkers is inappropriate behavior. SOURCE: PD:020 SOURCE: Lockhart, K. (2013, June). Employer expectations: Just what do they want? Retrieved September 18, 2018, from http://www.letsgettoworkwi.org/wpcontent/uploads/2013/05/Employer-Expectations-by-Kristi-Lockhart.pdf

Answer 57

C Supply chain management. Supervising the transportation, storage, and handling of a company's product is a supply chain management job duty. This is not a job duty for business analytics, human resources management, or office management. SOURCE: PD:297 SOURCE: LAP-PD-019?Career Opportunities in Business Management and Administration

Answer 58

B Left for a better job. When providing information about previous jobs, you should present a positive picture of yourself and your former employers. Avoid saying anything that puts you or a former employer in a negative light. Therefore, comments such as "unable to get along with supervisor," "unfair supervisor," and "unpleasant working environment" should be avoided. Telling a potential employer that you left to find a better job says nothing negative about your abilities or those of former employers. SOURCE: PD:027 SOURCE: GFCLearnFree. (1998-2018). Job applications: Completing a job application. Retrieved September 18, 2018, from https://www.gcflearnfree.org/jobapplications/completing-a-jobapplication/1/.

Answer 59

B Professional networking. Networking is the process of exchanging information with others for the purpose of professional or business development and/or advancement. In the example, Marcus took advantage of a social situation to discuss his professional development or needs with Lynette. The situation presented is not an example of etiquette (exhibiting manners), interviewing, or community resourcing. SOURCE: PD:037 SOURCE: Speisman, S. (2018, February 28). Ten tips for successful business networking. Retrieved September 18, 2018, from http://www.businessknowhow.com/tips/networking.htm

Answer 60

A The variety of its goods and services. Organizational goals are the overall objectives or desired outcomes that the business wants to achieve. Businesses set different types of organizational goals. Product goals involve setting standards for various characteristics of the business's products?quality, style, durability, variety, etc. Expenses and income are budgeting (financial) considerations. Establishing guidelines for workplace behavior are human resources goals. Consumer goals involve setting standards and objectives to accommodate the target market's needs, wants, and expectations. SOURCE: PD:254 SOURCE: Joseph, C. (2018). What are the benefits of goal setting? Retrieved September 18, 2018, from http://smallbusiness.chron.com/benefits-goal-setting-2511.html

Answer 61

B Work assignment, task, and subtask. Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the entire project into smaller components helps the project manager effectively schedule, assign, and monitor complex project activities. When dividing the work, the project manager first divides the entire project into work assignments. Then, each work assignment is broken down by the tasks that the assignment requires for completion. In some situations, each task has subtasks that need to be completed before moving on to the next task. SOURCE: PJ:006 SOURCE: Workbreakdownstructure.com. (2018). Work breakdown structure (WBS). Retrieved September 14, 2018, from http://www.workbreakdownstructure.com/

Answer 62

C Keeping the project on track. During the execution phase, the project manager is responsible for ensuring that tasks are performed correctly, taking corrective action if problems occur, and keeping the project on track in terms of schedule and scope. During the planning phase of a project, the project manager develops the work breakdown structure, which involves developing work packages and tasks. Acquiring supplies and equipment and assembling a steering committee (if needed) are also activities that occur during the planning phase of a project. SOURCE: PJ:009 SOURCE: Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide) (5th ed.) [pp. 52-57]. Newtown Square, PA: Project Management Institute.

Answer 63

D Tamara recognizes how hard her team is working, so she provides lunch for the team members. Effective project managers motivate their team members to reach project milestones and goals. Motivation often involves offering rewards (e.g., lunch), which expresses the project manager's appreciation for the team's hard work and can encourage team members to keep striving to achieve the team's goals. Marcus is providing Thomas with evaluative feedback and guidance. Ryan is delegating duties to Samantha. Zoey is communicating information to team members. SOURCE: PJ:007 SOURCE: Daskal, L. (2014, November 26). 20 ways to reward your employees without spending a dime. Retrieved September 19, 2018, from https://www.inc.com/lolly-daskal/20-ways-toreward-your-employees-without-spending-a-dime.html

Answer 64

B Conduct a post-implementation review. After the stakeholders receive the project deliverables, the project manager develops a post-implementation review. The post-implementation review is a formal, detailed assessment of the completed project in relation to the project's objectives. The document assesses the project's budgets, deadlines, and processes, as well as the stakeholders' satisfaction with the results or deliverables. The lessons-learned document summarizes the project's successes and failures. Project managers often refer to the lessons-learned document when working on similar projects. A project-issues log is a documentation of problems or challenges that occur during the execution phase of the project. Lisa was not composing final delivery instructions. SOURCE: PJ:008 SOURCE: Lewinson, M. (2011, January 17). Project closure template?Key steps to closing a project. Retrieved September 19, 2018, from http://www.mymanagementguide.com/project-closuretemplate-key-steps-to-closing-a-project/

Answer 65

A Produces only 3.4 defects per million parts. A popular quality management framework is Six Sigma, named for the statistical term that indicates only 3.4 defects per million. PDCA uses the plan-do-checkadjust approach. ITIL uses an IT-oriented approach. The company has not created its own quality management framework. SOURCE: QM:002 SOURCE: University Alliance. (2018). What is six sigma? Retrieved September 18, 2018, from http://www.villanovau.com/resources/six-sigma/what-is-six-sigma/#.VsXLE_IrKUk

Answer 66

C Increased revenue. Continuous improvement is an ongoing process that looks for ways to increase the levels of excellence in relation to a process, good, or service. Potential benefits of improved processes often increase productivity, which lowers costs and increases revenue. When quality improves, customer satisfaction levels often increase, which often results in a higher demand for the business's goods and services. SOURCE: QM:003 SOURCE: Taylor, H. (2017, September 26). Benefits of continuous quality improvement (CQI). Retrieved September 18, 2018, from https://bizfluent.com/facts-5317408-benefitscontinuous-quality-improvement-cqi.html

Answer 67

C A conflict of interest. Because Madelyn's brother works for a potential vendor, Madelyn may not be able to be objective and neutral when making a final selection for her employer's new payroll-processing provider. When selecting a vendor, it is important to be objective and consider all of the advantages, disadvantages, and potential risks with each candidate. A vendor that has not worked with large companies may not have the resources readily available to provide adequate service. Because Madelyn has a conflict of interest in this situation, she may want to seek input from her managers or formally request that someone else make the final decision. The situation presented does not involve an ethical issue related to financial reporting methodology, levels of service, or the company's structure. SOURCE: RM:041 SOURCE: Monash University. (2012, May 30). Examples of conflicts of interest and guidelines for action. Retrieved September 18, 2018, from http://www.adm.monash.edu.au/workplacepolicy/conduct-compliance/examples.html

Answer 68

C Saves information when computer failures occur. Backup procedures involve saving the business's computer information at set intervals. If the computer system is damaged or fails to operate correctly, the backup is available to retrieve stored information so the business can continue to operate. The backup reduces the risk of losing all types of information?financial, shipping, ordering, human resources, etc. The purpose for implementing backup procedures is not to prevent hacking, detect noncompliance, or allow employees to access multiple applications, although there are various software applications that specifically address those issues. SOURCE: RM:042 SOURCE: Marks, G. (2010, July 20). Backing up your computer backup services. Retrieved September 18, 2018, from http://www.forbes.com/2010/07/20/carbonite-mozy-internet-technologybackup.html

Answer 69

D Form a captive insurance company. Organizations (i.e., corporations, industry/professional/trade associations) often form their own insurance companies?called captive insurance companies?when they carry risks that commercial insurance companies will not cover. The organizations that form the captive insurance companies control insurance activities including the underwriting processes, premium rates, and claims-processing policies. Acquiring a professional association, establishing a riskmanagement committee, and creating a trade union are not ways in which a business transfers risk. SOURCE: RM:043 SOURCE: Wallace, O., & Foster, N. (n.d.). What is captive insurance? Retrieved September 18, 2018, from http://www.wisegeek.com/what-is-captive-insurance.htm

Answer 70

B First-line. First-line or supervisory managers work directly with the employees who carry out the business's routine work. First-line managers report to the mid-level managers. Mid-level managers are responsible for implementing the goals set by executive (top-level) managers, and are the link between supervisory and executive (top-level) managers. Mid-level managers report to the executive managers. Executive managers are responsible for the whole organization and spend most of their time setting organizational goals and conducting strategic planning. A regional manager manages employees in a specific location or region. Regional managers are usually considered mid-level managers. SOURCE: SM:001 SOURCE: LAP-SM-003?Manage This! (Concept of Management)

Answer 71

A Reduces uncertainty. Planning is the management function of deciding what needs done and how it will be accomplished. Planning is a futuristic process, which means that managers are forced to think ahead about needed resources, risks, and desired outcomes. Thinking ahead or planning reduces uncertainty because managers are evaluating various scenarios to determine the best way to achieve goals. Planning may reduce errors but does not eliminate them. Delegating work is an organizing activity, which involves assigning authority or responsibility for something to another person. Planning does not lessen the need to monitor employees, which is a controlling activity. SOURCE: SM:063 SOURCE: HubPages, Inc. (2018, February 16). Importance of planning. Retrieved September 18, 2018, from http://youcanwin.hubpages.com/hub/Importance-of-Planning

Answer 72

A Organizing. The organizing function of management focuses on setting up the way the business's work will be done. Organizing involves determining what resources the business needs and how the various resources will work together to accomplish the business's goals in the most efficient ways. Staffing is the management function of finding workers for the business. Directing is the management function of providing guidance to workers and work projects. Controlling is the management function that monitors the work effort. SOURCE: SM:064 SOURCE: Norman, L. (2018, June 29). What are the four basic functions that make up the management process? Retrieved September 19, 2018, from http://smallbusiness.chron.com/four-basic-functions-make-up-management-process23852.html

Answer 73

C Training and developing. Training and developing is a part of staffing that ensures that employees are knowledgeable and productive. It includes training employees in new job positions as well as providing ongoing professional development. Recruiting is the process of attracting qualified candidates to the company. Determining need involves keeping constant tabs on what job positions need to be filled and what the descriptions and specifications are for those open positions. Developing compensation plans involves paying and providing benefits for employees. SOURCE: SM:065 SOURCE: LAP-SM-004?Dream Team Maker (Staffing)

Answer 74

C Initiating action. Directing is the management function of providing guidance to workers and work projects. Providing guidance or instruction about the proper way to perform a task is initiating action. Skill identification is a staffing activity. Performance evaluation is a controlling activity. Establishing a line of authority is an organizing activity. SOURCE: SM:066 SOURCE: Management Study Guide. (2008-2018). Importance of directing function. Retrieved September 19, 2018, from http://www.managementstudyguide.com/importance_of_directing.htm

Answer 75

A Evaluating. Control is the management function that monitors the work effort. To determine if employees or processes are working effectively and efficiently, managers compare the business's standards or goals with the actual output or desired result to evaluate performance. Delegating is an organizing task that involves assigning authority or responsibility to another person. Coaching is a directing activity and is an on-the-job instructional method in which a manager or supervisor is assigned a "coach" to set goals, give assistance in reaching goals, and give ongoing performance feedback. Forecasting is a planning activity that involves making estimates or predictions about something?sales, income, expenses, etc. SOURCE: SM:004 SOURCE: Management Study Guide. (2016). Controlling function of management. Retrieved September 19, 2018, from http://www.managementstudyguide.com/controlling_function.htm

Answer 76

D Organizations identify and communicate the need for change to employees. The first stage of the change-management life cycle involves realizing the need for change and explaining this to employees in an understandable manner. Engaging in dialogue to determine how to best implement change, agreeing on a strategic plan for implementing change, and carrying out a strategic plan for implementing change are all actions taken in subsequent stages of the change-management life cycle. SOURCE: SM:096 SOURCE: TwentyEighty Strategy Execution, Inc. (2015). The change management life cycle: How to involve your people to ensure success at every stage. Retrieved September 18, 2018, from https://www.strategyex.com/~/media/Files/Public-Site/US/POVs/ChangeManagement