Ch 16 & 17

Question 1

Companies use a secure socket layer (SSL) protocol to secure payment information transmitted over the Internet from a consumer to a business.

Answer 1

True

Question 2

Spyware is often installed when users download and install freeware on their computers.

Answer 2

True

Question 3

Total quality management (TQM) relies on a small cadre of quality experts to exert complete control over the organization’s quality assurance efforts.

Answer 3

False

Question 4

A strong password is any combination of at least five characters consisting of both letters and numbers and isn’t a common word or name.

Answer 4

False

Question 5

PayPal is the best-known cybermediary with approximately 100 million active accounts, just in the U.S. alone.

Answer 5

False

Question 6

Inventory consists of the stocks of finished items, works-in-process, parts, materials, or other resources held by an organization.

Answer 6

True

Question 7

Southwest Airlines has been very successful at applying lean thinking to its operations.

Answer 7

True

Question 8

Hardware consists of computer programs that provide instructions to a computer, so that it can perform a desired task.

Answer 8

False

Question 9

Because the output of service firms is intangible, they are unable to apply the principles of lean production

Answer 9

False

Question 10

Phishing is a scam where official-looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.

Answer 10

True

Question 11

A data warehouse is a physical storage facility used by management to store and file all hard copies of important documents generated by the business.

Answer 11

False

Question 12

Operations managers attempt to use effective and efficient methods to produce the right goods and services in the right quantities and distribute them to the right customers at the right time.

Answer 12

True

Question 13

Black hat hackers are hackers who have no harmful intent. Instead they hack into computers simply for the intellectual challenge it involves.

Answer 13

False

Question 14

Six Sigma shares some characteristics with TQM, such as an organization-wide focus on quality and a long-term commitment to continuous quality improvement.

Answer 14

True

Question 15

Supply chains focus exclusively on coordinating the flow of materials and physical goods. The corresponding flows of information, financial resources, and other services are coordinated by enterprise planning systems that are separate from the supply chain.

Answer 15

False

Question 16

An initiative in 2001 allowed members of the 12 consortium to sponsor other research and educational organizations that did not originally qualify for membership, so they would have access to 12 resources.

Answer 16

True

Question 17

Many firms have used the Internet to implement very effective viral marketing campaigns that encourage customers and others not employed by the seller to help promote the seller’s products.

Answer 17

True

Question 18

The key advantage of RFID technology is that it allows the seller of a product to track and monitor the buyer’s use of the product.

Answer 18

False

Question 19

A major reason American businesses outsource operational activities overseas is to take advantage of the low cost of labor and other resources.

Answer 19

True

Question 20

To create value effectively, operations managers must find a way to give customers more for their money and still make a profit.

Answer 20

True

Question 21

_____ is software installed, often erroneously, on a computer that might log each keystroke in an effort to capture passwords and user names to accounts.

a) Screenware
b) Freeware
c) Spyware
d) Adware

Answer 21

c) Spyware

Question 22

_____ is/are reprogrammable machines that can manipulate materials, tools, and parts to perform a variety of tasks.

a) Robots
b) Automation
c) Drones
d) Diverters

Answer 22

a) Robots

Question 23

Engineers at every major automobile manufacturer now design new car models using _____ software to create blueprints and three-dimensional drawings.

a) computer-integrated manufacturing
b) computer-aided design
c) flexible manufacturing systems
d) computer-aided manufacturing

Answer 23

b) computer-aided design

Question 24

The design of the servicescape should reflect consideration of all of the following factors EXCEPT:

a) functionality
b) symbols and signs
c) ambience
d) management oversight

Answer 24

d) management oversight

Question 25

_____ markets have greater numbers of customers each with fewer dollars to spend, while _____ markets enjoy fewer customers with larger amounts of money to spend at one time. a) B2C; B2B b) B2B; B2C c) Online; business d) Retail; online

Answer 25

a) B2C; B2B

Question 26

A data warehouse is a) a process that uses powerful statistical and mathematical techniques to analyze vast amounts of data. b) a system that gives managers access to large amounts of data and the processing power to convert the data into high-quality information. c) organization-wide database providing a centralized location for storing data gathered from sources both internal and external to the organization. d) the process of going beyond a company’s firewall to store data and run applications.

Answer 26

c) organization-wide database providing a centralized location for storing data gathered from sources both internal and external to the organization.

Question 27

_____ are files of related records organized according to logical systems and stored on computer-accessible media. a) Warehouses b) Databases c) Extranets d) Intranets

Answer 27

b) Databases

Question 28

Background music, lighting and the use of scents are all factors of ____________ in servicescape designs. a) functionality b) artifacts c) ambience d) symbols

Answer 28

c) ambience

Question 29

The decision about where to locate a business facility, _______ a) almost always is based on the availability of skilled labor. b) seldom considers quality of life or legal and political factors because these factors seldom have a noticeable impact on costs of production. c) usually boils down to where the top manager wants to live. d) usually requires the analysis of several different factors, but the importance of each factor tends to vary according to the specific type of industry.

Answer 29

d) usually requires the analysis of several different factors, but the importance of each factor tends to vary according to the specific type of industry.

Question 30

In operations management, quality is defined in terms of: a) the ratio of cost to output. b) how well a product satisfies the preferences of customers. c) the number of defects per thousand units of output. d) the Baldrige Quality Index.

Answer 30

b) how well a product satisfies the preferences of customers.

Question 31

Microsoft Word 2007, which is used to write memos, letters, and reports, is an example of a) server software. b) network software. c) system software. d) applications software.

Answer 31

d) applications software.

Question 32

The _____ requires senders of unsolicited commercial emails to label their messages as ads and to tell the recipients how to decline future messages. a) Right to Privacy Act of 2005 b) CAN-SPAM Act of 2003 c) Deceptive Unsolicited Mail Policy (DUMP) Act of 2002 d) STOP-SPAM Act of 2004

Answer 32

b) CAN-SPAM Act of 2003

Question 33

_____ refers to the physical components used to collect, store, organize, and process data and to distribute information a) Hardware b) Software c) Intranet d) Extranet

Answer 33

a) Hardware

Question 34

_____ supplement operating system software in ways that increase the security or capabilities of the computer system. Firewalls, antivirus software, spam blockers, and antispyware are all examples of this software. a) Secondary software systems b) Applications software packages c) Linux servers d) Utility programs

Answer 34

d) Utility programs

Question 35

In operations management, _____ refers to completing a task or producing a product at the lowest cost. a) effectiveness b) efficiency c) competence d) processing

Answer 35

b) efficiency

Question 36

Services are: a) consumed where they are provided. b) shipped. c) produced independently of the consumer. d) stored in an inventory.

Answer 36

a) consumed where they are provided.

Question 37

From an operations management perspective, a manufacturing firm’s value chain includes: a) the flow of materials and finished goods through all firms involved in production and distribution, plus the corresponding flows of services, financial resources, and information. b) firms connected with the flow of output through the channel to the final customer, particularly those other companies involved with financial transactions. c) only vendors that supply goods and services in the production of a firm’s product offerings. d) all and any forms of software or manufacturing technology it uses in its operation.

Answer 37

a) the flow of materials and finished goods through all firms involved in production and distribution, plus the corresponding flows of services, financial resources, and information.

Question 38

In recent years, many supply chains have begun using _____ to reduce employee theft. a) spyware b) data mining c) hidden cameras d) RFID technology

Answer 38

d) RFID technology

Question 39

The vital function of _____ involves transforming data into useful information for decision makers. a) business b) managing partnerships c) the information technology department d) transferring networks

Answer 39

c) the information technology department

Question 40

_____ is the marketing strategy of building relationships with customers. It has experienced a tremendous boost due to the growth of the Internet. a) Customer mining b) Customer relationship development c) A cybermediary d) Customer maintenance

Answer 40

b) Customer relationship development