BAM 418 Unit 4 Examination - The small business gains what

BAM 418 Small Business Management Unit 4 Examination Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. The small business gains what advantage by selling on consignment?
a.
b.
c.
d. better customer service
receiving absolute title to the goods prior to paying for them
shorter lead time when reordering than with standard contracts
not bearing the risk of loss for the consigned goods 2. Improving quality:
a.
b.
c.
d. reduces rework time
increases worker productivity
lowers the associated cost with scrap
all of the above 3. Holding or carrying costs include the costs of:
a.
b.
c.
d. processing a purchase order
ordering materials and inventory
receiving and inspecting items and all administrative costs
insurance, taxes, depreciation, etc 4. The small business owner needs to know ________ in order to avoid stockouts and calculate
safety stock.
a.
b.
c.
d. the
the
the
the minimum level of stock allowable
lead time
EOQ
usage rate 5. A buyer owns a retail shop in Baltimore. A seller is a manufacturer in San Diego. The buyer
orders from seller to be shipped “F.O.B. San Diego.” Risk of loss passes to the buyer when:
a.
b.
c.
d. 182 the
the
the
the goods are identified to the contract
goods are delivered to the buyer’s retail shop
contract is made
seller delivers the goods to the carrier BAM 418 Small Business Management Unit 4 Examination 6. The first rule governing transfer of title and risk of loss states that:
a. the buyer has both title and risk of loss as soon as the goods are paid for, regardless of
their physical location
b. title transfers to the buyer as soon as the goods are in the hands of the carrier
c. title transfers to the buyer as soon as the goods are delivered
d. the supplier and small business may agree to a shift of the risk of loss at any time during
the transaction between them 7. An alternative to a two-bin system, wherever space or the type of item doesn’t fit the system,
would be a:
a.
b.
c.
d. tag system
POS system
punch card system
physical inventory system 8. Kleptomaniacs have a compulsive need to steal even though they have little, if any, need for
the items they shoplift. Kleptomaniacs account for less than ________ percent of shoplifters.
a.
b.
c.
d. 15
7
10
5 9. Which of the following could be a reason why an employee steals?
a.
b.
c.
d. greed
temptation
opportunity
all of the above 10. The primary human elements on which successful JIT systems are built are:
a.
b.
c.
d. 183 mutual trust and teamwork and empowerment
high profit and lower labor cost
lower labor cost and productivity
mutual trust and teamwork & productivity BAM 418 Small Business Management Unit 4 Examination 11. The first objective of a job analysis is to develop a job description. The second objective is to
create a:
a.
b.
c.
d. job specification
advertisement in the newspaper
job interview outline
none of the above 12. A ________ is used by the owner of a small business to determine wage and salary increases,
need for training, overall job progress, etc., among other things.
a.
b.
c.
d. job redesign
human resource plan
compensation plan
performance appraisal 13. When a small business owner increases the variety of skills needed on a job, permits the
worker to complete an entire job rather than a portion of it, and gives the worker more freedom
of decision on how to perform the job, the owner is using:
a.
b.
c.
d. job
job
job
job enlargement
rotation
simplification
enrichment 14. This act was passed by Congress to supplement the Clayton Act, providing the power to prevent
“unfair methods of competition in commerce or unfair or deceptive acts in commerce.”
a.
b.
c.
d. The
The
The
The Miller-Tydings Act
Robinson-Patman Act
Federal Trade Commission Act
Sherman Act 15. Which of the following phrases is sufficient to disclaim an implied sales warranty?
a.
b.
c.
d. 184 “Seller makes no warranties on this product whatsoever”
“No warranties”
“As is”
None of the above. A merchant cannot disclaim sales warranties. BAM 418 Small Business Management Unit 4 Examination 16. An agent’s duties when executing agency include:
a. performance of duties according to the principal’s instruction and notification of the
principal of all facts concerning the subject matter of the agency
b. reimbursement of the principal for all expenses incurred in the execution of the agency
c. indemnification of the principal for any authorized payments or any loss incurred by the
agency
d. all of the above 17. The small company’s purchasing plan is closely linked to which of the other functional areas?
a.
b.
c.
d. marketing and sales
production and engineering
finance and accounting
all of the above 18. “F.O.B. buyer” means that:
a. both title and risk of loss pass to the buyer immediately upon payment of the contract
regardless of location of the goods
b. title passes to the buyer when the seller delivers the goods to the shipper
c. risk of loss passes to the buyer when the seller delivers the goods to the buyer’s place of
business
d. the buyer pays all shipping and transportation costs 19. The most effective businesses know that what is required is not simply the technology but the
________ with suppliers who are themselves technologically sophisticated enough to interact
on a real time basis to deliver what is needed when it is needed.
a.
b.
c.
d. electronic data interchange
critical strategic alliances
credit terms
none of the above 20. In the stages of team development, a team is at the performance stage when it:
a.
b.
c.
d. 185 achieves commitment to the process and task
has its highest expectations
begins to reset its goals and roles
recognizes fully the time and effort that will be involved BAM 418 Small Business Management Unit 4 Examination 21. In terms of contractual capacity:
a. intoxicated individuals are generally always held liable for their contractual obligations,
regardless of their condition upon execution of the contract
b. if a minor benefits from a contract and then disaffirms it, he/she must fulfill the duty of
restoration
c. a minor can disaffirm and walk away from a contract even if already executed and the
minor has benefited from it
d. an insane person can never have contractual capacity by definition 22. Quality improvement efforts must ultimately focus on:
a.
b.
c.
d. the
the
the
the manufacturing process
product
customer
purchasing process 23. A firm’s ________ expresses the number of times per year the business sells all of its inventory.
a.
b.
c.
d. liquidity ratio
inventory turnover ratio
quick ratio
operating ratio 24. If you were evaluating your college administration for effective leadership behaviors, you need
to look for:
a.
b.
c.
d. their short-term focus, their ability to see the detail needing to be accomplished
the ability to encourage creativity in employees
their ability to husband and protect resources from misuse
all of these things 25. What are, if any, the possible defenses against a valid contract which may cause it to be
unenforceable?
a.
b.
c.
d. 186 control and offer
agreement and offer
genuineness of assent and form
agreement and legal