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BA 490 Exam 2 (potential) study guide

Terms in this set (38)

Cash and profit are synonymous.
False
Capital needed for company activities cannot be acquired through:
A) stocks and bonds
B) profits
C) current debt
D) arbitrarily firing employees
E) all of the above
D) arbitrarily firing employees
Which financial obligation is best satisfied with Current Debt Issues as opposed to other financing choices?
A) Accounts Payable
B) Paying for increased production capacity
C) Changes in A/R policy
D) Salary increases
E) All of the above
B) Paying for increased production capacity
Which financial obligation is best satisfied with Bond Issues?
A) Accounts Payable
B) Paying for increased production capacity
C) Changes in A/R policy
D) Salary increases
E) All of the above
B) Paying for increased production capacity
A firm's bond rating slips by 1 category for each ______ in interest
A) additional 0.5%
B) additional 1.0%
C) 5.0% decrease
D) 10.0% decrease
E) bond ratings remain constant
A) additional 0.5%
Rarely does it make sense to run a company using debt.
False
1. The TQM report can be accessed from
The Foundation(r) FastTrack
2. Investing in the same TQM Initiative round after round will create
diminishing returns
3. According to the S-Shaped curve, diminishing returns for a single year budget become significant at
$750,000
4. The exact outcome of TQM efforts appear on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for
cumulative for the previous and all remaining rounds (assuming no additional investment is made)
5. If a company with low automation wanted to invest in a single area that exclusively lowers labor costs, they would select:
QIT (Quality Initiative Training)
An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?
A. Functional structure
B. Matrix structure
C. Strategic business unit structure
D. Holding company structure
C. Strategic business unit structure
Which of the following is an advantage of a divisional type of organizational structure?
A. Efficient use of managerial and technical talent.
B. An enhanced ability to respond quickly to changes in the external environment.
C. High degree of emphasis on long-term performance.
D. Uniformity in image and quality across divisions.
B. An enhanced ability to respond quickly to changes in the external environment.
Complicated working relationships and intense power struggles are disadvantages of what type of organizational structure?
A. divisional
B. matrix
C. holding company
D. functional
B. matrix
At ABC Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a
A. simple structure.
B. functional structure.
C. divisional structure.
D. matrix structure.
B. functional structure.
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