Operations Verified Test Bank Skinner Ch.4

CHAPTER 4: OPERATIONS

TEST BANK

A) MULTIPLE CHOICE

Select the "most correct" option:

1. Which of the following is a major consideration when setting up an office?

a. personal work habits.

b. visitors.

c. ergonomics.

d. all are major concerns.

2. In Canada, a business can be incorporated through:

a. the federal government.

b. a provincial government.

c. the federal or a provincial government.

e. the federal, a provincial or a municipal government.

3. Which of the following techniques involves a Bar Graph?

a. flow chart.

b. Gantt chart.

c. PERT chart.

d. sequential list.

4. Which of the following is not a management “tip” offered by the text?

a. punish swiftly.

b. measure behaviour.

c. take responsibility for employee well-being.

d. reward improvement.

5. Cash that a sole proprietor takes out of the business for his/her personal use is called:

a. dividends.

b. benefits.

c. drawings.

d. personal incentive.

6. The credit requirements for leasing equipment:

a. are about the same as for purchasing the equipment.

b. are more stringent than for purchasing the equipment.

c. are much less than for purchasing the equipment.

d. there are no credit requirements for leasing equipment.

7. Ergonomics is about selecting equipment that:

a. is comfortable.

b. that is visually pleasing.

c. that reduces eye, joint and muscle strain.

d. none of the above.

8. The traditional assembly line is an example of:

a. process set-up.

b. product set-up.

c. free-low layout

d. service set up.

9. Logistics is about:

a. logical decision-making processes.

b. assessing the feasibility of any given business venture.

c. planning, procurement, transportation and storage.

d. a logical series of quality control procedures.

10. The purpose of a purchasing system is to:

a. avoid running out of inventory or supplies.

b. reduce inventory costs.

c. both of the above.

d. none of the above.

11. One of the following is not a techniques for outlining the processes in a business:

a. sequential list

b. bar graph

c. Histogram

d. PERT Chart

12. Patent, copyright, trademark, industrial design, and microchip design are all examples of:

a. intellectual property

b. fraud prevention

c. business owner policies

d. quality standards

B) TRUE OR FALSE

1. T F Equipment or materials you already own and will use in your business, are considered to be part of your investment in the business.

2. T F It is generally best for a small business to pay an accountant to perform the day-to-day bookkeeping chores.

3. T F According to the text, the first step in setting up an accounting system is to

prepare a “chart of accounts.”

4. T F A corporation may be registered with either the Federal Government or a Provincial Government.

5. T F Zoning for land use comes under Federal jurisdiction.

6. T F Customer files are typically maintained with database software.

7. T F Financial transactions are recorded in a chart of accounts.

8. T F The Canadian Federation of Independent Business is a lobby group.

9. T F "Bookkeeping" and "accounting" are interchangeable terms.

10. T F "Accountability" refers to those things on which a person's performance will be measured.

11. T F Accounts receivable is a list of the bills a business owes that will have to be paid
in the near future.

C) FILL IN THE BLANKS

1. An office is basically a place for processing and storing .

2. A list of all the particular areas in which a business expects to have transactions is

called a of .

3. A business in Canada is required to collect GST if it has sales in excess of

$ .

4. Dental care, drug plans and disability insurance are examples of employee

.

5. is a term that originally applied to the planning and carrying out of military movements.

6. ________________________ is the planning, implementing, and controlling all of the contractual and physical aspects of bringing a product or service from its most basic components to the end-user.

7. Theft by deceit or trickery is called_______________________

8. A ______________________ is a tool that records each of your financial transactions in chronological order, noting which of your accounts the transaction affects.

9. _____________________________ is a graphic representation of the

structure of an organization, showing who is whose boss.

D) SHORT ANSWER

1) Briefly identify and explain three main considerations for the layout of retail space.

2) Pick one type of chart or graph that can be used to control businesses processes. Sketch an

example and explain how it can be used.

3) Discuss the two main objectives of purchasing systems.

E) ESSAY

1. Identify four broad Functions of Management and explain ways each can be carried out.

(1 page max)

2. Identify the major ways in which small businesses are involved with government and

explain why these can be a source of frustration to the business owner. (1 page max)

3. Discuss the need for small business insurance. Provide an example of a company and identify and explain 4 types of Business Owner Policies that might be applicable for that industry.

4. Identify 4 methods of theft and identify the appropriate theft prevention for each method of theft.

5. Distinguish among four methods of protecting intellectual property