Question 1

The functional area of Supply Chain Management (SCM)sets prices.

Accepted Answer

The functional area of Supply Chain Management (SCM) is responsible for managing the flow of goods, services, and information from suppliers to customers. They do not set prices, that responsibility typically falls on the marketing or pricing department.

Question 2

Which business function is performed by Accounting and Finance?
A)Cost allocation and control
B)Taking sales orders
C)Benefits
D)Plant maintenance

Accepted Answer

Accounting and Finance perform the function of cost allocation and control, which involves keeping track of financial transactions, preparing financial statements, analyzing data, and ensuring financial compliance. They are responsible for budgeting, forecasting, managing cash flows, and making financial decisions that help the organization achieve its goals.

Question 3

When manufacturing runs out of raw material,it is known as a(n):
A)shortfall
B)empty shelf
C)depletion
D)stockout

Accepted Answer

A stockout occurs when a company runs out of inventory, which includes raw materials. Shortfall refers to a lack of funds or a deficit, an empty shelf refers to a finished good not being on a store shelf, and depletion refers to the act of using up or exhausting a resource.

Question 4

Successful business managers view their business operations from the perspective of a(n):
A)satisfied customer
B)positive cash flow
C)profitable sale
D)accurate sales forecast

Accepted Answer

Successful business managers prioritize the satisfaction of their customers, as customer satisfaction plays a crucial role in the success and profitability of a business. By viewing their operations from the perspective of a satisfied customer, managers can identify areas of improvement, develop better products or services, and enhance the overall customer experience. Positive cash flow, profitable sales, and accurate sales forecasts are also important, but they are outcomes of a customer-centric approach to business management.

Question 5

Information systems that are designed so functional areas share data are called integrated information systems.

Accepted Answer

Integrated information systems are designed to allow different functional areas within an organization to share data, which can lead to greater efficiency and better decision-making. Typically, these systems include various modules or applications that are interconnected and communicate with each other to ensure that data is consistent and up-to-date across all functions. Examples of integrated information systems include enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and supply chain management (SCM) systems.

Question 6

One of the four functional areas of operation is Human Resources (HR).

Accepted Answer

HR is indeed one of the four functional areas of operation. The other three areas are marketing, finance, and operations.

Question 7

Sales forecasts are historical records of sales.

Accepted Answer

Sales forecasts are not historical records of sales. They are predictions and estimates of future sales based on various factors such as market trends, consumer behavior, previous sales data, and other relevant factors.

Question 8

Accounts receivable are recorded by the Human Resources department (HR).

Accepted Answer

Accounts receivable are typically recorded by the accounting or finance department, not HR.

Question 9

Today's managers are beginning to think in terms of business process.A business process cuts across which functional areas of operation?
A)Marketing and Sales
B)Supply Chain Management
C)Accounting and Finance
D)Human Resources
E)All of the above

Accepted Answer

A business process involves the coordinated efforts of multiple functional areas, including marketing and sales, supply chain management, accounting and finance, and human resources. Therefore, the correct choice is E, all of the above.

Question 10

The business process of Cash Flow Management is handled under the Accounting and Finance functional area of operation.

Accepted Answer

Cash Flow Management falls under the Accounting and Finance department as it involves monitoring and forecasting the flow of cash in and out of the organization.

Question 11

Which of the following is a functional area of operation?
A)Packaging
B)Supply Chain Management
C)Shipping
D)Baking

Accepted Answer

Supply Chain Management is a functional area of operation concerned with the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Packaging, shipping, and baking are specific processes within the supply chain management.

Question 12

To avoid stockouts,manufacturers might carry extra raw materials.This excess is known as safety stock.

Accepted Answer

Safety stock is a buffer of extra inventory that manufacturers carry to ensure that they do not run out of stock or raw materials in case of unexpected demand, delayed shipments, or other supply chain disruptions. This helps to minimize the risk of stockouts and ensure that production can continue uninterrupted, which is essential for meeting customer demand and maintaining business operations. Therefore, the statement is true that manufacturers carry extra raw materials as safety stock to avoid stockouts.

Question 13

What are the computers,people,procedures,and software that store,organize,and deliver information in an organization?
A)The CPU
B)The Process System
C)Information systems
D)Personnel systems

Accepted Answer

Information systems are specifically designed to store, organize, and deliver information within an organization. While the other options may play a role in managing information, they do not encompass the entire system of information management within an organization.

Question 14

When purchasing a computer,the functional area responsible for handling the financial help for purchasing that computer is:
A)Marketing and Sales
B)Accounting and Finance
C)Supply Chain Management
D)Human Resources

Accepted Answer

Accounting and Finance is responsible for handling financial transactions, including the purchase of computer equipment. Marketing and Sales focus on promoting and selling products, Supply Chain Management deals with the flow of goods and services, and Human Resources is responsible for employee-related matters. Therefore, Accounting and Finance is the correct functional area for handling the financial help for purchasing a computer.

Question 15

The business function of government compliance falls under the Supply Chain Management functional area of operation.

Accepted Answer

The business function of government compliance falls under the Legal and Regulatory Compliance functional area of operation, not Supply Chain Management.

Question 16

Estimates of future product demand,which are the amount of a product that customers will want to buy,are called:
A)sales forecasts
B)sales divining
C)sales diving
D)sales deriving

Accepted Answer

Sales forecasts are the most commonly used term for estimates of future product demand. Sales divining, sales diving, and sales deriving are not commonly recognized terms in this context.

Question 17

When manufacturing runs out of raw materials,it's known as a stockout.

Accepted Answer

A stockout occurs when a company runs out of inventory or raw materials needed for production. This can occur due to various reasons such as unexpected increases in demand, supply chain disruptions, or improper inventory management.

Question 18

Historically,businesses have had organizational structures that separated the functional areas,but business schools have not been organized like that.

Accepted Answer

Business schools have historically mirrored the organizational structures of businesses by having departments or divisions that specialize in functional areas such as finance, marketing, operations, and human resources.

Question 19

Which of the following is an input to the Marketing and Sales functional area?
A)Production plans
B)Raw material orders
C)Per-unit cost
D)Accounts payable data

Accepted Answer

Per-unit cost is an input to the Marketing and Sales functional area as it helps in setting prices and determining profitability.

Question 20

Information systems that can be designed so that functional areas of operation share data are called:
A)integrated information systems
B)complete information systems
C)non-middleware information systems
D)linked information systems

Accepted Answer

Integrated information systems are designed to allow different functional areas to share data, improving efficiency and accuracy. This is achieved through the use of software and hardware components that can integrate and interface with each other. By sharing data, these systems can provide managers with a more comprehensive view of operations, allowing them to make better-informed decisions.

Quiz 1: Business Functions and Business Processes

The functional area of Supply Chain Management (SCM)sets prices.

Which business function is performed by Accounting and Finance?

When manufacturing runs out of raw material,it is known as a(n) :

Successful business managers view their business operations from the perspective of a(n) :

Information systems that are designed so functional areas share data are called integrated information systems.

One of the four functional areas of operation is Human Resources (HR).

Sales forecasts are historical records of sales.

Accounts receivable are recorded by the Human Resources department (HR).

Today's managers are beginning to think in terms of business process.A business process cuts across which functional areas of operation?

The business process of Cash Flow Management is handled under the Accounting and Finance functional area of operation.

Which of the following is a functional area of operation?

To avoid stockouts,manufacturers might carry extra raw materials.This excess is known as safety stock.

What are the computers,people,procedures,and software that store,organize,and deliver information in an organization?

When purchasing a computer,the functional area responsible for handling the financial help for purchasing that computer is:

The business function of government compliance falls under the Supply Chain Management functional area of operation.

Estimates of future product demand,which are the amount of a product that customers will want to buy,are called:

When manufacturing runs out of raw materials,it's known as a stockout.

Historically,businesses have had organizational structures that separated the functional areas,but business schools have not been organized like that.

Which of the following is an input to the Marketing and Sales functional area?

Information systems that can be designed so that functional areas of operation share data are called: