Question 1

Teams of employees working together to identify and solve problems can't be a very powerful force in a small organization.

Accepted Answer

Teams of employees working together to identify and solve problems can be a very powerful force in any organization, regardless of size. Collaborative problem-solving approaches can lead to increased efficiency, innovation, and employee engagement.

Question 2

In an "F.O.B.seller" (shipment)contract,both title and risk of loss transfer to the buyer when the seller delivers the goods to the carrier or shipper.

Accepted Answer

In an F.O.B. seller (shipment) contract, the title and risk of loss transfer to the buyer when the seller delivers the goods to the carrier or shipper.

Question 3

Quality has an impact on both costs and revenues.

Accepted Answer

Higher quality products may have higher costs in terms of materials and production, but they can command higher prices and generate more revenue through customer satisfaction and loyalty. Conversely, lower quality products may have lower costs but can lead to decreased revenue due to customer dissatisfaction and negative word-of-mouth.

Question 4

Under the Uniform Commercial Code,the party who has title to goods also has the risk of loss if those goods are lost,damaged,or destroyed.

Accepted Answer

Under the Uniform Commercial Code (UCC), the risk of loss does not necessarily follow the title. The risk of loss depends on the terms of the contract and the specific circumstances, such as whether the goods were delivered to the buyer or whether a breach of contract has occurred.

Question 5

A small business owner seeking suppliers can find lists of products and services,along with the names,addresses,telephone numbers,and ratings of manufacturers,in either Thomas Register of American Manufacturers or MacRae's Blue Book.

Accepted Answer

Both Thomas Register of American Manufacturers and MacRae's Blue Book provide lists of products and services along with contact information for manufacturers and suppliers.

Question 6

Selling through a consignment contract allows the small business owner to delay payment to the consignor until an item is sold.

Accepted Answer

Consignment agreements typically allow the consignor to receive payment for the sale of their items once they have been sold, rather than upfront. This can be beneficial for small business owners who may not have the immediate cash flow to purchase inventory outright.

Question 7

Both a buyer and a seller cannot have an insurable interest in the same goods.

Accepted Answer

Both a buyer and a seller can have an insurable interest in the same goods at different times or under certain conditions, such as when the goods are in transit or until the title has passed.

Question 8

Seller and buyer can agree to the terms under which title and risk of loss shift in a business transaction.

Accepted Answer

This statement is true. Title and risk of loss can be negotiated and agreed upon between the seller and buyer in a business transaction. However, it is important to clearly outline these terms in the sales contract to avoid any misunderstandings or disputes in the future.

Question 9

A buyer gets an insurable interest in goods once they are identified as the goods pertaining to the contract.

Accepted Answer

According to the principle of insurable interest, a buyer gets an insurable interest in goods once they are identified as the goods pertaining to the contract. This means that the buyer has a financial stake in the goods and would suffer a loss if the goods were damaged or lost. Therefore, the buyer can insure the goods against such risks.

Question 10

"Identification" is the designation of goods as the subject matter of the sales contract.

Accepted Answer

Identification means pointing out or specifying which specific goods are being sold, and is an essential element of the sales contract.

Question 11

Risk of loss always passes with title to the goods.

Accepted Answer

The risk of loss can be determined by the terms of the contract between the buyer and seller. It is possible for the risk of loss to pass before, after, or at the same time as title to the goods, depending on the agreement made between the parties.

Question 12

A consignment contract means that the supplier (i.e. ,the consignor)retains title and risk of loss for the consigned merchandise.

Accepted Answer

In a consignment contract, the consignor (supplier) retains ownership and risk of loss for the consigned merchandise until it is sold to a customer. This means that although the merchandise is in the possession of the consignee (seller), it still belongs to the consignor until a sale is made.

Question 13

Smaller firms must usually pay market or list price for items that are of lower value and purchased infrequently.

Accepted Answer

Smaller firms usually do not have the purchasing power or volume to negotiate lower prices with suppliers, so they must pay the market price or list price for items of lower value that are purchased infrequently.

Question 14

To give employees a sense of how the quality of their job fits into the big picture,many TQM companies engage in cross-training,teaching workers to do other jobs in the company.

Accepted Answer

Cross-training allows employees to understand how their work fits into the larger context of the organization and how it may impact other areas of the company.

Question 15

A sales contract designated F.O.B.buyer requires the seller to deliver the goods to the buyer's place of business (or some other designated location),and risk of loss does not pass to the buyer until the goods are so delivered.

Accepted Answer

In F.O.B. buyer contracts, the seller is responsible for delivering the goods to the buyer's location and the risk of loss does not pass to the buyer until the delivery is completed.

Question 16

Employing a technique entitled benchmarking is not very useful in achieving quality outcomes.

Accepted Answer

Benchmarking is a useful technique in achieving quality outcomes as it involves comparing one's practices and processes with those of industry leaders or competitors to identify areas for improvement and to implement best practices. Through benchmarking, organizations can learn from others who have achieved success in a similar field and use that knowledge to improve their own performance.

Question 17

Discuss the purchasing plan,briefly describing each of the five key elements of the plan.

Accepted Answer

The answer of Discuss the purchasing plan,briefly describing each of...

Question 18

The analytical techniques used to determine economic order quantities (EOQs)will help the manager compute the amount of stock to purchase with an order or to produce with each production run to minimize total inventory costs.

Accepted Answer

This statement is true. EOQ analysis helps managers determine the optimal quantity to order or produce in order to minimize inventory costs, taking into account factors such as ordering costs, carrying costs, and demand.

Question 19

The costs of obtaining materials and inventory typically include preparing purchase orders;analyzing and choosing vendors;processing,handling,and expending orders;receiving and inspecting items;but not performing the required accounting and clerical functions.

Accepted Answer

The costs of obtaining materials and inventory typically include all related activities, including performing the required accounting and clerical functions.

Question 20

The small business owner should concentrate purchases at a single supplier.

Accepted Answer

Concentrating purchases at a single supplier allows for greater negotiating power and often results in discounts and better customer service. It also simplifies the purchasing process and reduces the time and effort needed to manage multiple supplier relationships.

Quiz 17: Supply Chain Management