The Organizational Environment, Part 2

The Organizational Environment, Part 2 

 

Questions 1 to 20: Select the best answer to each question. 

 

1. Activities that are involved in producing a company’s products and services and how these activities are linked together are often referred to as 

A. supply chains. 

B. operations management. 

C. value chains. 

D. organization design. 

 

2. Which of the following is not a part of the total product? 

A. Package 

B. Accessories 

C. Warranty 

D. Integration

 

3. Quality control in foreign affiliates from the home office is less difficult when 

A. the quality reports are sent to the home office at the same time. 

B. separate standards are used in each plant. 

C. the quality inspectors are trained in the home office. 

D. production equipment is similar. 

 

4. When companies report on environmental and social outcomes, as well as financial results, it’s called 

A. global edge. 

B. parallel management. 

C. triple bottom line. 

D. convergence. 

 

5. The benefits of offshore financial centers include

 A. fluctuating currency exchange rates. 

B. high interest and low fees. 

C. low taxes and few banking regulations. 

D. advantageous accounting practices. 

 

6. Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service are referred to as 

A. processes. 

B. value chains. 

C. logistics.

D. standards. 

 

7. A/An _______ tax is paid not by the person whose labor generates the income but by the business that makes the payment for the labor. 

A. money market 

B. withholding 

C. swap 

D. excise 

 

8. The centerpiece of Cognizant Technology Solution’s operations is the company’s innovative _______ business model. 

A. offshore-onshore 

B. foreign-domestic 

C. global-local 

D. insource-outsource 

 

9. Control of quality in the production of goods overseas is most easily accomplished when 

A. workers have advanced language skills. 

B. production equipment overseas is similar to that used in the United States. 

C. components of the machinery are made in the United States. 

D. raw materials come from just one supplier. 

 

10. _______ trade includes trade between a parent company and its foreign affiliates. 

A. Circuit 

B. Intrafirm 

C. Extrafirm 

D. Sans 

 

11. In the case of the United States, intrafirm trade accounts for _______ percent of exports of goods. 

A. 35 to 45 

B. 30 to 40 

C. 45 to 60 

D. 15 to 30 

 

12. The basic cultural decision a marketer has to make when placing a product in a foreign country is whether 

A. the product will be used by men or women. 

B. social taboos are implied by the product’s name. 

C. to position the product as foreign or local. 

D. the advertising for the product will be tasteful enough for the foreign audience. 

 

13. Providing rapid service without a distribution structure in place is called 

A. aibo. 

B. indirect outletting.

 C. disintermediation. 

D. floating distribution. 

 

14. Recruiting salespeople overseas can be difficult because of 

A. the fear of outsourcing. 

B. foreign unfamiliarity with the product. 

C. a society’s stigma associated with selling. 

D. language differences. 

 

15. The Sarbanes-Oxley Act was passed by Congress in response to 

A. the Enron scandal. 

B. an international demand for antitrust protection. 

C. product liability lawsuits. 

D. a need to protect US citizens from foreign laws. 

 

16. In the case of the United States, intrafirm trade accounts for _______ percent of imports of goods. 

A. 45 to 60 

B. 30 to 40 

C. 15 to 30 

D. 35 to 45 

 

17. _______ exposure is a currency exchange risk resulting from exposure during the consolidation of subsidiary financial statements. 

A. Temporal 

B. Parallel 

C. Translation 

D. Derivative 

 

18. Efforts to improve the efficiency and effectiveness of a firm’s international operations are often referred to as 

A. subcontracting. 

B. supply chain management. 

C. offshoring. 

D. outsourcing. 

 

19. Research found that suppliers cut invoice and ordering errors by an average of _______ percent when using an e-marketplace. 

A. 37 

B. 56 

C. 69 

D. 24 

 

20. Foreign shares held by a custodial US bank in the issuer’s home market and traded in dollars on the US exchange are called 

A. foreign national stipends. 

B. international finance operators. 

C. hedge funds. 

D. American depository receipts