Day 7

Question 1

Define: Circular Combination

Answer 1

Includes the merger of different types of businesses with remote connections under single MGMT

NOTE: Achieving economies of scale is associated with a horizontal combination

MCQ-04579

Question 2

Define: Equity carve-out

Answer 2

Partial disposal of a business segment formed into a new company, but the parent company maintains controlling interest

MCQ-04580

Question 3

Define: Spin-Off

Answer 3

A business segment that has declined sales, operating costs, and lacks business expertise. The parent company should create a new company so that segment can get new Capital infusion

MCQ-04582

Question 4

Define: Spin-Off

Answer 4

A spin-off typically involves creating a new company where existing shareholders receive stock in the new company in exchange for their shares in the parent company.

MCQ-04583

Question 5

What is a not a discharge of outsourcing?

Answer 5

Risk mitigation

MCQ-06795

Question 6

Companies that adopt just-in-time inventory experience:

Answer 6

Fewer suppliers because J-I-T inventory is very dependent on the supplier relationship

MCQ-03550

Question 7

Just in time inventories characteristics:

Answer 7

• lot sizes equal to one
• insignificant setup times and cost
• balanced and level workloads

Note: JIT controls the flow of goods by the “pull” approach. When an item is produced only when it is needed.

MCQ-03880

Question 8

Benefits of JIT for raw materials includes:

Answer 8

Elimination of non-value-adding operations

Decreases the cost of storing raw materials

MCQ-03895

Question 9

Overall benefits of JIT:

Answer 9

Improved:
- Effectiveness
- Efficiency
- Quality
- Reduced costs

MCQ-06792

Question 10

Total Quality MGMT characteristics:

Answer 10

1. Focus on customer needs
2. Continuous improvement
3. Quality circles

MCQ-06790

Question 11

When does the performance of Quality Assurance occur?

Answer 11

During the implementation process, after a standard of quality has been defined

MCQ-06488

Question 12

What uses analysis of production processes to ensure that resource uses stay within the target costs?

Answer 12

Kaizen or Continuous Improvement

MCQ-06791

Question 13

Org. With one piece flow manufacturing environments that are experiencing bottlenecks in production would develope a strategy associated with:

Answer 13

Theory of Constraints

MCQ-06495

Question 14

The maximization of throughput is a concept of what MGMT philosophy?

Answer 14

Theory of Constraints

MCQ-06798