Expert Answer :BAM 418 Unit 4 Examination – The small business ga

Solved by a verified expert :BAM 418 Small Business Management Unit 4 Examination Multiple Choice Questions (Enter your answers on the enclosed answer sheet)1. The small business gains what advantage by selling on consignment?a.b.c.d. better customer servicereceiving absolute title to the goods prior to paying for themshorter lead time when reordering than with standard contractsnot bearing the risk of loss for the consigned goods 2. Improving quality:a.b.c.d. reduces rework timeincreases worker productivitylowers the associated cost with scrapall of the above 3. Holding or carrying costs include the costs of:a.b.c.d. processing a purchase orderordering materials and inventoryreceiving and inspecting items and all administrative costsinsurance, taxes, depreciation, etc 4. The small business owner needs to know ________ in order to avoid stockouts and calculatesafety stock.a.b.c.d. thethethethe minimum level of stock allowablelead timeEOQusage rate 5. A buyer owns a retail shop in Baltimore. A seller is a manufacturer in San Diego. The buyerorders from seller to be shipped “F.O.B. San Diego.” Risk of loss passes to the buyer when:a.b.c.d. 182 thethethethe goods are identified to the contractgoods are delivered to the buyer’s retail shopcontract is madeseller delivers the goods to the carrier BAM 418 Small Business Management Unit 4 Examination 6. The first rule governing transfer of title and risk of loss states that:a. the buyer has both title and risk of loss as soon as the goods are paid for, regardless oftheir physical locationb. title transfers to the buyer as soon as the goods are in the hands of the carrierc. title transfers to the buyer as soon as the goods are deliveredd. the supplier and small business may agree to a shift of the risk of loss at any time duringthe transaction between them 7. An alternative to a two-bin system, wherever space or the type of item doesn’t fit the system,would be a:a.b.c.d. tag systemPOS systempunch card systemphysical inventory system 8. Kleptomaniacs have a compulsive need to steal even though they have little, if any, need forthe items they shoplift. Kleptomaniacs account for less than ________ percent of shoplifters.a.b.c.d. 157105 9. Which of the following could be a reason why an employee steals?a.b.c.d. greedtemptationopportunityall of the above 10. The primary human elements on which successful JIT systems are built are:a.b.c.d. 183 mutual trust and teamwork and empowermenthigh profit and lower labor costlower labor cost and productivitymutual trust and teamwork & productivity BAM 418 Small Business Management Unit 4 Examination 11. The first objective of a job analysis is to develop a job description. The second objective is tocreate a:a.b.c.d. job specificationadvertisement in the newspaperjob interview outlinenone of the above 12. A ________ is used by the owner of a small business to determine wage and salary increases,need for training, overall job progress, etc., among other things.a.b.c.d. job redesignhuman resource plancompensation planperformance appraisal 13. When a small business owner increases the variety of skills needed on a job, permits theworker to complete an entire job rather than a portion of it, and gives the worker more freedomof decision on how to perform the job, the owner is using:a.b.c.d. jobjobjobjob enlargementrotationsimplificationenrichment 14. This act was passed by Congress to supplement the Clayton Act, providing the power to prevent“unfair methods of competition in commerce or unfair or deceptive acts in commerce.”a.b.c.d. TheTheTheThe Miller-Tydings ActRobinson-Patman ActFederal Trade Commission ActSherman Act 15. Which of the following phrases is sufficient to disclaim an implied sales warranty?a.b.c.d. 184 “Seller makes no warranties on this product whatsoever”“No warranties”“As is”None of the above. A merchant cannot disclaim sales warranties. BAM 418 Small Business Management Unit 4 Examination 16. An agent’s duties when executing agency include:a. performance of duties according to the principal’s instruction and notification of theprincipal of all facts concerning the subject matter of the agencyb. reimbursement of the principal for all expenses incurred in the execution of the agencyc. indemnification of the principal for any authorized payments or any loss incurred by theagencyd. all of the above 17. The small company’s purchasing plan is closely linked to which of the other functional areas?a.b.c.d. marketing and salesproduction and engineeringfinance and accountingall of the above 18. “F.O.B. buyer” means that:a. both title and risk of loss pass to the buyer immediately upon payment of the contractregardless of location of the goodsb. title passes to the buyer when the seller delivers the goods to the shipperc. risk of loss passes to the buyer when the seller delivers the goods to the buyer’s place ofbusinessd. the buyer pays all shipping and transportation costs 19. The most effective businesses know that what is required is not simply the technology but the________ with suppliers who are themselves technologically sophisticated enough to interacton a real time basis to deliver what is needed when it is needed.a.b.c.d. electronic data interchangecritical strategic alliancescredit termsnone of the above 20. In the stages of team development, a team is at the performance stage when it:a.b.c.d. 185 achieves commitment to the process and taskhas its highest expectationsbegins to reset its goals and rolesrecognizes fully the time and effort that will be involved BAM 418 Small Business Management Unit 4 Examination 21. In terms of contractual capacity:a. intoxicated individuals are generally always held liable for their contractual obligations,regardless of their condition upon execution of the contractb. if a minor benefits from a contract and then disaffirms it, he/she must fulfill the duty ofrestorationc. a minor can disaffirm and walk away from a contract even if already executed and theminor has benefited from itd. an insane person can never have contractual capacity by definition 22. Quality improvement efforts must ultimately focus on:a.b.c.d. thethethethe manufacturing processproductcustomerpurchasing process 23. A firm’s ________ expresses the number of times per year the business sells all of its inventory.a.b.c.d. liquidity ratioinventory turnover ratioquick ratiooperating ratio 24. If you were evaluating your college administration for effective leadership behaviors, you needto look for:a.b.c.d. their short-term focus, their ability to see the detail needing to be accomplishedthe ability to encourage creativity in employeestheir ability to husband and protect resources from misuseall of these things 25. What are, if any, the possible defenses against a valid contract which may cause it to beunenforceable?a.b.c.d. 186 control and offeragreement and offergenuineness of assent and formagreement and legal