QUESTION How does possessing a core competence help a firm? A. It helps a firm to create value in such a way that premium pricing is impossible. B. It reduces a firm’s dependence on its logistics function. C. It enables a firm to reduce the costs of value creation. D. It reduces the scope of […]
Date: September 3rd, 2020
QUESTION Which of the following refers to systematic reductions in production costs that have been observed to occur over the life of a product? A. Experience curve B. Learning effects C. Location economies D. Efficiency slope E. Economies of scale ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following caveats is most likely to discourage global expansion of businesses? A. Economies of scale B. High consumers’ reservation prices C. Trade barriers D. Mass customization E. Low transportation costs ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following is most likely to be the advantage of locating a value creation activity in the optimal location for that activity? A. It increases the costs of value creation. B. It decreases consumer surplus. C. It helps the firm to achieve a high-cost position. D. It nullifies all trade barriers. E. […]
Date: September 3rd, 2020
QUESTION For services such as banking or health care, “production” typically occurs when the: A. customer specifies the service requirements. B. service is paid for by the customer. C. service is designed in-house. D. service is delivered to the customer. E. customer provides feedback. ANSWER D
Date: September 3rd, 2020
QUESTION By dispersing different stages of its value chain to those locations around the world where the value added is maximized or where the costs of value creation are minimized, a firm creates a(n): A. integral circle. B. dispersal chain. C. global web. D. international mesh. E. worldwide circle. ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following is the function of a value chain that controls the transmission of physical materials through the value chain, from procurement through production and into distribution? A. Human resource B. Finance C. Marketing D. Logistics E. Research and development ANSWER D
Date: September 3rd, 2020
QUESTION In which of the following tasks will the learning effects be most significant? A. Pizza delivery for a fast-food major B. Data entry for a loan recovery center C. Assembly process involving 1,000 complex steps D. Sewing buttons onto shirts in a garment factory E. Delivering letters to different recipients ANSWER C
Date: September 3rd, 2020
QUESTION Which of the following functions creates a perception of superior value in the minds of consumers by solving consumer problems and by supporting them after they have purchased the product? A. Production B. Marketing and sales C. Human resources D. Customer service E. Logistics ANSWER D
Date: September 3rd, 2020
QUESTION The two phenomena that help explain the experience curve are: A. learning effects and economies of scale. B. technology inputs and wealth transfer. C. leveraging subsidiary and local responsiveness. D. standardized manufacturing and global web. E. efficiency frontier and location economies. ANSWER A
Date: September 3rd, 2020
