NAME: ______________________________ 7. Paid message that appears in the mass media for the purpose of 10.

s in the mass media for the purpose of 10. Companies must serve markets that are best fitted to their
MANAGING PRODUCTION AND SERVICES, MARKETING FUNCTION, AND informing or persuading people about particular products capabilities.
FINANCE FUNCTION 8. More aggressive means of promoting the sales of a product or service IV. MATCHING TYPE.
I. IDENTIFICATION. Write the correct answer on the space provided. A. Advertising 1. Refers to or other considerations exchanged for the purchase
1. Risk where there is only a chance of loss. B. Sales promotion or use of the product, idea, or service.
2. It is a commercial or industrial loan from a commercial bank, C. Personal selling 2. Procurement and administration of funds with the view of
commonly used for plant and equipment, working capital, or debt D. Publicity achieving the objectives of business.
repayment. 3. Is a certificate of indebtedness issued by a corporation to a
3. It is a certificate of indebtedness issued by a corporation to a lender. 9. Institutions that buy the accounts receivables of firms, assuming lender.
4. Refers to corporate earnings not paid out as dividends complete accounting and collection responsibilities 4. Provides a diverse mix of services.
5. Risk in which there is a chance of either loss or gain. 10. Suppliers extending credit to a buyer for use in manufacturing, 5. A more aggressive means of promoting the sales of a product
6. Maturities of term loans. processing, or reselling goods for profit or service.
7. They recommend that factors such as flexibility, risk, income, control, 11. Those that help business firms in borrowing funds from the money 6. There is only a chance of loss
timing, and others must be considered to determine the best source of market 7. Is a group of activities designed to facilitate and expedite the
financing. 12. Institutions which individuals or firms may tap as source of short-term selling of goods and services.
8. It is a method of handling risk wherein the management assumes the financing 8. Based on sales orders for a variety of small lots.
risk. A. Commercial Banks 9. Is a method of handling risk wherein the management
9. It is also called statement of financial position. B. Commercial Paper Houses assumes the risk.
10. It is an organized strategy for protecting and conserving assets and C. Factors 10. Also called statement financial position
people. D. Trade creditors 11. The promotional tool that publishes news or information about
11. It refers to making commitments on both sides of a transaction so the a product
risks offset each other. 13. Unsecured and permits the customer to pay for goods delivered to 12. Is a commercial or industrial loan from a commercial bank
12. Also called statement operations. him in a specified number of days 13. The rapid rate at which items move though the system
13. Subjects the borrowing firm to more risk than does financing with 14. Time drat drawn by a seller upon a purchase payable to the seller as 14. Also called statement operations
long-term debt. payee, and accepted by the purchaser as evidence 15. There is a chance of either loss or gain
14. Payment of interest or principal is guaranteed by one or more 15. An unconditional promise in writing made by one person to another
individuals or corporations A. Open-book credit
15. Refers to the uncertainty concerning loss or injury B. Finance companies a. Job Shop i. Term Loans
b. Continuous Flow j. Bond
C. Promissory note
c. Service Shop k. Balance Sheet
II. MULTIPLE CHOICE. Write only the letter of the correct answer. D. Trade Acceptance d. Marketing l. Income Statement
1. If every factor is equal, customers would prefer to buy from firms easily e. Price m. Pure Risk
accessible to them III. TRUE OR FALSE. Write TRUE if the statement is correct, FALSE if it is f. Publicity n. Speculative Risk
2. Money or other considerations exchanged for the purchase or use of incorrect. g. Personal Selling o. Risk Retention
h. Finance Function p. Collateral
the product, idea, or service 1. Standard control refers to the measurement of products or
3. The tangible or intangible item and its capacity to satisfy a specific services against standards set by the company.
need 2. Any delay in the settlement of the foregoing expenses may V. Enumeration
4. Communicating information seller and potential buyer to influence disrupt the effective flow of work in the company. 1-6 Manufacturing Processes
attitude and behavior 3. Advances from customers is an example of long-term sources 7-10 Service Processes
A. Promotion of fund. 11-16 Important Parts of Productive System
17-20 4 P’s of Marketing
B. Price 4. Loans and credits may be classified as short-term only.
21-28 Types of Bonds
C. Place 5. A market consists of only organizations with the desire and
29-30 Reasons why short-term debt happens
D. Product ability to buy a specific product or service. 31-33 Advantages of Short-term credits.
6. Balance sheet is also called a statement of operations. 34-39 Sources of cash in-flows
5. Paid attempt to communicate with the customers other than the other 7. Risk refers to uncertainty concerning loss or injury. 40-45 Sources of Short-term funds
promotional tools 8. A bond is a certificate of indebtedness.
6. Publishes news or information about a product, service or idea on 9. Open book credit is a secured short-term source of fund and
behalf of a sponsor but is not paid for by the sponsor requires collateral.
ANSWER KEY 10. K 31-33
I. Identification 11. F
1. Organizing 12. I  They are easier to obtain.
2. Structure  Short-term financing is often less costly.
13. B
3. Designing Jobs  Short-term financing offers flexibility to the borrower.
14. L
4. Span of Control 34-39
5. Organizational Chart 15. N
6. Policy Manuals V. Enumeration  Cash sales.
7. Valentine 1-6.
 Collection of Accounts Receivables.
8. Functional Organization
 Loans and Credits.
9. Product or Market Organization  Job shop
 Batch flow  Sale of assets.
10. Matrix organization
 Worker-paced line flow  Ownership contribution.
11. Staff Authority
12. Line Authority  Machine-paced line flow  Advances from customers.
13. Line Managers  Batch/continuous flow hybrid 40-45
14. Staff Managers  Continuous flow
15. Central Pool  Trade creditors
II. Multiple Choice 7-10  Commercial banks
1. C  Commercial paper houses
2. B  Service factory  Finance companies
 Service shop  Factors
3. D
 Mass service
4. A  Insurance companies
 Professional service
5. B
6. D 11-16
7. A
8. C  Product design
9. C  Production planning and scheduling
10. D  Purchasing and materials management
11. B  Inventory control
12. A  Work flow layout
13. A  Quality control
14. D
15. C 17-20
III. True or False  Product
1. False  Price
2. True  Place
3. False  Promotion
4. False
21-28
5. False
6. False  Debentures
7. True  Mortgage bond
8. True  Collateral trust bond
9. False  Guaranteed bond
10. True  Subordinated debentures
IV. Matching Type  Convertible bonds
1. E  Bonds with warrants
2. H  Income bonds
3. J
4. C 29-30
5. G
6. M  Short-term debts may not be renewed with the same
7. D terms as the previous one, if they can be renewed at all.
 Sine repayments are done more often, the risk of
8. A
defaulting is greater.
9. O