BUS 100

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1. In the context of the fundamental rights of capitalism, It doesn't guaran-

which of the following statements is true about capi- tee that anyone
talism? will actually earn
profits.

2. Reserve requirement is a rule of the Fed which re- false

quires that all of its member banks hold funds which
are more than the stated percentage of the deposits
held by their customers.

3. Rolliand Bank is going through a financial crisis. discount rate

Therefore, it takes a loan from the Federal Reserve.
The bank has to repay the loan within a year, and it
also has to pay a monthly interest of 6% to the Fed.
In this case, the 6% interest rate that the Fed charges
from Rolliand Bank is the _____.

4. Identify a true statement about the debt ceiling. Voting on the

debt ceiling hap-
pens separately
from voting on tax-
es and spending.

5. In the context of monetary policy, when the econo- false

my contracts, the Fed typically decreases the money
supply.

6. Which of the following is a negative factor that in- Inefficiencies and

terferes with the effectiveness of socialist economic corruption
systems?

7. In 1982, the total expenditure of the government of budget deficit

Kargenia, a European country, exceeded its revenue
by a substantial amount. This forced the government
of Kargenia to borrow funds to meet its legal oblig-
ations. In this scenario, the government of Kargenia
incurred a _____ in 1982.

8. The economic system of the United States is called capitalism

_____.
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9. The Fed directly stimulates spending by: buying govern-

ment securities.

10. In the context of the free market system, which of In the context of
the following market structures has a low barrier to the free market
entry? system, which of
the following mar-
ket structures has
a low barrier to en-
try?

11. Ethan, an employee in a corporate company, is asked establish the

to do a systematic evaluation of the company's adher- ethics and so-
ence to its social and ethical standards. In this case, cial responsibili-
Ethan should first: ty goals that the
company seeks to
achieve.

12. Which of the following is a duty of a socially respon- Following laws

sible organization toward its customers? that prevent an-
ticompetitive be-
havior such as
predatory pricing

13. The personal needs, the culture, and the family of an true
individual influence his or her ethical choices.

14. Angorasia, an Asian country, supports a free market consumerism

system. The flexible economy of the country makes it
fairly easy for new sellers to enter the market, which
in turn gives buyers a variety of choices in terms of
products and services. Given this information, it can
be said that Angorasia supports _____.

15. Quinbeck Inc., a computer manufacturing company, corporate philan-

annually donates 6% of its total profits to an orphan- thropy
age. The company also provides free personal com-
puters to children to promote learning among them.

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Given this information, Quinbeck Inc. most likely en-
gages in _____.

16. Rudolf, a Polish manager in a company based in respect

China, is admired by his colleagues for the way he
interacts with people, his considerate nature, and his
tolerance toward other cultures. In the context of uni-
versal ethical standards, Rudolf possesses the core
value of _____.

17. The trade union members of a wool manufacturing stakeholders

company are the company's _____.

18. Trotin Langdon Corp., a leading car dealer, operates a code of conduct
in many countries. The company has a clearly written
mandate for all its contractors abroad. According to
this, all contractors must ensure that standardized
safety measures are implemented in their factories
and workers are made to work only for nine hours
a day. In this scenario, Trotin Langdon Corp. has set
_____ for its vendors.

19. The number-one goal of any business is to contribute False

to society.

20. David is the chief executive officer of Grand Rocks sustainable devel-
Mining Company. He has convinced the company's opment
board of directors to implement a change in the
mining procedure. According to the new procedure
suggested by David, less resources will be exhaust-
ed. This will ensure that the ability of future genera-
tions to meet their needs is not harmed because of
shortage of natural resources. By agreeing to David's
suggestion, Grand Rocks has embraced the idea of
_____.

21. Which of the following statements is true of cloud They are green
computing applications? and require less
capital.

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22. Which of the following practices is most likely to Using common
strike the right tone in a business message? words

23. When drafting an email intended for a recipient who begin the email
is likely to feel positive about it, you should: with your bottom
line.

24. Ron, an employee of Orifeon Corporation, is involved Face-to-face

in various fraudulent activities. His team members meeting
find out about Ron's behavior and report it to their
manager, Jaden. Jaden decides to discuss this issue
with Ron. In this scenario, which of the following
communication channels is Jaden most likely to use?

25. In the context of nonverbal communication, leaning It demonstrates

forward during a conversation is considered a sign negative age bias
of interest. toward old people.

26. In the context of nonverbal communication, leaning True

forward during a conversation is considered a sign
of interest.

27. To strike the right tone while writing a business mes- uses the active
sage, it is suggested that an individual: voice to facilitate
concise communi-
cation.

28. Which of the following practices should ideally be Telling the au-
followed when giving a business presentation? dience the key
points before
launching into the
body of the pre-
sentation

29. In a business presentation, which of the following Using expert quo-

actions is likely to increase your credibility and per- tations during the
suasiveness? presentation

30. false

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Studies suggest that three days after a presentation,
people retain more from an oral presentation than
from a visual presentation.

31. Which of the following countries exemplifies the con- An Asian country
cept of opportunity cost? that increases its
production of sug-
ar by decreasing
its production of
cocoa

32. Tanya Williams, the chief executive officer of Willister foreign franchising
Computers, believes that the firm is currently best
equipped to enter the market of Troyesna, a fast-de-
veloping country. The firm offers a small-scale pro-
ducer in Tryoesna the right to produce and market its
goods based on a set of specific operating functions
and requirements. This scenario of Willister Comput-
ers illustrates _____.

33. Brentia, an East Asian country, exported goods worth balance of pay-
$50 million and imported goods worth $5 million in ments surplus
the last fiscal year. It also provided a loan of $25
million to another country. In this scenario, Brentia
most likely had a _____ in the last fiscal year.

34. In the context of the strategies for reaching global True

markets, franchising is a strategy to seek foreign
suppliers.

35. The _____ is an organization of 188 member nations International Mon-

that promotes global economic cooperation and sta- etary Fund
ble growth.

36. In the fiscal year 2015-2016, Nescarto, an African balance of pay-

country, imported goods worth $18 million and ex- ments surplus
ported goods worth $20 million. It also borrowed $40
million from other countries. In this scenario, Nescar-
to had a _____ during 2015-2016.

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37. Which of the following countries is involved in coun- An Asian coun-
tertrade? try that provides
sugarcane to an
African country in
exchange for jute

38. The term _____ refers to the shortfall that occurs trade deficit
when the total value of a nation's imports is higher
than the total value of its exports.

39. To achieve its basic mission of promoting interna- lends money to

tional economic cooperation and stable growth, the member nations.
International Monetary Fund (IMF):

40. Elision Inc., an American software development com- Access to factors

pany, outsourced its support operations to Luzenza, of production
an Asian nation, because it found that Luzenza has
a large cohort of English-speaking college graduates
who are ready to work for one-fourth the pay of com-
parable American workers. Which of the following is
most likely to have influenced Elision Inc.'s decision
to outsource its support operations to Luzenza?

41. Which of the following is true of current assets? They are re-
sources that a firm
expects to use up
within a year.

42. A famous musician sells the copyright of one of his intangible asset
songs to a record company for $2 million. In this
scenario, the sale of the copyright of the song exem-
plifies the sale of a(n) _____.

43. Which of the following is an example of an intangible The goodwill

asset? showed by a
food manufactur-
ing company by
helping its com-
petitor at a time of
crisis
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44. Costs are deducted from revenue in several stages to costs of goods
show how net income is determined. The first step in sold.
this process is to deduct:

45. Machvile Corporation, a robotics company, decides accounting equa-

to acquire Chancera Inc., a start-up company that op- tion
erates within the same industry. To better assess its
decision, the management of Machvile Corporation
needs to find out the value of Chancera Inc.'s total
assets. The management has information regarding
Chancera Inc.'s liabilities and stockholders' equity.
In this scenario, the management should most likely
use the _____ to get the required information.

46. In the context of the calculation of the net income of deducting the
a firm, the final step of the process comprises: firm's interest ex-
penses and taxes
from its net operat-
ing income.

47. Which of the following is true of balance sheets? The balance

sheets of differ-
ent firms vary in
specifics.

48. The _____ of a firm combines the revenue projections budgeted income
from the firm's sales budget and the cost projections statement
from the firm's other operating budgets to present a
forecast of expected net income.

49. Luke works in an accounting firm that offers ser- public accountant.
vices such as tax preparation and external auditing
to corporate companies. Luke is currently providing
consultation to a client that deals in automobile parts.
In this scenario, Luke is most likely a:

50. Since common stockholders are the true owners, pre- return-on-equity
ferred stockholders' dividends are deducted from net
income before computing _____.
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51. Gratinut Entos, an automobile company, wants to Corporate bonds

launch a new model of bike that would appeal to
young adults. The company issues its own formal
IOUs to fund the project. Which of the following
sources of long-term funds is being used by Gratinut
Entos in the given scenario?

52. Grisham is the financial manager of Plink Inc., an time value of mon-
electronics company. He invests a major portion of ey
the company's profit in his business. He believes
that money has the potential to grow in value over a
certain period, which is why he prefers to receive and
invest an amount of money today rather than in the
future. In this scenario, Grisham is most likely to be
influenced by _____ while utilizing the finances of the
company.

53. A budgeted income statement is a projected financial false

statement that forecasts the types and amounts of
assets a firm will need to implement its future plans
and how the firm will finance those assets.

54. Financial managers should focus solely on meeting false

the financial needs of their firms in the short run,
leaving the long-term financial issues to the top man-
agement.

55. Tinix is a well-established petrochemical company Asset-backed

that holds excellent credit ratings in the market. It pro- commercial paper
vides short-term financial capital to other big firms
by issuing promissory notes that are collateralized
(Links to an external site.) by physical assets (Links
to an external site.). Which of the following short-term
financing options is being offered by Tinix in the giv-
en scenario?

56. One of the major sources of equity financing for cor- retained earnings
porations is _____.

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57. Rel Eston, a network service provider, sells off its Factoring
accounts receivable to a financing company in order
to gain early access to funds that would help accel-
erate company's growth trajectory in the market in
the following year. Which of the following short-term
financing options is being used by Rel Eston in the
given scenario?

58. Merith Qin, a textile company, relies on self-funding Direct investments

in order to sustain the promotion of its new product from owners
in the market. The company sold its newly issued
stock and was able to amass a sizable amount of
money to invest. Which of the following sources of
long-term funds is being used by Merith Qin in the
given scenario?

59. Financial diversification is a strategy of investing in Financial diversifi-

a wide variety of securities in order to reduce risk. cation is a strate-
gy of investing in a
wide variety of se-
curities in order to
reduce risk.

60. In the context of a public offering, a(n) _____ is a registration state-

complex document that must include a firm's key fi- ment
nancial statements plus additional information about
the company's management, its properties, its com-
petition, and the intended uses for the funds it plans
to obtain from the offering.

61. Markets that transfer funds from savers to borrowers financial markets
are referred to as _____.

62. A(n) _____ is a financial intermediary that specializes investment bank

in helping firms raise financial capital by issuing se-
curities in primary markets.

63. The rationale behind why the Glass-Steagall Act man- exposed banks
dated the ban on commercial banks from dealing in and their deposi-

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securities markets and selling insurance was that tors to higher lev-
such activities: els of risk.

64. Jonathan is a common stockholder in an information goes out of busi-

technology firm. Owing to his right to a residual claim ness.
on assets, he is entitled to receive a share in the
proceeds of the company that is proportionate to his
ownership if the company:

65. Which of the following is a difference between Discount brokers

full-service brokers and discount brokers? tend to charge
significantly low-
er commissions
than full-service
brokers.

66. Which of the following is a difference between credit Unlike commer-

unions and commercial banks? cial banks, cred-
it unions are
not-for-profit orga-
nizations.

67. Futures Life Insurance is an insurance company in institutional in-

South Africa. The insurance company uses its large vestor
pool of financial capital, which it accumulates by col-
lecting premiums from its policyholders, to purchase
corporate stocks of different multinational compa-
nies. In this scenario, Futures Life Insurance is a(n)
_____.

68. Which of the following is the main reason for private Privately placed
placements being less expensive than public offer- securities are ex-
ings? empt from the re-
quirement to reg-
ister with the Se-
curities and Ex-
change Commis-
sion.

69. People marketing

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Aiden Brent, an international tennis player, owns a
multinational chain of sports shops named Brent
Deuce. The company is popular and gets the attention
of sports enthusiasts because of its brand name and
ownership. Which of the following marketing strate-
gies does this scenario best illustrate?

70. Paris Hilton declaring, "I am a marketing genius" is people marketing

an example of _____.

71. In an effort to expand its business, music retailer Mu- primary data
sow offers DVD rentals online. In order to understand
the trends in consumer interest, Musow has decided
to evaluate data of the hyperlinks that customers click
when they visit its website. This is an example of how
a company can obtain _____.

72. Which of the following statements is true of customer Loyal customers

loyalty? provide valuable
feedback.

73. In the context of marketing research, secondary data true

is existing data that marketers gather or purchase for
a research project.

74. In the context of marketing strategies and tactics, event marketing

_____ includes marketing—or sponsoring—athletic,
cultural, or charitable functions.

75. A marketing plan is a formal document that defines True

marketing objectives and the specific strategies for
achieving those objectives.

76. In the context of marketing a product, which of the Customers will be

following statements is true of overpromising? disappointed if the
product falls short
of very high ex-
pectations.

77. full partnerships

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Amforted is a company that provides various multina-
tional corporations with housekeeping staff on con-
tract basis. Each relationship manager is allotted one
client to work with until the contract period is over.
In the context of customer relationship management,
Amforted most likely establishes _____ with its cus-
tomers.

78. In the context of primary research tools, which of It allows you to

the following is an advantage of observation research notice what peo-
over survey research? ple actually do and
not what they say
they do.

79. One of the benefits of licensing is: instant name

recognition.

80. Crola, a cell phone manufacturing company, adds a dynamically con-

new in-built feature to its cell phones. With the help tinuous innovation
of this feature, users can now recall messages that
they may have accidentally sent to another person.
To make use of this feature, the users need to go
to the settings of the cell phone and make a few
changes. The change made by Crola in its product is
an example of a _____.

81. In the context of product adoption and diffusion, Can potential con-
which of the following questions relates to the prod- sumers easily un-
uct characteristic of complexity? derstand what
your product is
and how it works?

82. Emma owns a bakery in Michigan. To save time, she business product
buys ready-made edible cake decorations from a ven-
dor in Wisconsin. This scenario exemplifies the pur-
chase of a _____.

83. Streetlore, a footwear manufacturing company, product mix

makes business and casual shoes for both men and
women. The company also makes school bags for
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children between the ages of five to ten years. The
entire line of goods made by Streetlore represents the
_____ of the company.

84. In the context of business product categories, the installations

marketing of _____ emphasizes personal selling and
customization.

85. Which of the following exemplifies a discontinuous Shinzen Labs, a

innovation? food analysis and
research laborato-
ry, develops a food
packaging materi-
al that repels bugs
and rodents.

86. David, the CEO of a beverage company, wants to product life cycle
understand the reason for the erratic performance
of one of the company's products—Gizell, a health
drink—over the past three years. For this, David scru-
tinizes the biquarterly sales records of Gizell and
the annual profits that the company garners from
its sales. In this scenario, David is trying to analyze
Gizell's _____.

87. In the context of emerging promotional tools, which Viral marketing

of the following is a popular term for buzz marketing?

88. _____ tools include premiums, promotional products, Consumer promo-

samples, coupons, rebates, and displays. tion

89. When merchant wholesalers take legal title to the true

goods they distribute, they reduce the risk of produc-
ers' products being damaged or stolen.

90. A-n-Y dominates its market section by offering a wide category killer
range of toys that includes soft toys, plastic construc-
tion toys, electronic toys, and board games to the
public. It is evident that A-n-Y is a _____.

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91. In the context of nonstore retailers, vending ma- false
chines are a key element of multilevel marketing.

92. The fixed cost of Brendon Willows, a baseball bat 25,000

manufacturing company, is $500,000 per year. The
cost of wood and labor to manufacture one bat is $5. If
the customers pay $25 to buy one bat, how many bats
does Brendon Willows need to sell to breakeven?

93. Which of the following modes of transportation pro- pipelines

vides the lowest flexibility in handling?

94. In the context of breakeven analysis, _____ remain

constant regardless of how many products are sold.

95. Newzon Coal Supply takes possession of coal from drop shipper
local mining companies. However, it does not store a
single ounce of coal on its premises. Instead, it sim-
ply arranges for the coal to be shipped directly from
the mining companies to their customers. This type
of arrangement suggests that Newzon Coal Supply is
a _____.

96. Information utility boosts customer satisfaction by true

providing helpful data.

97. Bolve Technologies is a small-scale smartphone direct response

manufacturer. It advertises its phones via television retailing
commercials. Customers can buy these phones only
by placing a call to the sales reps of Bolve Technolo-
gies. It is evident that Bolve Technologies is engaged
in _____.

98. Lionel is one of the project leads in a multinational free-rein leader

company. He assigns new projects to his team mem-
bers and sets the objectives and targets that they
need to achieve. However, Lionel does not intervene
in their work methods; he is only concerned about
the end result. The information given in the scenario
indicates that Lionel is a(n) _____.
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99. According to Maslow's hierarchy of needs theory, False

esteem needs refer to the need to realize one's fullest
potential.

100. Which of the following theories of motivation sug- Expectancy theo-

gests that if any link in the relationship among indi- ry
vidual effort, individual performance, and individual
reward is broken, employees will not be motivated?

101. Jack works in a cargo shipping company as a section first-line

leader. As a part of his job, he needs to train and
evaluate the employees. He also makes sure that the
employees constantly remain motivated to carry out
their tasks efficiently. Thus, as a section leader, he is
heavily involved in the day-to-day production process
of the company. In the context of the management
hierarchy, Jack is a _____ manager in the company.

102. Paul is an employee at a marketing firm. He is some- Theory X

one who prefers to be instructed by his seniors and
avoids taking major responsibilities. He rarely uses
his own judgment or creativity while doing a task
in fear of putting things at risk. Paul's conduct in
the workplace is consistent with the assumptions of
_____.

103. Which of the following statements is true of strategic They must tie di-
goals? rectly to a firm's
competitive posi-
tion.

104. In the context of management skills, middle-level human skill

managers need an especially high level of _____ as
they typically act as the bridge between departments,
coordinating people and projects that sometimes
have mismatched priorities.

105. the degree of cen-

tralization
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The extent to which decision-making power is held by
a small number of people at the top of the organiza-
tion is known as _____.

106. Each year M. Lloyd Corporation rewards the year's expectancy

best-performing employee. The reward is based on
the individual performance of an employee, his or
her level of commitment toward the organization, and
his or her crisis management skills. The company
gives this reward to encourage other employees to
also put in the same kind of effort in their work. In
this scenario, M. Lloyd Corporation follows the _____
theory.

107. According to Maslow's hierarchy of needs theory, false

healthcare plans and life insurance serve to satisfy
the esteem needs of employees.

108. Mailinkpro, a stationery manufacturer, has registered external recruit-

itself with jobappln.com, an employment website. ment
Mailinkpro's human resource (HR) department posts
all job vacancies in the company on jobappln.com
and pays an annual fee to the website for availing its
services. In the context of HR planning, this scenario
best illustrates _____.

109. Ashley, a fashion photographer in a magazine, is not halo effect

the most hardworking, talented, or efficient member
in her team. However, during performance appraisals,
the team leader gives her the best ratings because he
is extremely fond of her. In the context of performance
appraisals, which of the following does this scenario
best illustrate?

110. On-the-job training is also known as vestibule train- false

ing.

111. John has been recruited as a firefighter for his city's Occupational
fire department. He notices that the fire department Safety and Health
does not provide the firemen with adequate equip- Act of 1970
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ment for protection against hazardous substances.
In this context, the fire department is violating the
_____.

112. When Jayden, a salesman at Srastis, a company that employee separa-

sells home appliances, did not achieve his sales tion
targets for three consecutive quarters, his manager
asked him to resign. In the context of human re-
source planning, this scenario best illustrates _____
at Srastis.

113. Which of the following statements is a benefit of It increases em-

telecommuting for an organization? ployee productivi-
ty due to better
morale.

114. Which of the following is a drawback of telecommut- It poses great

ing for an organization? challenges in fos-
tering teamwork.

115. Which of the following is a problem faced by telecom- Weak connection

muters? to the company
culture

116. In the context of human resource management chal- Many professional

lenges, which of the following statements is true of women step out of
women workers? the workforce ear-
ly to start their own
companies.

117. A job description is an explanation of the responsibil- true

ities for a specific position in an organization.

118. Black hat hackers are hackers who have no harmful false
intent.

119. MergeFirms.com provides a platform for buyers and e-marketplace

sellers to engage in business-to-business (B2B)
e-commerce. Buyers and sellers get the opportunity
to interact with each other and conduct their busi-
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nesses through it. In this scenario, MergeFirms.com
acts as a(n) _____.

120. In the context of the characteristics of good informa- it is available at

tion, when information is timely, it means that: the right moment
to make a differ-
ence

121. Business intelligence systems are a new class of true

decision support systems developed over the past
two decades to leverage data storage.

122. Fatima enjoys online shopping as it allows her to business-to-con-

buy things from a wide range of options from the sumer
convenience of her home. She recently bought a food e-commerce
processor online. In this scenario, Fatima is involved
in _____.

123. Horizontal applications software consists of highly false

specialized applications used in a particular industry,
such as brokerage firms.

124. Augustus, a student undergoing his doctorate pro- a firewall

gram, is working on a thesis that requires him to
browse the Internet for information and visit various
unverified websites. To protect his computer from the
risk of attracting unwanted messages and other se-
curity threats, he uses a tool that uses both hardware
and software to provide protection against hackers.
In the given scenario, Augustus is most likely using
_____.

125. Mervin, an employee of a non-governmental orga- information

nization, conducts a survey among children about
the awareness of traffic rules. The facts and figures
collected by him are processed and organized by
an analytic team to conclude whether the surveyed
children are aware of traffic rules. In this scenario, the
report that would be prepared by the analytic team
can be referred to as _____.
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126. Melingo Furniture provides its customers with an op- e-commerce

tion of buying, selling, and servicing of its products
online. This helps Melingo Furniture create a cus-
tomer base by providing convenience to them. In this
scenario, Melingo Furniture is involved in _____.

127. A _____ falls between the product layout and the cellular layout
process layout.

128. In the context of operations management, which of There has been a

the following statements is true of the increasingly shift from a cost
competitive and global nature of markets? perspective to a
value perspective.

129. Retail firms normally hold work in process or raw false

materials.

130. In the context of the location of facilities, the opera- bank

tions manager of a _____ is likely to choose a location
based on the proximity to customers.

131. Which of the following statements is true of comput- It allows

er-integrated manufacturing (CIM)? firms to pro-
duce custom-de-
signed products
for individual cus-
tomers quickly at
low costs.

132. In the context of operations management, a _____ is process

defined as a set of related activities that transform
inputs into outputs, thus adding value.

133. Services such as concerts or sporting events require true

a fixed position layout.

134. Unlike goods, services are _____. experienced

135.
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William is the owner of a made-to-order furniture just in time pro-
shop. He maintains extensive catalogues of the de- duction system
signs and customizations that he offers. Once a cus-
tomer places an order, William buys the required
amount of raw materials from his regular suppliers
and starts working on the order. From the given sce-
nario, it can be inferred that William follows the _____.

136. Pamela, the accounts manager of Brian & Preston offshoring

Corp., suggests the operations managers to move the
production unit of the company to another country
to reduce labor and utility costs. In this scenario,
Pamela is suggesting _____ the company's produc-
tion process.

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