1. Outsourcing
a. transfers traditional internal activities to outside vendors
b. utilizes the efficiency which comes with specialization
c. lets the outsourcing firm focus on its key success factors
d. None of the above are true of outsourcing.
e. All of the above are true of outsourcing.
2. Mutual trust is
a. when employees have gained the trust of management
b. reflected in reasonable, documented employment policies, honestly and equitably implemented to the satisfaction of both management and the employees
c. when management has gained the trust of the employees
d. when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product
e. when management and the employees both agree on the objectives
3. Currency risk is based on what assumption?
a. Firms that do not continuously innovate will lose market share.
b. Values of foreign currencies continually rise and fall in most countries.
c. Changing product lines by reacting to every current trend may alienate the customer base.
d. The value of one dollar today is greater than the value of one dollar to be received one year from now.
e. The U.S. stock market fluctuates daily.
4. Which of the following is a reliability tactic?
a. improving individual components
b. increasing repair speed
c. providing redundancy
d. A and C
e. A, B, and C