1. What type of center should be used when a company is organized into divisions of separate product lines?
A. Profit center
B. Expense center
C. Investment center
D. Revenue center
E. Standard cost center
2. Instead of conducting traditional market research, a number of companies are:
A. simply following what the market leader does.
B. probing potential markets with early versions of new products to see which have potential.
C. developing new, much more sophisticated market research techniques which involve global testing.
D. forming alliances to pool their research findings.
3. When public organizations are privatized, the trend is to have:
A. clients pay a higher percentage of the costs.
B. clients pay a lower percentage of the costs.
C. clients apply for subsidies from the government
D. organizations solicit state agencies for more funding.
E. organizations sponsor fundraising events.
4. All of the following ratios are used in the calculation of a company’s Z-value EXCEPT:
A. working capital/total assets.
B. retained earnings/total assets.
C. current assets/current liabilities.
D. market value of equity/total liabilities.
E. sales to total assets.
5. The purchasing strategy in which the purchasing company orders a particular part from several vendors is:
A. sole sourcing.
B. multiple sourcing.
C. just-in-time sourcing.
D. backup sourcing.
E. parallel sourcing.