Basic Business Test Quiz

Prepare yourself for this fascinating 'Basic Business Test Quiz.' Every business demands an investment and a sufficient customer base. With a plethora of career opportunities in the business sector, understanding basic information is crucial if you're considering a venture into business. Challenge your knowledge by attempting the quiz below, and don't forget to leave a comment after completion. Good luck!

Edited by Me.bot Editorial Team Questions: 50 October 3, 2024

Character Test

1. The core components of modern supply chain management include:

Suppliers, production, distribution

Design, manufacturing, stock

Engineering, design, production

Suppliers, engineering, production

2. A comprehensive strategic plan for a company should:

Set long-term goals and objectives

Plan production for end items

Outline sales strategies for the year

Introduce new products for the next fiscal year

3. Consumer products like instant film are typically produced in which environment?

Make to stock

Assemble to order

Engineer to order

Make to order

4. When many end items are created from a few components, this is known as:

Assemble to order

Make to order

Engineer to order

Make to stock

5. What does aggregate inventory management focus on?

Cost and benefits of various inventory classes

Managing item use and distribution

Production planning

Inventory movement across networks

6. Which of the following includes costs associated with carrying inventory? I. Utilities for warehouse II. Obsolete inventory III. Labor for material handling IV. Damaged inventory

I, II, and III

II, III, and IV

I, III, and IV

I, II, III, and IV

7. A normal distribution is best described as:

Values clustering near the mean

Centralized warehouses

Values grouped at six sigma

A critical ratio of 1.1

8. Given the data below, what safety stock is needed to ensure 99.9999% availability? MAD = 100 On hand = 200 Weekly demand = 400

400

500

600

300

9. Orders initiated by each distribution center as needed are part of a:

Pull system

Push system

Just-in-time system

Supply chain management

10. A company sets forecasts and orders centrally. This system is called:

Push system

Pull system

Time phased order point

Just-in-time

11. A warehouse needs to store 15,000 boxes with 20 boxes per pallet, and 5 pallet stacks. Required pallet positions?

1500

500

750

3000

12. Which is not a basic method to store stock in a warehouse?

By functional relation

Sequential SKU number

By physical similarity

By stock turnover rate

13. What is a major disadvantage of a fixed location warehouse?

Increased put away time

Poor space utilization

Extended docking time

Rising material handling costs

14. Advantages of point-of-use storage include: I. Ease of control II. Reduced material handling III. Lower storage costs IV. Continuous material access

I, II, and III

II, III, and IV

I, III, and IV

I, II, III, and IV

15. Advantages of central storage include: I. Ease of control II. Cost reduction III. Accurate inventory records IV. Reduced safety stock

I, III, and IV

II, III, and IV

I, II, and III

I, II, III, and IV

16. Cycle counting is best described as:

Scheduled inventory counts

Reducing cycle time

Shortening production cycles

Conducting time studies

17. Moving finished goods to the customer is called:

Physical distribution

Supply chain

Physical supply

Conversion cycle

18. Which activity is not part of the physical distribution system?

Customer order forecasting

Transportation

Warehousing

Material handling

19. Trucks are best suited for:

Small quantities to dispersed markets

Large quantities to dispersed markets

Small quantities to close markets

Large quantities to close markets

20. Line haul cost is $1.50 per mile for 400 miles and 40,000 pounds. Cost per hundredweight?

$2.50

$1.00

$1.50

$2.00

21. A distribution warehouse's main function is:

Moving and mixing goods

Storing long-term goods

Regional supply storage

Floor stock storage

22. Warehouse roles include: I. Transportation consolidation II. Inventory efficiency III. Product mixing IV. Customer service

I, II, and III

I, III, and IV

I, II, and IV

II, III, and IV

23. Market boundary can be defined as:

Geographic region

Laid down cost equality line

Equal distribution center shipments

Shipping cost margin limit

24. Adding an additional warehouse impacts safety stock by:

Increasing by a calculated percentage

Decreasing by a calculable percentage

Doubling the safety stock

Halving the safety stock

25. Toyota's identified wastes include: I. Process II. Overproduction III. Wait-time IV. Movement

I, II, and III

II, III, and IV

I, II, and IV

I, II, III, and IV

26. To ensure quality in a JIT environment, quality must be:

Built into production

Inspected at various points

Ensured by a control lab

An inspector’s responsibility

27. To reduce transactions in a JIT system, companies use:

Back flushing

Transaction prevention

Bar coding

Pre-deduction

28. Annual sales of $40M, average inventory $10M, how much to reduce inventory to achieve 20 turns?

$8M

$4M

$6M

$2M

29. Producing 1000 units over 4 months evenly. Days in months: 20, 21, 19, 22. First month's production?

250

260

244

254

30. System nervousness is caused by:

Rapid requirements changes

Planner inability to stay calm

Manufacturing’s long run demands

Purchased material delays

31. Fixed cost $1000, variable cost $5/unit. Average cost per unit for 4000 units produced?

$5.10

$5.00

$5.50

$5.25

32. Throughput is best defined as:

Total production volume

Number of bottlenecks

Factory's total capacity

Work center production speed

33. Forecasts are more accurate for the near term because:

Near term is less uncertain

More near-term data

Aggregate data is easier

Near term is more dynamic

34. Why use forecasts despite their inaccuracies?

Prelude to business planning

Service to organization

Needed for MPS

Vital for MRP

35. JIT principles applicable in an intermittent shop include: I. Employee involvement II. Total preventive maintenance III. Inventory reduction IV. Continuous flow lines

I, II, and III

II and IV only

I and III only

I, II, III, and IV

36. Which manufacturing type typically has the longest delivery time?

Engineer-to-order

Make-to-order

Make-to-stock

Assemble-to-order

37. In an engineer-to-order company, delivery time is:

Longer than assemble-to-order

Shorter than make-to-order

Same as make-to-stock

Shorter than assemble-to-order

38. Which is a function of physical distribution?

Material handling

Kanban size

Pull signal

Routings

39. What is part of the physical distribution system?

Receiving goods from suppliers

Moving material between work centers

Planning contractor goods transfer

Forecasting for manufacturing

40. Which is an independent demand item?

Spare part for a jet engine

Sub-assembly for a printer

Sub-assembly in a car

Component for a fork truck

41. Production planning is a direct input to:

Master production scheduling

Purchase order planning

Capacity load at a center

Material requirements planning

42. Which is a dependent demand item?

Purchased component

Safety gloves

Office supplies

Shipped item

43. In a cycle count program, a primary objective should be to:

Identify causes of errors

Correct inventory records

Reduce headcount

Eliminate physical inventory checks

44. To quickly increase production for customer demand:

Work overtime

Hire temporary workers

Hire more workers

Subcontract the work

45. A tracking signal in forecasting identifies:

Bias

Standard deviation

MAD

Aggregate summarization

46. An income statement shows:

Cost of products sold

Inventory levels

Net cash available

Long term debt

47. Why maintain inventory?

Improve customer service

Reduce transportation costs

Increase machine time

Reduce costs

48. ABC inventory control approach means:

Plenty of C parts

High inventory of A parts

Minimal B parts

Plenty of inventory

49. Which law states a small percentage accounts for a large percent of results?

Pareto's law

Fredo's law

Newton's law

Nielsen's law

50. Inventory decouples:

Supply from demand

Plans from schedules

Capacity plans from cuts

Orders from deliveries

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The Basic Business Test Quiz is an incredible tool for anyone preparing to dive into the business world. It challenges your knowledge and provides insight into essential business concepts.

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As someone with a keen interest in business, this quiz was a fantastic way to test my foundational knowledge. It's important to understand these basics before launching any new venture.

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Frequently Asked Questions

What can I expect from the Basic Business Test Quiz?

The Basic Business Test Quiz is designed to assess your understanding of essential business concepts required for anyone venturing into the field.

Why is the Basic Business Test Quiz important for aspiring entrepreneurs?

The quiz helps aspiring entrepreneurs gauge their knowledge of fundamental business principles, ensuring they have the necessary groundwork to succeed.

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By taking the Basic Business Test Quiz, you solidify your grasp on key business concepts, which can enhance career opportunities and inform better business decisions.

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The Basic Business Test Quiz touches on various types of investments essential for establishing and maintaining a successful business, including financial and customer base investments.

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Basic Business Test Quiz

Character Test

1. The core components of modern supply chain management include:

2. A comprehensive strategic plan for a company should:

3. Consumer products like instant film are typically produced in which environment?

4. When many end items are created from a few components, this is known as:

5. What does aggregate inventory management focus on?

6. Which of the following includes costs associated with carrying inventory? I. Utilities for warehouse II. Obsolete inventory III. Labor for material handling IV. Damaged inventory

7. A normal distribution is best described as:

8. Given the data below, what safety stock is needed to ensure 99.9999% availability? MAD = 100 On hand = 200 Weekly demand = 400

9. Orders initiated by each distribution center as needed are part of a:

10. A company sets forecasts and orders centrally. This system is called:

11. A warehouse needs to store 15,000 boxes with 20 boxes per pallet, and 5 pallet stacks. Required pallet positions?

12. Which is not a basic method to store stock in a warehouse?

13. What is a major disadvantage of a fixed location warehouse?

14. Advantages of point-of-use storage include: I. Ease of control II. Reduced material handling III. Lower storage costs IV. Continuous material access

15. Advantages of central storage include: I. Ease of control II. Cost reduction III. Accurate inventory records IV. Reduced safety stock

16. Cycle counting is best described as:

17. Moving finished goods to the customer is called:

18. Which activity is not part of the physical distribution system?

19. Trucks are best suited for:

20. Line haul cost is $1.50 per mile for 400 miles and 40,000 pounds. Cost per hundredweight?

21. A distribution warehouse's main function is:

22. Warehouse roles include: I. Transportation consolidation II. Inventory efficiency III. Product mixing IV. Customer service

23. Market boundary can be defined as:

24. Adding an additional warehouse impacts safety stock by:

25. Toyota's identified wastes include: I. Process II. Overproduction III. Wait-time IV. Movement

26. To ensure quality in a JIT environment, quality must be:

27. To reduce transactions in a JIT system, companies use:

28. Annual sales of $40M, average inventory $10M, how much to reduce inventory to achieve 20 turns?

29. Producing 1000 units over 4 months evenly. Days in months: 20, 21, 19, 22. First month's production?

30. System nervousness is caused by:

31. Fixed cost $1000, variable cost $5/unit. Average cost per unit for 4000 units produced?

32. Throughput is best defined as:

33. Forecasts are more accurate for the near term because:

34. Why use forecasts despite their inaccuracies?

35. JIT principles applicable in an intermittent shop include: I. Employee involvement II. Total preventive maintenance III. Inventory reduction IV. Continuous flow lines

36. Which manufacturing type typically has the longest delivery time?

37. In an engineer-to-order company, delivery time is:

38. Which is a function of physical distribution?

39. What is part of the physical distribution system?

40. Which is an independent demand item?

41. Production planning is a direct input to:

42. Which is a dependent demand item?

43. In a cycle count program, a primary objective should be to:

44. To quickly increase production for customer demand:

45. A tracking signal in forecasting identifies:

46. An income statement shows:

47. Why maintain inventory?

48. ABC inventory control approach means:

49. Which law states a small percentage accounts for a large percent of results?

50. Inventory decouples:

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