Page 310 - GMAT 2017b_Neatb

Business Management Test

17. Which of the following is an example of 23. Which of the following will more likely locate
competing on quick response? near their customers?
(A) a firm produces its product with less raw (A) an automobile manufacturer
material waste than its competitors (B) an aluminum manufacturer
(B) a firm offers more reliable products than its (C) an insurance company headquarters
competitors
(C) a firm's products are introduced into the (D) a medical clinic
market faster than its competitors’ (E) all of the above will tend to locate near
(D) a firm's research and development their customers
department generates many ideas for new
products 24. Which of the following statements concerning
(E) a firm advertises more than its competitors the operations management decision is relevant

to services?
18. Which of the following influences layout design?
(A) inventory requirements (A) There are many objective quality standards.
(B) capacity needs (B) The customer is not involved in most of the
(C) personnel levels process.
(D) purchasing decisions (C) The work force's technical skills are very
(E) all of the above influence layout decisions important.
(D) Labor standards vary depending on
19. Response-based competitive advantage can be customer requirements.
(A) flexible response (E) Ability to inventory may allow the leveling
(B) reliable response
(C) quick response of the output rates.
(D) all of the above
(E) none of the above 25. Which of these organizations is likely to have the
most important inventory decisions?
20. Which of these organizations is most apt to have (A) a marketing research firm
quality standards that are relatively objective? (B) a lobbying agency
(A) a university (C) a management consulting firm
(B) a discount retailer
(C) a law firm (D) a restaurant
(D) a car manufacturer (E) a law firm
(E) a bookstore
26. The PIMS program has identified
21. Which of the following is not an operations (A) the operations decisions all organizations
decision? must make
(A) maintenance (B) the distinctive competencies any company
(B) price needs
(C) layout design (C) the characteristics of firms with high "ROI”
(D) quality (D) the corporate decisions any company needs
(E) inventory to make
(E) all of the above
22. Which of these companies is most apt to have
quality standards that are relatively subjective? 27. Which of the following is not one of the five
(A) Chrysler PIMS characteristics of high Return on
(B) Dell Computer Investment organizations?
(C) Sanyo Electronics
(D) Harvard University (A) high product quality
(E) Whirlpool (B) high capacity utilization
(C) low investment intensity

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