Farmers Logistics Review For Chapter 4

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Farmers Logistics Review For Chapter 4 - Quiz

Multible choice test to help me study. I hope it helps. Good luck


Questions and Answers
  • 1. 

    Which of the following is not a level at which strategy can be formulated?

    • A.

      Corporate

    • B.

      Business unit

    • C.

      Functional

    • D.

      All of the above are levels at which strategy can be formulated

    Correct Answer
    D. All of the above are levels at which strategy can be formulated
    Explanation
    The given answer states that all of the options provided (corporate, business unit, and functional) are levels at which strategy can be formulated. This means that strategy can be developed at the corporate level, which involves making decisions for the entire organization, as well as at the business unit level, which focuses on specific divisions or departments within the organization. Additionally, strategy can be formulated at the functional level, which relates to specific functions or activities within a department. Therefore, the correct answer is that all of the options provided are levels at which strategy can be formulated.

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  • 2. 

    ________ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.

    • A.

      Functional-level

    • B.

      Business unit-level

    • C.

      Divisional-level

    • D.

      Corporate-level

    Correct Answer
    D. Corporate-level
    Explanation
    The correct answer is corporate-level. Corporate-level strategy focuses on determining the overall goals and direction for the entire company. It involves making decisions about the types of businesses the company should be involved in and how they should be managed. This strategy is developed at the highest level of the organization and provides guidance for all other levels of strategy within the company.

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  • 3. 

    Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?

    • A.

      Value enhancement

    • B.

      Differentiation

    • C.

      Cost leadership

    • D.

      Focus

    • E.

      All of the above are generic strategies

    Correct Answer
    A. Value enhancement
    Explanation
    Value enhancement is not one of the generic strategies identified by Michael Porter. The generic strategies identified by Porter are differentiation, cost leadership, and focus. Value enhancement refers to increasing the value of a product or service through additional features or benefits, but it is not specifically mentioned as one of the generic strategies.

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  • 4. 

    A _____________ stratgy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

    • A.

      Focus

    • B.

      Differentiation

    • C.

      Value enhancement

    • D.

      Market orientation

    Correct Answer
    B. Differentiation
    Explanation
    Differentiation strategy involves creating a product or service that has unique features that are highly valued by customers and seen as distinct from what competitors offer. This strategy aims to set the organization apart from its competitors by offering something unique and appealing to customers, which can lead to a competitive advantage in the market. By focusing on differentiation, the organization can attract and retain customers who value the unique attributes of their product or service.

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  • 5. 

    Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership of differentiation strategy?

    • A.

      Hybrid

    • B.

      Stuck-in-the-middle

    • C.

      First to market

    • D.

      Focus

    Correct Answer
    D. Focus
    Explanation
    The correct answer is "Focus." The focus strategy concentrates an organization's effort on a narrowly defined market, either by targeting a specific customer segment or a specific geographic area. This strategy allows the organization to achieve either a cost leadership or differentiation strategy within that focused market. By focusing on a specific market, the organization can better understand and meet the needs of that market, leading to a competitive advantage.

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  • 6. 

    A(n) _______ entails the functional units of an organization providing input into the other levels of strategy formulation.

    • A.

      Supply chain

    • B.

      Inter-functional cooperation

    • C.

      Hierarchy of strategy

    • D.

      Command and control style

    Correct Answer
    C. Hierarchy of strategy
    Explanation
    Hierarchy of strategy refers to the organizational structure where the functional units of an organization contribute their inputs to the higher levels of strategy formulation. This means that each level of the hierarchy, from the lower functional units to the top management, has a role in shaping the overall strategy of the organization. This allows for coordination and alignment of goals and objectives across different levels and ensures that the organization's strategy is implemented effectively.

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  • 7. 

    Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?

    • A.

      Corporate to Business unit to functional

    • B.

      Functional to business unit to corporate

    • C.

      Corporate to business unit to divisional

    • D.

      Business unit to divisional to functional

    Correct Answer
    A. Corporate to Business unit to functional
    Explanation
    The preferred hierarchy of strategy is from the corporate level to the business unit level to the functional level. This means that the overall corporate strategy is developed first, which then guides the strategies of each individual business unit. Finally, the functional strategies are developed to support the business unit strategies and align with the overall corporate strategy. This hierarchy ensures that there is alignment and coordination between the different levels of strategy within an organization.

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  • 8. 

    ________ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

    • A.

      Marketing

    • B.

      Production

    • C.

      Finance

    • D.

      Logistics

    Correct Answer
    D. Logistics
    Explanation
    Logistics strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes. This is because logistics is concerned with the management of the flow of goods and services from the point of origin to the point of consumption. The number and location of warehouses are important considerations in order to efficiently store and distribute products. Additionally, the selection of appropriate transportation modes is crucial in order to ensure timely and cost-effective delivery of goods to customers. Therefore, logistics is the correct answer for this question.

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  • 9. 

    Which of the following is not a potential type of logistics strategy decisions?

    • A.

      Investments in technology that support logistics activities

    • B.

      Selecting appropriate transportation modes

    • C.

      Deployment of inventory

    • D.

      Number and location of warehouses

    • E.

      All are potential types of logistics strategy decisions

    Correct Answer
    E. All are potential types of logistics strategy decisions
    Explanation
    The correct answer is "All are potential types of logistics strategy decisions." This means that all of the options listed - investments in technology, selecting appropriate transportation modes, deployment of inventory, and number and location of warehouses - can be considered as potential types of logistics strategy decisions. Each of these decisions plays a crucial role in determining the overall logistics strategy of a company and can have a significant impact on its supply chain efficiency and effectiveness.

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  • 10. 

    The _______ shows revenues, expenses, and profit for a period of time.

    • A.

      Balance sheet

    • B.

      Current ratio

    • C.

      Income statement

    • D.

      Annual report

    Correct Answer
    C. Income statement
    Explanation
    The income statement is a financial statement that shows revenues, expenses, and profit for a specific period of time. It provides a summary of a company's financial performance, including its ability to generate revenue, manage expenses, and ultimately determine its profitability. Unlike the balance sheet, which provides a snapshot of a company's financial position at a specific point in time, the income statement focuses on the company's financial activities over a period of time, usually a month, quarter, or year. The income statement is an important tool for investors, creditors, and other stakeholders to assess a company's financial health and performance.

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  • 11. 

    In general, the _______ measures the profitability of the products and/or services provided by a company.

    • A.

      Balance sheet

    • B.

      Strategic profit model

    • C.

      Balanced scorecard

    • D.

      Income statement

    Correct Answer
    D. Income statement
    Explanation
    The income statement is a financial statement that shows the revenues, expenses, and net income of a company over a specific period of time. It provides information about the profitability of the products and/or services provided by the company by detailing the revenues generated from sales and the expenses incurred in producing and delivering those products/services. By analyzing the income statement, investors, creditors, and other stakeholders can assess the financial performance and profitability of the company.

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  • 12. 

    Which of the following soes not appear on the balance sheet?

    • A.

      Assets

    • B.

      Owner's equity

    • C.

      Liabilities

    • D.

      Net income

    • E.

      All appear on the balance sheet

    Correct Answer
    D. Net income
    Explanation
    Net income does not appear on the balance sheet because it represents the difference between revenues and expenses over a specific period of time, and is reported on the income statement instead. The balance sheet focuses on the financial position of a company at a specific point in time, showing assets, liabilities, and owner's equity. Net income is used to calculate owner's equity, but it is not directly included on the balance sheet itself.

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  • 13. 

    Which of the following is a common measure of organizational financial succuss?

    • A.

      Profitability

    • B.

      The income statement

    • C.

      Current ratio

    • D.

      Return on investment

    Correct Answer
    D. Return on investment
    Explanation
    Return on investment is a common measure of organizational financial success because it indicates the efficiency and profitability of an investment. It measures the return or profit generated from an investment relative to the cost of that investment. A higher return on investment indicates better financial performance and success for the organization.

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  • 14. 

    Return on assets equals:

    • A.

      Current assets divided by total assets

    • B.

      Return on investment divided by return on net worth

    • C.

      Net profit margin times asset turnover

    • D.

      Total assets divided by costs of goods sold

    Correct Answer
    C. Net profit margin times asset turnover
    Explanation
    Return on assets is a financial ratio that measures a company's profitability in relation to its total assets. It is calculated by multiplying the net profit margin, which represents the company's profitability, by the asset turnover ratio, which measures how efficiently the company utilizes its assets to generate sales. This formula provides a comprehensive measure of the company's ability to generate profits from its assets and is commonly used by investors and analysts to evaluate a company's performance.

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  • 15. 

    Which of the following is false regarding Strategic Profit Model (SPM)?

    • A.

      Can assist the logistics manager in the evaluation of cash flows and asset utilization decisions

    • B.

      Fails to consider the timing of cash flows

    • C.

      Is subject to manipulation in the short run

    • D.

      Fails to recognize assets that are dedicated to specific relationships

    • E.

      All the above are true

    Correct Answer
    E. All the above are true
    Explanation
    The given correct answer states that all of the statements regarding the Strategic Profit Model (SPM) are true. This means that the SPM can indeed assist the logistics manager in evaluating cash flows and asset utilization decisions. It also fails to consider the timing of cash flows, meaning it does not take into account when the cash flows occur. Additionally, the SPM is subject to manipulation in the short run, suggesting that it can be easily manipulated or influenced in the short term. Lastly, it fails to recognize assets that are dedicated to specific relationships, implying that it does not acknowledge assets that are specifically allocated for certain purposes or relationships.

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  • 16. 

    What is the formula for net profit margin?

    • A.

      Gross profit minus interest expenses

    • B.

      Sales divided by costs of goods sold

    • C.

      Total sales divided by total assets

    • D.

      Net profit divided by sales

    Correct Answer
    D. Net profit divided by sales
    Explanation
    The net profit margin is a financial ratio that measures the profitability of a company by determining the percentage of profit generated from its sales. It is calculated by dividing the net profit (the amount left after subtracting all expenses, including taxes and interest) by the total sales revenue. This ratio helps assess the efficiency of a company in generating profit from its sales and is often used by investors and analysts to evaluate a company's financial performance.

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  • 17. 

    The balanced scorecard approach is based on the belief that management should evaluate their business fromm _____ distinct perspectives.

    • A.

      Two

    • B.

      Three

    • C.

      Four

    • D.

      Five

    • E.

      None of the above

    Correct Answer
    C. Four
    Explanation
    The balanced scorecard approach is based on the belief that management should evaluate their business from four distinct perspectives. This approach considers financial, customer, internal processes, and learning and growth perspectives to get a comprehensive view of the organization's performance. By analyzing these four areas, management can assess the overall health and effectiveness of the business and make informed decisions for improvement.

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  • 18. 

    Which of the following is not one of the perspectives evaluated in the balanced scorecard approach?

    • A.

      Customers

    • B.

      Internal business processes

    • C.

      Learning and growth

    • D.

      Financial

    • E.

      All of the above are perspectives in the balanced scorecard approach

    Correct Answer
    E. All of the above are perspectives in the balanced scorecard approach
    Explanation
    The correct answer is that all of the options listed (Customers, Internal business processes, Learning and growth, and Financial) are perspectives evaluated in the balanced scorecard approach. The balanced scorecard approach is a strategic management tool that evaluates an organization's performance from multiple perspectives, including customer satisfaction, internal processes, learning and development, and financial performance. This approach ensures a comprehensive assessment of the organization's overall performance and helps in aligning strategic goals with operational activities.

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