Homework answers / question archive / Western New Mexico University BSAD 340 1)Which type of business product includes such capital goods as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings? a

Western New Mexico University BSAD 340 1)Which type of business product includes such capital goods as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings? a

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Western New Mexico University

BSAD 340

1)Which type of business product includes such capital goods as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings?

a.            Major equipment

b.            Raw materials

c.             Component parts

d.            Accessory equipment

e.            Investment goods

 

2.            Major equipment goods such as machines, mainframe computers, and buildings are also referred to as:

a.            investment goods

b.            necessity goods

c.             capital components

d.            strategic goods e. installations

 

3.            Which of the following is the BEST example of an installation? a. A baseball stadium

b.            A checkout counter

c.             A lifeguard stand

d.            A file cabinet

e.            Original artwork

 

4.            Products such as parking garages, mainframe computers, privately owned office buildings, and street-cleaning equipment are depreciated over time rather than expensed in the year they are purchased. These are classified as:

a.            processed materials.

b.            accessory equipment. c. major equipment.

d. supplies.

e. component parts.

 

5.            Claas is Europe’s largest manufacturer of combine harvesters. As farming becomes more professional and more intensive, farmers are buying more sophisticated machines, which Claas can supply. The expensive machines sold by Claas would be examples of:

a.            Installations.

b.            component parts.

c.             accessory equipment.

d.            processed materials.

e.            minor equipment.

 

6.            TruColor Printers has purchased a Heidelberg printing press with auto-blanket wash and chilled rollers for $2.2 million. The company will depreciate the value of the printing press over several years. The printing press would be considered:

a.            major equipment.

b.            a component part.

c.             processed material.

d.            a fabricating item.

e.            accessory equipment.

7.            Which type of business product represents goods, such as portable tools and office equipment that are less expensive and shorter-lived than major equipment?

a.            Accessory equipment

b.            Component parts

c.             Processed goods

d.            Supplies

e.            Intermediate goods

 

8.            Copying machines, personal computers, and fax machines are typically classified as because they are not expensive, have short useful lives, and are frequently purchased from local distributors.

a.            accessory equipment

b.            mobile equipment

c.             component parts

d.            processed materials

e.            supplies

 

9.            For Renovation Remodeling Company, wrenches, drills, and circular saws are all examples of

                because they are shown as expenses on the yearly accounting statements.

a.            mobile installation

b.            component part

c.             processed material

d.            supply

e.            accessory equipment

 

10.          Which of the following is the BEST example of accessory equipment?

a.            A parking lot

b.            A store display rack

c.             Accounting services

d.            A river barge

e.            Light bulbs

 

 

11.          Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore, and so on, that become part of finished products are examples of:

a.            supplies.

b.            OEM parts.

c.             component parts.

d.            processed materials. e. raw materials.

 

12.          One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. The fresh tomatoes it buys from growers are examples of:

a. OEM parts. b. raw materials.

c.             component parts.

d.            processed materials.

e.            supplies.

 

 

13.          Hazelwood Farms provides local restaurants with organic fruits and vegetables that have been grown without the use of pesticides or chemical fertilizers. Hazelfield Farms is a supplier of:

a.            accessory parts.

b.            supplies.

c.             raw materials.

d.            unprocessed extractive products.

e.            processed materials.

 

14.          All of the following are considered types of business products EXCEPT:

a.            raw materials.

b.            convenience goods.

c.             major equipment.

d.            accessory equipment.

e.            component parts.

 

15.          Finished items ready for assembly, or products that need very little processing before they become a part of some other product, are called:

a.            supplies.

b.            raw materials.

c.             accessory equipment.

d.            processed materials. e. component parts.

 

16.          There are two important markets for many component parts: the original equipment market and the                market.

a.            replacement

b.            processed materials

c.             accessory

d.            raw materials

e.            integrated parts

 

 

17.          Within the business market, roller belts that are purchased by vacuum manufacturers are examples of:

a.            supplies.

b.            raw materials.

c.             accessory equipment.

d.            processed materials. e. component parts.

 

18.          PAS Systems has developed an unobtrusive flashlight-alcohol detector. The flashlight readings are inadmissible in court but are used by police officers to decide whether to hold someone for a sobriety test. Each one costs $600. The manufacturer assembles a breathalyzer from one supplier with a slightly modified flashlight case from another supplier to make the new product. The breathalyzer and the flashlight case are examples of:

a. major equipment. b. component parts.

c.             processed materials.

d.            integrated parts.

e.            accessory equipment.

19.          Products that have had some processing are used directly in the production of other products, and do not retain their identity in the final product are called:

a.            raw materials.

b.            supplies.

c.             processed materials.

d.            component parts.

e.            replacement parts.

 

20.          No-Glut is a small company that manufactures several gluten-free products for consumers who cannot digest this substance. For this manufacturer, rice flour, which will be used in its manufacturing process, is:

a.            accessory equipment.

b.            fabricating material.

c.             a component part.

d.            an integrated material. e. processed material.

 

21.          A dog food manufacturer purchases processed meat by-products that it uses in the manufacture of a dry dog food. These processed meat by-products are examples of:

a.            raw materials.

b.            OEM products.

c.             processed materials.

d.            component parts.

e.            replacement parts.

 

22.          One way processed materials differ from component parts is that processed materials: a. do not retain their identity in final products.

b.            are always much cheaper than component parts.

c.             have had some processing.

 

d.            do not become part of a final product.

e.            are usually unseen by the final user.

 

23.                         are consumable, inexpensive, and often standardized items that do not become part of the final product.

a. Processed materials b. Supplies

c.             Provisions

d.            Accessory equipment

e.            Replacement parts

 

24.          Another name for business supplies like pens, paper, and file folders is:

a.            processing goods.

b.            components.

c.             OEM parts. d. MRO items.

e. accessories.

 

 

25.          At an accounting firm, the secretary orders printer cartridges, cases of paper, paper clips, and other small items. These items would be classified as:

a.            replacement parts.

b.            provisions.

c.             OEM parts.

d.            accessory equipment. e. supplies.

 

26.          Business services:

a.            are capital items.

b.            are never outsourced.

c.             are not used in reciprocity arrangements.

d.            typically become part of the finished product. e. are expense items.

 

27.          A dentist hired a janitorial service to clean her office every evening. The janitorial service provided the dentist with:

a.            OEMs.

b.            processed services. c. business services.

d. accessory services.

e. service supplies.

 

28.          The Barter Company, (TBC), located in Kennesaw, Georgia, acts as a broker between companies that want to trade products or services. Companies must be a TBC member, and there is a one-time fee to join. TBC charges a brokerage fee on each transaction facilitated. This company is an example of a(n):

a.            service integrator.

b.            job source.

 

c.             business service.

d.            extended service.

e.            component service.

 

29.          The        is the set of all persons in an organization who become involved in the purchasing process.

a.            buying center

b.            stakeholder committee

c.             ad hoc purchasing staff

d.            board of directors

e.            comptroller’s staff

 

30.          The buying center:

a.            will be composed of the same decision makers as long as the purchasing process lasts.

b.            is typically on the formal organizational chart under the VP for operations.

c.             requires all purchasing participants to be employed by the purchasing department.

d.            refers to all those organizational members who become involved in the purchasing process.

e.            regularly generates formal announcements of who is in the buying center.

 

 

31.          Which of the following statements about buying centers is true?

a.            The most efficient buying centers have no more than five members.

b.            No one individual should assume more than two buying center roles.

c.             Buying centers are clearly labeled on all organizational charts.

d.            Complex purchase situations usually have fewer people involved in the buying center than less complex purchases.

e.            Membership and influence in a buying center vary from company to company.

 

32.          The        is the member of the buying center who regulates the flow of information.

a.            decider

b.            influencer

c.             purchaser d. gatekeeper

e. user

 

33.          Bob works for the Zinn Plumbing Company. After struggling with a particularly difficult job one day, he tells his supervisor, Miguel, that if he’d had a special type of wrench he could have finished the job much more quickly. Bob asks Miguel if the company would be willing to purchase the wrench. Miguel agrees that the wrench would be a good purchase, so the next day he approaches the company owner, Phyllis Zinn, and lays out for her all the reasons why the new wrench should be purchased. After listening to Miguel’s presentation, Phyllis agrees that the wrench should be purchased and authorizes Miguel to pick one up from the plumbing parts distributor that afternoon. In this scenario:

a.            Miguel is both the buyer and the decider.

b.            Bob is both the influencer and the user.

c.             Miguel is both the gatekeeper and the influencer.

d.            Phyllis is both the initiator and the decider.

e.            Both Bob and Miguel are initiators, and Phyllis is the influencer.

 

 

34.          You have started raising your first litter of AKC-registered Chihuahuas. You want to sell your puppies to Pets and People, the locally owned and operated pet store. How do you find the buyer?

a.            Look at the formal organization chart of the company.

b.            Get a copy of Pets and People’s phone directory, where all buying center members are listed. c. Contact the store and probe to see who is in charge of buying.

d. Locate the decider at Pets and People.

e. Wait for Pets and People to call you when they hear about your new breeding program.

 

35.          All of the following are roles found within a buying center EXCEPT:

a.            influencers.

b.            gatekeepers. c. suppliers.

d. users.

e. initiators.

 

 

 

 

 

36.          Harold works as a new business manager for a manufacturer of marine lubricants. He often talks to several different people before he locates someone who can give him a purchase order or a refusal. In terms of the buying center, he has the most trouble identifying the for his services.

a.            decider

b.            influencer

c.             purchaser

d.            gatekeeper

e.            user

 

37.          The three most important evaluative criteria for business-to-business purchases are quality, price, and:

a. competitive offers. b. service.

c.             reliability.

d.            assurance.

e.            existing relationships.

 

38.          Business buyers use a variety of criteria to evaluate alternative products and suppliers. The three most important criteria, in order of importance, are:

a. price, sales support, and service. b. quality, service, and price.

c.             reputation, price, and capability.

d.            price, delivery time, and product reliability.

e.            service, quality, and reputation.

 

39.          The Beaumont Homeowner’s Association had to replace its pool pump. They asked two local companies— Thompson Pools and Southern Pool and Spa Company—for quotes on replacing the pump. Beaumont negotiated with both companies and quickly decided to buy from Thompson Pools

 

because its quote was $200 cheaper in its labor estimate. Which evaluative criterion appears to have been most important in making this purchase decision?

a.            Price

b.            Familiarity with the product

c.             Reliability

d.            The availability of replacement parts

e.            Buyer/seller relationship

 

40.          A             is a situation requiring the purchase of a product for the first time.

a.            straight rebuy

b.            value buy

c.             modified rebuy d. new buy

d.            make-or-buy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41.          A new buy situation refers to the:

a.            setting of new standards for current vendors.

b.            establishment of a new buying center.

c.             resolution of new conflict between buyer and seller.

d.            search for replacement vendors for standard, currently used parts. e. purchase of a product or service when a new demand arises.

42.          A university is considering the purchase of a Web-based course delivery system due to increased demand for online courses and degrees. Since the school has not offered online courses before, what type of buying situation does this represent for the school?

a.            Value engineering task

b.            Modified rebuy

c.             Straight rebuy d. New buy

e. Derived rebuy

 

43.          A small police department wants to buy a machine with which it can perform alcohol breath tests. It has never had this capability before but feels it is an essential tool as the community grows. The machine costs about $5,000, which is almost 75 percent of the department’s entire supply budget. This purchase would be an example of a(n)        situation.

a.            extensive buying

b.            low-involvement buying c. new buy

d. modified rebuy

e. straight rebuy

 

44.          A             situation is normally less critical and less time-consuming than a new buy situation but does require some change in the original good or service.

a.            synergistic rebuy

b.            value buy

c.             negotiated rebuy d. modified rebuy

e. make-or-buy

 

45.          Apple, Inc. wants a faster microprocessor for its new Macs. Apple most likely engaged in a:

a. value engineering task. b. modified rebuy.

c.             straight rebuy.

d.            new process.

e.            new buy.

 

46.          A dentist hired a janitorial service to clean her office every evening. The original contract called for the janitorial service to dust, mop all floors, and vacuum the rugs. After six months, the dentist decided to renegotiate the contract with the janitorial service to include cleaning the office bathroom and washing the office windows as well as the original tasks. The renegotiated contract is an example of a:

a. contingency buy. b. modified rebuy.

c.             negotiated buying system.

d.            straight rebuy.

e.            new buy situation.

 

 

 

 

47.          Axel Spring AG, one of Europe’s largest newspaper publishers, with 10,000 employees and more than 150 papers in 30 countries, announced it would switch its entire operation from PCs to Macs. Axel decided to make a switch to Apple because the company’s layout work was already being done by Macs and the Macs were more user friendly, more elegant, and cheaper to maintain than they had been in the past. This is an example of a:

a.            new buy.

b.            value buy.

c.             straight rebuy. d. modified rebuy.

e. make-or-buy.

 

48.          Which of the following is the best example of a modified rebuy situation?

a.            The purchase of a replacement hamster as the class mascot

b.            Bidding on a new high school multipurpose gymnasium to replace one built in 1963 c. The purchase of three large-screen computer monitors to replace smaller monitors

d. The annual purchase of calendar refills for the desks of all company executives

e. The monthly updating of computer virus protection

 

49.          A routine purchasing situation in which the purchaser is not looking for new information or other suppliers is called a:

a.            modified rebuy.

b.            value buy.

c.             synergistic buy. d. straight rebuy.

e. make-or-buy.

 

50.          Leo buys coffee weekly for his espresso shop. This purchase is most likely an example of a(n)

                situation.

a.            need-related buy

b.            limited rebuy c. straight rebuy

d. rebuy sourcing

e. institution buy

 

51.          A professor sent the following memo to his department chair for his authorization:

Glen: I need to purchase a camera, Mac computer, and microphone for the selling center lab #2 just like we did for lab #1. This buying situation should be described as a:

a.            make-or-buy.

b.            value buy.

c.             new buy.

d.            modified rebuy. e. straight rebuy.

 

52.          Purchasing contracts are commonly used in which type of buying situations?

a.            Reciprocal

b.            Straight rebuy

c.             New buy

d.            Extended rebuy

e.            Modified rebuy

53.          Which of the following is becoming increasingly more important in business marketing strategies?

a.            Customer service

b.            Price collusion

c.             Ethnocentrism

d.            The divider effect

e.            Competitive advertising