After a significant decline in earnings for 2016 Q3, Ralph Lauren announced that it will move its warehousing services from a distribution center run by another company to one run by the fashion retailer. The decline in earnings and move to manage the warehouse themselves signifies that Ralph Lauren is looking to:
A) increase the efficiency of goods handling and distribution of goods to customers.
B) maintain low inventory levels while avoiding stock-outs.
C) find the best trade-off of speed and cost for transporting goods.
D) raise prices of their products to increase earnings.
E) gain valuable market information.
Question 2 - Small businesses are typically managed by:
A) relatives.
B) professional managers.
C) friends.
D) the people who start and own them.
E) the board of directors.
Question 3 - Raina and James run a small running apparel company that is gaining steam with customers. They currently sell their items at a few specialty running stores in town and at two regional locations of Dunahm's Sports, a large sporting goods chain. They have an opportunity to get their products sold in other Dunham's locations, but they've encountered a few stock-outs. They've been told by Dunham's that they won't secure a larger distribution deal until they've sorted out their stock-out problem. Where should Raina and James focus their attention?
A) They should look at a new option for transportation as their current use of trucks does not get the items to the retail stores quickly enough.
B) They should focus on their warehousing in order to efficiently distribute goods to their retail customers.
C) They should implement a new inventory management system to maintain low levels of inventory but also minimize running out.
D) They should look at maximizing their profits by producing the running apparel overseas, where labor costs are lower.
E) They should focus on their pricing objectives in order to increase sales and cash flow.
Question 4 - Tienlon and her friend Lou would like to open a dog-walking business in Chicago. Lou will handle acquiring new clients, billing, and advertising, and Tienlon will walk the dogs. They agree Tienlon will earn 60 of the profits the business earns. They don't plan on needing any investment into the company and prefer to make all the decisions regarding the business themselves. They are concerned about liability in case one of the dogs happens to get injured while in their care. Which type of business ownership best suits Tienlon and Lou?
A) LLC
B) Corporation
C) Partnership
D) S corporation
E) Sole proprietorship
Question 5 - Looking to the future, Amazon anticipates that it will soon be able to deliver packages to customers by using automated drones. This would allow Amazon to deliver a package to a customer within 30 minutes of the purchase. The key goal of focusing on this function of distribution is:
A) efficient handling of the goods within a warehouse and efficient distribution of those goods to customers.
B) to maintain low inventory levels while avoiding stock-outs.
C) to find the best trade-off of speed and cost for the situation.
D) to stockpile inventory to ensure there are never stock-outs.
E) to choose the fastest delivery method in order to ensure customer satisfaction.
Question 6 - Three advertising executives have decided to start their own business. They will each invest the same amount to get the business started and plan to split profits evenly among themselves. They would like limited liability and would like to avoid double taxation. Which type of business ownership would best suit their needs?
A) Sole proprietorship
B) LLC
C) Partnership
D) Corporation
E) Joint venture
Quick Reply
