03/10 SI

Froggy Jumps

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Chapter 6 Review (so far)

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03/10 SI


Froggy Jumps 03/10 SIVersión en línea Chapter 6 Review (so far) por Li 1 A café buys coffee beans from a local supplier at the market price with no long-term commitment. What type of procurement method is this? a Spot exchange b Contracts c Vertical integration 2 A mechanic purchases a single replacement part from a wholesaler for a one-time car repair. What kind of procurement method is this? a Spot exchange b Contracts c Vertical integration 3 A hospital signs a one-year agreement with a medical supplier for a steady supply of gloves and masks. What kind of procurement method is this? a Spot exchange b Contracts c Vertical integration 4 An airline locks in a long-term fuel contract to avoid price fluctuations. What kind of procurement method is this? a Spot exchange b Contracts c Vertical integration 5 A fashion brand buys a textile factory to produce its own fabric. What kind of procurement method is this? a Spot exchange b Contracts c Vertical integration 6 A tech company acquires a chip manufacturer to control its supply chain. What kind of procurement method is this? a Spot exchange b Contracts c Vertical integration 7 Which procurement method is not good with specialized inputs? a Spot exchange b Contracts c Vertical integration 8 Which of the following is a positive feature about contracts? a Difficult to cover all situations b Time consuming c Reduces uncertainty 9 Why should you choose vertical integration? a The suppliers are disciplined by the market b There is more cooperation c There is potential for bureaucratic costs 10 If there is substantial uncertainty... a Contracts become more desirable b Contracts become longer c None of the answers are correct 11 If bargaining costs are high... a Longer contracts are more desirable b Horizontal integration becomes more attractive c Both of the answers are correct 12 If specialized inputs are required... a Contracts become more attractive b Vertical integration becomes more attractive c Both of the answers are correct 13 The objective of both the owner and employee is to maximize the firm's profit. a True b False c No clue :( 14 Incentivizing your employees will lead to better results than monitoring/threatening them. a True b False c Uhhhh :( 15 Which of these is an example of incentives for your employees? a Performance evaluations b Video surveillance c Stock option 16 When employees get paid for their performance, they have an incentive to shirk. a True b False c Girl... :( 17 When all parties gain, everybody will work to better the firm. a True b False c D:

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03/10 SI

Froggy Jumps

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Froggy Jumps

03/10 SIVersión en línea

por Li

A café buys coffee beans from a local supplier at the market price with no long-term commitment. What type of procurement method is this?

A mechanic purchases a single replacement part from a wholesaler for a one-time car repair. What kind of procurement method is this?

A hospital signs a one-year agreement with a medical supplier for a steady supply of gloves and masks. What kind of procurement method is this?

An airline locks in a long-term fuel contract to avoid price fluctuations. What kind of procurement method is this?

A fashion brand buys a textile factory to produce its own fabric. What kind of procurement method is this?

A tech company acquires a chip manufacturer to control its supply chain. What kind of procurement method is this?

Which procurement method is not good with specialized inputs?

Which of the following is a positive feature about contracts?

Why should you choose vertical integration?

If there is substantial uncertainty...

If bargaining costs are high...

If specialized inputs are required...

The objective of both the owner and employee is to maximize the firm's profit.

Incentivizing your employees will lead to better results than monitoring/threatening them.

Which of these is an example of incentives for your employees?

When employees get paid for their performance, they have an incentive to shirk.

When all parties gain, everybody will work to better the firm.