1) A(n) ________ is a network of activities, actors, roles, repositories, and data and sequence flows that interact to accomplish a business function.
A) business enterprise
B) business process
C) inventory network
D) communication system
2) Which of the following is the first step in processing an order?
A) checking customer credit
B) approving special terms
C) verifying availability
D) preparing a quotation
3) A customer's credit is checked before checking the availability of goods in order to ________.
A) increase the rate of credit approval of customers
B) arrange for the special terms requested
C) prevent the wastage of shipping-verification labor
D) align the processes with organizational goals
4) A company stops stocking an item but procures it directly from the manufacturer. This implies that the company has made a change in its ________.
A) product line
B) supply chain
C) credit policy
D) distribution structure
5) Which of the following steps is the most appropriate if a company decides to accept more risk and sell to companies with lower credit scores?
A) modifying the credit checking process
B) implementing different ways of checking credit
C) approving special terms before checking the credit
D) shipping the inventory directly from the manufacturer to lower the credit
6) In which of the following situations will credit checking be made the first step in the procedure of processing an order?
A) during recession
B) during a merger
C) during an acquisition
D) during inflation
7) Repositories are most often collections of data.
8) While processing a purchase order, if a customer's request for special terms is disapproved, the cost of checking availability and credit is wasted.
9) A substantial change in the business environment, like the onset of recession, might mean that checking credit becomes unnecessary.
10) The credit-check process is independent of the inclusion or exclusion of new categories of customers.