MGT 325 Exam 1 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Basic Functions of an Business Organization - CORRECT ANSWER Operations -
creates goods/services (MOST IMPORTANT for this class)
Marketing - generates demand
Finance - manages money & investments All three must work together
Operations - CORRECT ANSWER The part of a business organization that is
responsible for producing goods or services
Supply and Demand - CORRECT ANSWER Supply: amount producers are willing to
offer
Demand: amount customers are willing to buy
Imbalance = shortages or excess inventory
The Transformation Process - CORRECT ANSWER Inputs → Transformation →
Outputs
Inputs: labor, materials, capital, info
Transformation: processes/activities
Outputs: goods or services
Supply Chain - CORRECT ANSWER a sequence of activities and organizations
involved in producing and delivering a good or service
Goods - CORRECT ANSWER are physical items that include raw materials, parts,
subassemblies, and final products.
•Automobile
•Computer
QUESTIONS AND CORRECT ANSWERS
Basic Functions of an Business Organization - CORRECT ANSWER Operations -
creates goods/services (MOST IMPORTANT for this class)
Marketing - generates demand
Finance - manages money & investments All three must work together
Operations - CORRECT ANSWER The part of a business organization that is
responsible for producing goods or services
Supply and Demand - CORRECT ANSWER Supply: amount producers are willing to
offer
Demand: amount customers are willing to buy
Imbalance = shortages or excess inventory
The Transformation Process - CORRECT ANSWER Inputs → Transformation →
Outputs
Inputs: labor, materials, capital, info
Transformation: processes/activities
Outputs: goods or services
Supply Chain - CORRECT ANSWER a sequence of activities and organizations
involved in producing and delivering a good or service
Goods - CORRECT ANSWER are physical items that include raw materials, parts,
subassemblies, and final products.
•Automobile
•Computer
