BUSI2003 Week 3 Midterm Exam/BUSI2003 Week 3 Midte

BUSI2003 Week 3 Midterm Exam



Question

Question 1

Which of the following statements concerning service guarantees is false?

A service guarantee is a way to avoid compensating customers for a service failure.

A service guarantee is a way to define a service and ensure satisfactory delivery to the

customer.

A service guarantee is a mechanism to build customer loyalty.

A service guarantee is a tool to clarify exactly what the service must provide.

Question 2

A major drawback of a line process is the jumbled flow, which reduces the throughput and

efficiency.

True

False

Question 3

Process selection choices affect all parts of the firm and thus involve all functional areas

along with general management.

True

False

Question 4

The Knee-Hugger Jeans Company makes designer jeans in six colors under a make-to-stock

approach. In response to a new fashion craze, customers have expressed the desire to acquire

these jeans in three different styles-namely regular, tight-fit and relaxed-fit styles, with and

without "stylish" holes, and with one of four cuts for the pants leg: boot-cut, bell-bottom cut,