Oxford University Press | Online Resource Centre

Choose your answers from a-d by clicking the radio button next to each choice and then press 'Submit' to get your score.

Question 1

The value chain is subdivided into two main headings. These are primary activities and:

a) Peripheral activities

b) Support activities

c) Secondary activities

d) Outsourced activities

Question 2

In the value chain, primary activities are:

a) Directly involved in the production, marketing and delivery of the product or service

b) Those activities that are all undertaken in-house

c) Those activities that support the production, marketing and delivery of the product or service

d) Directly involved in the production and delivery of the product or service

Question 3

The 'operations' in a passenger airline service would be:

a) The manufacture of the aircraft

b) Getting passengers and baggage from A to B by means of flying in an aircraft

c) The design of the price structure and yield plan

d) Selling the tickets to passengers

Question 4

One of the strategic decisions relating to the value chain concerns vertical integration. This would involve:

a) Deciding whether to locate operations in the home country or in a foreign location

b) Deciding whether the activity should be performed within the organization or by a different firm

c) Deciding to link all activities using Enterprise Resource Planning

d) Deciding whether to share certain activities across different products and markets

Question 5

Firm A has decided to use an outside travel firm for making travel arrangements but it is based on the premises of Firm A. This is an example of:

a) Nearshoring

b) Offshoring

c) Insourcing

d) Outsourcing

Question 6

A network of firms providing different parts of a value-chain in the production of a product or service is known as:

a) Franchising

b) Nearshoring

c) Orchestrating

d) Co-specialization

Question 7

A firm outsources many of its value chain activities. Compared to a firm that does everything in-house this is likely to incur:

a) Higher transaction costs, lower control

b) Higher transaction costs, higher control

c) Lower transaction costs, higher control

d) Lower transaction costs, lower control

Question 8

When a firm promises more than it can actually deliver to win a contract, this is known as:

a) Adverse selection

b) Inverse selection

c) Moral hazard

d) Trust hazard

Question 9

Which of the following outcomes is a potential benefit of outsourcing?

a) Higher flexibility

b) Higher control

c) Lower transaction costs

d) Better linkages between activities

Question 10

A joint venture can be defined as:

a) Two firms collaborate together on a specific project

b) One firm licenses its intellectual property to another firm

c) Two firms merge together

d) Two firms come together to form a third, legally separate firm

Oxford University Press, Online Resource Centre, Chapter 06.

Chapter 06

Instructions