Question 1 1.   The difference between profit sharing and stock ownership is: Answer there is more risk involved with profit sharing than with stock ownership. profit sharing becomes part of a base salary and stock ownership does not. stock ownership becomes part of a base salary and profit sharing does not. profit sharing encourages ownership thinking and stock ownership is ownership. 4 points    Question 2 1.   Which of the following examples would represent the ethical behavior of an executive? Answer Inflate stock prices to receive bonuses and stock options Boost stock value through efficient operations, and effective leadership Buying or selling stock based on knowledge about the company's future Stretching accounting practices to present company performance in the best light 4 points    Question 3 1.   Vesting rights are the rights of the: Answer employee to receive a pension at retirement age regardless of the length of time he/she was employed with the company. employer to transfer or terminate employees before reaching retirement so they can avoid paying pension benefits. employee to receive a pension at retirement age as long as he/she was employed for a specified amount of time. employer to keep employee contributions to pension plans if they leave the company before the specified amount of time. 4 points    Question 4 1.   Which of the following states that employees MUST have a choice about whether to retire? Answer Employee Retirement Income Security Act (ERISA) Pension Benefit Guarantee Corporation (PBGC) Age Discrimination in Employment Act (ADEA) Older Workers Benefit Protection Act (OWBPA) 4 points    Question 5 1.   The difference between a cash balance plan and a defined-benefit plan is: Answer a cash balance plan earns interest at a predefined rate, and a defined-benefit plan guarantees a certain level of retirement income. a defined-benefit plan earns interest at a predefined rate, and a cash balance plan guarantees a certain level of retirement income. a cash balance plan specifies the size of investment, and a defined-benefit plan earns interest at a predefined rate. a defined-benefit plan specifies the size of investment, and a cash balance plan guarantees a certain level of retirement income. 4 points    Question 6 1.   Which of the following is an example of an employee being paid based on a piecework rate? Answer A pay increase based on performance appraisal ratings Being paid extra for work done in less than a specified amount of time Pay calculated as a percentage of sales Pay based on the amount of product produced 4 points    Question 7 1.   Which of the following is a legally required benefit an employer must provide? Answer Disability insurance Life insurance Worker's compensation Paid leave 4 points    Question 8 1.   In addition to pay, what are some important aspects of making incentives work? Answer Performance measures are preset, passed down by u ...

1. Question 1
1.
The difference between profit sharing and stock ownership is:
Answer
there is more risk involved with profit sharing than with stock
ownership.
profit sharing becomes part of a base salary and stock
ownership does not.
stock ownership becomes part of a base salary and profit
sharing does not.
profit sharing encourages ownership thinking and stock
ownership is ownership.
4 points
Question 2
1.
Which of the following examples would represent the ethical
behavior of an executive?
Answer
Inflate stock prices to receive bonuses and stock options
Boost stock value through efficient operations, and effective
leadership

2. Buying or selling stock based on knowledge about the
company's future
Stretching accounting practices to present company performance
in the best light
4 points
Question 3
1.
Vesting rights are the rights of the:
Answer
employee to receive a pension at retirement age regardless of
the length of time he/she was employed with the company.
employer to transfer or terminate employees before reaching
retirement so they can avoid paying pension benefits.
employee to receive a pension at retirement age as long as
he/she was employed for a specified amount of time.
employer to keep employee contributions to pension plans if
they leave the company before the specified amount of time.
4 points
Question 4
1.
Which of the following states that employees MUST have a
choice about whether to retire?
Answer

3. Employee Retirement Income Security Act (ERISA)
Pension Benefit Guarantee Corporation (PBGC)
Age Discrimination in Employment Act (ADEA)
Older Workers Benefit Protection Act (OWBPA)
4 points
Question 5
1.
The difference between a cash balance plan and a defined-
benefit plan is:
Answer
a cash balance plan earns interest at a predefined rate, and a
defined-benefit plan guarantees a certain level of retirement
income.
a defined-benefit plan earns interest at a predefined rate, and a
cash balance plan guarantees a certain level of retirement
income.
a cash balance plan specifies the size of investment, and a
defined-benefit plan earns interest at a predefined rate.
a defined-benefit plan specifies the size of investment, and a
cash balance plan guarantees a certain level of retirement
income.
4 points

4. Question 6
1.
Which of the following is an example of an employee being
paid based on a piecework rate?
Answer
A pay increase based on performance appraisal ratings
Being paid extra for work done in less than a specified amount
of time
Pay calculated as a percentage of sales
Pay based on the amount of product produced
4 points
Question 7
1.
Which of the following is a legally required benefit an employer
must provide?
Answer
Disability insurance
Life insurance
Worker's compensation
Paid leave

5. 4 points
Question 8
1.
In addition to pay, what are some important aspects of making
incentives work?
Answer
Performance measures are preset, passed down by upper
management and unclear
Employee participation and communication are welcomed,
clear, and frequent
Employees participate initially then management makes changes
without regard to employees
Performance measures are decided without employee
involvement but clearly communicated
4 points
Question 9
1.
What is the difference between a straight piecework plan and a
differential piecework plan?
Answer
Straight piecework is the same rate per piece; differential
piecework is when the rate increases if a greater amount is
produced.
Differential piecework is the same rate per piece; straight

6. piecework is when the rate increase if a greater amount is
produced.
Straight piecework is pay for extra work done in a certain
amount of time; differential piecework is when the rate
increases if a greater amount is produced.
Differential piecework is pay for extra work done in a certain
amount of time; straight piecework is when the rate increases if
a greater amount is produced.
4 points
Question 10
1.
Stock options and stock purchase plans would be an example of
which of the following?
Answer
Long-term incentive-pay for executives
Short-term incentive-pay for executives
Employee empowerment for executives
Performance measures for executives
List and explain the advantages and disadvantages of incentive
pay, and describe how companies can overcome the
disadvantages.
Your response should be at least 75 words in length.

7. Compare and contrast the three common types of retirement
plans offered by employers, and indicate whether they are
contributory or noncontributory plans. What are the advantages
and disadvantages of each one to the employee and to the
employer?
In your opinion, what types of optional benefits have come to
be “expected” by employees, and why would it be a good idea
for employers to offer them as part of their benefits package?
Your response should be at least 75 words in length.
1) What factors should be considered when selecting the
appropriate capacity cushion? How does the choice of capacity
cushion relate to other decisions in operations management? To
other functional areas?
There are many factors that we should considerate when
selecting the appropriate capacity cushion such as type of
business, level of fluctuation in demand, flexibility of
production line, level of inventory (finish goods), reliability of
supplier and cost of capital etc. All of the example factors can
affect the decision of suitable size of capacity cushion as
determined in table below.
Large capacity cushion
Small capacity cushion
Type of business
Service industry
Manufacturing
Level of fluctuation in demand
High
Low
Flexibility of production line
Inflexible
Flexible

8. Level of inventory (finish goods)
Low
High
Reliability of supplier
Unreliable
Reliable
Cost of capital
Low
High
As capacity cushion is the capacity that company reserve
for unexpected situation, size of capacity cushion always relate
to other decision in operation management. For example, if
company has small capacity cushion and demand has continued
increasing trend. Operation manager should begin to consider of
increasing production capacity. Moreover, if company has small
cushion and almost reach maximum capacity, operation team
might need to communicate with marketing manager to slow
down their team to prevent the situation that company can’t
deliver product to customer on time. Furthermore, operation
manager might have another option that is communicate with
finance team to prepare capital for increasing capacity.
2) What are five of the seven key principles of the Theory of
Constraints and give an example of each?
1. Maximizing the output and efficiency of every resource
may not maximize the throughout of the entire system. For
example, no mater how much operation team can maximizing
the output and efficiency of every resource but if there is
bottleneck in production process, that bottleneck will slow
down and decrease efficiency of entire process.
2. An hour lost at bottleneck or constrained resource is an
hour lost for whole system. In contrast, an hour saved at a
nonbottleneck resource is a mirage because it does not make the
whole system more productive. For example, if company has

9. three step of production process and bottleneck occur in step
two, saving an hour in step one will not make company
productive because production will be slow down at step two
anyway. To be more productive company should find bottleneck
and fix it.
3. Inventory is needed only in front of the bottleneck in
order to prevent them from sitting idle, and in front of assembly
and shipping points in order to protect customer schedules.
Building inventories elsewhere should be avoided. For example,
creating inventory behind bottleneck instead of put it through
production process will generate unnecessary inventory costs.
4. Work, which can be material, information to be
processed, documents, or customers, should be released into the
system only as frequently as the bottlenecks need it. Bottleneck
flows should be equal to the market demand. Pacing everything
to the slowest resource minimizes inventory and operating
expenses. For instance, if bottleneck process can handle 3
materials per hour and operation manager decide to put 5
materials into system per hour, fourth and fifth material will
have to sit idle in front of bottleneck process and that create
inventory cost and operating expense.
5.Activating a nonbottleneck resource (using it for
improve efficiency that does not increase throughput) is not the
same as utilizing a bottleneck resource (that does lead to
increase throughput). Activation of nonbottleneck resource
cannot increase throughput, nor promote better performance on
financial measure. For example, if operation manager can
activate labor to increase production rate from 10 to 20 pieces
per hour in nonbottleneck area but in bottleneck process can
handle only 7 pieces per hour, production rate per hour still
remain at 7 pieces per hour.
3) List four of the six dominant factors in locating
manufacturing facilities, as discussed in the book.
· Favorable labor climate: A favorable labor climate may be the
most important factor in location decisions for labor-intensive

10. firms in industries such as textiles, furniture, and consumer
electronics. Labor climate includes wage rates, training
requirements, attitudes toward work, worker productivity, and
union strength. Many executives consider weak unions or al low
probability of union organizing efforts as a distinct advantage.
· Quality of life: Good schools, recreational facilities, cultural
events, and an attractive lifestyle contribute to quality of life.
This factor is relatively unimportant on its own, but it can make
the difference in location decisions.
· Proximity to suppliers and resources: In many companies,
plants supply parts to other facilities or rely on other facilities
for management and staff support. These require frequent
coordination and communication, which can become more
difficult as distance increases.
· Proximity to markets: After determining where the demand for
goods and services is greatest, management must select a
location for the facility that will supply that demand. Locating
near markets is particularly important when the final goods are
bulky or heavy and outbound transportation rates are high. For
example, manufacturers of products such as plastic pipe and
heavy metals all emphasize proximity to their markets.