1. A firm wants to start doing business with a supplier on another continent. Which of the following methods to minimize financial risk would best protect the supplier and customer?

A) Bank draft
B) Letter of credit (L/C)
C) Cash-on-delivery terms
D) Currency hedging



2. Reverse logistics processes are often more expensive than standard inbound processes because shipments consist of items that:

A) are small and from unhappy customers wanting quick refunds
B) often do not have uniform packing or labeling
C) involve negotiations with suppliers on the value and timing of items returned for credit
D) are so damaged they are difficult to identify for correct storage



3. When choosing a supplier in a market-responsive supply chain, a company most appropriately would make the selection on the basis of quality and:

A) product cost
B) product development capabilities
C) cost of delivery
D) speed



4. A railway company investing in a signaling system to help identify and restore service quickly is an example of:

A) risk resilience
B) risk tolerance
C) risk appetite
D) risk mitigation



5. Understanding the unique needs and wants of a market segment is important because segments may have:

A) varying numbers of customers for the same product or service
B) a focus on transactional interactions
C) a focus on relational interactions
D) varying time demands for the same product or service