A Manager of a Small Plumbing Company Is Thinking About

question 5

Multiple Choice

A manager of a small plumbing company is thinking about installing a total quality management (TQM) program. If TQM is installed, the manager should be aware that

• A) costs cannot be allowed to limit quality goals.
• B) quality must become a very important goal of the business.
• C) ISO 9000 will be the controlling criterion.
• D) reengineering is the most direct route to effective TQM.

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Definitions:

Total Wealth

The sum of all financial assets and physical possessions that have a monetary value owned by an individual or organization.

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares by combining them into fewer, proportionally more valuable shares.

Market Price

The immediate price at which an asset or service is open for buying or selling.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and company officers.