To Receive ISO 9000 Certification, Companies Must __________ and __________

question 61

Multiple Choice

To receive ISO 9000 certification, companies must __________ and __________.

• A) apply for membership in the International Society for Operations (ISO); receive approval from the ISO membership committee
• B) undergo extensive managerial training; be approved by the Management Development Institute
• C) receive governmental approval to apply for the certification exam; have at least 90% of the employees pass the certification exam
• D) increase sales for three years in a row; decrease customer complaints in each year
• E) refine and upgrade quality in all operations; undergo a rigorous assessment by outside auditors

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Definitions:

Binding Price Ceiling

A government-imposed price limit that is set below the equilibrium price, causing a shortage of the product because demand exceeds supply.

Binding Price Floor

A government-imposed price control or limit that sets the lowest price at which a good can be sold, which is above the market equilibrium price, leading to excess supply.

Persistent Surplus

A situation where the supply of a good consistently exceeds the demand for it, often leading to a drop in prices.

Quota Rent

The earnings that accrue to the licensee from the difference between the domestic price and the world price of an imported good when imports are limited by a quota.