An Operations Strategy for Process Selection Should Recognize That

question 16

Multiple Choice

An operations strategy for process selection should recognize that

• A)process selection seldom requires technical expertise.
• B)engineering "white elephants" are uncommon.
• C)there is little need to manage technology.
• D)flexibility is not always the best choice.
• E)most technical skills can be contracted out to consultants.

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Definitions:

CAPM

Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

Arbitrage Pricing Theory

A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.

Single Market Index

An index that measures the performance of a specific market segment or region.

Nonsystematic Risk

This type of risk is unique to a specific company or industry and can be reduced through diversification.