Total Quality Management

question 71

Multiple Choice

Total quality management:

• A) requires that everyone in the organization be concerned with improving quality.
• B) means more than just using statistical controls to reduce manufacturing defects.
• C) views the cost of lost customers as an important result of quality problems.
• D) applies to service producers as well as manufacturers.
• E) All of these alternatives are correct.

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Definitions:

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business entity.

Unlimited Life

Refers to corporations having a perpetual existence, not limited by time, allowing them to continue operations indefinitely unless dissolved.

Agency Problem

A conflict of interest arising between principals (owners/shareholders) and agents (company executives/managers), where the agent may make decisions that benefit themselves at the expense of the principals.