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Refer to the Scenario Below to Answer the Following Questions

question 107

Multiple Choice

Refer to the scenario below to answer the following questions.
Embarking on TQM at Maestro Motors (Scenario)
Hector glanced at the watch and sighed. It was already 6:30 and he should be heading home for dinner. Dina would be mad because he was late again. He closed the main garage door at his auto repair shop, Maestro Motors. His two mechanics has just left even though the queue of cars waiting for repairs was longer than usual. He couldn't ask them to work overtime every night. Things were not working well at the moment and he needed to do something to get things turned around. Last night, over a beer at nearby pub, his pal Rodrigo told him about something called total quality management. It sounded like something he should look into and immediately, not in some vague future. It was not only the backup in work; he had received more than the usual number of calls from irate customers. Mostly it was about the delays in getting the cars repaired. Some, however, were about the repairs themselves. Some had even brought their cars back for re-work. Hector was determined to turn things around and that evening, after Dina and the kids were in bed, he started researching this total quality management on his computer. What he found was not only interesting, but in his mind quite doable and not that complicated.
-First thing the next morning Hector called a meeting with his two mechanics and Juan, the office manager and explained that he was embarking on a new initiative to make the garage more profitable and successful. He explained to his staff that when it came to customer service, either in the car repairs, or in the office procedures, "very good" was not good enough and things that could be improved, from now on would be improved. This was Hector's first step towards ____________.

Understand the nature of entrepreneurship and its impact on society and the economy.

Recognize the role of innovation and creativity in entrepreneurship.

Identify the characteristics of successful entrepreneurs and entrepreneurial educators.

Understand the importance of a long-term perspective and adaptability in entrepreneurship.

Definitions:

Model Usefulness

The effectiveness and practicality of a theoretical model in explaining, predicting, or making decisions in real-world situations.

Operating Leverage Factor

A measure that assesses the degree to which a company can increase operating income by increasing revenue, highlighting the fixed versus variable costs structure.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Profit Increase

The growth in profit from one period to another, often measured as a percentage increase, indicating the company's improved financial performance.