Introduction to Business ProcessesTrue-False QuestionsSystems that support end-to-end processes are called business processes.An enterprise system is a set of tasks or activities that produce desired outcomes.Without the various steps of the business process, a company can’t successfully bill customers and ship products.The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs.The financial accounting process focuses on internal reporting to manage costs and revenues.The procurement process includes all of the tasks involved in acquiring needed materials.Chapter 1Introduction to Business ProcessesTrue-False Questions1. The most common organizational structure within modern organizations is the functional structure. Answer: True Difficulty: EasyPage Reference: 1Section: The Functional Organizational Structure Practice:2. Losing sight of the big picture is commonly referred to as the silo effect.Answer: True Difficulty: MediumPage Reference: 2Section: The Functional Organizational Structure: The Silo Effect Practice:3. Systems that support end-to-end processes are called business processes.Answer: False Difficulty: MediumPage Reference: 4Section: Business Processes Practice:4. An enterprise system is a set of tasks or activities that produce desired outcomes.Answer: False Difficulty: EasyPage Reference: 2Section: The Functional Organizational Structure: Enterprise Systems Practice:5. Without the various steps of the business process, a company can’t successfully bill customers and ship products.Answer: True Difficulty: MediumPage Reference: 4Section: Business Processes Practice:6. The lifecycle data management (design) process supports the design and development ofproducts from the initial product idea stage through the discontinuation of the product. Answer: True Difficulty: MediumPage Reference: 5Section: Business Processes Practice:7. The material planning process is used to maintain internal assets such as machinery and to delivery after-sales customer services such as repairs.Answer: False Difficulty: MediumPage Reference: 5Section: Business Processes Practice:8. The fulfillment process (sell) consists of all the steps involved in selling and delivering the products to the organization’s customers. Answer: True Difficulty: MediumPage Reference: 5Section: Business Processes Practice:9. The financial accounting process focuses on internal reporting to manage costs and revenues.Answer: False Difficulty: DifficultPage Reference: 6Section: Business Processes Practice:10. The procurement process includes all of the tasks involved in acquiring needed materials.Answer: True Difficulty: MediumPage Reference: 6Section: Business Processes: Procurement-Buy Practice: 11. Within the production process, the issuing of raw materials takes place in the warehouse.Answer: True Difficulty: DifficultPage Reference:7Section: Business Processes: Procurement-Make Practice: 12. Materials encompass all the products, components, and parts that are used in an organization.Answer: True Difficulty: MediumPage Reference: 8Section: Business Processes: Material Planning-Plan Practice: 13. Lead time is the time between placing the order and receiving confirmation that the item has been shipped.Answer: False Difficulty: EasyPage Reference: 8Section: Business Processes: Material Planning-Plan Practice: 14. The purpose of material planning is to match supply with demand.Answer: True Difficulty: MediumPage Reference: 8Section: Business Processes: Material Planning-Plan Practice: 15. Insufficient supply results in a situation called “stock out.”Answer: True Difficulty: MediumPage Reference: 8Section: Business Processes: Material Planning-Plan Practice: 16. Excess supply will result in lower inventory costs because the company is eligible for a bulk rate.Answer: False Difficulty: DifficultPage Reference: 8Section: Business Processes: Material Planning-Plan Practice: 17. Forecasts of finished goods are determined by data from material planning.Answer: True Difficulty: MediumPage Reference:9Section: Business Processes: Material Planning-Plan Practice: 18. Large warehouses do not need to move items as quickly and efficiently as smaller warehouses.Answer: False Difficulty: MediumPage Reference: 9Section: Business Processes: Inventory and Warehouse Management-Store Practice: 19. Asset management is concerned with both the preventive and the corrective maintenance of an organization’s equipment.Answer: True Difficulty: MediumPage Reference: 10Section: Business Processes: Asset Management and Customer Service-Service Practice:20. Document management provides tools to manage and store documents securely and to keep track of the multiple versions of these documents.Answer: True Difficulty: EasyPage Reference: 10Section: Business Processes: Lifecycle Data Management-Design Practice: 21. The final stage of asset management and customer service is the authorization maintenance stage.Answer: False Difficulty: MediumPage Reference: 11Section: Business Processes: Asset Management and Customer Service-Service Practice:22. The final stage of the customer service process is the settlement stage.Answer: True Difficulty: EasyPage Reference: 11Section: Business Processes: Asset Management and Customer Service-Service Practice:23. A project is permanent in nature and is typically associated with smaller, simpler projects.Answer: False Difficulty: MediumPageReference: 11Section: Business Processes: Project Management-Projects Practice: 24. During the planning phase of a project the scope of the project is defined and the milestones and deadlines are established. Answer: True Difficulty: EasyPage Reference: 12Section: Business Processes: Project Management-Projects Practice: 25. Projects rely on resources located