Adam Smith’s Wealth of Nations (1776) proposed the division of labor, in which the production process was broken down into a series of small tasks, each performed by a different worker. The specialization of the workers on limited, repetitive tasks allowed them to become very proficient at those tasks and further encouraged the development of specialized machinery.

Just-In-Time Production System first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. The correct answer is C.

Companies usually utilize the self-liquidating principle to maintain a proper level of working capital. According to this principle, temporary investments are financed with temporary sources while permanent asset investments are financed with permanent sources.

One of the best sources for individuals who will perform effectively on the job is a recommendation from a current employee. Many organizations have found that their employees can serve an important role in the recruitment process by actively soliciting applications from their friends and associates.  The correct answer is D.

Manufacturing engineers are required to achieve objectives to be competitive in a global context:
• Reduction in inventory
• Lower the cost of the product
• Reduce waste
• Improve quality
• Increase flexibility in manufacturing to achieve immediate and rapid response to
product changes, production changes, process changes, equipment changes and
the change of personnel.

The law of supply - the amount of a product supplied will increase as the price
rises; and if the price drops then less of the product will be supplied.

External environmental factors affecting HRM are workforce and demographic trends, government regulations, and economic challenges and trends.

Just-In-Time (JIT) is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing companies. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. Just-In-Time production is a Japanese management philosophy applied in manufacturing which involves having the right items of the right quality and quantity in the right place and the right time. It has been widely reported that the proper use of JIT production has resulted in increases in quality, productivity, and efficiency, improved communication and decreases in costs and wastes. The potential of gaining these benefits has made many organizations question and consider this approach to manufacturing. For these reasons, JIT has become a very popular subject currently being investigated by many worldwide organizations.

Capital Markets Board of Turkey’s Corporate Governance Principles consist of four main sections, namely shareholders, disclosure and transparency, stakeholders and board of directors

Product (good or service) is the offering in the market, created and sold in order to solve a problem or satisfy a need or want. A commodity can be a product, such as salt or bread, can be successfully branded by a company. In business terms, a product can be tangible (like soap) or intangible (like education). The correct answer is B.

The combination of internal funds and external funds creates the financing structure, in other words the capital structure of the company.

Collateral: Collateral refers to any asset of a borrower a lender can use to pay the debt if the borrower is unable pay back the loan

Scale economies state that a company can produce at a lower cost per unit of production if it is able to use the capacity further.

THE CONCEPTS OF BUSINESS

An entrepreneur is an individual who starts a business and risks losses (in terms of money, time and reputation) for profits. Therefore, profits are the rewards entrepreneurs receive for producing goods and services that consumers want.

Brand equity is a term reflecting the brand’s worth in the eyes of consumers, usually reflected in the price.

Marketing is all about building a relationship with customers and requires a deep understanding of consumer behavior.

Lean production is the production of goods using less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.
A company can be accepted as making lean production by continuously increasing its capacity to produce high quality goods while decreasing its need for resources. Lean
production is based on the premise that nothing will be produced until it is needed.