Theme 2 - Exam Revision - Part 3

Increasing competition could be a:

• Financial cause of business failure

• Non-financial cause of business failure

Cell production is:

• One person producing one product at a time

• producing multiple of the same product at the same time

• working in teams on one product/one part of the process

• Continuous production E.g. Assembly line

Capacity utilisation is measured by:

• (Current output/Previous time period's output) x 100

• (Previous time period's output/Current output) x 100

• (Maximum possible output/Current output) x 100

• (Current output/Maximum possible output) x 100

A business's decisions around its capacity utilisation will be impacted by short vs long term needs

• True

• False

A reduction in corporation tax is likely to impact which type of business ownership the most

• Limited company

• Unlimited company

If an industry operates on a global scale, compared to a regional scale, generally it will be:

• More competitive

• Less competitive

• No difference in competitiveness

A profitable business can still collapse due to cash-flow problems. This could be due to:

• Overtrading

• Overborrowing

• Allowing too much trade credit

• All of the above

Production is flexible since different orders can be met. This is an advantage of:

• Job Production

• Flow Production

• Batch production

• Both job & batch production

Reducing capacity utilisation will:

• Increase unit costs

• Decrease unit costs

Reducing capacity would

• Increase capacity utilisation

• Decrease capacity utilisation

• Have no effect on capacity utilisation