Business studies practice 9.1

A 'high quality product' means:

• the product will never go wrong

• customers will always be able to re-use the product

• the product meets customers high expectations

• the product is made from the highest quality materials

Which one of the following is not a benefit to a firm from producing quality products:

• customers loyalty is likely to be high

• all customers will be prepared to pay high product prices

• customers may tell other people about the products

• the costs of returns and product failures is likely to be low

Which one of the following statements about quality is true?

• Quality is an issue only for manufacturers

• The quality of services offered by a bank cannot be measured

• Low priced products are always low quality

• Tertiary sector businesses should assess product quality

Quality control in a factory is usually achieved by:

• testing all completed products

• testing a sample of completed products

• asking customers to check quality

Quality assurance means:

• checking all finished products for faults

• setting quality standards at all stages of products

• assuring customers that products are of the highest standard

• assuring workers that the work they do is of a high quality

The ‘location decision’ for a business means:

• deciding where the departments of a business are located

• an owner deciding on the positions for products in the shop

• deciding where a business is going to operate from

• deciding where a business is going to market its products.

Business location decisions are very important for all of the following reasons except that:

• the location might affect the sales of a product

• the location might affect the costs of production

• the location might affect the available supply of labour

• the location might affect the legal form of ownership.

In which scenarios is location nearest to reliable suppliers likely to be most important?

• a manufacturing firm using Just-in-Time stock policies

• a bank with many personal and business customers

• a farmer raising sheep for meat production

• a specialist clothes designer who uses job production

All of the following are likely to affect the location of a stationary wholesaler except:

• the availability of government grants in certain regions

• transport links from suppliers and to markets

• external economies of scale like nearness to a food supplier

• availability of unskilled workers.

The location of which of the firms will be influenced by the availability of skilled workers?

• computer software design and production

• large supermarket

• mass producer of family car models

• travel company’s ticket office