Theme 2 Summary Quiz Part 3

Which of the following is most likely to be true for a supervisor working in a hierarchical organisational structure?

• Lots of freedom given in decision-making

• There will be more promotional opportunities available compared to working in a flat structure

• Communication with staff at the top of the organisational structure will be easy

• Difficult to monitor the workload of subordinates due to wide spans of control

Which of the following is a disadvantage of organic growth?

• Unit costs can be reduced as the business grows

• Growth may be slow

• Can often be financed through internal funds

• It is often hard to control and manage compared to external growth

Which of the following is an example of a fringe benefit?

• Holiday pay

• Overtime payment

• Praise at work

• Free lunches

Which of the following products is likely to be made using job production?

• Heinz baked beans

• Cadburys Dairy Milk

• Land Rover car

• Made to measure wedding dress

Which of the following is a likely result to a business of having a highly productive workforce?

• It should have more flexibility in its pricing

• It will find it more difficult to compete with rivals

• Its labour costs per unit will rise

• Its profit margins may fall

Many businesses use social media to communicate with buyers of their products. Which of the following describes this process?

• The sales process

• Post-sales service

• Customer engagement

• Product knowledge

The market share of 4 different businesses in a small, local market is shown in the pie chart below. If the market size by value is £120,000, what is the value of sales in £’s made by Business B?

• £14,400

• £24,000

• £36,000

• £45,600

A business expects its sales revenue to stay the same next year whilst experiencing an increase in cost of sales. Which of the following is the most likely impact on the business?

• Gross profit and net profit will increase

• Gross profit and net profit will decrease

• Gross profit will increase and net profit will decrease

• Gross profit will decrease and net profit will increase

Which of the following would be the most suitable place for a large public limited company to advertise for a senior director?

• National newspaper

• Job centre

• Staff noticeboard

• Company intranet

Which of the following is an example of an internal source of finance?

• Loan capital

• Selling assets

• Share capital

• Stock market flotation