AP3 - MCQ

Figure 1 shows a diagram of the product life cycle. What is Phase 4 called?

• Decline

• Growth

• Introduction

• Maturity

Which one of the following is an element of the design mix?

• Function

• Aesthetics

• Price

• All of the above

Impacts on a business of using flow production.

• Increased production efficiency

• Higher initial setup costs

• Reduced customization for products

• All of the above

Which two of the following are services? Select two answers.

• Accountancy

• Biscuits

• Furniture

• Hairdressing

• Shoes

Using the information in Table 1, calculate the gross profit

• £400,000

• £900,000

• £575,000

• £475,000

Explain one disadvantage to a business of using loan capital as a source of finance.

One reason why a business may decide to reduce the size of its workforce is:

• To cut costs and improve financial performance

• To increase the workforce diversity

• To expand the business operations

• To improve employee morale

Which is a fringe benefit?

• Company car

• Job enrichment

• Salary

• Wages

Explain one disadvantage to a business of having a poor relationship with its suppliers.

• Increased costs due to lack of competitive pricing

• Improved product quality

• Faster delivery times

• Better customer service