An example of an internal force of change is:

• customers revising buying habits

• a new competitor entering the market.

• a general election

• problems in staff morale

At the start of a project, a cash flow problem is most likely to be caused by:

• allowing customers too much credit

• a high investment in the resources being required for the project

• holding too much stock

• employees demanding higher wages due to their increased responsibilities

What is profit?

• when prices increase, consumers buy less

• the expenses after all costs are paid

• the income that is left after all costs and expenses are paid

• borrowing money to run a business

Incremental change involves

• developing and implementing a series of improvements over time

• replacing existing processes or systems in a one-off activity

• implementing an immediate shift in working culture

• reinforcing the rationale for improvements

The most appropriate definition of ‘innovation’ is:

• deciding the arrangements

• producing a dynamic plan for the implementation of a new project

• creating something that has never been made before

• turning an idea into a solution that adds value to the organisation or customer

The most appropriate definition of ‘niche marketing’ is targeting:

• a narrowly defined group of potential customers who are interested in a specialist product or service

• a broad range of consumers who are interested in specialist products or services

• consumers who are within a specific age range who are interested in a broad range of products or services

• a broad range of customers who regularly purchase expensive products

What are assets?

• resources that hold value to the organisation

• a statement given to the organisation when goods have been returned.

• the amount of money that is left over after an organisation has taken its expenses away from its income.

• money that the organisation owes

Positive cash flow is when:

• purchases through petty cash are documented accurately

• a creditor lends money to an organisation to purchase stock

• the level of revenue received by an organisation increases month on month

• income from sales exceeds outghoing expenses of the organisation

The most appropriate definition of a contingency plan is:

• a course of action to be followed if a preferred plan provides unwanted results

• the primary course of action used to achieve a business objective.

• a proposal which focuses on high-level options, setting the main priorities

• a blueprint setting out the growth and expansion intentions of an organisation

What is meant by opportunity cost?

• The amount of money in the bank

• The opportunity to motivate employees to make more money.

• The loss of other, more profitable alternatives when you have to do something else.

• Making plans to cope with an event or risk.