GCSE Business - Suppliers and Place Quiz

What is a supplier?

• A company that sells goods to customers

• A person who provides raw materials or components to businesses

• A business that makes finished products

• A government organization that regulates trade

Why is it important for a business to have reliable suppliers?

• It helps to reduce the business's marketing costs

• It ensures that the business always has the materials it needs to operate

• It improves the business's customer service

• It increases the business's profits directly

What is lead time?

• The time it takes for a product to be designed

• The time between placing an order and receiving the goods

• The time taken to manufacture goods

• The time taken for a product to be delivered to customers

Which of the following is NOT a benefit of having good relationships with suppliers?

• Reduced costs

• More reliable delivery times

• Improved employee morale

• Better quality materials

What does 'just-in-time' (JIT) production refer to?

• Keeping large stocks of raw materials

• Ordering materials only when they are needed for production

• Delivering finished goods to customers immediately after production

• Reducing the time taken to manufacture products

What could be a disadvantage of using JIT?

• Lower storage costs

• Dependence on the reliability of suppliers

• Higher production efficiency

• Better cash flow management

How can a business benefit from economies of scale when working with suppliers?

• By ordering smaller quantities at frequent intervals

• By negotiating lower prices due to bulk purchasing

• By reducing the variety of products it sells

• By sourcing from multiple suppliers

Which factor is LEAST likely to affect the choice of suppliers?

• Price

• Location

• Employee motivation

• Quality

What does 'trade credit' mean in the context of working with suppliers?

• A discount given to customers for early payment

• The ability to pay suppliers at a later date, after receiving the goods

• The cost of transporting goods from suppliers

• A system where customers trade goods instead of paying cash

Why might a business choose local suppliers over international suppliers?

• Lower cost of production

• To reduce transportation time and costs

• More variety in raw materials

• To access cheaper labor