Business Concepts Quiz

What is capacity in a business context?

• The number of employees in a company

• The maximum number of inputs that can be stored or output produced

• The amount of money a business makes

• The number of customers a business has

Why is capacity management important?

• To increase the number of employees

• To control costs and manage stock

• To reduce the number of products

• To hire more managers

What does inventory mean?

• The number of employees in a company

• The stock of items, information, or customers waiting in a process

• The amount of money a business makes

• The number of products sold

What is an example of physical inventory?

• Tax data stored in a government database

• A shop storing shoes before selling them

• People queuing at airport check-in

• A company’s annual report

What is a reason for needing inventory?

• To increase the number of employees

• To prepare for future needs

• To reduce the number of products

• To hire more managers

What does the ABC System help you focus on?

• Unimportant items

• Important items

• Random items

• All items equally

If an item has high value or high usage, what should you do?

• Ignore it

• Give it less attention

• Control it closely

• Sell it

What should you do with items that have lower value or usage?

• Pay more attention

• Need less attention

• Control them closely

• Ignore them completely

What is the primary goal of inventory management?

• To increase the number of employees

• To ensure the right amount of stock is available

• To hire more managers

• To reduce the number of products

How can effective inventory management impact a business?

• By hiring more managers

• By reducing the number of products

• By increasing the number of employees

• By improving cash flow and reducing waste