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Y13 A LEVEL BUSINESS THEME 1 & 2 REVISION

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

The total costs of a business can be calculated using this formula = ???

a)

Total costs (TC) = Fixed costs (FC) - Variable costs (VC)

b)

Total costs (TC) = Fixed costs (FC) x Variable costs (VC)

c)

Total costs (TC) = Fixed costs (FC) + Variable costs (VC)

d)

Total costs (TC) = Fixed costs (FC) / Variable costs (VC)

2.

Advantage of batch production = ???

a)

Potentially de-motivating for staff

b)

Need to keep stocks of raw materials

c)

Making in batches reduces unit costs

d)

Time lost switching between batches – machinery may need to be reset

3.

______ involves the collective effort of a large number of individuals who network and pool small amounts of their capital to finance a new or existing business venture.

a)

Bank loan

b)

Venture capital

c)

Crowd funding

d)

Share issue

4.

Advantage of crowd funding = ???

a)

If you haven't protected your business idea with a patent or copyright, someone may see it on a crowdfunding site and steal your concept

b)

Failed projects risk damage to the reputation of your business and people who have pledged money to you

c)

It can be a fast way to raise finance with no upfront fees.

d)

Getting the rewards or returns wrong can mean giving away too much of the business to investors

5.

The processes that ensure production quality meets the requirements of customers = ????

a)

Quality assurance

b)

Customer satisfaction

c)

Market segmentation

d)

Market orientation

6.

Gross profit divided by revenue x 100 = ???

a)

Contribution per unit

b)

Net profit margin

c)

Break even point

d)

Gross profit margin

7.

A method that involves completing one operation at a time on all units before performing the next = ???

a)

Downsizing

b)

Batch production

c)

Outsourcing

d)

Kaizen

8.

A method of working for businesses that takes into account customers' wants when standardizing quality. It often involves guaranteeing quality standards are met = ???

a)

Batch production

b)

Just in Time

c)

Kaizen

d)

Quality assurance

9.

How should you answer a 8 mark assess question?

a)

Definition > 3 x PEACH paragraphs

b)

Definition > 2 x PEACH paragraphs

c)

Definition > 2 x PEACH paragraphs > Conclusion

d)

Definition > 1 x PEACH paragraph > Conclusion

10.

How should you answer a 10 mark assess question?

a)

Definition > 2 x PEACH paragraphs

b)

Definition > 3 x PEACH paragraphs

c)

Definition > 2 x PEACH paragraphs > Conclusion

d)

Definition > 1 x PEACH paragraphs > Conclusion

11.

How should you answer a 4 mark explain question ??

a)

Point > Explain > Apply > Context > However

b)

Point > Explain > Apply > Conclusion

c)

Point > Explain > Apply

d)

Definition only

12.

____ is a set of processes and practices intended to reduce the amount of waste

a)

Waste minimisation

b)

Quality circles

c)

Kanban

d)

Work in progress

13.

_____ means a reduction in storage space which saves rent and insurance costs

a)

High stock holding

b)

Stockpiled goods

c)

Over utilisation

d)

Lower stock holding

14.

An advantage of low levels of stock = ??

a)

Less working capital is tied up in stock

b)

Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed

c)

High amounts of working capital is tied up in stock

d)

There is no spare finished product available to meet unexpected orders

15.

____ is a sustained increase in the average price level of an economy.

a)

Recession

b)

Inflation

c)

Exchange rate

d)

Opportunity cost

16.

How does inflation affect businesses?

a)

It motivates employees

b)

Increased costs

c)

Lower cost of raw materials

d)

Lower interest rates

17.

How does inflation affect businesses?

a)

Lower corporation tax rates

b)

Lower interest rates

c)

Lower costs

d)

It creates uncertainty

18.

A ____ is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

a)

break even point

b)

fiscal policy

c)

competitive advantage

d)

monetary policy

19.

_____ is an approach to management that focuses on cutting out waste, whilst ensuring quality.

a)

Work in progress

b)

Buffer stocks

c)

Lead time

d)

Lean production

20.

On a 20 mark question, my conclusion should use the ____ framework.

a)

ROCE

b)

AWOL

c)

PEACH

d)

MOPS

21.

What is the formula for total sales revenue?

a)

Price per unit + Number of units sold

b)

Price per unit x Number of units sold

c)

Price per unit / Number of units sold x 100

d)

Price per unit - Number of units sold

22.

_____ is a method of production that involves employing all resources to complete one unit of output at a time.

a)

Downsizing

b)

Batch production

c)

Job production

d)

Flow production

23.

The investors may require a lower level of reward than a bank or venture capitalist is an advantage of what source of finance???

a)

Bank overdraft

b)

Share issue

c)

Franchising

d)

Crowd funding

24.

Crowd funders may be wary to provide finance due to lack of ____ in the crowd funding industry

a)

opportunities

b)

indirect taxation

c)

regulation

d)

risks

25.

A system where the product is checked/tested at each stage of the production process = ???

a)

Batch production

b)

Outsourcing

c)

Job production

d)

Quality assurance

26.

Gross profit = ????

a)

Sales revenue – cost of sales

b)

Sales revenue / cost of sales

c)

Sales revenue x cost of sales

d)

Sales revenue - Fixed costs - Variable costs

27.

Producing goods and services at a given quality using as few resources = ??

a)

Working capital

b)

Liquidity

c)

Inflation

d)

Waste minimisation

28.

____ will result in fewer defective products being produced.

a)

Price elasticity of demand

b)

Lean production

c)

Redeployment

d)

Outsourcing

29.

The business focuses on the needs and wants of the customers = ???

a)

Market orientation

b)

Product orientation

c)

Just in Time production

d)

Kaizen

30.

____ will allow a business to meet customer needs more effectively .

a)

Product orientation

b)

Stock rotation

c)

Market orientation

d)

Deflation