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AQA Business Studies Unit 6

Total questions: 53

Worksheet time: 29mins

Name
Class
Date
1.

Which one is NOT a stage in the PLC?

a)

maturity

b)

decline

c)

growth

d)

development

2.

Which stage has rapid sales?

a)

introduction

b)

maturity

c)

decline

d)

growth

3.

Which stage has lots of competitors?

a)

growth

b)

maturity

c)

introduction

d)

decline

4.

What is a product extension?

a)

longer production time

b)

products with extension features

c)

strategies to keep the product from declining

d)

products that keep going through the different stages

5.
The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage
a)
True
b)
False
6.
What is happening at point F on the Product Life Cycle?
a)
Introduction
b)
Decline
c)
Maturity
d)
Growth
7.
Which of these are extension strategies of a product?
a)
Cut price
b)
Modify the product
c)
All of these
d)
Special Offers
8.
Which of these comments is most suitable for Growth?
a)
Heavy investment but no sales
b)
Sales are likely to be low as the product is new to the market
c)
Revenue is increasing as the product gains popularity
d)
Likely to be characterised as a dog in the Boston Matrix
9.
Firms with a technically superior good may well engage in price skimming. This comment could apply to which stage of the Product Life Cycle?
a)
Introduction
b)
Growth
c)
Decline
d)
Maturity
10.
What happens to the cash flow of a business at the growth stage of the product life cycle?
a)
The cash flow should become more positive
b)
Cash flow is likely to be negative because money has to be spent on research and development
c)
Sales will fall and cash flow will drop
d)
There may be a need to spend money re-promoting the product. As a result, cash flow may begin to fall.
11.
Costs are incurred e.g. building new production lines, promotion and distribution costs. Likely the product will still not be profitable. The length of this stage will vary.
a)
Maturity
b)
Growth
c)
Introduction
d)
Decline
12.

In this stage:

•Low sales

•High cost per customer acquired

•Negative profits

•Innovators are targeted

•Little competition

a)

Product development

b)

Introduction

c)

Growth

d)

Maturity

e)

Decline

13.
Which one of the following is a benefit of new product development?
a)
It is cheaper to develop a new products
b)
The latest technology can be a feature of the new product
c)
Customers will always prefer newly developed products
14.
Which of the following is a true statement about the introduction stage of the product life cycle:
a)
Profits are usually nonexistent.
b)
Costs are low.
c)
c. Sales growth is exploding.
d)
There is intense competition
15.
Which of the following is a true statement about the growth stage of the product life cycle:
a)
Costs go up.
b)
Competitors arrive on the scene.
c)
It’s the longest-lasting stage of the product life cycle.
d)
Sales increase very slowly.
16.

A flexible workforce suits a business whose sales are :

a)

stable

b)

predictable

c)

reliable

d)

unpredictable

17.

Internal recruitment :

a)

chooses from a wide field of candidates

b)

is more expensive than external

c)

involves promotion

d)

brings in new ideas

18.

Training on day one =

a)

on-the-job

b)

off-the-job

c)

induction

d)

redundancy

19.

A narrow span of control create a t (a)   structure

20.

Which of the following would cut costs and improve communication ?

a)

increasing the levels of hierarchy

b)

choosing a narrower span of control and increased supervision

c)

lengthening the chain of command

d)

delayering

21.

Which structure offers more promotion opportunities ?

a)

left

b)

right

22.

Which motivation theorist focused on pay as the only motivator?

a)

F. W. Taylor

b)

E. Mayo

c)

F. Herzberg

d)

A. Maslow

23.

Herzberg's motivators include :

a)

working conditions

b)

pay

c)

supervision

d)

responsibility

24.

Herzberg's hygiene (maintenance) factors include :

a)

recognition

b)

achievement

c)

interesting work

d)

pay

25.

Maslow's hierarchy of needs has .................................at the top

a)

esteems needs

b)

physiological needs

c)

social needs

d)

self actualisation

26.

Group norms and effect of the team were found to be important by ..................

a)

Herzberg

b)

Mayo

c)

Taylor

27.

Esteem needs in Maslow's hierarchy of needs is

a)

top

b)

second from top

c)

third from top

d)

fourth from top

28.

Giving the worker more complex and challenging tasks =

a)

job enlargement

b)

job rotation

c)

job enrichment

d)

job production

29.

Division of labour to create specialisation of simple repetitive tasks was created by

a)

E Mayo

b)

F Taylor

c)

A Maslow

d)

F Herzberg

30.

Paying the worker for each item they make =

a)

bonus

b)

commission

c)

piecework pay

d)

salary

31.

Why is profit-sharing good ?

a)

Managers can pick and choose who gets it

b)

It is guaranteed each year

c)

It is unaffected by costs rising

d)

Everyone benefits fairly

32.

Performance-related pay is most suitable for :

a)

production-line workers

b)

staff making physical products

c)

office, professional staff

d)

office cleaners

33.

Motivation is more important when production is :

a)

capital intensive (machinery)

b)

labour intensive

c)

outsourced

d)

automated

34.

Which of the following is a feature of a weak economic climate?

a)

High levels of consumer spending

b)

Low levels of consumer spending

c)

High levels of employment

d)

Low levels of unemployment

35.

Which of the following is a drawback to a business of behaving in an environmentally responsible way?

a)

Sales increase due to positive public image

b)

Brand reputation is improved

c)

Publicity may not persuade customers to buy

d)

Easier to motivate and recruit employees

36.

Which of the following is a possible impact facing a hotel chain if facilities and accommodation are falsely described?

a)

Sales may increase

b)

Customer numbers may increase

c)

Profits may increase

d)

Reputation may decrease

37.

A business that uses renewable energy, such as solar and wind power, aims to reduce:

a)

Recycling

b)

Global warming

c)

Traffic congestion

d)

Waste disposal

38.

Changes in which of the following external influences is most likely to have led to the development of online businesses such as travel agents?

a)

Technology

b)

Interest rates

c)

Legislation

d)

Exchange rates

39.

A business that operates in a competitive environment is likely to reduce prices when the economic climate is:


HIDE ANSWER

a)

Weak and consumer spending is high

b)

Weak and consumer spending is low

c)

Strong and consumer spending is high

d)

Strong and consumer spending is low

40.

Which one of the following is a common benefit of Employment laws?

a)

Businesses have to employ more workers to reduce unemployment

b)

Workers must be trained by businesses to improve their chances of promotion

c)

Workers must be given a written employment contract containing key conditions

d)

Businesses have to increase workers' pay regularly

41.

Which one is the drawback of monopolies?

a)

lower prices in large scale production

b)

increased expenditure on new product

c)

various choice of products

d)

less investment in new products

42.

One of the common features of an economic 'boom' is:

a)

a reduction in the rate of inflation

b)

a reduction in the rate of employment in the economy

c)

an increase in demand for income elastic products

d)

a reduction in land and property prices

43.

What is an economic recession?

a)

two successive quarters of declining real GDP

b)

the recovery phase of the business cycle

c)

two successive quarters in which inflation is falling

d)

any time period in which GDP declines

44.

What is the 'hygiene' in Herzberg's 2 factor theory

a)

Demotivates the employee if the workplace is clean and tidy

b)

Demotivates the employee if the workplace is unsafe or unattractive to work in.

c)

Motivates the employee if the workplace is clean

d)

Demotivates the employee if they have to work long hours

45.

What is the top level on Maslow's Hierarchy?

a)

Physical needs

b)

Safety needs

c)

Self actualisation

d)

Self-esteem

46.

Which theorist believed that people are inherently lazy and are only motivated by money?

a)

Mayo human relations theory

b)

Taylor's scientific management

c)

Herzberg's two factor theory

d)

Maslow's hierarchy of needs

47.

Which financial method of payment was derived from Taylor's theory?

a)

Salary

b)

Bonus

c)

Fringe benefits

d)

Piece rate

48.

If safety needs are not met one cannot move to ___________________

a)

basic physiological needs

b)

Social (love and belonging)

c)

esteem

d)

self actualization

49.
Whose theory was “Two factor Theory” satisfaction and dissatisfaction 
a)
Herzberg 
b)
Taylor 
c)
Mayo
50.

According to Taylor workers are mainly motivated by

a)

Job satisfaction

b)

Money

51.
Which of the following is NOT a need as identified by Maslow?
a)
Hygiene
b)
Esteem
c)
Self-actualisation
d)
Social
52.
Motivating staff by giving them additional challenging tasks or responsibility is known as
a)
Job rotation
b)
Delegation
c)
Job enrichment
d)
Job enlargement     
53.

Is the following phrase related to Taylor or Mayo? "The concept of money as the principle motivator for employees is still referred to as a '?' approach.'

a)

Tayloristic

b)

Mayoristic