Free Printable IGCSE Business Studies Section 4

Worksheets

IGCSE Business Studies Section 4

Total questions: 52

Worksheet time: 26mins

Name

Class

Date

In which scenarios is location nearest to reliable suppliers likely to be most important?

a manufacturing firm using Just-in-Time stock policies

a bank with many personal and business customers

a farmer raising sheep for meat production

a specialist clothes designer who uses job production

If a product gains weight during production then location of the factory is likely to be:

close to the sources of raw materials

close to the major markets

close to supplies of skilled labour

close to manufacturers of machinery used in production

When a raw material loses weight during processing, location of the firm is likely to be:

close to the sources of raw materials

close to the major markets

close to supplies of skilled labour

close to manufacturers of processing machinery.

All of the following are likely to affect the location of a stationary wholesaler except:

the availability of government grants in certain regions

transport links from suppliers and to markets

external economies of scale like nearness to a food supplier

availability of unskilled workers.

Government location grants are most likely to be given in regions of the country having

many similar businesses operating

just experienced big firms closing down

very high levels of employment

many other firms starting up.

The location of which of the firms will be influenced by the availability of skilled workers?

computer software design and production

large supermarket

mass producer of family car models

travel company’s ticket office

If a business is located in the wrong area then it is likely to experience:

low costs of production

low inefficiency

low break-even point

low profits.

The location decision for a retailing business is most likely to be affected by:

costs of producing the goods

government grants to firms in the secondary sector

location of competitors

location of energy sources

An exporting firm might decide to set up a factory in a foreign country if:

costs of transporting the finished goods fall

import barriers are put up by the country it is selling to

the total market size is falling in the foreign country

10.

The location decision of a firm in the primary sector is most likely to be affected by:

the location of the main markets

the available supplies of labour

the available sources of the main raw material

11.

In a deprived area, what would attract a business?

Government Grants

Availability of labour

Advice and Support

Cost of stock

12.

The most important factor to consider when deciding on locations is the amount of land to be used

true

false

13.

1. Developing countries are attractive locations to place business because

a. They industrialize faster than developed countries \

a. Labor and resources are affordable

a. There is a high population

a. All of the above

14.

The rise of the internet has led to the closure of many high street travel agent branches. This is because, recently, being located close to:

Competitors has become more important

Raw materials has become less important

Labour has become more important

Customers has become less important

15.

Which of the following is likely to be the main factor influencing the location of a small barber shop? Proximity to:

Customers

Labour

Raw materials

Competitors

16.

The BBC has relocated some of its operations from Central London to Cardiff. This is most likely to be due to:

Cost

The availability of raw materials

The availability of labour

The location of rivals

17.

Which of the following businesses is most likely to locate close to its raw materials?

Yoghurt manufacturer

National supermarket chain

High street mobile phone store

British online clothing retailer

18.

Which of the following was the MOST important combination of factors in determining the decision of a large furniture shop

Proximity to customers and raw materials

Proximity to road network and suppliers

Proximity to road network and customers

Proximity to banks and employees

19.

the ratio of outputs to inputs during production

production

level of production

productivity

20.

Ways to increase productivity

motivate the workers

hire a manager

use more advanced technology

train the workers

21.

producing output at the highest ratio of output to input

effectiveness

efficiency

labor intensive

capital intensive

22.

involving a high quantity of capital equipment compared with about input

effectiveness

efficiency

labor intensive

capital intensive

23.

the use of computer programs to control machine tools and related machinery in manufacturing of products.

CAD

CAM

advanced technology

automation

24.

producing a one-off item specially designed for the customer

mass customisation

flow production

batch production

job production

25.

An advantage of batch production

high level of worker motivation

some flexibility in design of product in each batch

low unit costs due to constant working machine and high labour productivity

ability to undertake specialist projects or jobs

26.

A disadvantage of flow production

high unit production costs

high levels of stocks at each production stage

expensive to set up flow-line machinery

wide range of tolls needed

27.

reductions in a firm's unit costs of production that result from an increase in the scale of operation

communication economies

technical economies

coordination economies

marketing economies

28.

Ensuring that a product or service meets minimum standards often through testing a sample of products once they have been made

Quality Control

Quality Assurance

29.

Ensuring that quality is produced and delivered at every stage of the production process, often through making quality the responsibility of every worker.

Quality Control

Quality Assurance

30.

Kaizen is what?

Asking staff how to continually improve production

Checking the product as much as possible at every stage of manufacturing

Coming up with new products and ideas

Increasing the price to achieve a better profit margin

31.

Which one of the following statements about quality is true?

1) Quality is an issue only for manufacturers

2) The quality of services offered by a bank cannot be measured

3) Low priced products are always low quality

4) Tertiary sector businesses should assess quality of their products

32.

Which one of the following is a feature of total quality management?

1) All the production will be sold

2) Quality is built in to every part of the production process

3) More inspectors are needed to check on quality

4) No customers will complain about the product

33.

Which of the following is a reason for managers knowing the costs of the business?

1) They will be able to increase output

2) It will help them fix the price of the product(s)

3) The information would have to be published to shareholders

4) Costs will tell the managers, without any other information, what the profits of the

business are

34.

Which one of the following costs is most likely to be variable for a fast food restaurant?

1) The salary of the manager

2) The rent of the restaurant

3) The cost of the food supplies

4) The machinery used to cook the food

35.

The best definition of variable costs is:

1) they vary with the number of units produced

2) they vary over time

3) they vary with the prices charged by suppliers

4) they vary with tax rates set by government

36.

If variable costs are $3 per unit, then the total variable costs of producing 3 500 units will

be:

1) $3 500

2) $35 000

3) $1 050

4) $10 500

37.

The best definition of fixed costs are those that do not vary with:

1) time

2) seasons

3) output

4) number of workers

38.

Which one of the following is not an example of an economy of scale as a computer manufacturer increases its scale of production?

1) Supplies of components are bought at a lower average cost

2) The price of the product to the consumer falls

3) Expert managers can be employed to increase efficiency

4) The most advanced equipment can now be purchased

39.

All of the following are examples of diseconomies of scale as a business grows except:

1) poor communication as there are so many people to send messages to

2) low workforce motivation as they feel less involved in a larger business

3) problems with decision making when there are many different divisions of a business

4) technological problems with new equipment causing production to stop

40.

The break-even level of output is that number of units at which:

1) profit is at its highest level

2) variable costs equal revenue

3) total costs equal total revenue

4) variable costs equal fixed costs

41.

A product sells for $7. Material and other variable costs are $3 per unit. Fixed costs are $60 000. The break-even level of output is:

1) 15 000 units

2) 60 000 units

3) 20 000 units

4) we cannot tell from the information given

42.

The best definition of the contribution made by a product is:

1) profit made on each item sold

2) revenue gained from selling each item

3) difference between price and variable cost

4) difference between price and fixed cost

43.

If total fixed costs of a business are $2 000 per week, variable costs are $3 per unit and the firm produces 500 units per week, then the average total cost is:

1) $3

2) $5

3) $2003

4) $7

44.

One of the limitations of break-even charts is:

1) they cannot be used to calculate profit

2) they cannot show the safety margin

3) they are based on the assumption that all output is sold

4) they are based on the assumption that the business makes a profit at all levels of output

45.

Which of the following is a claimed advantage of flow production?

Each worker enjoys doing one repetitive job all the time.

Making a product that allows all consumer needs to be met

The capital costs of setting up a production line are low.

The mass production helps to keep costs per unit low.

46.

Which of the following is a necessary condition for flow production?

large numbers of specialist workers

high and steady demand for a standardised product

machinery that can be adapted for production if demand fell

high demand for the product only at certain times

47.

Which of the following products is most likely to be produced using batch production methods?

school uniforms

washing machines

a popular chocolate bar

hand-made watches

48.

A clothing manufacturer is most likely to hold the following stocks except:

materials used in the clothing products

partly finished goods called ‘work in progress’

finished clothing waiting to be sold

spare machines in case of breakdown.

49.

For a supermarket, one of the advantages of holding high stocks of existing products is:

low costs of financing the stock level

being able to respond quickly if consumer tastes change

being able to meet unexpected increases in demand

being able to put unused space to other uses.

50.

All of these factors will influence the maximum stock level held by a cheese maker except:

how perishable the products are

the total space available for stock holding

the interest rate on capital used for buying inventory

the number of workers available

51.

Which of the following would be an example of ‘lean production’?

producing a greater variety of goods with more workers

holding low stock levels such as with Just-in-Time methods

making smaller quantities of goods than previously

buying the latest equipment to increase output

52.