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WorksheetsN5 BM Section 2 PP Qs UB/M/OP/HR only
Total questions: 89
Worksheet time: 45mins
What is the reward for land in the factors of production?
Wages
Interest
Profit
Rent
Which of the following is NOT a factor of production?
Enterprise
Capital
Labour
Investment
What is the reward for labour in the factors of production?
Rent
Wages
Interest
Profit
What is a non-durable good?
A good that can be used multiple times
A good that lasts a long time
A single use good
A good that is not essential
Which of the following sectors is owned by private individuals and investors?
Private sector
Public sector
Third sector
Voluntary sector
Which sector is funded by taxes?
Private sector
Public sector
Third sector
Voluntary sector
What is a common objective of both the third and public sector organisations?
To make a profit
To use public funds effectively
To increase awareness/sales
To be socially responsible
What is the main objective of private sector organisations?
To provide a service
To be socially responsible
To make a profit
To increase awareness
What is one of the advantages of setting up a business as a sole trader?
The owner has to share the profits with others.
The owner has unlimited liability.
The owner gets to keep all the profits to themselves.
It is difficult to take time off for holidays or if sick.
Which of the following is a disadvantage of operating as a sole trader?
The owner gets to make all the decisions.
Customers receive a more personal service.
The owner has unlimited liability.
It is very easy to set up.
What is a disadvantage of being a private limited company?
Increased finance through shareholders and lenders.
Shareholders have limited liability.
Control of the company is not lost to outsiders.
Directors and shareholders expertise and experience can be called upon.
How is financial risk managed in a private limited company?
The owner has unlimited liability.
Financial risk is spread between the shareholders.
Finance is limited to what the owner can invest.
All shareholders have to be agreed upon and invited to invest.
What is one of the objectives of an organisation in the public sector?
Maximizing shareholder wealth
Providing a high quality service to others
Focusing solely on profit-making
Expanding market share internationally
Why is good customer service important for an organisation?
It reduces the overall cost of the products sold
It ensures that customers do not return the products
It may increase sales and profit due to higher customer retention
It eliminates the need for a returns policy
Which of the following is a method of ensuring good customer service?
Decreasing the number of staff
Ignoring customer feedback
Having a good aftersales service
Avoiding the use of quality indicators
How can an organisation ensure good customer service during busy periods?
By reducing the number of products offered
By employing extra staff to cover busy periods
By increasing prices during peak times
By limiting the hours of operation
Which of the following is an internal factor that can affect the success of an organisation according to the learning material?
Political changes
Availability of finance
Consumer tastes and fashion
Introduction of new technology in the market
How might having up-to-date technology influence an organisation's performance?
It may decrease profits due to the National Minimum Wage.
It may require the organisation to update its products.
It may allow the organisation to produce quality products.
It may lead to a decrease in customer satisfaction.
What could be a consequence of staff receiving training within an organisation?
Decrease in profits due to increased costs.
Staff may become more productive.
Staff may require more time off.
Staff may feel less loyal to the organisation.
Which of the following is not mentioned as a potential response regarding internal factors that could affect the success of an organisation?
Quality of products
Availability of staff
Leadership/Quality of management
Customer service improvements
Which of the following is a way in which employees can influence the success of a supermarket organization?
By changing taxation levels.
By offering trade credit.
By varying the quality of the work they produce.
By choosing to approve/not approve loan applications.
How can government influence the success of a supermarket organization?
By making major decisions which can lead to mistakes being made resulting in less profit.
By changing legislation which may cost the organization more money to implement.
By carrying out negative advertising/demonstrations.
By offering trade credit.
What is one of the ways in which customers can influence the level of sales of a supermarket organization?
Through the setting of interest rates.
By petitioning and making complaints to the local council.
By taking their custom elsewhere which influences the organization’s level of sales.
By approving or not approving loan applications.
Which stakeholder group can influence a private limited company by offering trade credit?
Employees
Suppliers
Bank/Lenders
Government
How can local community influence a private limited company?
By changing taxation levels.
By offering trade credit.
By petitioning and making complaints to the local council.
Through the decisions they make.
Which action by pressure groups can affect a private limited company?
By choosing to approve/not approve loan applications.
By carrying out negative advertising/demonstrations.
By offering trade credit.
Through the setting of interest rates.
What is desk research primarily based on?
Collecting and analyzing first-hand primary data
Evaluation of secondary data
Direct interviews with consumers
Conducting surveys and focus groups
Which of the following is a potential disadvantage of desk research?
It is relatively inexpensive
It may be out-of-date
It is specific to the purpose it was collected for
It is available to competitors, whereas field research can be kept confidential
What is a benefit of using desk research?
It requires extensive training for researchers
It is time-consuming to collect and analyze
It is relatively inexpensive compared to field research
It is always up-to-date and current
What is one of the purposes of market research?
To waste time standing in streets trying to get first-hand information
To replicate or get ideas from competitors
To ensure the product has a low chance of success
To set a lower selling price than necessary
Which of the following is an advantage of branding to an organization?
Brands are less recognizable to customers.
Branding can lead to a decrease in market share.
Brand loyalty can lead to increased repeat purchases.
Marketing campaigns for branded products cannot be global.
What is one of the stages in the product life cycle that follows the introduction stage?
Maturity
Decline
Growth
Development
Which of the following is a stage of product development?
Launching a marketing campaign
Analyzing the market share
Testing the product
Increasing sales volume
Which of the following is NOT a factor to consider before setting the price of a product?
The cost of raw materials
Competitors' prices
The color preferences of the CEO
The image of the product
Which of the following is NOT an element of the marketing mix?
Product
Price
Promotion
Packaging
Which of the following is NOT a method of sales promotion?
BOGOF - buy one get one free
Bonus packs - getting extra for the same price
Free gift within the packs
Increasing the product size without changing the price
What is the purpose of using celebrity endorsement as a sales promotion method?
To reduce the cost of the product
To encourage fans of the celebrity to buy the product
To provide legal credibility to the product
To extend the product life cycle
Which of the following is NOT a factor an organisation might consider when choosing a supplier?
The supplier's price competitiveness
The quality of the raw materials provided by the supplier
The supplier's celebrity endorsement
The supplier's ability to deliver the correct quantity
What is a potential problem of having too much stock?
Increased security costs
Reduced administration costs
Decreased insurance costs
Lower chance of theft
What is a consequence of under-stocking?
It becomes easier to cope with unexpected changes in demand
It reduces the risk of goods becoming obsolete
It may lead to customers going elsewhere due to the product shortage
It allows for bulk buying and reduced unit costs
Which of the following is a problem associated with over-stocking?
Lower insurance costs
Increased unit costs due to not bulk buying
Decreased risk of theft
The stock may deteriorate resulting in larger wastage costs
What is the definition of 'Maximum inventory (stock) level'?
The time from placing the order to the goods being delivered
The highest level of inventory that should be held at any one time
The amount of inventory required to meet customer demand
The minimum quantity of stock that should be kept on hand
What does 'Lead time' refer to in inventory management?
The time it takes for a product to become obsolete
The time from placing the order to the goods being delivered
The duration of the production process
The period required to restock an item once it runs out
Which of the following is a consequence of over-stocking?
Reduced storage space required
Lower storage/insurance costs
Goods may become obsolete
Decreased chance of theft
What is a potential consequence of too much cash being tied up in inventory due to overstocking?
Increased cash flow
Cash flow problems
Lower warehousing costs
More space available for production
Which of the following is a method of production?
Standardisation
Job production
Automation
Inventory management
What is an advantage of using automation in production?
More workers are required
Higher chances of product variability
Identical products are made
Increased complaints regarding flaws/faults
What is a disadvantage of using machinery and robotics in production?
Machines can operate 24/7
Large amounts of machinery and robotics are required
Machinery can break down
Difficult to make products to meet customers' individual requirements
Which of the following is not a method of production?
Job
Batch
Flow
Random
What is an advantage of batch production?
Large amounts can be made
Less skilled employees required
Automated process meaning high quality result
All of the above
Which factor is not mentioned as something to consider when choosing a suitable method of production?
The nature of the product
The cost of technology/machinery
The size of the premises
The color of the product
What is a disadvantage of batch production?
Economies of scale gained
Equipment needs to be cleaned between batches
Batches can be customised to meet the customer's requirements
Less human error
Which of the following is NOT a method of ensuring quality?
Quality Circles
Quality Assurance
Quality Control
Quality Competition
What is the main purpose of Quality Circles?
To award a quality logo when the product reaches the required standard
To ensure 'right first time' and prevent errors
To match the standard of the quality leader/competitor
To discuss how to improve methods of working
Which of the following is a reason why good recruitment and selection process is considered a quality input in the production process?
It helps to match the standard of the quality leader/competitor
It ensures that all staff are trained and competent
It checks at the beginning and end of the production process only
It awards a quality logo when the product reaches the required standard
What is a potential outcome of using quality raw materials as a quality input?
It can meet safety targets
It reduces the number of accidents in the workplace
It reduces cost to the organisation
All of the above
Which of the following is NOT listed as a method to ensure the quality of finished goods?
Quality control
Quality assurance
Quality standards
Quality competition
What is a method used by an organisation to ensure quality at the beginning and end of the production process?
Training staff to ensure they can produce goods to the best quality
Ensuring that raw materials are the best that they can be
Quality is checked at the beginning (inputs) and end (outputs) of the production process
Using quality management processes to reduce waste
Which of the following is a disadvantage of recycling to an organisation?
Takes less energy to recycle than to extract new materials
May give a competitive edge
Need to be sorted into different categories which takes time to do
Items can be reused to make new products
How can an operations department be environmentally friendly by managing waste?
By using quality management processes
By having special controls fitted to lights
By recycling packaging/waste products
By ensuring the recruitment process gets the best staff
Which of the following is a benefit of ethical operations for an organisation?
It limits the organisation's public image.
It may help the organisation win awards.
It increases the cost of production.
It increases the amount of waste in landfills.
What is an advantage of computerised stock control?
Increases the need for stock-taking.
Stock levels are unknown.
Identifies best sellers/non-movers to aid in managerial decisions.
Delays in finding stock levels.
Which technology can be used to keep a running total of inventory in hand?
GPS
CAD (Computer Aided Design)
Database/EPOS
CAM (Computer Aided Manufacture)
How can CAM (Computer Aided Manufacture) be beneficial to a business?
It can be used to track deliveries.
It can be used to design products on a computer screen.
It can help control the machinery of the business.
It can be used to order inventory online.
What is a use of GPS technology within the operations functions of an organisation?
To help control the machinery of the business.
To keep track of deliveries.
To design products on a computer screen.
To locate inventory within the warehouse.
What is the first step in the selection process to choose the right person for the job?
Testing to provide additional information as to a candidate's suitability
Collecting CVs/application forms
Seeking references from previous employers
Informing unsuccessful candidate(s)
Which of the following is NOT included in the responses for describing the stages of the recruitment process?
Identify the vacancy
Advertise the job
Send out application forms
Negotiate the salary with candidates
What does a person specification contain?
The tasks and responsibilities of the job
The conditions of the post e.g., pay, hours
The essential and desirable characteristics of the ideal candidate
A standard form for candidates to complete with personal details
Where can a job advert be placed?
Only on the organization's intranet
Only in newspapers
Internally or externally, including intranet, noticeboards, newspapers, job centres etc.
Only through direct emails to potential candidates
What is the purpose of asking each potential employee a series of questions during an interview?
To finalize the job offer
To test the candidate's negotiation skills
To allow for comparison
To inform the candidate about the job role
Which of the following is a benefit of internal recruitment over external recruitment?
Internal recruitment can attract candidates with new ideas.
Internal recruitment ensures candidates already have knowledge of the organisation.
External recruitment is more cost-effective.
External recruitment can take a very long time.
What is a potential disadvantage of internal recruitment mentioned in the text?
It can create another vacancy within the organisation.
It is less effective as advertising can be done on staff newsletters or intranet.
It is motivating for staff who see a promotion path.
It can be advertised on noticeboards and via email.
Which method of selecting the right person for a job allows an organisation to compare each candidate with a set of identical questions?
Application form/CV.
References.
Testing.
Interviews.
What is one way that testing a candidate during the recruitment process can be beneficial?
To compare against the job description and person specification.
To see if the candidate has the necessary qualifications/experience.
To assess a candidate's performance to see if they can work under pressure.
To create a short list of potential candidates.
Which of the following is a benefit of training employees?
Employees who are trained will be less motivated.
Employees who are trained will be less efficient at their job.
Employees who are trained will have better skills meaning a higher quality output.
Employees who are trained are more likely to be absent.
Which of the following is a reason for an organisation to train its staff?
To decrease staff motivation
To make staff feel undervalued
To increase errors/wastage in production
To enhance staff competence
What is a potential outcome of increased staff motivation due to training?
Reduced staff turnover
Decreased productivity
Lower quality work
Increased errors in production
How does piece-rate pay differ from time-rate pay?
Piece-rate is based on the number of hours worked, while time-rate is based on the units produced.
Piece-rate is often used for skilled workers, while time-rate is often used for unskilled workers.
Piece-rate rewards quality over quantity, while time-rate rewards quantity over quality.
Piece-rate pays more for less units produced, while time-rate pays more for more hours worked.
Which of the following working practices can be used to motivate staff?
Flex-time/flexible working
Standardized working hours
No opportunity for teleworking
Fixed job roles with no job sharing
What is one method of industrial action where employees remain in the workplace but do not work?
Overtime ban
Sit in
Lock out
Go slow
Which of the following is a consequence of a strike as a form of industrial action?
Increased production rate
Employees undertake additional tasks beyond their job description
Withdrawal of labour/refusal to work by employees
Employees are locked out of the business premises
What are the responsibilities of the employer under Health and Safety legislation?
Provide a competitive salary and ensure job security
Make the workplace safe and prevent risks to health
Offer shares of the company to the employees
Ensure all employees have a company car
Which of the following is NOT a method of industrial action?
Sit in
Overtime ban
Work to rule
Employee training
What could be an impact of industrial action on an organization?
Increased productivity and efficiency
Improved employee morale and teamwork
Production within the organization may come to a halt
Expansion into new markets
Which of the following is not a piece of legislation that exists to protect employees?
Equality Act
Health & Safety at Work Act
National Minimum Wage
Employment Equality Act
What is a potential effect of industrial action?
Increase in employee morale
Decrease in production
Improvement in the company's image
Reduction in staff turnover
Which of the following is not a feature of the Health and Safety at Work Act?
Employees must take reasonable care of themselves and other workers
Employees must report safety issues
Employees are allowed to ignore H&S policy if it interferes with their work
Safety training must be provided for employees
What role does technology play in the recruitment and selection of staff?
It eliminates the need for interviews
It allows for pre-employment online screening
It reduces the number of applicants
It guarantees the selection of the most qualified candidate
Which of the following is not an impact of technology on working practices?
Software packages with remote access allow flexible working arrangements
Video conferencing reduces travel time and cost
Email enables employees to communicate with their job partner from home
Technology ensures a higher rate of job security
