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WorksheetsBusiness Production Quiz
Total questions: 67
Worksheet time: 3hrs 6mins
State two features of job production.
It involves producing custom products.
It is suitable for mass production.
It requires specialized skills.
It is highly automated.
One benefit of job production to a business is:
Customization of products
Mass production
Standardization
Reduced costs
Job production refers to (a)
One disadvantage to a business of using flow production is:
High initial setup costs
Increased flexibility
Lower production rates
Improved product quality
Identify two stakeholders of a business.
Employees and Customers
Suppliers and Competitors
Government and Media
Shareholders and Community
One disadvantage of flow production is:
High initial costs
Low production speed
High flexibility
Low quality control
Match the following actions with their compliance to consumer law:
Conducting regular safety inspections
Ensuring product safety
Ignoring safety standards
Neglecting legal requirements
Providing misleading information
Deceptive practices
Reducing product quality
Compromising on standards
Explain how a business can use outsourcing.
Identify two stages of the process of procurement.
1 _____
2 _____
(a)
Identify two consequences for a business of producing poor quality goods.
1 _____
2 _____
(a)
Outsourcing the tube bending might help PPL when making its multi-gyms by (a)
Match the following costs with their corresponding impacts on maintaining quality during production:
Increased production time
Longer time to ensure quality checks
Reduced material costs
Less waste and better resource utilization
Lower employee morale
Employee dissatisfaction due to stringent quality control
Decreased product lifespan
Shorter product life due to compromised quality
What are the benefits to The Coffee Pot of using high quality ingredients?
Improved taste and customer satisfaction
Reduced costs
Increased employee turnover
Decreased product variety
What is the main business activity of Imber Showers Ltd?
Manufacturing shower products
Selling kitchen appliances
Providing financial services
Offering IT solutions
Imber Showers Ltd keeps its costs down by (a)
What strategy do the managers of Imber Showers Ltd believe will help them compete in the market?
Lowering prices
Improving product quality
Expanding market reach
Enhancing customer service
The current ratio for 2011 is (a)
The current ratio formula is (a)
What is the value of current assets in 2012?
What is the value of current liabilities in 2012?
$1,000,000
$2,000,000
$3,000,000
$4,000,000
What is the value of long-term liabilities in 2011?
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Match the following values with their corresponding fixed assets in 2011.
10,000 USD
Fixed assets in 2011 for Company A
20,000 USD
Fixed assets in 2011 for Company B
30,000 USD
Fixed assets in 2011 for Company C
40,000 USD
Fixed assets in 2011 for Company D
What is the value of fixed assets in 2012?
$1,000,000
$1,200,000
$1,500,000
$1,800,000
What is the value of current assets in 2011?
$1,000,000
$1,200,000
$1,500,000
$1,800,000
What is the value of current liabilities in 2011?
$1,000,000
$2,000,000
$3,000,000
$4,000,000
Which of the following is an advantage and a disadvantage for Imber Showers Ltd of using flow production?
Advantage: Consistent quality, Disadvantage: High initial costs
Advantage: High flexibility, Disadvantage: Low efficiency
Advantage: Low initial costs, Disadvantage: Inconsistent quality
Advantage: High efficiency, Disadvantage: Low flexibility
Advantage
Benefit
Disadvantage
Neutral
None of the above
Disadvantage
Advantage
Benefit
Drawback
Profit
The benefits to Budget Signs Ltd of producing quality products include (a)
One way in which Midlands Timber Ltd can make sure that all of its products are of a suitable standard is:
Implementing a quality control system
Reducing the price of products
Increasing the production rate
Hiring more employees
The main concern of Tieler Fernandez regarding his business, Fernandez Fried Chicken Ltd, is (a)
Tieler Fernandez decided to invest (a) in a promotional campaign.
Why did Tieler Fernandez turn down the opportunity to buy a franchise in a business specializing in low-quality cheap fast food?
He preferred high-quality food.
He didn't have enough money.
He was not interested in the food industry.
He had other business plans.
What does the cash-flow forecast for Fernandez Fried Chicken Ltd show for the next four months?
What is the net cash flow for Fernandez Fried Chicken Ltd in October?
(£1,000)
(£1,500)
(£2,000)
(£2,500)
What is the closing cash balance for Fernandez Fried Chicken Ltd in November?
£1,000
£2,000
£3,000
£4,000
Why is it important for Fernandez Fried Chicken Ltd to have high quality products?
To attract more customers
To reduce costs
To increase employee satisfaction
To comply with regulations
Outline a reason why it is important that Midlands Timber Ltd produces a high quality product.
To ensure customer satisfaction
To reduce production costs
To increase employee turnover
To decrease market share
How might Dotis Ltd reduce the percentage of below-standard glassware that it produces?
By improving quality control processes
By increasing production speed
By reducing the workforce
By cutting costs on raw materials
Assume Thorntons purchased (a) of normal cocoa per day in April 2019. If there were 30 working days in April, what is the monthly increase in costs if Fairtrade cocoa had been purchased?
Sunny Rooms Ltd is a family-run chain of four small seaside hotels in Cornwall. The hotels’ customers are mainly families looking for a low-cost holiday by the sea. Each hotel is managed by one of the four family members who own the business. Staff at the hotels are often young and new to this type of work. Wages are low and there is a high turnover of staff. Recent feedback from some guests on social media suggests that their holidays were let down by rude hotel staff and poor-quality service. Sunny Rooms’ owners believe they need to improve the induction training that new employees receive. More families are choosing to take their holiday in the UK. This is because foreign holidays have increased in price and people are becoming worried about travelling abroad. There has been an increase in the number of wealthier visitors coming to Cornwall. Sunny Rooms’ owners believe that the market is changing and want to target wealthier customers. They are unsure if it would be better for their future profits to buy two higher-quality hotels, or to upgrade the existing four hotels by improving the facilities that they offer.
What do Sunny Rooms’ owners believe they need to improve for new employees?Wages
Induction training
Number of staff
Hotel facilities
Thorntons ensures that its business practices are ethical by:
Implementing strict corporate governance policies
Ignoring environmental regulations
Exploiting labor in developing countries
Engaging in fraudulent financial reporting
Fairtrade agreements have a significant impact on cocoa farmers. Which of the following is a primary benefit?
Increased market access
Higher production costs
Reduced quality of cocoa
Decreased farmer income
Analyze the potential benefits for Thorntons in doubling the amount of cocoa it purchases from Fairtrade farmers.
Increased brand reputation
Higher costs
No significant change
Decreased product quality
Evaluate the importance of paying a living wage to workers in the supply chain for a company like Thorntons.
What steps did Thorntons take when its supplier of palm oil had a negative impact on the environment?
They ignored the issue.
They switched to a sustainable supplier.
They increased their palm oil orders.
They reduced their production.
Match the following statements with their corresponding impacts on Thorntons' offerings:
It makes the product more unique and special to the customer.
Personalizing products, such as adding a name to Easter eggs,
It increases the production cost significantly.
Using premium ingredients in the production process,
It reduces the overall quality of the product.
Implementing cost-cutting measures in production,
It has no impact on customer satisfaction.
Maintaining a standard product line without personalization,
Thorntons might face potential challenges in ensuring working conditions are safe across all countries in its supply chain, such as (a)
Based on the graph, compare the selling price of normal cocoa and Fairtrade cocoa per tonne in April 2019.
One benefit of maintaining quality for Thorntons when producing chocolate is:
Increased customer satisfaction
Higher production costs
Reduced product variety
Longer production time
Emporium of Candy sells American sweets known as candy. It has a reputation for producing quality candy and it charges on average £5.99 per pack. Emporium of Candy has two shops. The first was opened in Loughton, where customers can watch the candy being produced in the kitchen. There are opportunities for customers to taste samples of the range of candy on sale in the shop. In 2016 the business grew and opened a shop in Romford. This means the company can order ingredients in bigger quantities. It also allows the business to buy the most up-to-date candy making equipment. The best-selling candy often sells out as soon as it is made and at times the shop is so busy that customers have to queue outside. Market research shows: • an increase in online shopping in the UK market for candy • few competitors are able to make products of the same quality as Emporium of Candy. Many customers travel several miles to come to the shops and have asked if its candy will be available to buy online. Annual costs and sales 2016
Emporium of Candy has benefited from economies of scale as it grew in 2016.
True
False
Which type of production is used by a baker who specialises in personalised children’s birthday cakes?
Flow
Job
Just-in-case
Just-in-time
What is the minimum price for a box of handmade chocolates sold by Thorntons?
£5
£10
£15
£20
What are two ingredients used by Thorntons in their chocolate products?
The Fairtrade agreement for cocoa guarantees which of the following for Fairtrade farmers?
A minimum price
Free equipment
Subsidized housing
Free education
What action did Thorntons take when its supplier of palm oil had a negative impact on the environment?
What objective has Thorntons set regarding the amount of cocoa it purchases from Fairtrade farmers?
According to the information from the Thorntons website, what does the company want to ensure about working conditions and wages in its supply chain?
Graph showing the selling price of cocoa per tonne in April 2019 for Normal cocoa and Fairtrade cocoa.
Use the information in the graph to calculate how much more the Fairtrade cocoa price was above the ‘normal’ cocoa price in April 2019. Show your workings.
State two advantages for Neat and Smart Ltd's supplier of using job production.
Explain one benefit to Cupcake Joy of improving its efficiency in producing its cupcakes.
Explain one way in which Sheds-U-Like Ltd could improve the motivation of its workers.
State and explain two advantages to Sheds-U-Like Ltd of using job production.
Which of the following definitions describes lean production?
An approach to production that aims to minimise waste
People and activities involved in the production process
When an item moves continuously from one stage of the process to another
Where individuals in the production process focus on a limited number of tasks
Which of the following describes the total quality management approach (TQM)?
Checking for faults only at the end of production.
Preventing mistakes.
Recalling faulty products sold.
Repairing returned items free of charge.
