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Business Functions Chapter 8 Purchasing or Procurement

Total questions: 35

Worksheet time: 23mins

Name
Class
Date
1.

If your best supplier overworks its employees then you should consider finding another supplier.

a)

True

b)

False

c)

It depends. If the working conditions are inhumane then you must.

d)

No. The working conditions at your supplier's business are not a consideration for the purchasing function.

2.

You can get a cash discount for settling an account early.

a)

True

b)

False

3.

True or false.

The purchasing department MUST also consider international suppliers.

a)

True

b)

False

4.

The terms purchasing, procurement, supply, supply-chain and materials are all closely linked

a)

True

b)

False

5.

Define procurement as:

a)

describes the process of buying, learning the need, supplier selection, price negotiation and then following up to ensure timely delivery.

b)

covers a broader array of processes, including purchasing, stores, traffic, receiving and inspection.

c)

is often used to refer to the department’s efforts to improve procurement.

d)

is the management of materials.

6.

Business operations is the department in a business that is responsible for:

a)

Marketing

b)

Finance

c)

Production of goods/provision of services

d)

Human resources

7.

Which of the following stock control methods would involve frequent deliveries?

a)

Flow production

b)

Just in case

c)

Job production

d)

Just in time

8.

A business that becomes more streamlined as a result of effective supply chain management is said to be running more:

a)

Bureaucratically

b)

Expensively

c)

Efficiently

d)

Autocratically

9.

Which of the following is a direct benefit of having an efficient logistics department?

a)

Products arrive exactly when needed

b)

Labour productivity will reduce

c)

Efficiency will be minimised

d)

Staff motivation will increase

10.

Total quality management aims to:

a)

Give production line staff minimal say in the level of quality standards

b)

Check quality standards at the end of the production line

c)

Ensure that quality is the responsibility of everyone in an organisation

d)

Ensure a single person/single team is responsible for quality

11.

The process of meeting customer needs successfully before, during and after a sale is called:

a)

Procurement

b)

Kaizen

c)

Customer service

d)

The sales process

12.

An employee greeting a customer and offering help when required are specific examples of:

a)

The sales process

b)

Post sales service

c)

Customer engagement

d)

Product knowledge

13.

Which of the following is a danger to a business of offering poor customer service?

a)

Increased flexibility with pricing

b)

Increased revenue

c)

Negative word of mouth

d)

Satisfied customers

14.

Which two are benefits to a business of providing good customer service?

a)

Customers may increase their spend with the business

b)

Lower prices can be charged

c)

Increased costs

d)

Improved reputation within the marketplace

e)

Increased number of product returns

15.
For most businesses, the most profitable customers tend to be...
a)
Local customers
b)
Loyal customers
c)
Business customers
d)
New Custoemrs
16.
What is After-sales service?
a)
Up selling products
b)
Meeting of customer’s needs after they have purchased a product 
c)
enticing customers to purchase more products from your business
d)
Getting feedback on products/services
17.

Comments, praise or criticisms given to a company by its customers

a)

Customer feedback

b)

Post-sales service

c)

Customer engagement

d)

Product knowledge

18.

How well staff know all the features of their products

a)

Product knowledge

b)

After sales service

c)

Market segmentation

d)

Differentiated marketing

19.

Good Customer Service helps to:

a)

Build Your Brand

b)

Create Trust With Your Customers

c)

Reduce Customer Complaints & Minimise Problems

d)

All of the Options

20.

Susan owns & runs a small art studio and she hires & trains new employees. What function is this?

a)

Administration function

b)

Human Resource function

c)

Marketing function

d)

Risk management

21.

Bruce installed security cameras to reduce theft in his automotive business. This is what function?

a)

Risk Management

b)

Human resources function

c)

Finance function

d)

Purchasing function

22.

Mary prepared a short newspaper advert for a business. This is an example of which function?

a)

Marketing Function

b)

Purchasing function

c)

Administration funtion

d)

Public Relations function

23.

Susie just purchased fire & property insurance for her flower shop. What function is this an example of?

a)

Strategic Management

b)

Public relations function

c)

Risk Management

d)

Finance function

24.

Which business function involves managing the business budget and paying business's taxes?

a)

Finance function

b)

Marketing function

c)

Purchasing function

d)

Human Resources function

25.

Which business function is creating, promoting, and presenting a product to the consumers?

a)

Accounting

b)

Marketing

c)

Management

d)

Human Resources

26.

Which Business function involves hiring, firing, training, and recruiting employees?

a)

General management

b)

Human Resources

c)

Production

d)

Operations

27.

Which function involves controlling, monitoring, setting goals, and leading?

a)

Marketing

b)

General Management

c)

Human Resources management

d)

Accounting

28.

Which function involves procuring raw materials or finished products that a business needs to function at the best possible price and keeping accurate records of purchases?

a)

Marketing

b)

Management

c)

Finance

d)

Purchasing

29.

What is the purpose of a mission statement in a business?

a)

To outline the components of the micro-environment

b)

To identify business functions

c)

To describe what the business aims to achieve

d)

To explain how goals will be achieved

30.

What does the term 'vision' refer to in a business context?

a)

Describes the reason for the business existence

b)

Describes what the business provides or produces

c)

Explains how goals will be achieved

d)

Refers to what the business wants to achieve in the long-term

31.

What is the main responsibility of the public relations function in a business?

a)

To undertake market research

b)

To manage all the people in the business

c)

To create a good public image for the business

d)

To collect and store all data and information

32.

What is the purpose of organisational culture in a business?

a)

To process raw materials into finished products

b)

To define the business' internal and external identity

c)

To attract new employees into the business

d)

To determine the financial needs of the business

33.

What is the role of leadership in a business?

a)

To manage all the financial assets of the business

b)

To determine the real needs of the target market

c)

To inspire, influence, or motivate subordinates

d)

To coordinate the other business functions

34.

What are the components of the micro-environment in a business?

a)

Vision, mission statement, goals, and objectives

b)

Organisational resources, leadership, and management

c)

Eight business functions, organisational structure, and culture

d)

Physical resources, financial resources, and human resources

35.

What is the main responsibility of the administration function in a business?

a)

To create a good public image for the business

b)

To collect, process, and store all data and information

c)

To manage all the people in the business

d)

To determine all the financial needs of the business