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WorksheetsBTEC Business Level 3: Enterprise Failures
Total questions: 13
Worksheet time: 7mins
What is the role of business planning in identifying markets and setting business targets?
Identifying markets and setting targets
Monitoring targets and securing loans
Over-stating sales and profits
Weak cost control
What happens with unrealistic business plans?
Sales and profits are overstated
Market size is accurate
Efficient procurement
Strong inventory control
Identify examples of poor management in a business.
Weak cost control systems
Strong credit control
Efficient procurement systems
Strong inventory control
What can insufficient capital lead to in a business?
Inability to secure business loans
Profits sufficient to finance expansion
Excess capital tied up in stock
Strong credit control
How do cash flow problems affect a business?
Increase in costs for the business
Product decline phase boosts sales
Rising costs lower supplier expenses
Consistent sales turnover
What happens when a business expands too much?
Loss of management control
Improved customer service
Efficient human resources management
Strong financial control
What happens if a business doesn't use technology?
Over-reliance on traditional marketing
Fully exploited e-business
Advanced technological integration
Strong online presence
What are the risks of losing key staff?
Over-reliance on key staff
Strong continuity planning
Easy recruitment of replacement employees
Stable workforce
What external factors can affect a business?
Competitive market pressures
Stable consumer tastes
Consistent government legislation
Abundant skilled workforce
What is a potential issue with over specialisation in a business?
Over reliance on a small number of customers
Diverse customer base
Wide range of suppliers
Variety of products
What is a consequence of poor inventory management?
Efficient supply chain
Better customer satisfaction
Lower operational costs
Higher holding costs and stockouts
What is a risk of not diversifying products?
Vulnerability to market changes
Increased market share
Enhanced brand loyalty
Stable revenue streams
What effect can poor marketing strategies have on a business?
Stronger market positioning
Higher sales conversion rates
Increased customer engagement
Decreased brand visibility
