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WorksheetsMCQ Revision Test 2
Total questions: 20
Worksheet time: 10mins
An internal factor that would likely be a cause of change in a business is:
A prolonged recession
Closure of one of the business' factories
Business failure of a competitor
A fall in the £/$ exchange rate
Which management style is most appropriate for managing a complex relocation of business operations involving employees who are important to the business?
Autocratic
Tell
Laissez-faire
Democratic
An example of an external factor that might result in the need for change by a business is:
Implementation of delayering by the business
Introduction by management of performance-related pay
New legislation affecting all businesses in the industry
Reduced spending by the business on new product development
A reason why the introduction of greater use of automation by a manufacturing business might encounter resistance from employees is:
Higher equipment maintenance costs
Risk of higher labour productivity and efficiency
Competitors are likely to respond with a similar change
Self-interest caused by higher job insecurity
Delayering a management structure should, if successful, lead to a:
Taller structure with wider spans of control
Taller structure with narrower spans of control
Flatter structure with narrower spans of control
Flatter structure with wider spans of control
The following are all examples of methods to make employment contracts more flexible, except which one?
Performance-related pay
Job sharing
Annual hours
Zero hours contracts
In which of these circumstances might a product-based organisational structure be most appropriate for a business?
The business operates in just one country
The business operates in many countries, each with distinctive needs
The business operates in different industries with different customer bases in each
The business needs to encourage the sharing of expertise across all its business activities
Possible evidence of a short-termist approach by a publicly-quoted business would be:
Emphasis on long-term investment returns
A refusal to undertake takeovers as a method of growth
High dividend payments rather than reinvesting profits
Focus on CSR as a business objective rather than profit maximisation
The normal formula for calculating gearing is:
Non-current assets divided by working capital
Non-current liabilities divided by total capital employed
(Bank overdraft + loans) divided by share capital
Total fixed assets divided by non-current liabilities
Which of the following would NOT improve the current ratio?
Increase cash balances following a new share issue
Sell surplus fixed assets for cash
Reduce levels of inventories
Buy fixed assets by increasing the bank overdraft
In which of these situations is working capital being managed best?
Payables days ratio is lower than receivables days ratio
Payables days ratio is higher than receivables days ratio
Payables days ratio is higher than inventory turnover ratio
Payables days ratio is lower than inventory turnover ratio
The following are all examples of performance measures relating to operations – except which one?
Absenteeism rate
Capacity utilisation
Defective quality – reject rate
Unit costs of production
According to Porter’s Five Forces Model, a significant reduction in barriers to entry should result in:
Lower availability of substitute products
Higher industry profits
Greater intensity of competitive rivalry
Higher bargaining power of suppliers
Which of the following would make UK goods and services more price competitive in Germany and France?
A rise in the £ / Euro exchange rate
An increase in economic growth in the Euro Zone
An increase in interest rates in Germany and France
A fall in the £ / Euro exchange rate
A custom duty levied on the value of imported goods entering a country is known as a:
Protection tax
Import subsidy
Tariff
Quota
A significant increase in a firm’s existing market share would be evidence of a successful strategy of:
Market development
Market penetration
Product development
Diversification
What strategy is essential for a business to be successful as a low-cost market leader?
Economies of scale
Focused differentiation
Profit maximisation
Cost minimisation
Which of Porter’s generic strategies is likely to be most suitable for a start-up business targeting a niche market segment?
Differentiation focus
Cost leadership
Diversification
Cost focus
Which of the following models helps a business determine its strategic position in comparison to key competitors?
SWOT analysis
Extended marketing mix
Market mapping
Porter’s Five Forces Model
Business Z cuts the price of a product by 10%. As a result of this price cut, demand increases from 1,750 to 2,000 units per week. What is the price elasticity of demand?
-0.91
-1.14
-0.70
-1.43
