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WorksheetsMCQ Revision Test 3
Total questions: 15
Worksheet time: 11mins
Which of the following will cause spare capacity in a business to rise?
A. New competitors are entering the market.
B. The business closes some factories.
C. The business’s product becomes more fashionable.
D. There is a successful advertising campaign.
Statement 1: ‘Value added can be increased by creating barriers to entry.’
Statement 2: ‘Value added can be increased by lowering unit costs.’
Read statements 1 and 2 and select the correct option from the following:
Statement 1 is true. Statement 2 is true.
Statement 1 is true. Statement 2 is false.
Statement 1 is false. Statement 2 is true.
Statement 1 is false. Statement 2 is false.
A women’s clothes store adds furniture to its range in order to increase spending by its existing customers. According to Ansoff’s matrix this is an example of
A diversification.
B market development.
C market penetration.
D product development.
Figure 1 shows a break-even chart.
Read statements 1 and 2 and select the correct option from the following:
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
Which government policy is most likely to increase both GDP and inflation?
Higher interest rates
Higher tax on goods
Lower income taxes
More open trade
A business starts to use ‘kaizen’. This should lead to
external, disruptive change.
external, incremental change.
internal, disruptive change.
internal, incremental change.
Statement 1: 'An increase in rent paid by a business will have no effect on its gross profit.' Statement 2: 'An increase in tax on a business’s profit will have no effect on its profit for the year.'
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
Statement 1: 'If a limited company stops trading, the shareholders will be expected to sell personal assets to pay the company’s debts.' Statement 2: 'If a limited company stops trading, the business will always pay its payables in full.'
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
Which one of the following outcomes happened between 2020 and 2021 for business X?
A. Labour productivity: Decreased, Labour turnover: Decreased
B. Labour productivity: Decreased, Labour turnover: Increased
C. Labour productivity: Increased, Labour turnover: Decreased
D. Labour productivity: Increased, Labour turnover: Increased
Which one of the following outcomes happened between 2020 and 2021 for business X?
A. Employee costs per unit: Decreased, Employee costs as a percentage of turnover: Decreased
B. Employee costs per unit: Decreased, Employee costs as a percentage of turnover: Increased
C. Employee costs per unit: Increased, Employee costs as a percentage of turnover: Decreased
D. Employee costs per unit: Increased, Employee costs as a percentage of turnover: Increased
Which of the following actions would improve the ability of a manufacturer to respond to changes in consumer demand?
Ensuring workers are highly trained in one specialised role
Maintaining high capacity utilisation levels
Outsourcing more production to other manufacturers
Reducing warehouse size in order to minimise levels of inventory
A food manufacturer buys two businesses: a direct competitor and a food wholesaler. What is this an example of?
Backward vertical integration and forward vertical integration
Conglomerate integration
Horizontal integration and backward vertical integration
Horizontal integration and forward vertical integration
‘The process of transforming raw information into useful information that can support
various activities of a business’.
The definition above most accurately describes
data mining
e commerce
Gathering Big data
secondary market research
Statement 1: box ‘An increase in its level of capacity utilisation can help a business because it allows it more time for maintenance and repair of equipment.’
Statement 2: ‘An increase in its level of capacity utilisation can help a business because it allows it to meet unexpected increases in demand.’
Read statements 1 and 2 and select the correct option from the following options.
Statement 1 is true. Statement 2 is true.
Statement 1 is true. Statement 2 is false.
Statement 1 is false. Statement 2 is true.
Statement 1 is false. Statement 2 is false
The table shows the net annual return of an investment.
After two years, the ARR (%) for this investment is
90%
70%
40%
20%
