WorksheetsBusiness Foundation - KPI
Total questions: 24
Worksheet time: 15mins
Which of the following is a financial KPI?
Rate of staff turnover
Level of wastage
Net profit
Number of website hits
What is KPI?
Key Performance Indicator
Which KPI is most suitable for evaluating customer satisfaction?
Number of sales
Number of complaints
Net profit
Staff absenteeism
A KPI that tracks how many products are thrown away is called:
Productivity rate
Customer retention
Level of wastage
Sales volume
What is a benefit of using KPIs in business?
Increase in taxes
Helps monitor performance
Avoids competition
Reduces customer loyalty
Which of the following best describes a high level of staff turnover?
Staff are highly productive and meet all deadlines
Staff rarely take sick days
Many employees leave the business over a short period
Employees receive frequent promotions and pay rises
Which statement best explains the difference between efficiency and effectiveness when using KPIs?
Efficiency is about reducing profit, effectiveness is about customer growth
Efficiency is how well resources are used, effectiveness is how well goals are achieved
Efficiency focuses on marketing only, effectiveness focuses on finance
Efficiency means more sales, effectiveness means less cost
Which of the following is an efficiency KPI?
Number of customer complaints
Rate of productivity growth
Number of workplace accidents
Net profit
An increase in staff absenteeism may indicate:
a) Higher sales
b) Lower net profit
c) Decreased staff morale
d) Higher productivity
Which KPI would help a business understand its online reach?
a) Net profit
b) Number of website hits
c) Customer complaints
d) Sales volume
Why is “SMART” important in KPI setting?
a) It improves product design
b) It helps track social media
c) It ensures KPIs are achievable and relevant
d) It limits staff feedback
Which KPI would be most useful for the HR department?
Net profit
Level of staff turnover
Website hits
Number of sales
A business should respond to increased customer complaints by:
Increasing prices
Reducing staff hours
Investigating quality or service issues
Removing the KPI
Which of these is not a SMART Principle when setting a KPI?
Specific
Measureable
Affordable
Time-bound
One way to increase efficiency is to:
Hire more people
Raise product prices
Use automation to reduce time
Spend more on ads
What is Key Performance Indicator?
key performance indicators are measures that can be used to assess how efficiently and effectively a business is performing.
Does these KPIs measure how well the business is achieving its goals (effectiveness), or how well the business is using its resources (efficiency)?
Level of staff turnover
Number of customer complaints
Number of sales
Net profit
Level of wastage
Rate of productivity growth
Number of workplace accidents
Staff absenteeism
Which KPI shows the greatest negative change?
(a)
What does the increase in customer complaints suggest?
Higher demand
Poorer product or service quality
Better marketing
Faster delivery times
What is one likely reason for the drop in net profit?
Increased efficiency
Reduced customer complaints
Lower sales volume
Less marketing spending
Which KPI should Sebastian focus on first to improve business?
Productivity
Wastage
Customer satisfaction
Office expenses
What action would best reduce customer complaints?
Increase product range
Improve product quality and service
Hire more marketing staff
Increase pricing
Which strategy could help improve sales?
Shorten business hours
Remove online store
Launch a promotional campaign
Reduce product availability
What is the purpose of a KPI?
To punish staff
To track personal goals
To file tax reports
To measure and monitor business performance
