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WorksheetsKO 14 Business
Total questions: 100
Worksheet time: 50mins
What is the primary purpose of business operations?
To produce goods
To provide a service
Both of the above
None of the above
Which of the following is a type of production process?
Batch
Creation
Standard
Which of the following best describes job production?
Large scale production of standardised products
Producing goods in batches
Customised production of unique products based on specific customer requirements
Which of the following industries is most likely to use job production?
Fast food
Car manufacturer
Bespoke jewellery maker
Clothing retailer
Which of these best describes flow production?
A customised product produced in small quantities
A standardised product produced on a large scale
An expensive product manufactured overseas
A product produced with a limited number available
What is a key advantage of flow production?
High economies of scale
Highly skilled workforce
Unique and individualised products
Limited number of products
How does technology impact the cost of production?
Increases costs
Decreases costs
Costs stay the same
How will using technology to automate parts of the production process impact productivity?
Increase productivity
Decrease productivity
Productivity stays the same
What role does technology play in improving quality in production?
It increases the product range
It makes products cheaper
It helps reduce human error
It has no impact
True or False: There are no negatives of introducing technology into a business’s operations.
True
False
What is procurement?
The manufacturing of goods
Obtaining the goods a company needs to support its daily operations
A positive management method
Obtaining new equipment
What type of stock is a completed luxury watch?
Raw materials
Work in progress
Finished stock
What type of graph can a business use to monitor its stock levels?
Bar gate stock graph
Simple stock graph
Line graph
Production graph
What can the minimum stock level also be known as?
Lead stock
Key stock
Spare stock
Buffer stock
True or False: Lead time is how long a product takes to sell.
True
False
JIT is an abbreviation for what?
Just in teams
Just in time
Just is taken
Just is timed
Which of these is an advantage of JIT stock control?
Less capital tied up in stock
More stock available in the warehouse
Not good for perishable goods
Increases capital expenditure
Why would a fresh fruit and veg shop use JIT stock control?
To increase the number of customers
To increase stock levels
To reduce waste
To decrease their range
The organisation and transportation of goods is known as what?
Procurement
Logistics
Stock
Lead time
Which of the following would a fresh fruit and veg business expect from their suppliers?
No trade credit
Fresh quality produce
Long lead times
Limited availability
Which of these is a sign of good quality?
Produced from high quality materials
Lasts a long time
Assembled well
All the above
True or False: Quality control and quality assurance are the same thing.
True
False
Which of these describes quality control?
The process of inspecting a product’s quality against the required standard
Establishing standards, guidelines and procedures to prevent quality issues and maintain the integrity of the product
The process of ensuring no product can ever be possibly faulty
What does quality assurance mean?
The process of inspecting a product’s quality against the required standard
Establishing standards, guidelines and procedures to prevent quality issues and maintain the integrity of the product
The process of ensuring no product can ever be possibly faulty
True or False: The main difference between QA and QC is that quality assurance focuses on planning to prevent risks that could affect quality during production, while quality control focuses on testing the quality of the output once the product or service has been made.
True
False
Which of these is a method of quality control?
Increased costs
More employees
Feedback
Larger output
What would be a measure of good quality from a window cleaner?
Good prices
Clean windows
Multiple employees
Excellent equipment
Which of these is NOT an accredited quality mark?
Investors in people mark
CE mark
Kitemark
Recycle mark
Why is quality important to a business?
It can reduce their market share
It can give them a competitive advantage
It can improve their marketing mix
A high quality product can help build a strong what?
Employee
Brand image
Building
Customer
Which of the following is NOT a factor in the sales process?
Consumer sales
Customer interest
Speed and efficiency of service
All the above
What is the importance of customer engagement in the sales process?
It helps build a personal connection with customers
It increases employee satisfaction
Managers like employees that do this
None of the above
Which factor in the sales process involves responding to customer feedback?
Post sales service
Customer loyalty
Customer interest
Product knowledge
How many stages are there in the sales process?
1
3
5
7
Cameron works in a golf shop and knows everything there is to know about golf clubs. What is Cameron demonstrating?
Product knowledge
The sales process
Post sales service
Clear communication skills
True or False: A sales approach can be either hard or soft?
True
False
What is post sales service?
Service that is given before the product has been purchased
Sales that are completed online
Sales that are done in person
Service that is given after the product has been purchased
True or False: Cold calling customer is an example of a hard sales approach.
True
False
Customers that like a business’s post on social media is an example of what?
Speed and efficiency
Customer engagement
Customer retention
Product excellence
Which of these is NOT a possible outcome of providing good customer service?
Customer loyalty
Good reputation
Decreased production costs
Positive brand image
How is gross profit calculated?
Sales revenue – cost of sales
Sales revenue – fixed costs
Gross profit / sales revenue x 100
Net profit x 100
If a car dealer sells £120,000 worth of cars in a month and has cost of sales of £20,000. How much gross profit did they make?
£140,000
£100,000
£120,000
£80,000
Which of these would increase a business’s net profit?
Increasing cost of sales
Decreasing operating costs
Decreasing revenue
Increasing tax
If a business is making a loss, then what will their net profit figure be?
Positive
Negative
Neither
True or False: Gross profit margin and gross profit are the same thing.
True
False
What does it mean if a business has a gross profit margin of 65%?
For every £1 of sales revenue 65p is gross profit
For every 65p of sales revenue £1 is gross profit
That 65% of its customers make a purchase from their online advertising
That the owner keeps 65% of all profits
How do you calculate net profit margin?
Net profit / gross profit x 100
Net profit / sales revenue x 100
Gross profit / net profit x 100
Sales / gross profit x 100
A sports drink company has sales revenue of £500,000, gross profit of £300,000 and a net profit of £125,000. What is the business’s net profit margin?
12%
25%
£125,000
60%
Why is the average rate of return useful to a business owner?
It tells the owner how quickly they will make a profit
It tells them the number of days it will take to make a profit
It helps them improve staff turnover
It allows them to compare the potential profitability of different investments
How is average annual profit calculated?
Average annual profit / cost of investment x 100
Total profit / number of years
Net profit / sales revenue x 100
Gross profit / sales revenue x 100
Which type of financial data would enable a business to compare its profitability over a number of years?
Net profit margin
Break-even
Cash flow
Primary research
Which of the following is not a graph?
Line graph
Bar chart
Scatter diagram
Financial data can be used to assess:
Employee satisfaction
Marketing campaign understanding
Profitability and financial health
Customer demographics
Marketing data can be collected to measure what?
Customer satisfaction
Financial performance
Supply chain efficiency
Productivity
Which financial indicator represents the percentage of revenue that remains after deducting the cost of goods sold?
Changes in cost
Changes in revenue
Gross profit
Net profit
Why is it important to keep information up to date for decision making purposes?
Market changes can make outdated data less useful
Old information is often more useful than up to date information
So you never make any mistakes
So the owners can see who is performing best
Why is the data gained from performing a break-even analysis useful?
It will show profitable and unprofitable products
It will increase the number of customers using the business
It will indicate whether the business has sufficient cash coming into the business
It will increase a business’s net profit margin
Which of these is a limitation of using financial data?
It doesn’t consider costs
It is expensive to create
It is all numbers
It is based on past data
Market data includes demographics. What does demographics mean?
Testing out a product for the first time
Demonstrating how to use a product or service
Statistical data relating to the population and particular groups within it.
Data that includes how a business manufactures a product
Does an increase in sales revenue also mean that there must be an increase in net profit?
Yes
No
Which of these is a characteristic of a hierarchical structure?
More sales revenue
Short chain of command
Few layers of management
Many layers of management
Which of these best describes span of control?
How far a manager can increase their sales team
The number of employees a manager has responsibility for
The number of customers using a product
The control a manager has over their marketing budget
True or False: One way a business can structure its company is through a bulk organisational structure.
True
False
If a manager finds that they have too many tasks, what could they do to lighten their workload?
Delegate
Subordinate
Flatten
Instigate
Which of these is an advantage of using a centralised management structure?
Helps keep a consistent approach across the business
Increases autonomy
Increases sales
Lowers costs
What is a disadvantage of adopting a decentralised management structure?
More responsibility for employees
Decreases motivation
No consistent approach across the business
Increases costs
What type of organisational structure is a small business most likely to have?
Tall
Flat
Fast
Hierarchical
Which of these can be a barrier to effective communication?
A customer that has a poor attitude
Working in a technical industry
Use of jargon
Having a consistent message
True or False: Employees that are part time must be on a zero hours contract.
True
False
Which of these is a benefit of remote working for an employee?
Spend less time travelling
Spend more time in the office
Meet more people
Easier to get help from a manager
Which of these is the most senior position in an organisation?
Operational staff
Director
Senior manager
Supervisor
What is the role of a supervisor?
To supervise customers
To set the direction and strategy for the business
To assist with the daily operations of the business
To manage a group of employees and ensure that tasks are completed
True or False: Directors and senior managers have the same responsibilities just under different names.
True
False
A person specification, job description and application form are examples of what?
Recruitment documentation
CV
Job forms
Career insights
Which of these best describes a job description?
A description of the type of person needed
A series of question that help filter out applicants
Information about the type of person needed to fill a role
A document listing the main duties of a job role
If a job is listed on the website indeed, would this be an example of internal or external recruitment?
Internal
External
Which of the following is an advantage of internal recruitment?
Brings new ideas to the business
Fresh enthusiasm
Applicants are already known to the business
Larger pool of candidates
Which of these is a disadvantage of internal recruitment?
Smaller pool of applicants
More expensive
Can take more time
Employees are unknown
Which of the following is an advantage of external recruitment?
Smaller pool of applicants
May bring new skills into the business
Quicker process
Cheaper process
True or False: Interviewing applicants is an appropriate method in the recruitment process for both internal and external candidates.
True
False
Which of these describes formal training?
Continuous training
Teaching yourself a specific skill
Structured training that is job specific and often related to a qualification
Less structured training that often takes place in the workplace
What are performance reviews also known as?
Referrals
Appraisals
Objectives
Time management
Which of these is an example of formal training?
Doing a degree online
Leaning to use a till
Target setting
On the job training
What type of training and development is an apprenticeship?
Formal
Informal
Self-learning
Performance review
Which of these is a benefit for a business of training and developing employees?
Appraisals
New customers
Larger workforce
Motivated employees
What does ‘retention’ mean in relation to employees?
Keeping employees working for the company
Ensuring employees leave the company
Retraining an employee
Setting new targets for an employee
True or False: An employee that is younger will be more motivated than an older employee.
True
False
Why would a company want to train employees to use new technology?
So that employees become managers
So that employees can use Instagram at work
So that employees remain productive
So that employees make more money
Last year 12 out of 240 employees left Theo’s company. What was Theo’s retention rate?
5%
12%
240%
95%
Which of the following can help a business recruit new employees?
Low retention rate
A good reputation
No opportunity for progression
True or False: A business can motivate its employees using both financial and non-financial methods.
True
False
Which of the following best describes motivation?
Being willing to do any task for your boss
A drive and willingness to put effort into a role
A desire to stay in your role for life
A well organised employee
Motivated employees are often more productive employees, what does ‘productive’ mean?
The amount of work or output produced by an employee
An individual that has professional attributes
A product produced by a business
An employee that seems to be unmotivated
The money that employees are paid in exchange for their time and work.
Bonus
Remuneration
Commission
Benefits
Which of these is NOT a financial benefit?
Remuneration
Bonuses
Job enrichment
Commission
Which of these would most likely motivate an employee that is motivated by money?
Commission
Formal training
Job rotation
Appraisal
True or False: Fringe benefits such as a company car, free gym membership and health insurance are classed as a non-financial motivator.
True
False
Why might an employee be motivated by job rotation?
It avoids them getting bored
It means they make more money
It gives them more time off
It helps them with childcare
What level of autonomy often makes employees more motivated in their roles?
Low level of autonomy
High level of autonomy
No autonomy
What does it mean if an employee has job satisfaction?
They don’t hate their job
They have been promoted
They are satisfied with doing the bare minimum at work
They get a sense of fulfilment or enjoyment from their job
