Theme 2 - Mixed questions - Part 1

Business operations is the department in a business that is responsible for:

• Marketing

• Finance

• Production of goods/provision of services

• Human resources

An extract from a business’ accounts for last year is shown in the table below:

Based on this information, which of the following is the correct gross profit margin?

• 62.5%

• 45.0%

• 37.5%

• 17.5%

Which of the following is a feature of flow production?

• Products are produced continually on a production line

• Products are one-off meeting customer needs exactly

• Products are made in small identical groups

• Cost of producing one unit is high

Which of the following is a danger to a business of offering poor customer service?

• Increased flexibility with pricing

• Increased revenue

• Negative word of mouth

• Satisfied customers

A business changes its aims and objectives due to a sharp rise in costs and fall in profit. These changes were made as a response to changes in:

• Business performance

• Legislation

• Technology

• Changes in tastes/fashions

A business decides to introduce a Christmas bonus to all its staff as a financial method of motivation. Which of the following is a potential problem to the business of this decision? Employees…

• May see this as an ongoing entitlement

• Are more likely to complete less interesting tasks if a bonus is available

• May be less likely to leave the business

• Are likely to see the bonus as a reward for their effort

A fashion retailer charges a lower price for a discontinued item of clothing. Which of the following has most likely influenced the pricing strategy of the business?

• Technology

• The state of the economy

• Market segment

• Product life cycle

Which of the following pieces of information would be included in a person specification?

• Main roles and responsibilities of the job

• Hours of work

• Place of work

• Skills and qualifications required to complete the job successfully

Which of the following is a benefit to a business of behaving ethically?

• Reduction in sales

• Positive publicity

• Lower profits

• Increased costs

Which of the following is a potential drawback to a business of having low staff retention?

• Fewer new ideas are brought into the business

• Costs of recruitment and selection are high

• Less time is spent on training new staff

• Less temporary workers will be employed to fill gaps in staffing levels