Paper 2

What is the definition of quality control?

• Checking products at the end of production to remove any defective products

• Checking products throughout the production process

• Checking products for damage whenever workers feel like it

• Ensuring products look ok to be sold

The correct definitions for production methods are

• Job - making lots of identical products

  Batch - a continuous cycle

  Flow - making bespoke items

• Job - a continuous cycle

  Flow - making lots of the same product

  Batch - bespoke products

• Job - Making bespoke products

  Flow - A continuous cycle

  Batch - making lots of identical products

___________ ____________ includes good product knowledge, good after sales services, good customer engagement.

Business location is impacted by...

• Access to transport

  Labour costs

  Legal ownership

• Access to transport

  Labour costs

  Access to infrastructure

• How pretty the area is

  The cost of the rent

  Government incentive

_________ is the management of purchaing in a business

Logistics is defined as:

• The cost of location

• The organizational structure

• Parties who supply products

• The transportation of goods

__________ _________ is the money in and out of a business

Which of the following are a short term source of finance?

• Retained earnings

  loan

  overdraft

• Overdraft

  Trade credit

  Owners capital*

• Trade credit

  Credit card

  Taking on a new partner

• Share issue

  Crowdfunding

  loan

Cash and profit are different because...

• Cash is money held by a business for payment of bills ect. Profit is recorded over a period of time as money left over after costs

• Cash is notes and profit is money a business wants

• Cash is only kept in notes and coins and not at the bank

• Cash is good because it means a business is rich and can pay for anything they need on a day to day basis.

The correct formual for ARR is

• Profit = total income x cost of investment

  profit - number of years

  average annual profit x cost of investment x 100

• Profit = total income -+ cost of investment

  profit x number of years

  average annual profit + cost of investment x 100

• Profit = total income - cost of investment

  profit / number of years

  average annual profit / cost of investment x 100