A Level Business Quiz Questions and Answers

Mass production is a manufacturing process in which a large quantity of the same item is produced. This method aims to produce goods on a large scale, usually using assembly lines and specialized machinery. By producing a high volume of identical items, companies can achieve economies of scale, reduce costs, and increase efficiency. This allows for the production of goods at a faster rate and lower cost per unit. Quality assurance is still an essential part of mass production to ensure that the products meet the required standards.

Entrepreneurs do not always prefer to offer services rather than goods. Many entrepreneurs start businesses that involve the production and sale of physical goods. They may see a market opportunity for a new product or have a passion for creating and selling tangible items. Offering services is just one option for entrepreneurs, but it is not a characteristic that applies to all of them.

This is observation, but as it is being done for the first time, specifically for you, it is PRIMARY market research.

A wholesaler is another term for a supplier because a wholesaler is a business that buys products in bulk from manufacturers and sells them to retailers or other businesses. Wholesalers act as intermediaries between manufacturers and retailers, providing a steady supply of products to meet the demands of retailers. They often offer discounted prices and bulk purchasing options to retailers, making them an essential part of the supply chain. Therefore, a wholesaler can be considered as a supplier of goods to retailers or other businesses.

The cost of sales refers to the direct expenses incurred in producing goods or services. Raw materials are essential components used in the production process, and their cost is directly attributable to the goods being sold. Therefore, raw materials would be included in the cost of sales. Wages, on the other hand, would be categorized as an operating expense, not a cost of sales. Interest and bank loan expenses are financial costs and would not be included in the cost of sales.

VAT, or Value Added Tax, is a type of tax that is imposed on the sale of goods and services. It is levied at each stage of production and distribution, based on the value added to the product at that stage. Therefore, the correct answer is sales, as VAT is specifically applied to the sales of goods and services.

This is observation, but as it is being done for the first time, specifically for you, it is PRIMARY market research.

Total Revenue = Price x Quantity Sold TR = P x Q Here ‘P’ stands for price and ‘Q’ stands for quantity sold (the number of units sold). 

Improving product design is not a result of customer satisfaction. Customer satisfaction is typically measured by factors such as word of mouth recommendation, repeat business, and repeat purchases. These indicate that customers are happy with the product or service and are likely to recommend it to others or make repeat purchases. However, improving product design is a proactive step taken by the company to enhance the quality and features of the product, which may or may not directly result from customer satisfaction.

Limited liability means that the liability of the shareholders or owners of a company is limited to the amount of their investment in the company. In other words, if the company incurs losses or debts, the shareholders are not personally responsible for those debts beyond the value of their investment. This provides protection to the shareholders and ensures that their personal assets are not at risk if the company faces financial difficulties.

Over the last 50 years, economic growth in the UK has averaged 2.5% each year. This means that, on average, the UK's economy has been growing at a rate of 2.5% annually over the past five decades. This indicates a relatively steady and consistent growth rate for the UK's economy, which is considered healthy and positive.

New businesses often struggle to calculate risk because they lack the necessary experience with common risks. Without prior knowledge or exposure to potential risks, it becomes challenging for them to accurately assess and quantify the potential negative outcomes that may arise. This lack of experience can lead to miscalculations and poor decision-making when it comes to risk management.

Although collected by the business, employees pay Income Tax

Starting a business that fails can provide valuable lessons and insights into what went wrong. By learning from these mistakes and applying them to a new business venture, the chances of success are increased. This answer suggests that instead of being discouraged by failure, one should use it as an opportunity to improve and increase the likelihood of success in a future business endeavor.

Innovation is best described as making an invention suitable for mass production. This means taking a new idea or invention and developing it in a way that allows it to be produced on a large scale, making it accessible and available to a wider audience. It involves refining and optimizing the invention's design, processes, and materials to ensure efficiency and cost-effectiveness in manufacturing. By making an invention suitable for mass production, innovation enables widespread adoption and utilization of new technologies, products, or services.

A point-of-sale display and home delivery service can be considered as "place" in the marketing mix. Place refers to the distribution channels and methods used to make the product or service available to the target customers. A point-of-sale display is a physical location where the product is displayed and sold, while home delivery service is a method of delivering the product directly to the customer's doorstep. Both of these options focus on the physical availability and convenience of the product, making them relevant to the "place" element of the marketing mix.

Total Quality Management (TQM) is the correct answer because it refers to a management approach that focuses on continuously improving the quality of products or services. TQM involves the participation of all employees in the organization and the use of various tools and techniques to measure and improve quality. By measuring the quality of production on a regular basis, TQM ensures that any issues or defects are identified and addressed promptly, leading to improved overall quality and customer satisfaction.

Job production usually needs the most training but provides the best motivation for workers. In job production, workers are responsible for producing a complete product from start to finish, which requires specialized skills and knowledge. This type of production method often involves customized or unique products, which means that workers need extensive training to handle different specifications and requirements. However, the autonomy and ownership of the entire production process can be highly motivating for workers, as they have a sense of pride and accomplishment in creating a finished product.

A SWOT analysis in business strategy serves the purpose of assessing internal Strengths and Weaknesses, as well as external Opportunities and Threats. This comprehensive evaluation helps businesses make informed decisions by understanding their internal capabilities and limitations, as well as recognizing external factors that may impact their performance and competitiveness.

A SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. This method helps organizations in assessing both internal and external factors that could impact their objectives. Strengths and weaknesses are internal factors, which might include resources, assets, processes, and people. On the other hand, opportunities and threats are external factors, which encompass market trends, economic conditions, funding changes, and other external risks.

Job production involves creating unique or custom-made products in small quantities. These products are often highly specialized and expensive due to the individualized attention and craftsmanship involved. Examples include bespoke tailoring, custom-built homes, and specialized machinery.

As cell members have to learn more tasks, they need more training.

A new band would protect its songs by keeping records to show they had written the songs. This is because maintaining a record of the creation of the songs provides evidence of their originality and ownership. In case of any copyright disputes or claims of plagiarism, these records can be used to prove that the band is the rightful creator of the songs. Hiring lawyers and obtaining a patent might be options for legal protection, but keeping records is a fundamental step in establishing ownership and protecting intellectual property rights. Warning competitors not to copy them is a proactive measure, but it may not hold legal weight without proper documentation.

Inspecting finished products at the end of a production line is known as quality control. Quality control involves the operational techniques and activities used to fulfill requirements for quality, often including the systematic measurement, comparison with a standard, monitoring of processes, and an associated feedback loop to prevent errors.

Interest rates in the UK are set by the MPC, which stands for the Monetary Policy Committee. The MPC is a committee within the Bank of England that is responsible for making decisions regarding interest rates. They meet regularly to assess the state of the economy and determine whether any changes to interest rates are necessary. The MPC's main objective is to maintain price stability and support the government's economic objectives. By adjusting interest rates, the MPC can influence borrowing costs, inflation, and overall economic activity in the UK.

This is often part of a Total Quality Management (TQM) environment.

In a factory using quality assurance, it is never true that quality is the responsibility of a special team. Quality is something that everybody helps improve, as it is a collective effort. Standards such as ISO9001 are used to ensure quality, and quality can be measured regularly as part of Total Quality Management (TQM).

Although collected by the business, employees pay Income Tax

The correct answer is Plan, Do, Check, Act. The PDCA cycle, also known as the Deming cycle or the Shewhart cycle, is a continuous improvement model used in various industries. It starts with planning, where objectives and processes are established. Then, actions are taken to implement the plan. Next, the results are checked and compared to the objectives. Finally, adjustments are made based on the findings to improve future performance. This cycle promotes a systematic approach to problem-solving and encourages continuous learning and improvement.

When recruiting new employees, two documents that are typically compared for short-listing are the Curriculum Vitae (CV) or application form and the Person specification. The CV or application form provides information about the candidate's qualifications, work experience, and skills, while the person specification outlines the specific requirements and desired qualities for the role. By comparing these two documents, recruiters can assess whether the candidates meet the necessary criteria and have the relevant experience and skills for the job. The other options listed (job description, advertisement, and selection matrix) are not typically used for short-listing candidates.

Innovation is best described as making an invention suitable for mass production because it refers to the process of taking a new idea or invention and developing it in a way that allows it to be produced and distributed on a large scale. This involves refining and adapting the invention to meet the requirements of mass production, such as ensuring cost-effectiveness, scalability, and efficiency. By making an invention suitable for mass production, innovation enables widespread access and adoption of new technologies, products, or services.

The term "glass ceiling" refers to an invisible barrier that prevents certain groups, especially women and minorities, from ascending through the ranks of an organization, irrespective of their qualifications or achievements. This term symbolizes the subtle, often invisible institutional restrictions that curtail opportunities for advancements in corporate and other hierarchical structures.

The cash flow problem will last longer than 30 days, so this probably won't help in June. Increasing trade credit is only a temporary solution, so it won't fix a long-term cash-flow problem.

The correct answer suggests that starting another business is more likely to succeed. This implies that the failure of the first business may have provided valuable lessons and experience, increasing the chances of success in the next venture. It also implies that failure does not necessarily deter individuals from pursuing their entrepreneurial aspirations, but rather motivates them to learn from their mistakes and try again with a better understanding of the market and potential risks.

The Trades Description Act is a legislation that aims to protect consumers from false or misleading information about products or services. It makes it a criminal offense for businesses to lie about their products, preventing them from misleading customers. It also stops businesses from withholding important information from customers. However, it does not directly compensate customers for any loss they may incur due to false advertising or misrepresentation. Compensation for losses would typically be sought through other legal avenues, such as civil lawsuits or consumer protection agencies.

When raw material rise in price, cutting expenses reduces total costs without damaging profit.

A PESTLE analysis is a framework used to analyze the macro-environmental factors that can affect a business. The 'E' stands for Economic factors, which include things like economic growth, interest rates, inflation, and unemployment. These factors can have a significant impact on a business's operations, profitability, and overall success. Analyzing economic factors helps businesses understand the economic context in which they operate and make informed decisions.