Business 2

Question 1

What is job production?

Answer 1

Production where products are made individually.

Question 2

What is batch production?

Answer 2

Production where one product type is made in a batch and then the product type is changed for the next batch.

Question 3

What is flow production?

Answer 3

Production where one type of product is made continuously on a production line.

Question 4

Give an example of job production.

Answer 4

Building a ship or bridge.

Question 5

Give an example of batch production.

Answer 5

Baking bread or making furniture.

Question 6

Give an example of flow production.

Answer 6

Making cars or iPhones

Question 7

What are the advantages of job production?

Answer 7

Generally high quality products

Workers gain satisfaction on completion of a product

Question 8

What are the advantages of batch production?

Answer 8

The need of the customer can be met by changing product

Batches are made to the customer, decreasing the cost of material storage

Question 9

What are the advantages of flow production?

Answer 9

Large quantities can be made

Machines can be used, keeping costs low

Question 10

What are the disadvantages of job production?

Answer 10

High production costs

Labour costs will be higher due to need for skilled labour

Question 11

What are disadvantages of batch production?

Answer 11

Takes a large amount of time to switch to a different product
Workers may find tasks repetitive and boring

Question 12

What are the disadvantages of flow production?

Answer 12

Goods produced may be low quality

Expensive to setup a production line

Question 13

What is automation?

Answer 13

The use of machines not controlled by a human within the production line.

Question 14

What are the advantages of technology?

Answer 14

Costs are reduced due to lower amount of staff
Machines are able to work 24/7
Machines are able to do work which is too dangerous for humans

Question 15

What are the disadvantages of technology?

Answer 15

Workers may be made redundant
New skilled workers will be needed
If machines break, production will be disrupted.

Question 16

What is quality of production?

Answer 16

Ensuring the product or service is fit for purpose, meets legislative rules and expectations.

Question 17

What are the benefits of providing quality products

Answer 17

Avoids waste
Avoids product recalls
Improves reputation and sales

Question 18

What is quality control?

Answer 18

Checking for quality at the END of production.

Question 19

What is quality assurance?

Answer 19

Checking for quality DURING the production process.

Question 20

What is total quality management (TQM)?

Answer 20

A management approach with focus on quality within the business.

Question 21

What are the advantages of quality control?

Answer 21

Helps prevent faulty goods and services being sold

Not disruptive to the production process

Question 22

What are the advantages of quality assurance?

Answer 22

Less wastage, reducing production costs

Workers may feel valued as they have a responsibility to check quality

Question 23

What are the disadvantages of quality control?

Answer 23

Does not prevent waste of resources

Does not encourage workers to be responsible for quality

Question 24

What are the disadvantages of quality assurance?

Answer 24

Could disrupt the production process

High costs to train staff to check for quality

Question 25

What are three methods of selling?

Answer 25

e-commerce face to face telesales

Question 26

What is e-commerce?

Answer 26

The process of bringing the buyer and seller together digitally.

Question 27

What changes in business have been caused by e-commerce

Answer 27

``` Location Skill Development Creation of specific departments Click and collect Delivery options ```

Question 28

What are the advantages of e-commerce to the business?

Answer 28

Sell worldwide Open 24/7 Lower operating costs

Question 29

What are the advantages of e-commerce to the customer?

Answer 29

Price comparison 24/7 availability Wide range of products

Question 30

What are the disadvantages of e-commerce to the business?

Answer 30

Worldwide competition Online security Having to keep up with technology advancements

Question 31

What are the disadvantages of e-commerce to the customer?

Answer 31

Lack of personal contact Payment method limitations Cannot physically see item before purchase

Question 32

Why is customer service important?

Answer 32

Helps maintain and increase sales.

Question 33

Why is after sales service important?

Answer 33

Keep up with competition to provide customer with best company experience.

Question 34

What are consumers protected by?

Answer 34

Consumer Rights Act 2015 - Goods and services must be sold of satisfactory quality, fit for purpose and be as described.

Question 35

What rights do customers have in regards to refunds?

Answer 35

30 day time period to return faulty goods for full refund 6 months for a fault to develop, presumed to be sold with it, refund should be issued. A service should be carried out again if it is unsatisfactory.

Question 36

What impact does consumer rights have on business?

Answer 36

High quality production Production of safe goods Reputation of business will be lost if standard low/product not up to it.

Question 37

What are some factors which could influence location?

Answer 37

``` Site cost Transport infrastructure Nearest market distance Government Raw materials distance Business type/nature ```

Question 38

What is procurement?

Answer 38

The management of buying or purchasing areas within business.

Question 39

What is the role of procurement?

Answer 39

Identifying goods and services to buy Choosing suppliers Ordering goods Receiving deliveries

Question 40

What factors affect what customers will buy?

Answer 40

Time of year Changes in technology Changes in fashion and lifestyle

Question 41

What factors affect the supplier choice?

Answer 41

Quality | Reputation

Question 42

What areas of ordering goods can procurement decide?

Answer 42

Range of products | Quantity - see if discounts are available

Question 43

What are the impacts of logistics and supply decisions on the business?

Answer 43

``` Time Reliability of the supply Length of the supply chain Costs Customer Service ```

Question 44

What is the finance department responsible for?

Answer 44

Providing information about costs and revenues. This info can be used in cash flow, profit, loss and data on average rate of return.

Question 45

What are short term finance options

Answer 45

Internal Owner's Capital Sale of fixed assets External Overdraft Trade Credit

Question 46

What are medium term finance options?

Answer 46

Internal Retained profit Sale of fixed assets Owner's capital External Bank Loan Crowdfunding

Question 47

What are long term finance options?

Answer 47

Internal Retained profit Sale of fixed assets Owner's Capital ``` External Bank loan Taking on a new partner Share issue Crowdfunding ```