Business Mocks 2

Question 1

What is a sole trader?

Answer 1

A sole trader is a business owned and operated by one person.

Question 2

Name one advantage of being a sole trader.

Answer 2

The owner keeps all the profits.

Question 3

What is internal recruitment?

Answer 3

Internal recruitment is when a business fills a vacancy by hiring someone who already works for the company.

Question 4

Give one advantage of internal recruitment.

Answer 4

It is quicker and cheaper than external recruitment.

Question 5

What is induction training?

Answer 5

Induction training introduces new employees to the business, its policies, and their role.

Question 6

Why is induction training important?

Answer 6

It helps new employees settle in quickly and understand company expectations.

Question 7

What is a flat structure?

Answer 7

A flat structure has few levels of management and a wide span of control.

Question 8

Name one advantage of a flat structure.

Answer 8

Communication is faster because there are fewer levels.

Question 9

What are interest rates?

Answer 9

Interest rates are the cost of borrowing money or the reward for saving money.

Question 10

How might an increase in interest rates affect a business?

Answer 10

It increases the cost of borrowing, which can reduce investment.

Question 11

What are fixed costs?

Answer 11

Fixed costs are costs that do not change with the level of output, like rent or salaries.

Question 12

Give an example of a fixed cost.

Answer 12

Rent.

Question 13

What is organic growth?

Answer 13

Organic growth occurs when a business grows by expanding its own operations.

Question 14

What is inorganic growth?

Answer 14

Inorganic growth happens through mergers or acquisitions.

Question 15

What is delayering?

Answer 15

Delayering involves removing levels of management to flatten the organizational structure.

Question 16

Give one benefit of delayering.

Answer 16

It reduces costs by having fewer managers.

Question 17

What is a person specification?

Answer 17

A person specification outlines the skills, qualifications, and experience needed for a job.

Question 18

Why is a person specification important?

Answer 18

It helps ensure the right candidate is chosen for the role.

Question 19

Name the four factors of production.

Answer 19

Land, labor, capital, and enterprise.

Question 20

What does the factor ‘enterprise’ refer to?

Answer 20

The ability to organize resources and take risks to start a business.

Question 21

What is a part-time contract?

Answer 21

A contract where employees work fewer hours than a full-time schedule.

Question 22

Name one advantage of part-time contracts for businesses.

Answer 22

They provide flexibility to meet changing demand.

Question 23

What is off-the-job training?

Answer 23

Training that takes place away from the workplace, such as at a college or training center.

Question 24

Name one advantage of off-the-job training.

Answer 24

Employees can gain new skills and knowledge without workplace distractions.

Question 25

What is unit cost?

Answer 25

Unit cost is the cost of producing one unit of a product.

Question 26

How do you calculate unit cost?

Answer 26

Total cost divided by the number of units produced.

Question 27

What is total cost?

Answer 27

Total cost is the sum of fixed costs and variable costs.

Question 28

If fixed costs are £500 and variable costs are £300, what is the total cost?

Answer 28

£800.

Question 29

What is Just in Time (JIT)?

Answer 29

JIT is a stock management system where materials are ordered and received only when needed.

Question 30

Name one advantage of JIT.

Answer 30

It reduces storage costs.

Question 31

What is customer service?

Answer 31

Customer service is the assistance and advice provided to customers before, during, and after a purchase.

Question 32

Name one benefit of good customer service.

Answer 32

It can improve customer loyalty.

Question 33

What is Total Quality Management (TQM)?

Answer 33

TQM is a continuous approach to improving product quality and customer satisfaction.

Question 34

Name one principle of TQM.

Answer 34

Involving all employees in quality improvement.

Question 35

What is a financial method of motivation?

Answer 35

A way to motivate employees through financial rewards, such as bonuses or pay rises.

Question 36

Name one example of a financial method of motivation.

Answer 36

Profit sharing.

Question 37

What is an exchange rate?

Answer 37

The value of one currency compared to another.

Question 38

How might a weaker pound affect UK exporters?

Answer 38

UK goods become cheaper for foreign buyers, potentially increasing exports.

Question 39

What is flow production?

Answer 39

Flow production involves producing items continuously on an assembly line.

Question 40

Name one advantage of flow production.

Answer 40

It allows for high volumes of production, reducing unit costs.