An advantage of using decision trees in decision-making is

Choices are set out in a logical way

Which of these statements best describes what is meant by delegation?

Authority is passed down the hierarchy

Minimising the unit cost of production is particularly important for a business where:

Competition is largely based on price

The external environment concerns features of the business environment that are

Outside the control of a business

Which one of these would result in a favourable budget variance?

Budget cost £18k; Actual cost £16k

An example of a likely consequence for market demand arising from an ageing population would be

Increased demand for care home services

Which of these is a disadvantage of democratic management?

Decision-making likely to be slower

An advantage of using debt finance to help a business grow is that

There is no loss of shareholder control

Which of these is an example of a quality control process at a factory?

Factory manager inspects finished output for rejects

Which of the following refers specifically to leadership rather than management?

Motivating and inspiring others

Which of these is most likely to result in improved labour productivity at a pizza factory?

Greater investment in automation

What is meant by "sale and leaseback"?

Selling a fixed asset and then leasing it from the new owner

Which of these is the best description of the concept of “opportunity cost”?

The cost of missing out on the next best alternative

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AQA A-Level Business Studies Yr 1 Revision Quiz

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AQA Business Year 1

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Questions 25

Answers

1
A business sells 2,000 units at £15 each. If total costs are £20,000, what is the profit made?
£15,000
£50,000
£10,000
£2,000
2
An advantage of using decision trees in decision-making is
Choices are set out in a logical way
A decision-tree uses qual rather than quan data
Only costs are considered, not benefits
Probabilities are rarely wrong
3
Which of these statements best describes what is meant by delegation?
Tasks are carried out by senior rather than junior managers
Employees & manager work together rather than for each other
Management feedback to directors
Authority is passed down the hierarchy
4
Minimising the unit cost of production is particularly important for a business where:
Competition is largely based on price
Customers are brand loyal
There are many opportunities for adding value
Production inputs need to be imported
5
The main objective of UK monetary policy is normally
Lowering unemployment
Price stability
Encouraging business investment
Minimising interest rates
6
If the margin of safety is 7500 units and breakeven output is 12200 units what is actual output
£4,700
£19,700
4,700 units
19,700 units
7
The external environment concerns features of the business environment that are
Opportunities for a business
Threats for a business
Within the control of a business
Outside the control of a business
8
Which one of these would result in a favourable budget variance?
Budget cost £18k; Actual cost £16k
Actual sales £40k; Budget sales £42k
Actual gross profit £13k; Budget gross profit £16k
Budget revenue £125k; Actual revenue £115k
9
An example of a likely consequence for market demand arising from an ageing population would be
Increased demand for care home services
Lower demand for coach holidays
Increased demand for child care services
Lower demand for private healthcare
10
Which of these is a disadvantage of democratic management?
Employees get closer to customers
Decision-making likely to be slower
Employees are more loyal to the business
Staff are motivated through involvement
11
An advantage of using debt finance to help a business grow is that
There is no loss of shareholder control
Interest costs will be low
The business will grow faster using debt rather than equity.
Debt does not need to be paid until the business can afford.
12
What management style means that all decisions are made centrally?
Bureaucratic
Democratic
Authoritarian
Laissez-faire
13
What do circles represent on a decision tree?
Expected returns
Probabilities
Uncertain outcomes
Opportunity costs
14
A key benefit of using hunch-based decision-making is that
Full use is made of all available data
The decision-making can be automated
Decisions can be made quickly
It is time-consuming
15
Which of these is a feature of scientific decision-making?
It Is mainly based on data
It is only suitable for decisions involving substantial risk
Involves all relevant members of management
It guarantees the right decision
16
Which of these is an example of a quality control process at a factory?
Factory manager inspects finished output for rejects
Production employees work together as a team
Employees take pride in their work
Total quality management is applied in the factory
17
Not-for-profit organisations are also commonly referred to as
Public sector firms
Social enterprises
Partnerships
Public companies
18
Which of the following refers specifically to leadership rather than management?
Authority comes with position rather than action
Instructing and coordinating subordinates
Making tactical and operational decisions
Motivating and inspiring others
19
The term that describes the overall purpose of a business is:
Mission
Objectives
Strategy
Core values
20
Which of these is most likely to result in improved labour productivity at a pizza factory?
Greater investment in automation
Cost savings in the training budget
Introducing more quality control inspections
Allowing customers to personalise their pizza toppings
21
The value of economic activity in an economy like the UK, is officially measured in terms of:
Total Household Income
Gross Domestic Product
Aggregate Economic Demand
National Income
22
What is meant by "sale and leaseback"?
Buying a fixed asset and leasing it to the supplier
Selling a fixed asset and then leasing it from the new owner
Buying stocks and then leasing them to a wholesaler
Selling stocks and then leasing them from a distributor
23
Which of these is an external influence on operational objectives?
Corporate objectives
Employee motivation
Technological change
Organisational structure
24
The number or incidence of customer complaints is an example of what kind of target?
Cost target
Quality target
Revenue target
Efficiency target
25
Which of these is the best description of the concept of “opportunity cost”?
The cost of missing out on the next best alternative
The variable cost of a decision
The intangible cost of taking a decision
The cost of not taking a decision

AQA A-Level Business Studies Yr 1 Revision Quiz Flashcards | StudBud