Which of these is a disadvantage of democratic management?

Decision-making likely to be slower

An advantage of using decision trees in decision-making is

Choices are set out in a logical way

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

Budget cost £18k; Actual cost £16k

What is meant by "sale and leaseback"?

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

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

Greater investment in automation

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

There is no loss of shareholder control

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 statements best describes what is meant by delegation?

Authority is passed down the hierarchy

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

Factory manager inspects finished output for rejects

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

Competition is largely based on price

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

Motivating and inspiring others

The external environment concerns features of the business environment that are

Outside the control of a business

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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A-Level Business Yr 1

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AQA Business Year 1

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Questions 24

Answers

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

A-Level Business Yr 1 Flashcards | StudBud