Business Studies Multiple Choice Question – 27 January 2022

Stafford Insurance operate a TQM system called KnottedQUALITY that focuses on high customer service throughout all of its insurance operations.

The use of TQM at Stafford Insurance is MOST LIKELY to lead to an increase in?

Select ONE answer:

1. labour turnover
2. lead times
3. wastage levels
4. repeat purchases

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct – labour turnover is likely to fall as employees are more motivated by the use of TQM as they are taking responsibility for the work.
2. Not correct – there should be shorter processing of claims due to increased efficiency from use of TQM .
3. Not correct – wastage levels are likely to decrease as there is a right first time culture with TQM, so employees will make less mistakes .
4. Correct – TQM is when all employees are involved in quality control and take responsibility for the work. TQM at Stafford Insurance will encourage their employees to ensure the highest customer service through its KnottedQUALITY system. This is likely to lead to satisfied customers who will continue to use Stafford Insurance because of the high quality of customer service.

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