Tag: Business Studies

In July 2021, The Big Car Company recalled a million vehicles due to a fault that could cause doors to open unexpectedly. 

Which element of the design mix does this relate to?

Select ONE answer:

1. Kaizen
2. Aesthetics
3. Function
4. Efficiency

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 3

1. Not correct – continuous improvement should have avoided the fault being caused in the first place or is not part of the design mix.
2. Not correct – aesthetics is how a product looks rather than how it works.
3. Correct – Definition of design mix e.g. the way in which function, aesthetics and economic manufacture are combined in the overall design.  A car with faulty doors is not working properly/safe.  Therefore it does not fulfil its design function and is not fit for purpose.
4. Not correct – efficiency is not part of the design mix.

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Big Oil is a global oil and gas company with 100,000 employees. Its organisational structure has a narrow span of control. 

What would be one benefit for Big Oil of having a narrow span of control?

Select ONE answer:

1. Allows for closer supervision of employees
2. Managers will have less time to supervise each employee
3. Gives employees the chance for more independence
4. Fewer layers in the hierarchy may be required 

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 1

1. Correct – Definition of span of control e.g. the number of employees under a manager’s direct control.  Big Oil’s managers will only have a relatively small number of employees beneath them.  Managers therefore have more time to build an effective and productive relationship with employees.
2. Not correct – managers will have MORE time to supervise each employee as there are fewer employees for them to manage.
3. Not correct – freedom and responsibility is restricted due to closer supervision.
4. Not correct – narrow spans of control tend to occur in tall hierarchies with many layers.

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Alex’s engine factory can produce 200 engines per day. In July 2021, it produced 120 engines per day. 

Calculate the capacity utilisation for Alex Engines in July. 

Select ONE answer:

1. 40%
2. 60%
3. 67%
4. 167% 

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 2

1. Not correct
2. Correct – 120 / 200 * 100 = 60%
3. Not correct
4. Not correct

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A few years ago, the airline Cathay Pacific reported an 80% decrease in its half-year profits. 

Which ONE of the following is the MOST LIKELY reason for this decrease in profits?

Select ONE answer:

1. An effective advertising campaign
2. A strong economic climate
3. Cheaper aviation fuel
4. An increase in competition from other airlines

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 – this would have increased sales of tickets due to more brand awareness and therefore possibly increased profits
2. Not correct – this would lead to more sales and therefore profits because of an increase in demand caused by a growing economy, and thus increase in incomes
3. Not correct – cheaper aviation fuel would have led to a decrease in costs and therefore an increase in profits.
4. Correct – Definition of profits e.g. total revenue – total costs.  More competition from other airlines would result in a greater choice for customers & a downward pressure on prices.  This could have decreased sales/revenue and therefore profits.

This work is licensed under a Creative Commons Attribution 4.0 International License.

A few years ago, 50% of the food grain crop in an Indian state failed due to a lack of rainfall. 

Which ONE of the following would be the most likely impact of the food grain crop failure?

Select ONE answer:

1. A shift in the supply curve of food grains to the right
2. A shift in the supply curve of food grains to the left
3. A movement along the supply curve for food grains
4. A decrease in the price of food grains

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 2

1. Not correct – a shift in the supply curve to the right would indicate an increase in the supply of food grains.
2. Correct – Definition of supply: the amount a producer is willing and able to supply at a given price in a given time period. Lack of rain meant that half the food grain crops had failed which meant less grain could be supplied.  The supply curve will shift to the left because the amount of food grain available will be reduced no matter what price people are prepared to pay.
3. Not correct –  movement along the supply curve would only occur if the demand curve shifts or a change in price causing a movement along the supply curve.
4. Not correct – the decrease in the price of food grains would only occur if there had been an increase in supply or a fall in demand 

This work is licensed under a Creative Commons Attribution 4.0 International License.