Operations
A global business has adopted a strategy which aims to lower the average cost of its product by increasing output. What is this strategy called?
Economies of scale
An accountant decides to use the services of a cleaning company for one day per week.
What is this an example of?
Outsourcing
What does the expense ratio measure?
Efficiency
An overseas factory sells 200 000 teddy bears a year to toy stores across Australia.
What type of market is the overseas factory targeting?
Intermediate
A company’s policy is to purchase from lowestcost suppliers regardless of their location.
What is this policy an example of?
Global sourcing
Sam’s job is to set goals for employees and give them feedback on the achievement of their goals.
What best describes this process?
Performance management
A business is planning to increase its market share by merging with a competitor.
What financial objective does this best illustrate?
Growth
Sally shops at a particular store as she has always received excellent service there.
What type of factor is influencing her choice of store?
Psychological
A business wants to minimise the volume of its waste. Which performance objective is the business trying to achieve?
Cost
A business places a job vacancy advertisement on its website.
Which aspect of human resource management is this an example of?
Recruitment
Solvency is the ability of a business to
meet its long-term financial commitments.
What is the most likely reason that a business would use price skimming?
To gain high profits when demand is strong
Which performance objective measures how well a product meets the prescribed design specifications?
Quality
Kim is an independent contractor who cleans a school.
Which of the following statements is true regarding Kim’s employment?
She is responsible for paying her own income tax
An Australian theme park wants to implement a new point-of-sale system that allows improved tracking of stock levels. The system will cost $185 000 to establish.
Which long-term source of finance would be most appropriate for this system?
Leasing
A fast food outlet advertises a large soft drink for only 20 cents, knowing that customers will also buy additional items from the menu once they are in the store.
What pricing strategy is this?
Loss leader
A large construction company has decided to focus their operations on design and innovation.
Which of the following best describes this operations management strategy?
Goods/services differentiation
Ruth observed that a work colleague was stealing and reported the theft to her superv As a result, Ruth’s employment was terminated. What is this an example of?
Unfair dismissal
A private investment company accepts money from clients. The owner illegally uses this the owner of this for their own personal use.
Which government body would take legal action against the owner of this company?
Australian Securities and Investments Commission
An Australian business sells its Bonza Pies in both Australia and China. Bonza Pies sold in China are made to a different recipe.
What is this an example of?
Customisation
What does a critical path identify?
The shortest time required to complete all tasks in a project
A manager builds relationships with individual employees and encourages their contribution to decision-making in the workplace.
What leadership style is this?
Democratic
A business owns a $2 million building with a $500 000 mortgage. They decide to sell the building and lease it back from the new owners over five years.
What is the likely purpose of this financial strategy?
Improve working capital
When pricing a potential job, a plumber considers how long the job will take and how difficult it will be. Which pricing method is being used?
Cost-based
A business is experiencing increasing costs for its stock over time. It is seeking to maximise its profit for the current financial period.
Which strategy should it adopt to value its inventory?
First in first out
Robyn believes her manager has unfairly denied her a bonus. She consults her employee handbook which instructs her to put her complaint in writing and send copies to the manager and the Human Resources department.
What is Robyn doing?
Applying grievance procedures
A large cake business is going to offer a contract to another business to make their cake decorations.
Which business functions would provide input into the contract details?
Operations, human resources and finance
A car company advertises its new luxury car as more exciting and fun to drive than its competitors’ cars.
What strategy is the car company using?
Positioning
In order to achieve best practice, a mobile phone company examines global trends in phone technology before designing and producing their phones.
What operations strategy is this business using?
Scanning and learning
Fulltime, permanent employees in Australia are generally entitled to four weeks annual leave.
What is the legal basis for this?
National Employment Standards
An export company based in Sydney sells Australian-made art to the Asian market.
Which form of payment has the lowest level of risk for the exporter?
Payment in advance
Staff members at VAL’s vegan restaurant wear uniforms with a large letter V on them. They are expected to greet customers with a smile and clean up any spills immediately.
Which element of the marketing strategy are these requirements an example of?
Physical evidence
A sandwich shop bakes a variety of breads throughout the day. Customers select th choice of bread and filling(s) and sandwiches are then made to order.
Which pair of performance objectives would have influenced the development of this approach?
Quality and customisation
An independent web designer has a legal agreement with a department store to improve its online shopping site in time for the Christmas sales. The web designer’s working conditions are specified in
the contract for service.
A hairdresser includes proceeds of the sale of salon equipment in the business’s income statement.
Which limitation of financial reporting is evident?
Normalised earnings
Re to cently a business has removed one of its products from sale because it may contain xic ingredients that could pose a health risk.
What is the most likely influence on this marketing decision?
Government legislation