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IGCSE Business Studies           Student CD-ROM



            14  A system of setting agreed standards for every stage of production is known as:
                A  quality standards

                B  quality assurance
                C  quality inspection

                D  quality targets.

            15  A quality product is:
                A  always more expensive than competitor products

                B  one that uses the highest quality raw materials

                C  produced by capital intensive production methods
                D  free from defects.


            16  A problem of quality control by inspection is:
                A  inspection only ever takes place at the end of the production process
                B  workers do not see quality as their responsibility when quality inspectors are employed

                C  customer returns are reduced
                D  workers need to be trained to improve quality.


            17  A business produces an average of 20,000 units per week. The average number of damaged
                units found by inspection is 500 units. The percentage of output that is damaged is:

                A  25%

                B  2.5%
                C  0.25%
                D  40%


            18  Which of the following is not likely to be a factor influencing a location decision?
                A  Price of land

                B  Closeness to suppliers
                C  Availability of skilled workers

                D  The price of competitors’ products

            19  A business might decide to relocate production facilities in another country because:

                A  labour costs are higher
                B  labour is unskilled

                C  the government offers financial incentives
                D  it is located far from the market.


            20  Which of the following legal controls is most likely to affect the location of a factory?
                A  Laws to protect employees

                B  Laws to protect employers
                C  Laws to protect consumers
                D  Laws to protect the environment


            © Cambridge University Press 2014  IGCSE Business Studies                  Section 4 – Multiple choice  3
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