Take this Exam: GCSE Business: Business in the Wider World | Zestly

Question 1

A small firm is struggling with high costs and considers paying its staff below the legal minimum wage. What is the most appropriate way for the firm to reduce costs instead?

Accepted Answer

The firm should look for ways to improve efficiency, such as reducing waste or renegotiating supplier contracts.

Answer

The firm should ask the staff to work longer hours for the same pay to make up for the lower hourly rate.

Answer

The firm should cut the quality of its products to save money, as this is the only way to avoid paying the minimum wage.

Answer

The firm should ignore the law as long as the staff agree to the lower pay in writing.

Question 2

A firm is considering replacing manual packing staff with an automated machine. Which of the following best reflects the complexity of this decision?

Accepted Answer

The firm should choose automation to ensure that no human error ever occurs in the packing process again.

Answer

The firm will definitely increase its profits because machines are always cheaper than human workers in the long run.

Answer

The firm should avoid automation because it always leads to lower quality products and poor customer satisfaction.

Answer

The firm will gain from lower long-term costs but must consider the high initial investment and the impact on redundant staff.

Question 3

A manufacturer is deciding whether to switch to more expensive, recyclable packaging. What should the firm weigh when making this decision?

Accepted Answer

The firm must balance the higher unit cost against potential brand benefits and the long-term impact on its environmental reputation.

Answer

The firm should only switch if the government forces it to, as environmental choices are never good for business.

Answer

The firm should always choose the recyclable option because it will automatically increase sales and profits.

Answer

The firm should always choose the cheapest packaging to ensure it remains competitive and profitable.

Question 4

A customer posts a viral complaint about a firm's service on social media. What should the firm do first?

Answer

Reply to the post by arguing with the customer to prove that the firm was not at fault.

Answer

Ignore the post in the hope that it will be forgotten by the public within a few days.

Answer

Respond quickly and professionally to acknowledge the issue and offer to investigate the complaint privately.

Answer

Threaten the customer with legal action to force them to delete the post immediately.

Question 5

A clothing firm is choosing between a cheap supplier that refuses factory inspections and a more expensive one that allows them. What is the firm weighing?

Answer

The firm is weighing the need to keep prices low against the fact that all suppliers are equally ethical.

Answer

The firm is weighing the certain extra cost of the ethical supplier against the risk of reputational damage and harm to workers.

Answer

The firm is weighing the risk of lower quality clothes against the benefit of paying workers a higher wage.

Answer

The firm is weighing the cost of inspections against the certainty that the cheaper supplier will produce better clothes.