Cambridge International AS Level · Business (9609)

The nature of operations: Practice Questions

4 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on The nature of operations.

8 questions24 marksFree, no account

Question 1

1 mark

In the transformational process of a manufacturing business, which of the following is an example of capital as a factor of production?

Question 2

1 mark

Which of the following best describes the contribution of the operations function to added value within a manufacturing business?

Question 3

1 mark

A textile factory produced the following results:
April: produced \(8,000\) shirts using \(40\) workers.
May: produced \(9,000\) shirts using \(45\) workers.
What was the change in labour productivity per worker between April and May?

Question 4

1 mark

A custom bicycle workshop currently operates using job production. The owners are considering switching to batch production to satisfy increasing demand. Which of the following is an operational problem directly caused by changing from job to batch production?

Question 5

6 marks

Evaluate the impact on a firm's break-even point and operational flexibility if it transitions from a labour-intensive production process to a capital-intensive one.

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Question 6

5 marks

Analyse the potential trade-off between achieving operational efficiency and improving environmental sustainability within a firm’s transformational process, specifically addressing the likely impact on unit costs.

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Question 7

4 marks

A large bakery converts raw materials such as flour, sugar, and yeast into finished cakes and breads.

(a) Identify the four factors of production used in this transformational process.
(b) Briefly explain how the operations department contributes to added value during this process.

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Question 8

5 marks

A traditional furniture maker is contemplating a shift from labour intensive production to a more capital intensive approach using automated cutting machines.

(a) Distinguish between capital intensive and labour intensive operations.
(b) Suggest two reasons why this shift might lead to higher efficiency in the long term.

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