Cambridge International A 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 questions17 marksFree, no account

Question 1

1 mark

In the transformational process of operations, which of the following is an example of an output for a business in the tertiary sector?

Question 2

1 mark

A business decides to switch from labour intensive production to capital intensive production. Which of the following is the most likely limitation of this change?

Question 3

1 mark

A factory currently employs 40 workers who produce a total of 8,000 units per week. The manager introduces a new production method that increases labour productivity by \(15\%\). If the number of workers remains the same, what is the new total weekly output?

Question 4

1 mark

In the transformational process of operations, which of the following is classified as an input?

Question 5

2 marks

Define the term added value within the context of the transformational process in operations.

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Question 6

4 marks

During a single shift, a team of \(4\) employees produced a total of \(160\) items over \(8\) hours. Calculate the labour productivity per worker per hour and suggest one method to increase this figure.

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Question 7

2 marks

Explain one reason why a business might choose to move from a labour intensive to a capital intensive production process.

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Question 8

5 marks

'FastPrint' is a small commercial printing company. In 2023, the business employed \(8\) workers who produced a total of \(12,000\) units. In 2024, the business invested in new automated machinery, reduced the workforce to \(6\) workers, and total output increased to \(15,000\) units.

(a) Calculate the labour productivity (output per worker) for 'FastPrint' in both 2023 and 2024.

(b) Analyse two benefits to 'FastPrint' of changing from a labour intensive operation to a more capital intensive operation.

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