#1
What does SWOT stand for in business analysis?
Strengths, Weaknesses, Opportunities, Threats
ExplanationSWOT analysis involves assessing internal strengths and weaknesses along with external opportunities and threats.
#2
In decision-making, what does the term 'opportunity cost' refer to?
The cost of missed opportunities
ExplanationOpportunity cost is the potential benefit lost when one alternative is chosen over another.
#3
What does ROI stand for in business?
Return on Investment
ExplanationROI measures the profitability of an investment relative to its cost.
#4
What is the purpose of a supply chain in business?
To deliver products and services to customers
ExplanationA supply chain encompasses all processes involved in delivering a product or service from raw materials to the end customer.
#5
Which of the following is a key component of a business process?
Sequence of activities
ExplanationThe sequence of activities defines the flow of tasks and operations necessary to accomplish a specific business objective within a process.
#6
What does JIT stand for in inventory management?
Just In Time
ExplanationJust In Time (JIT) is an inventory management strategy where goods are produced or delivered exactly when needed, minimizing inventory holding costs.
#7
What is the role of a Chief Financial Officer (CFO) in a company?
Financial planning and reporting
ExplanationThe CFO oversees financial planning, analysis, and reporting activities, ensuring the company's financial health and compliance with regulations.
#8
Which of the following is NOT a characteristic of perfect competition?
Barriers to entry
ExplanationPerfect competition implies no barriers to entry, ensuring easy market access for new firms.
#9
Which financial statement represents a company's financial position at a specific point in time?
Balance sheet
ExplanationThe balance sheet provides a snapshot of a company's assets, liabilities, and equity at a particular moment.
#10
Which inventory management method assumes that the most recently acquired units are the first to be sold?
Last In, First Out (LIFO)
ExplanationLIFO assumes that the most recent inventory purchased is the first to be used or sold.
#11
What is the purpose of a break-even analysis in business?
To analyze the level of sales needed to cover costs
ExplanationBreak-even analysis helps determine the point at which revenue equals total costs, indicating the minimum sales required to avoid losses.
#12
What is the main purpose of a Pareto chart?
To prioritize improvement opportunities
ExplanationA Pareto chart helps identify and prioritize the most significant factors contributing to a problem or outcome.
#13
Which of the following is a quantitative forecasting method?
Time-series analysis
ExplanationTime-series analysis involves analyzing historical data to make predictions about future trends.
#14
What is the primary goal of Six Sigma methodology?
Reduce defects and variation in processes
ExplanationSix Sigma aims to improve process efficiency and quality by reducing defects and minimizing process variation.
#15
Which of the following is NOT a primary function of operations management?
Human resource management
ExplanationOperations management focuses on overseeing production processes, quality control, inventory management, and supply chain logistics, excluding HR activities.
#16
Which of the following is NOT a component of the PESTEL analysis framework?
Environmental
ExplanationPESTEL analysis considers Political, Economic, Social, Technological, Environmental, and Legal factors affecting a business, excluding 'Environmental'.
#17
Which of the following is NOT a characteristic of a monopoly?
Price taker
ExplanationA monopoly is a market structure where there is a single seller dominating the market and can influence prices, hence not being a price taker.