Lesson 3.4.1

3.4.1 Setting operational objectives Quiz: AQA Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.4.1, Setting operational objectives: 20 multiple choice questions for the AQA Business (7132), Unit 4: Operational management, written with Revision Ninja.

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The 20 questions

  1. Flexibility as an operational objective means:

    • The ability to change the business's legal structure quickly
    • The ability to adapt output, product range or delivery to changes in demand
    • The ability to fix prices for a whole year
    • The ability to pay employees by piece rate only

  2. Speed of response refers to:

    • How quickly the business can change its mission statement
    • How rapidly the business's share price rises
    • How quickly a business can meet customer requests or deliver products
    • How fast managers take decisions on paper without any action

  3. Added value is best described as:

    • The total of all costs incurred during production
    • The difference between the value of output and the cost of the bought-in inputs used to produce it
    • The value of shares issued by a business in a year
    • The price charged by a competitor for the same product

  4. Which is an example of an environmental operational objective?

    • Increasing output of goods by 20% within a year
    • Cutting the number of production staff by 10%
    • Raising the average selling price by 5%
    • Reducing waste sent to landfill by 30% within three years

  5. Why is setting operational objectives valuable?

    • It means operational decisions are no longer influenced by costs
    • It guarantees the business will never face competition
    • It gives clear targets for operations so performance can be measured and aligned with corporate goals
    • It replaces the need for quality control checks on output

  6. Quality as an operational objective is most closely linked to:

    • Keeping labour costs as low as possible
    • Maximising the number of product variants on sale
    • Meeting or exceeding customer expectations and specifications consistently
    • Producing the largest possible volume of output each day

  7. Which operational objective is most directly about cost control?

    • Maintaining a customer satisfaction score above 90%
    • Introducing a new environmentally friendly product line
    • Responding to orders within 24 hours of receipt
    • Keeping the unit cost of production as low as possible

  8. A bakery sets an objective to cut the time from order to delivery from three days to one day. Which operational objective is this?

    • Flexibility
    • Speed of response
    • Added value
    • Environmental

  9. A car manufacturer aims to change production quickly between models in response to demand. Which objective is this?

    • Flexibility
    • Environmental
    • Quality
    • Costs

  10. A business has revenue of 200,000 and bought-in materials costing 80,000. What is its added value?

    • 120,000
    • 200,000
    • 80,000
    • 280,000

  11. A corporate objective is to double profit. Which operational objective most directly supports it?

    • Increasing the number of marketing campaigns by three
    • Reducing unit production costs by 15%
    • Improving the business's logo
    • Expanding the head office building

  12. A business sets an objective to cut carbon emissions even though this raises short-term costs. How should the decision be evaluated?

    • It has no effect on any stakeholders
    • It is certain to reduce costs and profit immediately
    • It may raise short-term costs but can improve brand reputation and meet regulatory expectations over time
    • It is illegal for any business to set environmental objectives

  13. A firm's defect rate falls from 5% to 2% on 40,000 units. How many fewer defective units are produced?

    • 800 fewer defective units
    • 3,000 fewer defective units
    • 1,200 fewer defective units
    • 2,000 fewer defective units

  14. Why might an objective to minimise costs conflict with an objective to improve quality?

    • Costs and quality always move in the same direction with no trade-off
    • Quality objectives are set only by government agencies
    • Costs are irrelevant when quality is the objective
    • Cheaper inputs or faster production can reduce quality, so the firm must balance the two objectives

  15. A firm offers only large batches, but customers increasingly want small custom orders. Which objective is most at risk?

    • Costs
    • Added value
    • Flexibility
    • Environmental objectives

  16. Evaluate: what is the strongest argument that an operational objective of speed may conflict with quality?

    • Quality is measured only after delivery, so it cannot be affected
    • Speed and quality are the same objective in every business
    • Rushing production can increase errors, so meeting speed targets may reduce the consistency of quality
    • Speed applies only to services, so it cannot conflict with quality

  17. A factory produces 60,000 units, each sold at 15, with bought-in costs of 6 per unit. What is the added value?

    • 600,000
    • 900,000
    • 360,000
    • 540,000

  18. Which situation suggests that operational objectives are likely to be ineffective?

    • They are set annually by external consultants only
    • They are measurable and linked to corporate objectives, giving clear direction
    • They are not linked to corporate objectives or are not measurable, so staff cannot tell whether they are met
    • They are shared with all stakeholders at the same time

  19. A business cuts its response time from five days to two days. What is the percentage reduction?

    • 40%
    • 3%
    • 60%
    • 150%

  20. A business aims to grow added value, but its revenue is flat. What is the best explanation?

    • Bought-in costs have risen faster than revenue, so the value added per unit has fallen
    • Added value is unrelated to bought-in costs
    • Added value rises whenever revenue is flat
    • Added value measures only labour costs, so it must rise

All AQA Business quizzes