Lesson 5.1.4

5.1.4 Challenges of Growth Quiz: NCFE Business & Enterprise, Unit 5

20 questions · by Revision Ninja

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This free Challenges of Growth quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 5: Growth. It covers lesson 5.1.4, Challenges of Growth, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A bakery is expanding. Which of these is a physical resource it must plan for?

    • The owner's know-how
    • A second delivery van
    • Its brand reputation
    • A newly hired baker

  2. A furniture firm's orders have doubled. Why is it likely to need larger premises?

    • To hold more stock and workers
    • To cut its fixed overhead costs
    • To free up cash tied up in stock
    • To move nearer its main suppliers

  3. As a factory grows, how are its equipment needs most likely to change?

    • It sells off its spare machines
    • It keeps its machines unchanged
    • It leases out its idle machines
    • It upgrades to faster machines

  4. Why is a fast-growing online retailer likely to upgrade its IT systems?

    • To cope with more orders daily
    • To refresh its website branding
    • To meet new data protection laws
    • To replace its accounting team

  5. As a small firm expands, why do jobs that one person once handled become specialist roles?

    • Specialists are cheaper to employ
    • The law requires named job titles
    • Staff prefer to work on their own
    • Tasks grow too complex for one

  6. A café doubles its opening hours, but its full-time staff cannot work any longer. What must it do?

    • Cut its total headcount
    • Recruit additional staff
    • Extend everyone's shifts
    • Retrain its current staff

  7. Why should a firm entering an overseas market research local customs and traditions?

    • Tariffs may raise import costs
    • Local law may limit ownership
    • Exchange rates change the price
    • Names or ads may cause offence

  8. A firm plans a large new depot beside a village. Which concern are residents most likely to raise?

    • Lower dividends for shareholders
    • Longer credit terms for suppliers
    • Extra traffic noise and fumes
    • Higher prices for customers

  9. A UK firm sells its goods in Germany without checking German law. What is the main risk?

    • Delivery times stretch by weeks
    • German rivals undercut its price
    • It faces fines or a trading ban
    • Exchange-rate losses cut profit

  10. The UK government sets a quota on foreign steel. What does this mean for a manufacturer that uses it?

    • It gets a subsidy per tonne
    • It can buy less steel abroad
    • It pays a tax on each tonne
    • It cannot buy foreign steel

  11. Which of these is one of the main challenges a growing business faces?

    • Needing extra finance to pay for larger premises and equipment
    • Winning the first customers in a market where the brand is unknown
    • Coping with spare capacity after a long fall in customer demand
    • Persuading a bank to lend to a firm with no trading record or assets

  12. A UK bakery opens shops in Japan. Which action best shows cultural sensitivity?

    • Sending UK managers out to keep shop standards identical
    • Selling the same range as in the UK to keep unit costs down
    • Advertising in English so local shoppers see a consistent brand
    • Changing its recipes to suit local tastes and dietary rules

  13. Which of these is an additional physical resource a growing manufacturer would need?

    • More production staff and a supervisor for the night shift
    • A bigger overdraft to cover wages until customers pay
    • A larger factory unit and extra machinery to raise output
    • A new advertising campaign to attract more customers

  14. Before entering an overseas market, what is the best way for a firm to prepare?

    • Use the same marketing plan that works well in the UK market
    • Set a low launch price to win share from established rivals
    • Recruit extra staff at head office to handle the extra orders
    • Commission research into the customs and laws of that country

  15. A government adds a tariff to goods coming in from abroad. What does this do?

    • It caps the number of those goods allowed in each year
    • It blocks those goods from being sold in the country
    • It pays home producers a grant so they can charge less
    • It taxes those goods, so they cost more and demand falls

  16. How can a growing business meet its need for more skilled workers?

    • Recruit new staff and train current ones for bigger roles
    • Buy larger machines so each worker can produce more units
    • Raise prices so that fewer orders need to be handled
    • Borrow more from the bank to strengthen its cash flow

  17. Why can rapid growth cause cash-flow problems even when sales are rising?

    • Higher sales revenue is taxed before it reaches the bank account
    • Growing firms are charged more for the materials they buy
    • It pays for stock and wages before customers settle their bills
    • Selling more units pushes up fixed costs such as rent and insurance

  18. A UK toy maker starts exporting. Which is the biggest legal risk of ignoring foreign rules?

    • Its toys could be seized at the border and the firm fined
    • Its UK customers would be entitled to a refund on past orders
    • Its suppliers could raise the price of the materials it buys
    • It would have to pay its exporting staff the local minimum wage

  19. A growing firm installs a new stock-control system. What is the main drawback?

    • Stock records become less accurate than a paper system
    • The firm will need to hold much larger amounts of stock
    • It is costly to buy and staff must be trained to use it
    • Orders from customers take longer to process than before

  20. A country sets an import quota on steel. What does this mean for exporters?

    • Home steel producers receive a grant that lets them undercut imports
    • Imported steel must meet the same safety standards as UK steel
    • A fixed maximum amount of steel may be brought in each year
    • Each tonne of imported steel is taxed at the border