Lesson 1.5.1

1.5.1 Business functions Quiz: OCR Business, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 1.5.1, Business functions: 20 multiple choice questions for the OCR Business (H431), Unit 1: Introduction to Business, written with Revision Ninja.

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The 20 questions

  1. Who owns and democratically controls a consumer co-operative business?

    • The government
    • Company directors
    • External shareholders
    • Its members

  2. Which primary business function focuses on identifying, anticipating and satisfying customer requirements profitably?

    • Human resources
    • Accounting and finance
    • Marketing
    • Operations management

  3. Which business function is responsible for converting raw materials into finished goods efficiently?

    • Customer service
    • Sales and support
    • Operations management
    • Accounting and finance

  4. Which criteria is most commonly used by governments to measure business size?

    • Employee numbers
    • Dividend yield
    • Profit margin
    • Share price

  5. What describes two businesses creating a separate, jointly-owned legal entity to pursue a venture?

    • Joint venture
    • Strategic alliance
    • Takeover
    • Merger

  6. What key feature distinguishes a strategic alliance from a joint venture?

    • Shared ownership
    • Permanent merger
    • No separate entity
    • Higher financial risk

  7. Which objective sits at the top of a business hierarchy of objectives?

    • Mission statement
    • Tactical objective
    • Operational objective
    • Departmental objective

  8. What does the letter M represent in the SMART objective-setting framework?

    • Meaningful
    • Motivational
    • Manageable
    • Measurable

  9. A UK firm employing 35 staff with a £4 million annual turnover is classified as what?

    • Micro enterprise
    • Small enterprise
    • Large enterprise
    • Medium enterprise

  10. Preparing annual financial accounts and managing cash flow falls under which functional area?

    • Customer service
    • Sales and support
    • Accounting and finance
    • Operations management

  11. How are voting rights allocated among members in a traditional worker co-operative?

    • Board of directors only
    • One vote per member
    • Based on salary earned
    • Based on share capital

  12. Two competing airlines share airport lounge facilities without forming a new legal company. What is this?

    • Conglomerate merger
    • Joint venture
    • Horizontal takeover
    • Strategic alliance

  13. A production manager aims to reduce machine downtime by 5% this month. What objective type is this?

    • Operational objective
    • Strategic objective
    • Corporate aim
    • Mission statement

  14. Handling customer queries and resolving product complaints after a sale is the role of which service?

    • Operations management
    • Public relations
    • Human resources
    • Customer service

  15. What is the primary objective for a public sector healthcare provider, unlike a private firm?

    • Market share growth
    • Service provision
    • Profit maximisation
    • Maximising dividends

  16. Why is capital employed an unreliable metric to compare the size of a tech firm and manufacturer?

    • Equal market share
    • Identical turnover rates
    • Varying asset intensity
    • Fixed staff numbers

  17. How are distributed profits allocated to members in a consumer co-operative?

    • Based on hours worked
    • Proportionate to spending
    • Equal share per member
    • Proportionate to shareholding

  18. What is a key risk when corporate objectives are not clearly communicated to functional departments?

    • Increased liquidity
    • Goal incongruence
    • Higher economies
    • Greater market share

  19. What problem might cause a large enterprise to experience higher unit costs than a medium firm?

    • Diseconomies of scale
    • Underutilisation
    • Capital shortage
    • Economies of scale

  20. Why might two businesses choose a joint venture rather than a strategic alliance for market entry?

    • Zero setup costs
    • Shared legal liability
    • No formal contract
    • Total independence

All OCR Business quizzes