Lesson 2.13.1

2.13.1 Decision making Quiz: OCR Business, Unit 2

20 questions

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Lesson 2.13.1, Decision making: 20 multiple choice questions for the OCR Business (H431), Unit 2: Business objectives and strategy, written with Revision Ninja.

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The 20 questions

  1. Which type of business decision focuses on achieving long-term overall aims?

    • Strategic decision
    • Functional decision
    • Tactical decision
    • Operational decision
  2. Operational business decisions are typically made by which level of management?

    • Board of directors
    • Top management
    • Strategic partners
    • Lower management
  3. In a standard decision tree diagram, what shape represents a decision node?

    • Triangle
    • Circle
    • Diamond
    • Square
  4. In a decision tree diagram, what geometric shape represents a chance node?

    • Oval
    • Hexagon
    • Circle
    • Square
  5. How is expected value calculated for an outcome node on a decision tree?

    • Cost minus revenue
    • Revenue minus cost
    • Outcome times probability
    • Outcome plus probability
  6. Which factor describes personal opinions unfairly skewing a business decision?

    • Margin
    • Variance
    • Bias
    • Volatility
  7. Which decision-making tool relies primarily on numerical data and statistical analysis?

    • Intuitive tool
    • Subjective tool
    • Quantitative tool
    • Qualitative tool
  8. A store manager arranges weekly staff rotas. What type of decision is this?

    • Operational decision
    • Tactical decision
    • Strategic decision
    • Corporate decision
  9. An option has an expected value of £500,000 and costs £300,000. What is net gain?

    • £300,000
    • £200,000
    • £150,000
    • £800,000
  10. A business sells existing products into brand new geographical markets. Which strategy is this?

    • Market development
    • Diversification
    • Market penetration
    • Product development
  11. A node has outcomes of success (£100,000 at 0.7) and failure (-£20,000 at 0.3). Calculate EV.

    • £56,000
    • £64,000
    • £80,000
    • £70,000
  12. Launching a brand new product into a completely new market is which Ansoff strategy?

    • Diversification
    • Market penetration
    • Market development
    • Product development
  13. Which tool considers non-numerical factors like corporate culture and staff morale?

    • Ratio analysis
    • Quantitative tool
    • Decision tree
    • Qualitative tool
  14. A business tracks customer satisfaction ratings alongside revenue. What type of measure is this?

    • Monetary forecast
    • Non-financial measure
    • Financial measure
    • Quantitative outcome
  15. Tactical decisions are designed to implement strategy over which time horizon?

    • Short-term
    • Long-term
    • Immediate
    • Medium-term
  16. What is a key drawback of relying solely on decision trees for strategy?

    • Ignores qualitative factors
    • Removes all risk
    • Excludes financial costs
    • Guarantees high return
  17. Which term refers to rapid, unpredictable changes within a business environment?

    • Certainty
    • Volatility
    • Forecast accuracy
    • Bias
  18. Increasing sales of current products in existing markets is known as which strategy?

    • Product development
    • Diversification
    • Market penetration
    • Market development
  19. What is calculated by subtracting initial outlay from the total expected value?

    • Net expected value
    • Gross expected value
    • Economic yield
    • Opportunity cost
  20. Selling modified or brand new products to existing customer groups describes which strategy?

    • Market development
    • Product development
    • Market penetration
    • Diversification

All OCR Business quizzes