Lesson 3.14.1

3.14.1 Technological factors Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.14.1, Technological factors: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

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The 20 questions

  1. What term describes the shift from analogue electronic technology to digital technology?

    • Analogue transition
    • Digital revolution
    • Technological inertia
    • Information overload

  2. What software allows engineers and designers to create 2D and 3D product designs?

    • CAD
    • CRM
    • CAM
    • ERP

  3. What technology uses computers to control machine tools in manufacturing processes?

    • CAD
    • CAM
    • POS
    • EDI

  4. What is the term for buying and selling goods or services using the internet?

    • E-commerce
    • E-procurement
    • Digital marketing
    • M-banking

  5. Which internal risk increases when businesses introduce rapid automation without staff retraining?

    • High liquidity
    • Redundancies
    • Overtrading
    • Increased capacity

  6. What term refers to analysing extremely large datasets to reveal business patterns?

    • Cyber security
    • Data encryption
    • Cloud computing
    • Big data

  7. Which benefit does automated inventory management software directly provide to a business?

    • Higher bad debts
    • Lower trade credit
    • Reduced holding costs
    • Increased wastage

  8. What external operational threat increases as a business moves data to the cloud?

    • Cyber attacks
    • Currency fluctuations
    • High inflation
    • Trade tariffs

  9. A factory replaces manual assembly line workers with robotic arms. What is the main operational benefit?

    • Increased labour costs
    • Higher flexibility
    • Higher output consistency
    • Lower capital outlay

  10. A clothing retailer launches a mobile app. Which primary market opportunity does this create?

    • Global target market
    • Elimination of returns
    • Reduced variable costs
    • Guaranteed profit margins

  11. A bank replaces front-line service staff with AI chatbots. What is the immediate financial impact?

    • Higher wage bill
    • Immediate revenue doubling
    • High initial expenditure
    • Zero capital expenditure

  12. A book publisher transitions entirely from printed books to digital e-books. How are unit variable costs affected?

    • Reduced variable costs
    • Higher distribution fees
    • Unchanged overhead costs
    • Increased variable costs

  13. An airline uses dynamic pricing algorithms to adjust seat prices automatically. What is the primary objective?

    • Maximise total revenue
    • Eliminate operational debt
    • Standardise ticket prices
    • Reduce fixed costs

  14. A local café installs contactless payment terminals. What primary benefit does this offer its customers?

    • Extended credit terms
    • Lower menu prices
    • Faster transaction speed
    • Free product upgrades

  15. A construction firm uses 3D printing to create wall components off-site. What is the main operational effect?

    • Increased material waste
    • Higher labour dependency
    • Slower design changes
    • Faster build times

  16. A consultancy firm adopts remote working software and downsizes its office. Which cost category is reduced?

    • Direct material costs
    • Sales commission costs
    • Variable delivery fees
    • Fixed premises costs

  17. What term describes a product becoming outdated due to rapid technological advances by competitors?

    • Planned appreciation
    • Market saturation
    • Operational elasticity
    • Technological obsolescence

  18. A manufacturing firm heavily automates operations. How does this structural change affect its break-even point?

    • Eliminates break-even point
    • Raises break-even point
    • Lowers break-even point
    • Has zero effect

  19. Why might a bespoke, hand-crafted furniture maker be less threatened by the digital revolution?

    • Generic mass appeal
    • High product differentiation
    • High price elasticity
    • Low capital requirement

  20. Which organisational change is frequently required when a firm adopts rapid technological innovation?

    • Taller management hierarchy
    • Centralised decision delay
    • Workforce reskilling
    • Extended supply chains

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