Lesson 2.3.1a

2.3.1a Producing goods and providing services Quiz: Pearson Edexcel Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.3.1a, Producing goods and providing services: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 8: Making operational decisions, written with Revision Ninja.

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The 20 questions

  1. Business operations are:

    • the activities of financial investors who fund the business
    • the legal registration of a company with its local regulator
    • the activities that turn inputs into goods or services
    • the marketing of goods to customers in the home market

  2. Producing goods means:

    • making physical products
    • providing a holiday for customers
    • selling financial investments
    • providing advice and support to clients

  3. Providing services means:

    • making a physical product in a factory on the industrial estate
    • an intangible benefit, such as a haircut or a repair
    • buying shares in other companies on the stock exchange
    • importing goods from abroad to sell in the home market

  4. Which is an example of a business that produces goods?

    • A dentist's surgery
    • A car factory
    • A bus company
    • A tutoring agency

  5. Which is an example of a service business?

    • A brick maker supplying the construction sector
    • A steel mill producing sheets for the car industry
    • A bank providing current accounts
    • A sugar refinery processing beet for food producers

  6. A key purpose of operations is to:

    • maximise dividends paid to shareholders each year only
    • make products or deliver services efficiently and well
    • set the tariff rates on imports coming in from abroad
    • remove all contact with customers to cut down on costs

  7. Which factor is an input in business operations?

    • A customer complaint
    • Raw materials
    • A sales report
    • A finished product

  8. A factory makes 1,200 units in an 8-hour shift. What is the output per hour?

    • 1,200 units per hour
    • 150 units per hour
    • 9,600 units per hour
    • 8 units per hour

  9. A barber serves 24 customers in an 8-hour day. How many customers are served per hour?

    • 3
    • 8
    • 192
    • 24

  10. A bakery's ingredients cost £0.80 per loaf and it sells each loaf for £2. What is the profit per loaf?

    • £2.80
    • £0.80
    • £1.20
    • £1.60

  11. Which is an operations output rather than an input?

    • Steel bars
    • Machine power
    • A finished bicycle
    • Factory workers

  12. A hospital cleaning service provides 40 cleans per day at £30 each. What is the daily revenue?

    • £70
    • £40
    • £1,200
    • £12,000

  13. A business both produces goods and provides services. How is it best described?

    • A government agency only, funded from public taxation
    • A non-trading business that does not sell to the public
    • A mixed operation producing both goods and services
    • A pure financial institution that lends to its customers

  14. Which is a reason a business might outsource a service rather than provide it in-house?

    • To reduce costs or use specialist skills
    • To avoid paying any tax at all
    • To remove the need for any staff
    • To avoid all quality checks

  15. A furniture maker buys wood and turns it into tables. What does the operation do?

    • Exports finished goods without any production
    • Transforms inputs into a finished good
    • Lends money to customers
    • Provides a service with no physical output

  16. Which business is most likely to be a service provider rather than a goods producer?

    • A brewery
    • A steel plant
    • A car plant
    • A hair salon

  17. Why might a service business find operations harder to manage than goods production?

    • Services never have any customers who buy them regularly
    • Services cannot be priced sensibly by the business at all
    • Services are intangible, so quality is harder to standardise
    • Services need no staff at all to deliver them to customers

  18. A factory's output rises from 2,000 to 2,500 units per week. What is the percentage increase?

    • 25%
    • 20%
    • 45%
    • 500%

  19. Which combination of operations decisions best supports competitiveness?

    • Keeping productivity high and costs low, with good quality
    • Producing as much as possible regardless of what customers demand
    • Maximising cost while keeping productivity at its lowest level
    • Ignoring quality for a time in order to save on the time spent

  20. A bakery produces 300 loaves a day at a cost of £0.90 each and sells them at £2.10. What is the daily profit?

    • £360
    • £1,200
    • £630
    • £270

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