3.4.1 Corporate timescales and decision making Quiz: Pearson Edexcel Business, Unit 3

The 20 questions

1. What is meant by short-termism in corporate decision-making?

   • Building brand loyalty
   • Prioritising quick profits
   • Investing in R&D
   • Focusing on sustainability

2. What is a defining feature of long-termism in corporate strategy?

   • Cutting research budgets
   • Quarterly dividend focus
   • Immediate cost reduction
   • Sustainable growth focus

3. Which decision-making approach relies primarily on quantitative data and research?

   • Intuitive
   • Brainstorming
   • Subjective
   • Evidence-based

4. Which decision-making approach relies primarily on manager instinct and personal opinion?

   • Subjective
   • Data-driven
   • Evidence-based
   • Quantitative

5. What is a major risk associated with corporate short-termism?

   • Excessive long-term growth
   • Underinvestment in R&D
   • Reduced dividend payouts
   • High staff retention

6. Which of these is the best example of a long-term business decision?

   • Five-year R&D investment
   • Weekly staff scheduling
   • Monthly inventory reordering
   • Daily sales discounting

7. What is a key benefit of evidence-based decision making?

   • Reduces management bias
   • Guarantees revenue growth
   • Speeds up implementation
   • Eliminates financial risk

8. What is a major disadvantage of subjective decision making in business?

   • Personal bias
   • Slow implementation
   • Complex data collection
   • Excessive cost

9. A firm cuts research and development spending to lift this year's profit. Which timescale does this reflect?

   • Strategic partnership
   • Evidence-based planning
   • Long-termism
   • Short-termism

10. A manager chooses a new store location after analysing footfall data and local incomes. Which approach is this?

    • Subjective decision making
    • Short-termism
    • Random allocation
    • Evidence-based decision making

11. A manager chooses a supplier because she personally likes its sales representative. Which approach is this?

    • Benchmarking
    • Evidence-based decision making
    • Subjective decision making
    • Long-termism

12. Which timescale is more suited to a firm building sustainable growth in a changing market?

    • Long-termism
    • Random timescales
    • Zero-term planning
    • Short-termism

13. What term describes prioritising immediate financial returns over long-term strategic investment?

    • Kaizen
    • Corporate governance
    • Short-termism
    • Evidence-based management

14. Which decision-making approach relies heavily on quantitative data and systematic research?

    • Evidence-based
    • Subjective
    • Heuristic
    • Intuitive

15. Subjective decision making is most useful in business when objective data is what?

    • Highly accurate
    • Overwhelming
    • Unavailable
    • Inexpensive

16. Basing a long-term corporate strategy purely on short-term sales data ignores what?

    • Fixed costs
    • Long-term trends
    • Current inventory
    • Historical revenue

17. Which practice helps a business prevent corporate short-termism when evaluating strategic projects?

    • Asset stripping
    • Short-term budgeting
    • Whole-life appraisal
    • High dividend payouts

18. Decision making that relies on personal experience and manager intuition rather than data is termed what?

    • Rational
    • Scientific
    • Evidence-based
    • Subjective

19. How can corporate short-termism negatively affect a firm's performance in the long run?

    • Reduced future competitiveness
    • Lower staff turnover
    • Increased short-term dividends
    • Higher immediate liquidity

20. Which condition most encourages a business to adopt a long-term corporate timescale?

    • Quarterly profit targets
    • Volatile share prices
    • Supportive shareholders
    • High takeover threat

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