HSC Business - Operations Exam
Questions And 100% Correct Answers
\Q\.Operations - ANSWER-✔The businesses function that involves transformation or, more
generally 'production'
\Q\.Transformation process - ANSWER-✔Conversion of inputs into outputs
\Q\.Strategic - ANSWER-✔Long-term planning performed by senior managers. Involves all key
business functions.
\Q\.Cost leadership - ANSWER-✔Strategy where a business aims to be the lowest cost
manufacturer within its industry
\Q\.Profit margin - ANSWER-✔The difference between the sale price of a product and the cost
to make the good or supply the service
\Q\.Economies of scale - ANSWER-✔Cost advantages that can be gained by producing on a
larger scale
\Q\.Standardised goods - ANSWER-✔Mass produced, usually on an assembly line
\Q\.Customised goods - ANSWER-✔Varied according to the needs of the customer
\Q\.Interdependence - ANSWER-✔mutual dependence that they key functions have on one
another
, \Q\.Influences on operations - ANSWER-✔• globalisation, technology, quality expectations,
cost-based competition, government policies, legal regulation, environmental sustainability
• corporate social responsibility
\Q\.Globalisation (influence) - ANSWER-✔Removal of barriers of trade between nations.
Increasing integration between national economies.
\Q\.Supply chain - ANSWER-✔The range of suppliers a business has and the nature of it's
relationship with those suppliers
\Q\.Sourcing/procurement - ANSWER-✔Purchasing of inputs for the transformation process.
\Q\.Technology (influence) - ANSWER-✔The design, construction and/or application of
innovative devices, methods and machinery upon operations processes
\Q\.Quality expectations (influence) - ANSWER-✔For goods: how well designed, made and
functional goods are.
For services: how competently services are organised and delivered.
\Q\.Cost-based competition (influence) - ANSWER-✔When businesses bring a cost leadership
approach to the operations function. Using strategies to create cost advantages over
competitors.
\Q\.Fixed costs - ANSWER-✔Do not change regardless of the level of business output
\Q\.Variable costs - ANSWER-✔Vary in direct relationship to the level of business output
Questions And 100% Correct Answers
\Q\.Operations - ANSWER-✔The businesses function that involves transformation or, more
generally 'production'
\Q\.Transformation process - ANSWER-✔Conversion of inputs into outputs
\Q\.Strategic - ANSWER-✔Long-term planning performed by senior managers. Involves all key
business functions.
\Q\.Cost leadership - ANSWER-✔Strategy where a business aims to be the lowest cost
manufacturer within its industry
\Q\.Profit margin - ANSWER-✔The difference between the sale price of a product and the cost
to make the good or supply the service
\Q\.Economies of scale - ANSWER-✔Cost advantages that can be gained by producing on a
larger scale
\Q\.Standardised goods - ANSWER-✔Mass produced, usually on an assembly line
\Q\.Customised goods - ANSWER-✔Varied according to the needs of the customer
\Q\.Interdependence - ANSWER-✔mutual dependence that they key functions have on one
another
, \Q\.Influences on operations - ANSWER-✔• globalisation, technology, quality expectations,
cost-based competition, government policies, legal regulation, environmental sustainability
• corporate social responsibility
\Q\.Globalisation (influence) - ANSWER-✔Removal of barriers of trade between nations.
Increasing integration between national economies.
\Q\.Supply chain - ANSWER-✔The range of suppliers a business has and the nature of it's
relationship with those suppliers
\Q\.Sourcing/procurement - ANSWER-✔Purchasing of inputs for the transformation process.
\Q\.Technology (influence) - ANSWER-✔The design, construction and/or application of
innovative devices, methods and machinery upon operations processes
\Q\.Quality expectations (influence) - ANSWER-✔For goods: how well designed, made and
functional goods are.
For services: how competently services are organised and delivered.
\Q\.Cost-based competition (influence) - ANSWER-✔When businesses bring a cost leadership
approach to the operations function. Using strategies to create cost advantages over
competitors.
\Q\.Fixed costs - ANSWER-✔Do not change regardless of the level of business output
\Q\.Variable costs - ANSWER-✔Vary in direct relationship to the level of business output
