What does the term ‘Interdependence’ mean?
All functional areas in a business depend upon the finance function
All functional areas in a business are dependent upon each other
All functional areas in a business work independently of each other
Which would not minimise the risks faced by a business?
Ensuring that a business has sufficient finance
Ignoring the results of market research
Writing a detailed business plan
A business decides to relocate to a new factory. Which two functional areas would work together to find suitable premises?
Finance and operations
Marketing and human resources
Finance and marketing
The operations function of a toy manufacturer is planning to increase production for Christmas. How might this affect the human resources function?
They will need to predict Christmas sales revenue
They will need to film a Christmas advert
They will need to recruit temporary staff
Which of these would not be used to measure business performance?
Gross profit data
The net profit margin
The average rate of return
How could the finance function help a business decide whether to reduce prices?
Providing financial information, such as the break-even point
Paying for additional training for marketing staff
Paying for additional staff to increase production
Which functional area will be directly impacted by a business decision to increase production?
Finance
Human resources
Operations
A retailer wants to increase market share by offering better customer service. Which functional area will be responsible for improving staff customer service skills?
Marketing
Why might a business decide not to launch a new product?
The break-even point is too low
The potential risks are too low
The potential rewards are not high enough
If the marketing function want to run a ‘buy-one-get-one-free’ offer, which functional area will they need to work on to ensure enough products are available?