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← Unit 3: Business Functions

BEP2O · Unit 3 test review

Business Functions: Test Review

Everything for the Unit 3 test on one page: the key facts from all 5 lessons, the mistakes that cost the most marks, and a practice test that points you back to the lessons you need.

Key facts

Operations: Making the Product or Delivering the Service

  • Inputs (materials, equipment, labour, money, information) go through a process (ordered steps) to become outputs (products, services and by-products).
  • Time per unit = the sum of the times for every step.
  • Capacity = time available ÷ time per unit (round down to whole units).
  • The bottleneck is the slowest step; improving it speeds up the whole process.
  • Cost per unit = materials per unit + labour per unit, where labour per unit = (minutes ÷ 60) × hourly wage.
  • A good process is efficient, healthy and safe, ethical, and sustainable, with quality checked before the customer sees the product.

Marketing: The Three Cs and Four Ps

  • The three Cs: company (what we do well), customer (who they are and what they need), competition (who else offers it).
  • USP = the one difference customers care about that competitors do not offer.
  • A mission statement says what the business does, for whom and why, built from its USP and brand values.
  • The four Ps: product, price, place, promotion. They must all send the same message to the same target market.
  • Different target markets can get different marketing mixes, but the brand values stay the same.
  • Markup on cost = (price − cost) ÷ cost × 100%; margin = (price − cost) ÷ price × 100%.

Accounting: Tracking Cash and Reading Statements

  • Financial accounting reports to outsiders (lenders, investors, government); management accounting helps insiders make decisions.
  • Ending cash = opening cash + cash in − cash out. The last running balance must match.
  • Net income = revenue − expenses. Owner investments and loans are not revenue; loan repayments and long-lasting equipment are not expenses.
  • Assets = liabilities + owner's equity, and the balance sheet must balance.
  • Profit margin = net income ÷ revenue × 100%.
  • Cash on hand is not the same as profit, and every report must be honest, complete and backed by records.

Non-Financial Reporting and Impact

  • Non-financial reporting measures environmental, social and governance (ESG) impact.
  • Triple bottom line: people, planet and profit.
  • A good measure states what is measured, how, a baseline and a target.
  • Percent change = (new − old) ÷ old × 100%.
  • A change from 40% to 90% is +50 percentage points, which is a 125% increase.
  • Greenwashing means making vague or false environmental claims; honest reports are specific, measured and include bad news.

Managing People

  • The four functions of management: planning, organizing, leading, controlling.
  • Legal responsibilities are set by law; ethical ones by agreed standards; moral ones by personal conscience. The law is the minimum.
  • Ontario's Employment Standards Act sets minimums for wages, hours, breaks, overtime, public holidays and vacation.
  • Ontario's Human Rights Code forbids discrimination on protected grounds in all parts of employment, and employers must accommodate related needs.
  • Under the Occupational Health and Safety Act, workers have the right to know, the right to participate and the right to refuse unsafe work.
  • HR process: get facts, listen, check the rules, weigh options and impacts, decide and explain, document and follow up.

Where marks get lost

  • Forgetting to convert hours to minutes (or minutes to hours) before dividing, e.g. dividing 3 hours by 15 minutes and getting 0.2 hoodies. (Operations: Making the Product or Delivering the Service)
  • Rounding capacity up: if a shift fits 7.8 units, only 7 are finished, so round down. (Operations: Making the Product or Delivering the Service)
  • Leaving labour out of cost per unit because "it's just my time". Your time has value, and a helper must be paid. (Operations: Making the Product or Delivering the Service)
  • Speeding up a step that is not the bottleneck and expecting the whole process to get much faster. (Operations: Making the Product or Delivering the Service)
  • Treating sustainability or ethics as an add-on at the end instead of building them into how each step is done. (Operations: Making the Product or Delivering the Service)
  • Calling something a USP when every competitor offers it, like "good quality" or "comfortable". (Marketing: The Three Cs and Four Ps)
  • Writing a mission statement so vague it could belong to any business ("We provide great products to customers"). (Marketing: The Three Cs and Four Ps)
  • Choosing the four Ps separately so they clash, such as a premium product with bargain-bin promotion. (Marketing: The Three Cs and Four Ps)
  • Using one marketing mix for every target market even though the groups want different things. (Marketing: The Three Cs and Four Ps)
  • Mixing up markup (divide by cost) and margin (divide by price). (Marketing: The Three Cs and Four Ps)
  • Counting owner investments or loans as revenue, which makes profit look far bigger than it is. (Accounting: Tracking Cash and Reading Statements)
  • Recording a long-lasting purchase like a heat press as an expense in one month, which makes that month look like a loss. (Accounting: Tracking Cash and Reading Statements)
  • Treating a loan repayment as an expense. It reduces what you owe, not your profit. (Accounting: Tracking Cash and Reading Statements)
  • Thinking the cash balance equals profit and spending it all. (Accounting: Tracking Cash and Reading Statements)
  • Forgetting to add net income to owner's equity, so the balance sheet does not balance. (Accounting: Tracking Cash and Reading Statements)
  • Choosing measures that sound nice but cannot be counted, like "we care about the planet". (Non-Financial Reporting and Impact)
  • Reporting a number with no baseline, so nobody can tell whether it improved. (Non-Financial Reporting and Impact)
  • Dividing by the new value instead of the old one when calculating percent change. (Non-Financial Reporting and Impact)
  • Saying "50% more" when the change is 50 percentage points. (Non-Financial Reporting and Impact)
  • Reporting only the good measures and leaving out the ones that got worse, which is a form of greenwashing. (Non-Financial Reporting and Impact)
  • Thinking that if something is legal it must be ethical. The law is only the minimum standard. (Managing People)
  • Going along with a customer's or co-worker's request to treat an employee differently because of a protected ground, such as race or disability. (Managing People)
  • Punishing a worker for raising a safety concern or refusing unsafe work. (Managing People)
  • Deciding an HR issue after hearing only one side, or never writing down what was agreed. (Managing People)
  • Sharing an employee's personal information, like their phone number or health situation, with people who do not need it. (Managing People)

Practice test

25 questions from across the unit. Each one shows the lesson it comes from.

  1. Operations: Making the Product or Delivering the Service
    1
    Which of these is an output of Class Act Hoodies' production process?
  2. Operations: Making the Product or Delivering the Service
    2
    A bracelet takes 12 minutes to make. How many complete bracelets can one person make in a 2-hour session?
  3. Operations: Making the Product or Delivering the Service
    3
    Class Act Hoodies' steps take 4, 8, 3, 2 and 3 minutes. Which change would most likely increase capacity the most?
  4. Operations: Making the Product or Delivering the Service
    4
    Put Class Act Hoodies' process steps in order.
    1. 1Fold, bag and label
    2. 2Inspect the hoodie
    3. 3Press onto the hoodie
    4. 4Cut the design
    5. 5Weed the vinyl
  5. Operations: Making the Product or Delivering the Service
    5
    Why is making to order (only after an order is placed) considered both efficient and sustainable?
  6. Marketing: The Three Cs and Four Ps
    6
    Match each Class Act Hoodies decision to the P it belongs to.
    Sizes XS to 3XL with a name on the sleeve
    $36 each for orders of 10 or more
    Pick-up at school at lunch
    Instagram posts of grads wearing samples
  7. Marketing: The Three Cs and Four Ps
    7
    Which is the strongest mission statement?
  8. Marketing: The Three Cs and Four Ps
    8
    Class Act Hoodies wants a 60% markup on a $26 cost. What price should it charge, to the nearest cent?
    $
  9. Marketing: The Three Cs and Four Ps
    9
    What is the three-letter short form for the one difference that makes a business stand out from competitors?
  10. Marketing: The Three Cs and Four Ps
    10
    Put these marketing planning steps in a sensible order.
    1. 1Identify the USP and brand values
    2. 2Build the four Ps for the target market
    3. 3Write the mission statement
    4. 4Study the company, customer and competition
  11. Accounting: Tracking Cash and Reading Statements
    11
    A venture starts the week with $240, receives $310 from sales, and pays $185 for supplies and $45 for ads. What is the ending cash balance, in dollars?
    $
  12. Accounting: Tracking Cash and Reading Statements
    12
    A venture has revenue of $2,000 and net income of $350. What is its profit margin, as a percent to one decimal place?
    %
  13. Accounting: Tracking Cash and Reading Statements
    13
    Which of these would appear as revenue on Class Act Hoodies' income statement?
  14. Accounting: Tracking Cash and Reading Statements
    14
    Sort these into the order they are built, from first to last.
    1. 1Total revenue and expenses for the month
    2. 2Add net income to owner's equity on the balance sheet
    3. 3Calculate net income
    4. 4Record each cash inflow and outflow in the ledger
  15. Accounting: Tracking Cash and Reading Statements
    15
    Is a loan repayment an expense? Answer yes or no.
  16. Non-Financial Reporting and Impact
    16
    Match each measure to its ESG group.
    Kilograms of waste sent to landfill
    Volunteer hours at a food bank
    A written code of conduct for helpers
    Energy used by the heat press each month
  17. Non-Financial Reporting and Impact
    17
    Volunteer hours rose from 8 to 14. What is the percent change, to one decimal place?
    %
  18. Non-Financial Reporting and Impact
    18
    Plastic-free orders rose from 40% to 90%. Which statement is correct?
  19. Non-Financial Reporting and Impact
    19
    Why might a lender care about a business's non-financial report?
  20. Non-Financial Reporting and Impact
    20
    What one word describes the starting value that a measure is compared against?
  21. Managing People
    21
    Match each manager action to the function of management.
    Setting a sales goal for next month
    Making the weekly shift schedule
    Encouraging a helper who made a mistake
    Comparing actual sales with the goal
  22. Managing People
    22
    Which statement about a manager's responsibilities is TRUE?
  23. Managing People
    23
    Put the steps for handling an HR issue in order.
    1. 1Decide and explain the decision
    2. 2List options and weigh their impacts
    3. 3Document it and follow up
    4. 4Get the facts
    5. 5Listen to everyone affected
    6. 6Check the law, safety rules and business policies
  24. Managing People
    24
    A cheaper supplier would save $3 per hoodie on 150 hoodies. What is the total saving, in dollars?
    $
  25. Managing People
    25
    Which is the best way to handle employees' personal information?

Endless drill

Fresh numbers every time, for the calculation questions in this unit.

Endless drillnew numbers every time

Generating a problem…

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