Production, Quality & Purchasing is one of 8 topics in the Grade 12 Business Studies CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Which factor of production refers to machinery, equipment, buildings and financial resources used in production?
Capital
Land
Labour
Entrepreneurship
Answer: Capital — Capital refers to the machinery, equipment, buildings and financial resources used to produce goods and services.
Easy
2. A custom-built house tailored to a specific customer's requirements is an example of which production process?
Job production
Batch production
Mass production
No production process applies to custom goods
Answer: Job production — Job production creates a single, unique product tailored to specific customer requirements, such as a custom-built house.
Medium
3. What term describes the factor of production involving the skill of organising land, labour and capital while taking on business risk to create value?
Answer: Entrepreneurship — Entrepreneurship is the factor of production that organises the other factors (land, labour, capital) and involves taking on the risk of starting and running a business.
