Lesson 3.9.2

3.9.2 Assessing innovation Quiz: AQA Business, Unit 9

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.9.2, Assessing innovation: 20 multiple choice questions for the AQA Business (7132), Unit 9: Strategic methods: how to pursue strategies, written with Revision Ninja.

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The 20 questions

  1. What type of innovation involves launching new or significantly improved goods or services?

    • Positioning strategy
    • Product innovation
    • Kaizen
    • Process innovation

  2. What type of innovation involves improving the internal operational methods used to produce goods?

    • Process innovation
    • Intrapreneurship
    • Product innovation
    • Benchmarking

  3. Which term describes an approach focused on continuous, small operational improvements?

    • Re-engineering
    • Kaizen
    • Benchmarking
    • Intrapreneurship

  4. What term describes employees acting like entrepreneurs within an existing business?

    • Intrapreneurship
    • Kaizen
    • Outsourcing
    • Benchmarking

  5. Comparing a firm's performance and processes against industry best practice is known as what?

    • Benchmarking
    • Quality assurance
    • Intrapreneurship
    • Kaizen

  6. Which form of legal protection gives exclusive rights over a new technical invention?

    • Trademark
    • Trade secret
    • Patent
    • Copyright

  7. Which legal protection applies automatically to original creative writing and musical works?

    • Patent
    • Trademark
    • Registered design
    • Copyright

  8. Which factor creates a strong external pressure for a business to innovate?

    • Stable interest rates
    • Static market growth
    • Changing consumer tastes
    • Fixed supplier costs

  9. Which strategic advantage is gained by a firm through successful product innovation?

    • Higher unit costs
    • Competitive advantage
    • Reduced market share
    • Lower customer loyalty

  10. A business spends 5% of its 20 million pounds revenue on research and development. What is the R&D budget?

    • 500,000 pounds
    • 4 million pounds
    • 1 million pounds
    • 5 million pounds

  11. A process innovation cuts unit cost from 12 pounds to 9 pounds on 200,000 units a year. What is the annual saving?

    • 200,000 pounds
    • 2,400,000 pounds
    • 600,000 pounds
    • 1,800,000 pounds

  12. Introducing an automated picking system in a distribution centre is an example of what?

    • Process innovation
    • Product innovation
    • Market development
    • Brand repositioning

  13. What is the primary financial risk of investing heavily in research and development?

    • Uncertain return
    • Immediate cash influx
    • Guaranteed profit
    • Lower capital expenditure

  14. Compared with radical innovation, what is a primary advantage of kaizen?

    • Lower risk
    • Higher initial cost
    • Immediate market dominance
    • Radical product overhaul

  15. Why might securing a patent offer limited commercial protection to a firm?

    • Infinite legal duration
    • Details are published
    • Complete secrecy retained
    • Zero filing costs

  16. How does an innovation strategy directly impact a firm's marketing department?

    • Eliminates market research
    • Reduces advertising spend
    • Standardises old lines
    • Requires product promotion

  17. What is the main objective of benchmarking business operations against competitors?

    • Identify performance gaps
    • Calculate tax liability
    • Set staff wages
    • Eliminate all competitors

  18. Which corporate feature best supports continuous innovation within a business?

    • Low research spending
    • Risk-tolerant culture
    • Strict hierarchical control
    • High inventory buffers

  19. What is a major financial drawback of a strategy reliant on high R&D spending?

    • Zero risk exposure
    • Heavy cash outlay
    • Immediate dividend growth
    • Guaranteed fast returns

  20. Which method provides legal protection for a newly invented physical product or process?

    • Patent
    • Trade secret
    • Copyright
    • Trademark

All AQA Business quizzes