Lesson 7.1.1.5

7.1.1.5 Technology Quiz: NCFE Business & Enterprise, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Technology changes how businesses make, sell and communicate. This lesson weighs automation and new machinery, e-commerce and m-commerce, apps for targeted marketing, and the risks of online trading, such as returns, cyber-attacks and falling behind rivals who have already invested.

Key points

  • Computer-controlled or automated machinery raises output per hour and gives consistent quality, lowering the cost of each unit.
  • A firm that refuses to replace ageing equipment risks slower output and higher unit costs than rivals who have upgraded.
  • Online sellers avoid town-centre rent and shop staff, so they can often undercut high-street prices.
  • A website opens up a national or international market at any hour, though overseas orders add shipping and customs costs.
  • M-commerce is buying or paying through a mobile device, so checkout pages must work properly on small screens or baskets are abandoned.
  • Apps collect customer data and send targeted offers, which helps drive repeat sales at little cost.
  • Online sales suffer more returns because goods cannot be tried first, and storing card details creates a cyber-attack risk.

Key terms

Automation
Using machines to carry out production tasks with little human effort.
E-commerce
Buying and selling goods and services over the internet.
M-commerce
Buying, selling or paying through a mobile device such as a smartphone or tablet.
Unit cost
The cost of producing one item, which falls when output rises relative to fixed costs.
Targeted marketing
Sending promotions to chosen customers based on what is known about their interests.
Cyber-attack
An attempt to break into a firm's systems to steal or damage data.
Market share
A business's sales as a proportion of total sales in its market.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

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The 20 questions

  1. What is the most likely financial effect of using a computer-controlled cutting machine?

    • Increased material waste
    • Lower unit costs
    • Higher wage costs
    • Slower production speed

  2. Which drawback follows directly from refusing to upgrade ageing production machinery?

    • Lower staff turnover
    • Cheaper maintenance
    • Higher profit margins
    • Slower output

  3. How does a customer data mobile app benefit a business?

    • Lower staff wages
    • Targeted marketing
    • Cheaper rent costs
    • Zero delivery charges

  4. What is the result when an e-commerce checkout page fails on mobile phones?

    • Abandoned baskets
    • Higher mobile sales
    • Increased conversion rates
    • Lower customer complaints

  5. Why can online-only retailers often charge lower prices than high-street shops?

    • Higher employee wages
    • Expensive town-centre rent
    • Stricter tax regulations
    • Lower overhead costs

  6. What geographic change occurs when a local craft seller launches a website?

    • Physical footfall only
    • Local-only customers
    • Restricted opening hours
    • Nationwide orders

  7. Which business activity is a correct example of m-commerce?

    • Buying via app
    • Mailing paper orders
    • Calling landline sales
    • Visiting physical store

  8. Which extra cost must a UK business plan for when selling overseas online?

    • Customs paperwork
    • International shop leases
    • Overseas staff salaries
    • Foreign high-street rent

  9. What is the most likely cause of high return rates for online shoe shops?

    • Excessive packaging
    • Slow delivery times
    • Inability to try on
    • High website fees

  10. What typically happens to a traditional shop's market share when rivals sell online?

    • It rises
    • It falls
    • It doubles
    • It stays flat

  11. What is the main benefit of replacing hand-mixing with automated bakery machines?

    • Higher ingredient costs
    • Increased employee wages
    • Slower hourly output
    • Consistent product quality

  12. What financial consequence does a firm face by keeping slow, old printing presses?

    • Higher unit costs
    • Larger profit margins
    • Faster production times
    • Lower fixed costs

  13. How can a retail shopping app most directly support marketing to loyal buyers?

    • Cheaper delivery
    • Fewer returns
    • Push alerts
    • Lower rent

  14. Why do online clothing retailers typically experience higher return rates than physical shops?

    • Cheaper materials
    • Poor website design
    • Free delivery
    • Cannot try on

  15. Which of these is the clearest example of m-commerce?

    • Desktop website browse
    • Banking app payment
    • In-store cash payment
    • Telephone landline order

  16. What is a main advantage for a small gift shop launching a website?

    • Zero delivery costs
    • Eliminated competition
    • Nationwide 24-hour sales
    • No business rates

  17. Why can an online-only retailer often charge lower prices than high-street shops?

    • Higher tax rates
    • No shop rent
    • More sales staff
    • Larger packaging

  18. What is the primary security risk of storing customer card details on a website?

    • Higher hosting fees
    • Data breach
    • Slow loading speeds
    • Lost postal mail

  19. What is the main risk for a takeaway that avoids using delivery apps?

    • Paying high commission
    • Managing driver rotas
    • Handling food waste
    • Losing younger customers

  20. How has the growth of e-commerce most changed UK consumer shopping habits?

    • Shopping only locally
    • Comparing prices easily
    • Buying less overall
    • Avoiding digital reviews

All NCFE Business & Enterprise quizzes