Question 1: Define the term 'supplier' in the context of a business.

Answer: A supplier is a person or company that provides goods or services to a business.

Question 2: Explain two reasons why a business might choose to work with multiple suppliers instead of just one.

Answer: Using multiple suppliers reduces the risk of supply shortages and can encourage competition, leading to better prices and quality.

Question 3: Describe how a business might benefit from establishing a long-term relationship with a supplier.

Answer: A long-term relationship can lead to better prices, improved trust, priority in supply, and more consistent quality.

Question 4: List three qualities that a business should look for when choosing a new supplier.

Answer: Reliability, good quality products, and competitive prices.

Question 5: Identify two potential risks of relying heavily on a single supplier.

Answer: If the supplier fails to deliver, the business could face production delays; there may also be less negotiation power, leading to higher costs.

Question 6: Explain what is meant by the term 'just-in-time' (JIT) inventory system.

Answer: JIT is an inventory system where materials are ordered and received only when needed for production, reducing storage costs.

Question 7: Sketch a simple flowchart showing the process of a business ordering supplies from a supplier, including the steps: ordering, delivery, and receipt.

Answer: A flowchart with three boxes in sequence labeled 'Place order', 'Deliver supplies', 'Receive and check supplies'. The arrows connect these boxes in order.

Question 8: Identify and briefly explain two ways a business can ensure its supplier delivers quality products.

Answer: Conduct regular quality inspections and establish clear quality standards in the contract.

Question 9: Describe what a business might do if a supplier repeatedly delivers late or poor-quality products.

Answer: The business might seek alternative suppliers, negotiate better terms, or stop using that supplier entirely.

Question 10: Draw a diagram of a supply chain for a chocolate bar, including at least four stages from raw materials to the customer.

Answer: A diagram showing: Raw materials (e.g., cocoa beans) → Manufacturing/Processing → Packaging & Distribution → Retailers → Customers.