Quiz

Level 12 · Scaling

Try each question before you open the answer. The quiz is for your own learning: it is not marked and nothing is stored.

1. Question 1

   Why should you prove the basics before growing?

   1. Growth is not allowed otherwise
   2. Growth multiplies what you already have, including problems with cost, quality and cash
   3. It is cheaper to grow fast
   4. Customers prefer small businesses
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   Answer: B. A weakness at small scale becomes a bigger weakness at larger scale.

2. Question 2

   Which is a sign you may be ready to grow?

   1. Complaints are rising
   2. Customers keep coming back and ask for more than you can supply, and quality is steady
   3. You do not know your costs
   4. You are always short of cash
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   Answer: B. Steady demand, known costs and steady quality are the base for growth.

3. Question 3

   Why write down how jobs are done?

   1. To fill a file
   2. So quality and fairness do not depend on one person and new people can be trained
   3. Because the law always requires it
   4. To avoid training
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   Answer: B. Written steps let the business work reliably as it grows.

4. Question 4

   What is a sensible way to test a new product or channel?

   1. Commit all your savings
   2. Try it on a small scale for one season and judge the result
   3. Skip testing
   4. Copy a competitor exactly
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   Answer: B. A small test limits the loss and teaches you what works.

5. Question 5

   What often happens to cash when orders grow quickly?

   1. It rises at once
   2. It is used first for materials and wages, and the income arrives later
   3. It does not change
   4. It disappears for good
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   Answer: B. Costs come before payment, so growth needs more working capital.

6. Question 6

   Quality drops and cash gets tight while sales rise. What is the best response?

   1. Push for even more sales
   2. Slow down, find the cause and fix quality and cash before growing further
   3. Hide the problem
   4. Stop keeping records
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   Answer: B. Growth that hides a problem makes it harder to fix.

7. Question 7

   Choose a business you know and describe one way it could grow, one risk, and a small test you would run first.

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   Model answer: A good answer names a believable growth step (for example adding a related product), a real risk (more cost, quality control, cash) and a small test, such as a limited batch for one season with a clear way to judge the result.

8. Question 8

   Explain in your own words why more sales do not always mean more profit.

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   Model answer: If each unit costs more to make and deliver than it earns, selling more increases the loss. Growth also needs more cash, people and attention, and quality can fall. Profit depends on the margin on each unit and on keeping costs under control as volume grows.

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