Business Studies Multiple Choice Question – 18 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Lucy wanted a change from working for someone else at the local art supplies shop.

She wanted to set up her own business selling art supplies.

She estimated that it would cost her £35 000 to set up.

Select ONE answer:

  1. Lucy has calculated that her Value Added Tax (VAT) will be £2 500
  2. She estimated costs for the second year of trading will increase by 15%
  3. There is a 50% possibility that her business will survive the first year
  4. Lucy has estimated that the demand for his products will increase by 25%

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3:

  1. Lucy has calculated that her Value Added Tax (VAT) will be £2 500 – is not correct because it is not a calculated risk.
  2. Lucy estimated costs for the second year of trading will increase by 15% – is not correct because it is not a calculated risk.
  3. There is a 50% possibility that his business will survive the first year – is correct because it is a calculated risk.
  4. Lucy has estimated that the demand for her products will increase by 25% – is not correct because it is not a calculated risk.

 

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Business Studies Multiple Choice Question – 17 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

What are the three numbers required to complete the following cash flow forecast?

Table 51

Select ONE answer:

  1. 15, (8), (22)
  2. 9, (6), (13)
  3. 11, 4, 13
  4. 13, (4), (11)

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4:

Jan: 25 – 13 = 12
Feb: 26 – 30 = (4)
Mar: 40 + (51) = (11)

 

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Business Studies Multiple Choice Question – 16 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

Since his last shipment in February, the exchange rate has changed to £1.00 = $1.50 from £1 = $1.40

What would be one effect on Pete’s business of this change, assuming he imports the same amount of Biltong each month?

Select ONE answer:

  1. Lower profit
  2. Cash flow improves
  3. Able to charge lower prices
  4. Lower variable costs

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1:

  1. Lower profit – is correct because variable costs in £s would increase therefore profit decreases.
  2. Cash flow improves – is not correct because variable costs in £s would increase therefore cash flow would NOT improve.
  3. Able to charge lower prices – is incorrect because variable costs in £s are higher NOT allowing lower prices to be charged.
  4. Lower variable costs – is not correct because variable costs would be higher.

 

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Business Studies Multiple Choice Question – 15 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

Since his last shipment in February, the exchange rate has changed to £1.00 = $1.50 from £1 = $1.40

What would be one effect on Pete’s business of this change, assuming he imports the same amount of Biltong each month?

Select ONE answer:

  1. Lower profit
  2. Cash flow deteriorates
  3. Able to charge lower prices
  4. Higher variable costs

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3:

  1. Lower profit – is not correct because variable costs in £s would decrease therefore profit increases.
  2. Cash flow deteriorates – is not correct because variable costs in £s would decrease therefore cash flow would improve.
  3. Able to charge lower prices – is correct because variable costs in £s are lower allowing lower prices to be charged.
  4. Higher variable costs – is not correct because variable costs would be lower.

 

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Business Studies Multiple Choice Question – 14 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

The exchange rate is £1.00 = $1.40.

How much does Pete have to pay, in pounds (£), to buy the Biltong each month?

Select ONE answer:

  1. £4,000.00
  2. £3,846.15
  3. £3,703.70
  4. £3,571.43

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4:

  1. £4,000.00 – is not correct because the wrong figures have been used.
  2. £3,846.15 – is not correct because the wrong figures have been used.
  3. £3,703.70 – is not correct because the wrong figures have been used.
  4. £3,571.43 – is correct because the correct figures been used – (10 x 500) / 1.40

 

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Business Studies Multiple Choice Question – 13 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

The exchange rate is £1.00 = $1.35.

How much does Pete have to pay, in pounds (£), to buy the Biltong each month?

Select ONE answer:

  1. £4,000.00
  2. £3,846.15
  3. £3,703.70
  4. £3,571.43

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3:

  1. £4,000.00 – is not correct because the wrong figures have been used.
  2. £3,846.15 – is not correct because the wrong figures have been used.
  3. £3,703.70 – is correct because the correct figures been used – (10 x 500) / 1.35
  4. £3,571.43 – is not correct because the wrong figures have been used.

 

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Business Studies Multiple Choice Question – 12 March 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

The exchange rate is £1.00 = $1.30.

How much does Pete have to pay, in pounds (£), to buy the Biltong each month?

Select ONE answer:

  1. £4,000.00
  2. £3,846.15
  3. £3,703.70
  4. £3,571.43

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 2:

  1. £4,000.00 – is not correct because the wrong figures have been used.
  2. £3,846.15 – is correct because the correct figures been used – (10 x 500) / 1.30
  3. £3,703.70 – is not correct because the wrong figures have been used.
  4. £3,571.43 – is not correct because the wrong figures have been used.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.