Business Studies Multiple Choice Question – 23 January 2022

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

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Staffordshire Steel owns steel producing factories in the UK.

In 2022, the factories operated at an average of 70% of their capacity.

The most likely way for Staffordshire Steel to increase capacity utilisation is to?

Select ONE answer:

  1. increase spending on expansion projects
  2. attract demand from the rapidly expanding Russian market
  3. increase the price of its steel
  4. reduce the productivity of its workers

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

  1. Not correct – expansion will increase potential capacity and therefore reduce capacity utilisation.
  2. Correct – capacity utilisation is the percentage of a firm’s potential output that it is currently used with the formula that Capacity utilisation = (Current output X 100) / Maximum output, and where capacity which is not being fully utilised is 30%. Additional demand from Russia will increase the use of Staffordshire Steel’s production facilities because they will have to produce more steel. This increased output will therefore move Staffordshire Steel closer to its potential capacity.
  3. Not correct – if they increases its prices, demand is likely to fall, leading to a fall in capacity utilisation.
  4. Not correct – reducing productivity of workers will make them less competitive as the labour cost of producing steel will increase.

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Business Studies Multiple Choice Question – 22 January 2022

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

woman draw a light bulb in white board
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Colin’s company trains workers to lay road surfaces.

His forecasted and actual sales revenue for one month (up to 5 working days per week) are shown below.

  • Forecasted sales revenue £28 000
  • Actual sales revenue £14 000

In order to achieve his forecasted sales revenue, Paul could do each of the following, EXCEPT?

Select ONE answer:

  1.  advertise more
  2. cut costs
  3. discount the training fee
  4. offer training on more days per week

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

  1. Not correct – advertising more should increase sales revenue as the service becomes better known/creates more demand/attracts more customers.
  2. Correct – Definition of sales forecasting, e.g. the estimation of likely revenue/income in a period, given the trading conditions or defines sales revenue. Cutting costs is not a factor that increases demand as it is a supply factor. Cutting costs may lead to an increase in profit not an increase in sales.
  3. Not correct – discounting the training fee could give an advantage over competitors and therefore lead to more orders/increase in sales volume.
  4. Not correct – offering training on more days of the week allows more training to take place and therefore more customers to be catered for.

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Business Studies Multiple Choice Question – 21 January 2022

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

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Noodle offers ‘Innovation Time Off’ to its employees, to spend on things & projects that interest them.

In 2022, half of Noodle’s new products came from this policy.

According to employee motivational theory, this is an example of?

Select ONE answer:

  1. self-actualisation
  2. hygiene factors
  3. health and safety
  4. profit share

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – Definition of employee motivational theory – ways to incentivise workers or identifies. Maslow or describes/identifies Self Actualisation as the highest level of the hierarchy of needs, which is achieved by giving more responsibility to employees. Which can therefore encourage employees to develop new ideas/ be creative/to innovate
  2. Not correct – hygiene factors need to be in place before employees are motivated/only prevent dissatisfaction
  3. Not correct – is wrong as health and safety is a hygiene factor
  4. Not correct – employees are being offered more responsibility not a share of the profits

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Business Studies Multiple Choice Question – 20 January 2022

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

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Nancy owned a corporate events company.

Sales revenue fell and her company failed.

This is an example of?

Select ONE answer:

  1. performance-related pay
  2. an increase in orders
  3. good management of cash flow
  4. changing market conditions

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct – performance related pay is not a factor determining demand for the product/service as it rewards employee performance
  2. Not correct – an increase in orders would increase the chance of the company doing well as demand rose
  3. Not correct – good management of cash flow is more likely to help the business continue as it enables the monitoring of cash flow movements
  4. Correct – Accurate definition of changing market conditions – the factors that alter the supply and demand for goods/services or sales revenue, e.g. price x quantity or business income. Identifies what causes market conditions to change e.g. recession, competitors. Therefore a fall in sales revenue could be due to either a fall in units demanded/sold or a decrease in the selling price of the products/service. Which may mean that Sarah’s business may not be able to cover her costs and therefore fail.

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Business Studies Multiple Choice Question – 19 January 2022

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

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In April 2021, due to heavy rainfall and poor weather, the UK Turnip Council warned that the supply of turnips was down by 50%.

The most likely result of this was …. ?

Select ONE answer:

  1. a decrease in the price of turnips
  2. a shift in the supply curve of turnips to the right
  3. a shift in the supply curve of turnips to the left
  4. a movement along the supply curve for turnips

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct – because decrease in the price of turnips would only happen if there had been an increase in supply
  2. Not correct – because shift in the supply curve of turnips to the right implies that there has been an increase in the supply of turnips due factors such as good weather, improvements in agricultural technology
  3. Correct – supply is the amount of goods and/or services a firm is able and willing to produce/provide at a given price and at a given time. Because the bad weather had damaged the crops and therefore turnips became scarce. The supply curve will shift left because the number of turnips available will be reduced no matter what price people pay.
  4. Not correct – because movement along the supply curve for turnips would have only happened if there had been a change in the price of turnips rather than a non-price factor such as the weather

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

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