Business Studies Multiple Choice Question – 3 July 2022

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

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Stafford Jewels is an UK jewellery exporter specialising in Blue John jewels.

Its budgeted sales for one month were 200 units at £s 100.

Actual sales were 190 units at £s 110.

Paul the Chief Accountant calculated the sales variance to be ….?

Select ONE answer:

  1. £20 000 favourable
  2. £20 000 adverse
  3. £900 favourable
  4. £900 adverse

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
  2. Not correct
  3. Correct – Definition of sales variance e.g. the difference between a budgeted figure and the actual figure. The budgeted figure was 200 units x £100 = £20 000. The actual sales were 190 units x £110 = £20 900 ==> £20 900 – £20 000 = £900 favourable
  4. Not correct

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Business Studies Multiple Choice Question – 2 July 2022

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

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After a very successful year in 2021, the Staffordshire Mining Company gave all of its mining employees an extra £6,000, and equivalent of two month’s wages.

This payment can be BEST described as ……?

Select ONE answer:

  1. performance related pay
  2. job enrichment
  3. piecework
  4. a bonus

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 linked to whether an employee has met their individual targets whereas every employee receives this bonus no matter if they have met their own targets.
  2. Not correct – job enrichment is when employees are given more responsibility and more meaningful tasks and has no connection to any form of financial remuneration.
  3. Not correct – piecework is when employees are rewarded individually according to how much they produce whereas a bonus is paid collectively.
  4. Correct – Definition of a bonus e.g. an extra payment made in recognition of the contribution of employees, often linked to profits and sales. This is in addition to their normal salaries/wages and is a one off payment. The bonus is paid to all employees as a recognition of the good performance of the business.

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Business Studies Multiple Choice Question – 1 July 2022

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

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Corporation tax is paid by businesses on their earnings at a level set by the government.

An increase in corporation tax will initially result in a reduction in ….?

Select ONE answer:

  1. price
  2. variable costs
  3. fixed costs
  4. retained profit

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 – firms will be more likely to increase their prices to compensate for the increased tax rate.
  2. Not correct – costs are likely to increase as a consequence of suppliers having to pay higher taxes.
  3. Not correct – fixed costs are not affected by increases or decreases in corporation tax in the short term.
  4. Correct – Retained Profit is the amount of profit kept in the business rather than paid out to the owners or shareholders and held as cash for reinvestment. Paying the increased rate of tax is a legal requirement. It will have to be paid by businesses resulting in less profit to be retained in the organisation.

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Business Studies Multiple Choice Question – 30 June 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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The number of people aged under 30 in Ruritania is increasing each year.

Mumthings plc, a retailer of products for babies and children, is opening new stores in Ruritania.

Which one of the following factors is most likely to have influenced this decision by Mumthings plc?

Select ONE answer

  1. E-commerce
  2. Demographic
  3. Ethical
  4. Environmental

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 – e-commerce would not require Mumthings to open new stores in Ruritania.
  2. Correct – Demographics refers to changes in and the structure of the population. The under 30 population are more likely to have babies and buy Mumthings’s products. This increasing demand comes from demographic change and suggests a growing market for Mumthings.
  3. Not correct – ethical factors concern the way Mumthings runs its business, not whether they open stores.
  4. Not correct – environmental factors would influence the way Mumthings build and operate new stores in Ruritania, not whether they open new stores.

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Business Studies Multiple Choice Question – 29 June 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 March 2022, Electromac Group, a multinational engineering business, reported the following annual results.

Revenue £64 826M
Cost of sales £60 737M
Gross profit £4 089M
Other operating expenses £546M

What was the profit in relation to revenue %?

Select ONE answer:

  1. 5.47%
  2. £3 543m
  3. 6.31%
  4. £64 280m

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 – formula for margin is: profit for the year/revenue x 100. Profit for year is £3 543 or 4 089-546. Therefore £3 543m / £64 826m x 100 = 5.47%
  2. Not correct
  3. Not correct
  4. Not correct

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

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