Business Studies Multiple Choice Question – 18 June 2019

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

Alexis an enthusiastic games player. He decided to set up his own business operating daily gaming competitions in Staffordshire He called the business Chase Games. The business is very busy during the summer. The price of a games competition is £500 per day and this includes the use of games equipment, lessons and good & refreshments. Alex hires the equipment from a local shop.

Alex is considering operating his business in a different location when the summer is over. He has produced a cash flow forecast to include in his business plan for a loan.

Which one of the following might be the reasons why Alex produced a cash flow forecast?

Select ONE answer:

  1. It is a legal requirement that a business should have a cash flow forecast
  2. A cash flow forecast ensures that the business will be successful
  3. Cash flow forecasts can reduce the risk of business failure
  4. To identify the cash inflows over the last six months

 

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. it is not a legal requirement it is entirely up to the business if they have one.
  2. having a cash flow forecast is no guarantee that the business is successful.
  3. Correct – a cash flow does not reduce the risk of failure but can give a warning.
  4. cash flow forecast is predicting and will not show what has happened.

 

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Business Studies Multiple Choice Question – 17 June 2019

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

Alexis an enthusiastic games player. He decided to set up his own business operating daily gaming competitions in Staffordshire He called the business Chase Games. The business is very busy during the summer. The price of a games competition is £500 per day and this includes the use of games equipment, lessons and good & refreshments. Alex hires the equipment from a local shop.

Alex is considering operating his business in a different location when the summer is over. He has produced a cash flow forecast to include in his business plan for a loan.

Which one of the following might be the reasons why Alex produced a cash flow forecast?

Select ONE answer:

  1. It is a legal requirement that a business should have a cash flow forecast
  2. A cash flow forecast ensures that the business will be successful
  3. To identify if the business will require an overdraft
  4. To identify the cash inflows over the last six months

 

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. it is not a legal requirement it is entirely up to the business if they have one.
  2. having a cash flow forecast is no guarantee that the business is successful.
  3. Correct – can identify if the business will need money such as an overdraft.
  4. cash flow forecast is predicting and will not show what has happened.

 

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Business Studies Multiple Choice Question – 16 June 2019

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

Alexis an enthusiastic games player. He decided to set up his own business operating daily gaming competitions in Staffordshire He called the business Chase Games. The business is very busy during the summer. The price of a games competition is £500 per day and this includes the use of games equipment, lessons and good & refreshments. Alex hires the equipment from a local shop.

What are the three numbers required to complete the following financial forecast?

Select ONE answer:

  1. 13, 7, 22
  2. 14, 6, 20
  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 2

Jan: £14k = 28 * £599
Feb: £6k = £1k + £2k + £1k + £2k
Mar: 20 = £10k / £500

 

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Business Studies Multiple Choice Question – 15 June 2019

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

LucyArts Ltd is a UK business that imports art supplies kits from the USA. On average it imports approximately 2,000 art supplies kit each month.

Each kit costs $3.

Last year the exchange rate between the British pound and the US dollar was £1 = $1.77, and this year it is £1 = $1.55.

Identify ONE effect on LucyArts Ltd of this change in the exchange rate.

Select ONE answer:

  1. Lower profit on each sale if the UK price does not change
  2. Lower variable costs of art supplies kits from the USA
  3. Increased imports of art supplies kits from the USA
  4. Increased demand for its art supplies kits in the UK

 

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. Correct – items become dearer for the UK if the exchange becomes lower.
  2. variable costs does not affect the sale of art kits.
  3. if increased importing could reduce the cost but would not be affected by the exchange rate.
  4. demand does not affect the exchange rate.

 

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Business Studies Multiple Choice Question – 14 June 2019

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

LucyArts Ltd is a UK business that imports art supplies kits from the USA. On average it imports approximately 2,000 art supplies kit each month.

Each kit costs $3.

Last year the exchange rate between the British pound and the US dollar was £1 = $1.77, and this year it is £1 = $1.55.

Identify ONE effect on LucyArts Ltd of this change in the exchange rate.

Select ONE answer:

  1. The cost of buying the art supplies kits from the USA will rise
  2. Lower variable costs of art supplies kits from the USA
  3. Increased imports of art supplies kits from the USA
  4. Increased demand for its art supplies kits in the UK

 

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. Correct – if the exchange rate reduces then goods will cost more.
  2. variable costs does not affect the sale of art kits.
  3. if increased importing could reduce the cost but would not be affected by the exchange rate.
  4. demand does not affect the exchange rate.

 

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Business Studies Multiple Choice Question – 13 June 2019

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

Lucy runs a business called LucyArts Ltd, selling a range of art products in Stafford.

LucyArts Ltd has been successful. Lucy is keen to expand the business by opening another shop. To do this she will use long-term sources of finance.

Which ONE of the following is an example of a long-term source of finance?

Select ONE answer:

  1. Sales revenue
  2. Overdraft
  3. Trade credit
  4. Share capital

 

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. money made from sales is not long term finance.
  2. is not long term as it is dependent on what the bank will loan and for how long.
  3. trade credit is not long term and depends on the other businesses that you trade with.
  4. Correct – is long term as people are investing in the business.

 

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Business Studies Multiple Choice Question – 12 June 2019

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

Lucy runs a business called LucyArts Ltd, selling a range of art products in Stafford.

LucyArts Ltd has been successful. Lucy is keen to expand the business by opening another shop. To do this she will use long-term sources of finance.

Which ONE of the following is an example of a long-term source of finance?

Select ONE answer:

  1. Sales revenue
  2. Overdraft
  3. Trade credit
  4. Profit

 

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. money made from sales is not long term finance.
  2. is not long term as it is dependent on what the bank will loan and for how long.
  3. trade credit is not long term and depends on the other businesses that you trade with.
  4. Correct – is long term because it is an ongoing source of finance

 

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