Business Studies Multiple Choice Question – 15 September 2017

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

A small business makes cakes for parties and weddings.

Which TWO of the following is most likely to be resources it uses directly in production?

Select TWO answers:

  1. Labour
  2. Taxes
  3. Television adverts
  4. Flour
  5. Airfreight
  6. Banking fees

What are the fixed costs for this cake making business?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 1 & 4 – The resources it would use in producing the cakes for parties and weddings would be Labour (i.e. employees to make the cakes) and flour (i.e. one of the key ingredients to make a cake from). All the other choices are costs to a business but not directly involved in producing the cakes themselves.

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