Business Studies Multiple Choice Question – 26 July 2018

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

Which ONE of the following is a factor that could increase the level of risk in a business?

Select ONE answer only:

  1. Seasonal demand
  2. Having a large target market
  3. Having a low fixed costs
  4. Employing a large number of employees
  5. Having a unique product to sell

Explain ONE reason why running a business can involve high levels of risk.

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

The answer is 1 – Seasonal demand will be a high-risk factor for a business trying to match its revenues and costs and survive for the rest of the year.  Low fixed costs are an advantage to any business, as its break-even level before it can make profits should normally be low.

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