Business Studies Multiple Choice Question – 6 January 2019

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

Business Studies

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

Which ONE of the following would improve the competitiveness of BMF against other local music shops?

Select ONE answer:

  1. Offering advice on rare records
  2. Reducing opening hours
  3. A new competitor opens in the local area
  4. Advertising on national television

 

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. Offer advice on rare records – is correct because giving advice on rare records enables MME to compete with other music shops that do not offer this service.
  2. Reduce opening hours – is not correct because it reduces the opportunities for the customer to buy.
  3. A new competitor opens in the local area – is not correct because a new competitor would reduce the competitiveness of MME.
  4. Advertise on national television – is not correct because national television would not be appropriate for local music shops.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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