Business Studies Multiple Choice Question – 7 January 2019

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

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. Reducing opening hours
  2. A new competitor opens in the local area
  3. Providing a low-priced delivery service
  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 3:

  1. Reduce opening hours – is not correct because it reduces the opportunities for the customer to buy.
  2. A new competitor opens in the local area – is not correct because a new competitor would reduce the competitiveness of MME.
  3. Provide a low-priced delivery service – is correct because by offering a delivery service that is low-priced could improve sales.
  4. Advertise on national television – is not correct because national television would not be appropriate for local music shops.

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