Business Studies Multiple Choice Question – 28 February 2019

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

Lucy’s Jewels is a local jewellery business making necklaces from round pebbles found on Dorset beaches. Once the pebbles have been collected, they are prepared and made into items of jewellery, by adding colour and glass beads.

Lucy’s Jewels makes 600 items a month. The Average Selling Price per item is £30. Variable costs per necklace are £15 & their Fixed costs per month are £1,000.

What are the monthly total costs for Lucy’s Jewels?

Select ONE answer:

  1. £8,500
  2. £10,000
  3. £13,000
  4. £14,000

 

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:

  1. is not correct because the wrong figures have been used.
  2. TC = TVC + TFC or (600 * £15) + £1,000 = £10,000
  3. is not correct because the wrong figures have been used.
  4. is not correct because the wrong figures have been used.

 

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Business Studies Multiple Choice Question – 27 February 2019

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

Lucy’s Jewels is a local jewellery business making necklaces from round pebbles found on Dorset beaches. Once the pebbles have been collected, they are prepared and made into items of jewellery, by adding colour and glass beads.

Lucy’s Jewels makes 500 items a month. The Average Selling Price per item is £30. Variable costs per necklace are £15 & their Fixed costs per month are £1,000.

What are the monthly total costs for Lucy’s Jewels?

Select ONE answer:

  1. £8,500
  2. £10,000
  3. £13,000
  4. £14,000

 

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. TC = TVC + TFC or (500 * £15) + £1,000 = £8,500
  2. is not correct because the wrong figures have been used.
  3. is not correct because the wrong figures have been used.
  4. is not correct because the wrong figures have been used.

 

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Business Studies Multiple Choice Question – 26 February 2019

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

Which ONE of the following would be a reason to set up a new business as a franchise?

Select ONE answer:

  1. A franchisee can buy supplies from any supplier
  2. The wage rates for all the franchises are the same
  3. Franchisees can make all their own decisions
  4. A franchise has a lower risk of failure

 

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. A franchisee can buy supplies from any supplier – is not correct because the franchisee has to buy from nominated suppliers.
  2. The wage rates for all the franchises are the same – is not correct because different franchises have different wage rates.
  3. Franchisees can make all their own decisions – is not correct because a franchisee cannot make all their own decisions.
  4. A franchise has a lower risk of failure – is correct because a franchise means that the business is backed by a larger company and is less likely to fail.

 

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Business Studies Multiple Choice Question – 25 February 2019

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 an advantage to a business of using venture capital?

Select ONE answer:

  1. It decreases access to additional finance
  2. The business would not have to produce a business plan
  3. The business will pay a lower rate of Corporation Tax
  4. It allows more access to finance

 

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. It decreases access to additional finance – is not correct because other sources of finance are available.
  2. The business would not have to produce a business plan – is not correct because any provider of finance would require a business plan.
  3. The business will pay a lower rate of corporation tax – this is incorrect because taxation is not determined by the source of finance.
  4. It allows more access to finance – is correct because it is another source of finance for the business.

 

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Business Studies Multiple Choice Question – 24 February 2019

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 an advantage to a business of using venture capital?

Select ONE answer:

  1. It decreases access to additional finance
  2. The business would not have to produce a business plan
  3. The business can benefit from expert advice
  4. The business will pay a lower rate of Corporation Tax

 

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 decreases access to additional finance – is not correct because other sources of finance are available.
  2. The business would not have to produce a business plan – is not correct because any provider of finance would require a business plan.
  3. The business can benefit from expert advice – is correct because venture capitalists do give an opportunity for additional help and support to a business.
  4. The business will pay a lower rate of corporation tax – this is incorrect because taxation is not determined by the source of finance.

 

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Accounting Multiple Choice Question – 23 February 2019

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

Which of the following pairs of events would increase the capital of a firm?

Select ONE answer:

  1. An increase in the firm’s fixed assets and a corresponding decrease in its current assets.
  2. An increase in the firm’s fixed assets and a corresponding increase in its liabilities.
  3. A decrease in the firm’s current assets and no change in its liabilities.
  4. An increase in the firm’s assets and a smaller increase in its liabilities.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 4

  • Capital = Assets – Liabilities

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Accounting Multiple Choice Question – 22 February 2019

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

On 1 January, a sole trader had capital of £25,000. During the year, he withdrew £16,000 for his own use and, at 31 December, he had capital of £26,000. If he did not introduce any new capital during the year, his net profit for the year was?

Select ONE answer:

  1. £17,000
  2. £23,000
  3. £29,000
  4. £32,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 1

  • As no capital has been introduced during the year, Capital at 31 December = Capital at 1 January + Net profit for the year – Drawings during the year. Therefore, Net profit for the year = Capital at 31 December – Capital at 1 January + Drawings during the year i.e. £26,000 – £25,000 + £16,000 = £17,000

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