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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