Business Studies Multiple Choice Question – 3 March 2019

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

Which action below would improve Lucy’s Jewels cash flow, assuming sales remain the same?

Select ONE answer:

  1. Buy cheaper raw materials
  2. Increase the amount spent on advertising
  3. Add additional products to the range sold
  4. Employ additional sales staff

 

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. Buy cheaper raw materials – is correct because buying cheaper raw materials for the products reduces cash outflow.
  2. Increase the amount spent on advertising is not correct because it would initially increase cash outflows.
  3. Add additional products to the range sold is not correct because it would initially increase cash outflows.
  4. Employ additional sales staff is not correct because it would initially increase cash outflows.

 

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