Business Studies Multiple Choice Question – 7 March 2019

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

Lucy is looking to open another jewelry store across town and is in the process of preparing a business plan to help her make the decision one way or another.

Which one of the following is a reason to produce a business plan?

Select ONE answer:

  1. To reduce the chance of the business failing
  2. To include personal details of staff who will be employed
  3. To provide an opportunity to attract more customers
  4. To guarantee that the business makes a profit

 

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

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This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1:

  1. Reduces the chance of the business failing – is correct because a business plan gives details of cash flow that can reduce the potential of a business failing.
  2. To include personal details of staff who will be employed – is not correct because a business plan would not include personal details.
  3. Provides an opportunity to attract more customers – is not correct because customers will not see the business plan.
  4. Guarantees that the business makes a profit – is not correct because a business plan can estimate profits but cannot guarantee them.

 

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