Lucy wanted a change from working for someone else at the local art supplies shop.
She wanted to set up her own business selling art supplies.
She estimated that it would cost her £35 000 to set up.
Select ONE answer:
- Lucy has calculated that her Value Added Tax (VAT) will be £2 500
- She estimated costs for the second year of trading will increase by 15%
- There is a 50% possibility that her business will survive the first year
- Lucy has estimated that the demand for his products will increase by 25%
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 3:
- Lucy has calculated that her Value Added Tax (VAT) will be £2 500 – is not correct because it is not a calculated risk.
- Lucy estimated costs for the second year of trading will increase by 15% – is not correct because it is not a calculated risk.
- There is a 50% possibility that his business will survive the first year – is correct because it is a calculated risk.
- Lucy has estimated that the demand for her products will increase by 25% – is not correct because it is not a calculated risk.
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