Month: March 2019

Business Studies Multiple Choice Question – 6 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 include personal details of staff who will be employed
  2. To provide an opportunity to attract more customers
  3. To guarantee that the business makes a profit
  4. To help gain potential investors

 

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. To include personal details of staff who will be employed – is not correct because a business plan would not include personal details.
  2. Provides an opportunity to attract more customers – is not correct because customers will not see the business plan.
  3. Guarantees that the business makes a profit – is not correct because a business plan can estimate profits but cannot guarantee them.
  4. Helps to gain potential investors – is correct because it provides investors with the information they require.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Business Studies Multiple Choice Question – 5 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. Increase the amount spent on advertising
  2. Add additional products to the range sold
  3. Rent cheaper premises
  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 3:

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

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Business Studies Multiple Choice Question – 4 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. Increase the amount spent on advertising
  2. Increase the price of each item
  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 2:

  1. Increase the amount spent on advertising is not correct because it would initially increase cash outflows.
  2. Increase the price of each item is correct because it would increase cash inflows in the short-term.
  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.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Business Studies Multiple Choice Question – 2 March 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 £20 & their Fixed costs per month are £2,000.

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 3:

  1. is not correct because the wrong figures have been used.
  2. is not correct because the wrong figures have been used.
  3. is not correct because the wrong figures have been used.
  4. TC = TVC + TFC or (600 * £20) + £2,000 = £14,000

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.