Business Studies Multiple Choice Question – 10 June 2019

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

Lucy runs a business called LucyArts Ltd, selling a range of art products in Stafford.

Lucy wants to increase the added value of her products.

What is meant by added value?

Select ONE answer:

  1. The difference between what a business pays its employees and what it receives from selling its products
  2. Variable costs minus price
  3. The difference between what a business pays its suppliers and what it receives from selling its products
  4. Price minus total cost

 

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. what you pay employees does not add to a product.
  2. variable minus price gives fixed costs.
  3. Correct – is adding value – adding to what the product has cost and what you sell it for.
  4. price of what? Not specific.

 

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