Business Studies Multiple Choice Question – 17 June 2019

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

Business Studies

Alexis an enthusiastic games player. He decided to set up his own business operating daily gaming competitions in Staffordshire He called the business Chase Games. The business is very busy during the summer. The price of a games competition is £500 per day and this includes the use of games equipment, lessons and good & refreshments. Alex hires the equipment from a local shop.

Alex is considering operating his business in a different location when the summer is over. He has produced a cash flow forecast to include in his business plan for a loan.

Which one of the following might be the reasons why Alex produced a cash flow forecast?

Select ONE answer:

  1. It is a legal requirement that a business should have a cash flow forecast
  2. A cash flow forecast ensures that the business will be successful
  3. To identify if the business will require an overdraft
  4. To identify the cash inflows over the last six months

 

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. it is not a legal requirement it is entirely up to the business if they have one.
  2. having a cash flow forecast is no guarantee that the business is successful.
  3. Correct – can identify if the business will need money such as an overdraft.
  4. cash flow forecast is predicting and will not show what has happened.

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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