Business Studies Multiple Choice Question – 12 October 2019

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

Lucy started a business called StaffordWelly. It makes boots with a high heel to appeal to women and festival-goers.

Lucy wanted to expand StaffordWelly but needed additional capital. They appeared on the television programme SharkTank.

One of the venture capitalists (a Dragon) invested £500 000 for a 20% stake in the business.

Which ONE of the following is a disadvantage to Lucy of a venture capitalist investing in her business?

 

Select ONE answer:

  1. It will reduce the control of the existing owners
  2. The venture capitalist risks losing their investment
  3. Higher corporation tax will need to be paid
  4. The risk of WedgeWelly failing is reduced

 

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 – the other answers would not be a disadvantage of a venture capitalist investing in her business.

 

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