Business Studies Multiple Choice Question – 1 January 2020

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

Happy Covers was started by Lucy in 2017. The business hires out chair covers and ribbons for weddings, school proms and other events.

In Lucy’s second year of trading the interest rate increased from 1.5% to 3%.

Identify ONE possible effect of this change in the interest rate on Lucy’s business?

 

Select ONE answer:

  1. Lower sales
  2. Greater competition from rivals
  3. Increased variable costs
  4. Reduced fixed costs

 

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

 

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