Business Studies Multiple Choice Question – 26 July 2020

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

construction working industry metal
Photo by Kateryna Babaieva on Pexels.com

Lucy is a driving instructor. Three years ago, she decided to set up on her own and researched being a sole trader or buying into a franchise. Lucy decided to become a sole trader. She operates in a highly competitive market.

Lucy provides her customers with a computer print-out record at the end of each lesson, which highlights where the learner needs to improve. She also charges a price lower than her rivals for each lesson.

Which ONE of the following methods is most likely to give Lucy a competitive advantage?

 

Select ONE answer:

  1. Operating as a sole trader.
  2. Operating in a competitive market.
  3. Providing high quality tuition.
  4. Providing a service for the community.

 

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

 

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Business Studies Multiple Choice Question – 25 July 2020

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

construction working industry metal
Photo by Kateryna Babaieva on Pexels.com

Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.

After a successful 24 months trading on the internet from home she wanted to expand the business.

Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.

During Lucy’s second year of trading, bank interest rates increased from 4% to 6%.

Identify ONE possible effect of this change on Lucy’s business.

 

Select ONE answer:

  1. A reduction in fixed costs due to lower repayments on Lucy’s overdraft.
  2. An increase in fixed costs due to higher repayments on Lucy’s overdraft.
  3. A rise in sales due to higher levels of consumer spending.
  4. A greater chance of rivals entering the market.

 

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

 

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

Business Studies Multiple Choice Question – 24 July 2020

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

construction working industry metal
Photo by Kateryna Babaieva on Pexels.com

Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.

After a successful 24 months trading on the internet from home she wanted to expand the business.

Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.

During Lucy’s second year of trading, bank interest rates increased from 4% to 6%.

Identify ONE possible effect of this change on Lucy’s business.

 

Select ONE answer:

  1. A fall in sales due to lower levels of consumer spending.
  2. A reduction in fixed costs due to lower repayments on Lucy’s overdraft.
  3. A rise in sales due to higher levels of consumer spending.
  4. A greater chance of rivals entering the market.

 

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

 

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

Business Studies Multiple Choice Question – 23 July 2020

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

construction working industry metal
Photo by Kateryna Babaieva on Pexels.com

Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.

After a successful 24 months trading on the internet from home she wanted to expand the business.

Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.

During Lucy’s second year of trading, bank interest rates increased from 4% to 6%.

Identify ONE possible effect of this change on Lucy’s business.

 

Select ONE answer:

  1. A reduction in fixed costs due to lower repayments on Lucy’s overdraft.
  2. A rise in sales due to higher levels of consumer spending.
  3. A greater chance of rivals entering the market.
  4. A worsening net cash flow position.

 

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

 

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

Business Studies Multiple Choice Question – 22 July 2020

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

construction working industry metal
Photo by Kateryna Babaieva on Pexels.com

Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.

After a successful 24 months trading on the internet from home she wanted to expand the business.

Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.

Which ONE of the following is an example of a CALCULATED RISK for Lucy’s business?

 

Select ONE answer:

  1. Lucy’s costs had risen by 40% in the past 9 months.
  2. Lucy has calculated her yearly income tax as £9,895.
  3. There is an 80% chance of Lucy’s business failing.
  4. Lucy has estimated that demand will rise by 40% over the next 18months.

 

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

 

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

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