Business Studies Multiple Choice Question – 4 October 2021

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

Business Studies
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Stafford Pants is a company limited by guarantee manufacturing ‘underwear with style’. For every pair of boxer shorts it sells, Stafford Pants pays Alex to plant ten deciduous trees to further beautify Cannock Chase.

The most likely motivation for Stafford Pants for being in business is to…?

Select ONE answer:

  1. make a contribution to society
  2. pay employees the minimum wage
  3. maximise and retain its profits
  4. keep costs to a minimum

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – This is a business that has a clear mission to improve social and/or environmental well- being alongside their profit-making activities.  Stafford Pants pays for planting trees from every pair sold, which improves the local area.  Therefore, it clearly aims to make a difference by ensuring every pair of shorts sold makes a positive contribution to society.
  2. Not correct – Stafford Pants have to pay its employees a minimum wage regardless of their motivation because it is the law.
  3. Not correct – if it wanted to maximise and retain its profits, Stafford Pants would not pay for planting trees, it would keep all its money in the business.
  4. Not correct – planting trees will incur extra costs.

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Author: stuart001uk2014

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

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