Business Studies Multiple Choice Question – 11 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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Lucy started her own range of hair products called Lucy’s Fine Hair. The Lucy No1 Hair Kit sold out within minutes of its launch in the UK.

This quick selling out of the hair kits was most likely caused by poor?

Select ONE answer:

  1. quality of products
  2. promotion of products
  3. sales forecasting
  4. branding

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 3

  1. Not correct – it is more difficult to coordinate overall strategy as each hotel miNot correct – product quality must have been very good if all the hair kits have been purchased in minutes.
  2. Not correct – customers must have been made aware of the hair kits in order to purchase them which resulted in all of the inventory selling out.
  3. Correct – sales forecasting is an estimate of future sales.  Lucy’s Fine Hair must have underestimated the levels of demand for the No1 Hair Kits.  This resulted in Lucy’s Fine Hair not having enough inventory to meet demand in the UK.
  4. Not correct – Lucy’s Fine Hair must have a strong brand image for the No1 Hair Kits to sell out so quickly.

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Author: stuart001uk2014

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

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