Business Studies Multiple Choice Question – 8 January 2022

In September 2021, the average price of petrol in the UK increased by 16% per litre over September 2020, which resulted in higher inflation.

This increase in the price of petrol may have had a significant impact on UK businesses, because ….

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
2. Not correct
3. Correct – Inflation is an increase in the average price level/across the economy OR supply is the amount of goods provided or produced in a given time period at a certain price. Increased fuel prices will lead to increased transport costs. Costs of supplies may increase because a business may pass on increased costs of transport.
4. Not correct

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