Business Studies Multiple Choice Question – 9 January 2022

The Game Group announced the closure of hundreds of retail stores in 2012, which led to thousands of job losses.

This was most likely due to ….

Select ONE answer:

1. a decrease in the price of computer games purchased online
2. lower opportunity costs for the Game Group
3. a lower break-even revenue level for computer consoles
4. an increase in debentures

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 – Computer games purchased online are a substitute for computer games sold in retail stores. So if they fall in price the online games will face an increase in demand as they represent better value for money. As a result, the demand for games sold in shops may fall causing the sales revenue for the Game Group shops to fall which led to the closures/job losses
2. Not correct
3. Not correct
4. Not correct

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