Business Studies Multiple Choice Question – 22 January 2022

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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Colin’s company trains workers to lay road surfaces.

His forecasted and actual sales revenue for one month (up to 5 working days per week) are shown below.

  • Forecasted sales revenue £28 000
  • Actual sales revenue £14 000

In order to achieve his forecasted sales revenue, Paul could do each of the following, EXCEPT?

Select ONE answer:

  1.  advertise more
  2. cut costs
  3. discount the training fee
  4. offer training on more days per week

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

  1. Not correct – advertising more should increase sales revenue as the service becomes better known/creates more demand/attracts more customers.
  2. Correct – Definition of sales forecasting, e.g. the estimation of likely revenue/income in a period, given the trading conditions or defines sales revenue. Cutting costs is not a factor that increases demand as it is a supply factor. Cutting costs may lead to an increase in profit not an increase in sales.
  3. Not correct – discounting the training fee could give an advantage over competitors and therefore lead to more orders/increase in sales volume.
  4. Not correct – offering training on more days of the week allows more training to take place and therefore more customers to be catered for.

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Author: stuart001uk2014

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

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