Month: April 2022

Business Studies Multiple Choice Question – 15 April 2022

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

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Electromac has launched the long awaited very powerful next generation games console called the Kenyo, which uses newly developed technology.

What is the most appropriate pricing strategy for the new Kenyo?

Select ONE answer:

  1. Predatory pricing
  2. Price skimming
  3. Cost-plus pricing
  4. Competitive pricing

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 – Electromac is introducing a new technology, not aiming to force rivals out by offering a price so low it will not recover costs such as research and development.
  2. Correct – Price skimming is a pricing strategy used by businesses to initially set a high price for a new product which will reduce over time. Hard-core games players will pay higher prices to have the next generation equipment as soon as it is available. This allows Electromac to maximise its revenues in the early stages of the new Kenyo launch and price skimming will allow Electromac to recoup R&D costs and still make profit.
  3. Not correct – using standard mark-up pricing will not take advantage of the introduction of new technologies and the long-awaited launch of a next generation Kenyo.
  4. Not correct – Electromac’s new technology means there are no immediate competitive substitutes so they don’t need to offer a competitive price yet.

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Business Studies Multiple Choice Question – 14 April 2022

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

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UK fashion T-shirt manufacturer Stafford Fashions Ltd needs a new machine costing £125 000 to cut fabric for its T-shirt production lines.

Which one of the following would be the MOST appropriate source of finance?

Select ONE answer:

  1. Trade credit
  2. Overdraft
  3. Leasing
  4. Debenture

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 – trade credit is normally designed for purchase of raw materials such as fabrics from suppliers rather than large items of capital equipment, such as a new machine.
  2. Not correct – overdrafts are usually given to help cash flow problems in the short term not for long term purchases of assets.
  3. Correct – leasing, allows a company to rent/without owning an asset. Leasing is the most suitable for SF Ltd because they will have the use of the cutting machine immediately. Therefore SF Ltd will not have to find, borrow or pay out the full £125k before starting to earn revenue and potentially profits from its operation.
  4. Not correct – debentures offer longer term finance usually to develop much larger capital projects, which is not what is required to purchase a piece of equipment costing £125 000.

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Economics Multiple Choice Question – 13 April 2022

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

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A government reduced the tax on company profits from 28% to 20%.

Which statement best describes this policy?

Select ONE answer:

  1. It is both a contractionary fiscal policy and a supply-side policy.
  2. It is both an expansionary fiscal policy and a supply-side policy.
  3. It is both an expansionary fiscal policy and an expansionary monetary policy.
  4. It is both an expansionary monetary policy and a supply-side policy.

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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Economics Multiple Choice Question – 12 April 2022

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

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Which policy is most likely to help to correct an adverse balance on the current account of the balance of payments?

Select ONE answer:

  1. abolishing tariffs
  2. devaluing the currency
  3. reducing direct taxes
  4. reducing indirect taxes

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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Economics Multiple Choice Question – 11 April 2022

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

Photo by Kelly Lacy on Pexels.com

In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP.

Which policy is most likely to help this aim?

Select ONE answer:

  1. a decrease in import tariffs
  2. a decrease in the rate of interest
  3. an increase in the sale of state-owned assets
  4. an increase in government pension payments

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.