Business Studies Multiple Choice Question – 30 June 2022

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

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The number of people aged under 30 in Ruritania is increasing each year.

Mumthings plc, a retailer of products for babies and children, is opening new stores in Ruritania.

Which one of the following factors is most likely to have influenced this decision by Mumthings plc?

Select ONE answer

  1. E-commerce
  2. Demographic
  3. Ethical
  4. Environmental

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 – e-commerce would not require Mumthings to open new stores in Ruritania.
  2. Correct – Demographics refers to changes in and the structure of the population. The under 30 population are more likely to have babies and buy Mumthings’s products. This increasing demand comes from demographic change and suggests a growing market for Mumthings.
  3. Not correct – ethical factors concern the way Mumthings runs its business, not whether they open stores.
  4. Not correct – environmental factors would influence the way Mumthings build and operate new stores in Ruritania, not whether they open new stores.

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Business Studies Multiple Choice Question – 29 June 2022

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

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In March 2022, Electromac Group, a multinational engineering business, reported the following annual results.

Revenue £64 826M
Cost of sales £60 737M
Gross profit £4 089M
Other operating expenses £546M

What was the profit in relation to revenue %?

Select ONE answer:

  1. 5.47%
  2. £3 543m
  3. 6.31%
  4. £64 280m

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 – formula for margin is: profit for the year/revenue x 100. Profit for year is £3 543 or 4 089-546. Therefore £3 543m / £64 826m x 100 = 5.47%
  2. Not correct
  3. Not correct
  4. Not correct

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Business Studies Multiple Choice Question – 28 June 2022

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

woman draw a light bulb in white board
Photo by Andrea Piacquadio on Pexels.com

Michelle owns and runs a virtual PA business servicing small and medium sized businesses in Staffordshire helping them cope with their routine administration tasks. The business is structured as a sole trader.

Michelle needs a new printer costing £5 000.

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

Select ONE answer

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

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 – the photocopier will cost £5 000 and an overdraft is usually for small amounts of money or emergencies over a short period of time.
  2. Correct – Leasing allows a company to rent the use of a non-current asset, on payment of a regular fee. Michelle has the use of the printer immediately without having to find £5 000 but she will never own the asset, and because she knows what the regular payments will be, and she can be take the planned benefits of leasing agreements e.g. servicing/insurance/upgrades.
  3. Not correct – Michelle’s business is not a public limited company and therefore cannot issue debentures.
  4. Not correct – trade credit is not designed to purchase large items of capital equipment such as a £5 000 photocopier.

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Business Studies Multiple Choice Question – 27 June 2022

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

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The Staffordshire Beer Company produces its beer using a closely guarded secret recipe.

This is likely to give The Staffordshire Beer Company a….

Select ONE answer:

  1. competitive advantage
  2. market orientation
  3. market map
  4. test market

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 – Competitive advantage is any positive feature that distinguishes a company from its competitors. In this case, the competitive advantage comes from Staffordshire’s secret recipe that no other drinks company can use. Customers who like the taste of the Beer because of its secret recipe can only buy from Staffordshire Beer which then generates consumer loyalty, which is a source of competitive advantage.
  2. Not correct – the secret recipe is an aspect of product orientation not market orientation.
  3. Not correct – market mapping places the Beer in relation to its competitors and is nothing to do with the secret recipe.
  4. Not correct – test marketing would involve trialing different recipes and there is only one for Staffordshire Beer Company’s Beer.

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Business Studies Multiple Choice Question – 26 June 2022

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

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Lucy started and owns “Big Time Art Student”, a small business that sells 100% woollen clothes spun from wool from local Dorset sheep.

Which ONE of the following is MOST LIKELY to be the structure of Lucy’s business?

Select ONE answer:

  1. Partnership
  2. Co-operative
  3. Sole trader
  4. Public limited company

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 – a partnership is owned by two or more people and “Big Time Art Student”, was set up and owned by Lucy.
  2. Not correct – with any co-operative the ownership is shared between many people. Lucy does not share ownership with any other person.
  3. Correct – A sole trader is a business set up, owned and run by one person with unlimited liability. Most small businesses start as sole traders because of the simplicity of the structure/it is easy to set up. As Lucy has set up and owns this business herself, meaning she has no partners or shareholders, she can make all of the business decisions and keep the profits herself.
  4. Not correct – Public Limited Companies have shares that are traded on the stock exchange and multiple owners are called shareholders which own the business. As a sole trader, this option is not open to Lucy.

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