This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
Not correct
Correct – Definition of capacity utilisation e.g. measures the proportion/percentage of the maximum possible output which is actually produced, with the formula – – > Current Output / Maximum possible output x 100 = = > 125 / 1,500 x100 = 75%
This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
Not correct – because an increase in cash flow will help Blockbuster to trade effectively in the long term as they have cash to pay suppliers and employees.
Correct – Definition of business failure e.g. when costs exceeds revenues in the long run OR Definition of online sales e.g. products or services can be bought and received on the internet rather than in a physical outlet. Blockbuster failed because it sold DVDs and computer games from traditional retail outlets rather than through online sales as more people are buying DVDs online. This has resulted in a fall in demand for DVDs bought through traditional retail outlets such as Blockbuster.
Not correct – because a decrease in competition from supermarkets could increase sales for Blockbuster as customers have less choice as to where to purchase DVDs and games.
Not correct – because if there is a decrease in labour costs Blockbuster should see an increase in operating profits as costs are lower resulting in the business being able to continue to trade.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
Not correct – because an increase in the rate of sales tax is likely to increase prices because the tax will be mostly passed on to the consumer as a higher price
Not correct – because increasing consumer incomes will shift the demand curve to the right therefore increasing Price
Correct – Definition of supply e.g. supply is the amount of goods/services that a producer is willing and able to supply at a given price at a given time. An increase in the supply of components should lead to a decrease in the price of these components which will lower the costs of production for Apple. The cost savings may be passed on to consumers in the form of lower prices.
Not correct - because extra advertising costs would lead to an increase in prices due to an higher overall costs
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
Not correct – because exports are more likely to fall than increase. Rolls-Royce goods may become less price competitive internationally due to inflation
Not correct – because at times of higher inflation Rolls-Royce would be most likely to decrease staff levels because of falling demand caused by inflation
Not correct – because there is likely to be a fall in demand as prices rise due to higher inflation and consumers will have less disposable income and be paying higher prices for vital goods such as food, housing and utilities
Correct – Definition of Inflation e.g. is the rate at which the general level of prices for goods and services is rising. Suppliers to Rolls-Royce are likely to face demands for higher wages and face increased raw material costs themselves. This means suppliers are likely to charge Rolls-Royce higher prices to maintain profitability.
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
Correct – Definition of Trade credit e.g. given by suppliers allowing a business to purchase stock and material with payment at a later date. Trade credit is the most suitable because it allows Maris Sal to obtain small amounts of raw materials to manufacture products for sale. Because payments can be made to suppliers once the stock is sold
Not correct – because debentures offer longer term finance usually to develop larger capital projects, which is not what Maris Sal requires to purchase materials to make jewellery.
Not correct – Maris Sal would not issue share capital to purchase materials to produce their jewellery because share ca[ital. is used to raise large sums of money, not to purchase stock.
Not correct – because if Maris Sal took out a medium term method of finance like a commercial bank loan they would be required to make immediate repayments and pay interest and may have to refinance to re-stock when everything was sold.
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