Day: June 2, 2024

Accounting Multiple Choice Question – 2 June 2024

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

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Lucy, the managing director of Alex Ltd, has set a primary objective of growth in profits for the company.

She aims to concentrate on product development to support this objective.

Identify whether the following will be suitable secondary objectives to achieve the growth in profits via product development.

i.Bringing in new products

ii.Reducing labour turnover

iii.Investing in research and development

Select ONE answer:

  1. i and ii only
  2. ii and iii only
  3. i and iii only
  4. i, ii and iii

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
  2. Not correct
  3. Correct – Listed under the broad heading of product development, Lucy might choose to bring in new products; develop a product range; invest in research and development; and/or provide products of a certain quality ta a certain price level. If she were concentrating on employees and management to support, her primary objective then she might aim to reduce labour turnover.
  4. Not correct

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