Day: June 3, 2024

Accounting Multiple Choice Question – 3 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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Maximising the wealth of its shareholders is the stated goal of Alex plc.

The objectives have been expressed as a hierarchy of primary and secondary objectives.

Identify which of the following is most likely to be the primary business objective.

Select ONE answer:

  1. To increase the annual profit after tax by %125 in the next 10 years
  2. To introduce an average of two new products each year for the next six years
  3. To double the share price within the next 10 years
  4. To become the market leader in four market segments whithin the next 10 years

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 – To double the share price within the next 10 years is most likely to be the primary business objective. The other three options would be typical secondary objectives for Alex plc in pursuit of the primary objective.
  4. Not correct

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