Day: December 1, 2024

Accounting Multiple Choice Question – 1 December 2024

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

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For many years, Alex plc’s main source of revenue was the sale of floppy storage disks for computers.

This source of revenue fell sharply after the introduction of digital hard storage disks for computers.

In relation to the success of hard disk storage, Alex pic was the victim of?

Select ONE answer:

  1. Operational risk
  2. Financial risk
  3. Business risk
  4. Market risk

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 == > The nature of the computer storage business changed through new technology bringing innovations. Alex Ltd’s main business radically fell because of this – it suffered product risk, a form of business risk
  4. Not correct

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