Month: February 2025

Accounting Multiple Choice Question – 8 February 2025

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

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In which of the following projects would a venture capital organisation be least likely to invest?

Select ONE answer:

  1. A business start-up
  2. A management buyout
  3. Renovation of a production facility
  4. Replacement of an existing production line with a process using a new technology

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 == > Venture capital is generally most appropriate for new investments with above average risk. Renovation of an existing facility is a part of the ongoing activity of the business and is unlikely to have much impact on the overall level of returns. It is therefore unlikely to be appropriate for a venture capital investment.
  4. Not correct

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Accounting Multiple Choice Question – 7 February 2025

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

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Which of the following is an example of an institutional investor?

Select ONE answer:

  1. The Bank of England
  2. The Financial Reporting Council
  3. The Financial Conduct Authority
  4. A unit trust

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > The Bank of England is the UK central bank, and the Financial Reporting Council and Financial Conduct Authority are regulators. A unit trust is an institutional investor, along with for example pension funds and insurance companies.

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Accounting Multiple Choice Question – 6 February 2025

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

Photo by Nataliya Vaitkevich on Pexels.com

‘A short-term wholesale market for securities maturing in one year, such as certificates of deposit, treasury bills and commercial paper.’

What type of market from the list below does the definition above relate to?

Select ONE answer:

  1. Capital market
  2. The London Stock Exchange
  3. AIM (Alternative Investment Market)
  4. Money 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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Money market. AIM and the London Stock Exchange are both examples of capital markets.

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Accounting Multiple Choice Question – 5 February 2025

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

Photo by Nataliya Vaitkevich on Pexels.com

Any person who brings together providers and users of finance, whether as broker or principal, is known as?

Select ONE answer:

  1. A business angel
  2. A venture capitalist
  3. A merchant banker
  4. A financial intermediary

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Financial intermediary is the general term for anyone who carries out this function. Business angels, merchant bankers and venture capitalists may all act as financial intermediaries.

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Accounting Multiple Choice Question – 4 February 2025

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

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Alex, a financial consultant has made the following statements about venture capital.

•Statement 1 – Venture capitalists may realise their investment by selling their shares following flotation on the stock exchange

•Statement 2 – Venture capitalists never sit on the board of a company

•Statement 3 – Venture capitalists normally expect a company’s existing owners to bear a substantial part of the risk

Which of the statements are true?

Select ONE answer:

  1. Statements 1 and 2 only
  2. Statements 2 and 3 only
  3. Statements 1 and 3 only
  4. Statements 1, 2 and 3

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 == > Venture capitalists often will want a place on the board to secure their investment, so (statement 2) is false. They are very likely however to realise their investment by selling their shares following flotation on the stock exchange (statement 1), and they would normally expect a company’s existing owners to bear a substantial part of the risk (statement 3).
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.