Accounting Multiple Choice Question – 21 April 2025

In the mythical country of Albion, much of the population has a risk seeking attitude towards financial matters.

Albion’s financial system is therefore likely to be a….?

Select ONE answer:

1. A market-based system
2. A stakeholder system
3. A bank-based system
4. A public policy system

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 1

1. Correct == > Household preference for equity (more risk) rather than bank deposits (less risk) means that equity finance is likely to dominate the financing of businesses.
2. Not correct
3. Not correct
4. Not correct

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