Business Studies Multiple Choice Question – 12 January 2019

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

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

Which one of the following would be a non-financial objective for Bob?

Select ONE answer:

  1. Generating wealth
  2. Personal satisfaction
  3. Maximising profit
  4. Regular income

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 2:

  1. Generating wealth – is not correct because generating wealth is a financial objective.
  2. Personal satisfaction – is correct because it is a non-financial objective.
  3. Maximising profit – is not correct because maximisation of profit is a financial objective.
  4. Regular income – is not correct because income is financial.

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Business Studies Multiple Choice Question – 11 January 2019

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

Which ONE of the advertisements below would break employment legislation when recruiting a drummer for a band?

Table 44

 

Select ONE answer:

  1. Advertisement A
  2. Advertisement B
  3. Advertisement C
  4. Advertisement D

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1:

  1. Advertisement A – is correct because it breaks the legislation relating to sex.
  2. Advertisement B – is not correct because it does not break any legislation.
  3. Advertisement C – is not correct because it does not break any legislation.
  4. Advertisement D – is not correct because it does not break any legislation.

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Business Studies Multiple Choice Question – 10 January 2019

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

Which ONE of the advertisements below would break employment legislation when recruiting a drummer for a band?

Table 43

Select ONE answer:

  1. Advertisement A
  2. Advertisement B
  3. Advertisement C
  4. Advertisement D

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4:

  1. Advertisement A – is not correct because it does not break any legislation.
  2. Advertisement B – is not correct because it does not break any legislation.
  3. Advertisement C – is not correct because it does not break any legislation.
  4. Advertisement D – is correct because it breaks the legislation relating to age.

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Business Studies Multiple Choice Question – 9 January 2019

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

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

The bank has increased the interest rate on BMF’s existing loan from 6.0% to 8%. Identify ONE effect of this change on BMF.

Select ONE answer:

  1. Increased variable costs
  2. Decreased fixed costs
  3. Increased cash outflows
  4. Increased profit

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3:

  1. Increased variable costs – is not correct because the interest rate on loans is a fixed cost.
  2. Decreased fixed costs – is not correct because an increase in interest rates will increase fixed costs.
  3. Increased cash outflows – is correct because higher interest rates will lead to higher cash outflows.
  4. Increased profit – is incorrect because the profit will decrease.

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Business Studies Multiple Choice Question – 8 January 2019

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

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

The bank has increased the interest rate on BMF’s existing loan from 6.0% to 8%. Identify ONE effect of this change on BMF.

Select ONE answer:

  1. Decreased net cash flow
  2. Increased variable costs
  3. Decreased fixed costs
  4. Increased profit

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1:

  1. Decreased net cash flow – is correct because the net cash flow would be affected due to higher cash outflows.
  2. Increased variable costs – is not correct because the interest rate on loans is a fixed cost.
  3. Decreased fixed costs – is not correct because an increase in interest rates will increase fixed costs.
  4. Increased profit – is incorrect because the profit will decrease.

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Business Studies Multiple Choice Question – 7 January 2019

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

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

Which ONE of the following would improve the competitiveness of BMF against other local music shops?

Select ONE answer:

  1. Reducing opening hours
  2. A new competitor opens in the local area
  3. Providing a low-priced delivery service
  4. Advertising on national television

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3:

  1. Reduce opening hours – is not correct because it reduces the opportunities for the customer to buy.
  2. A new competitor opens in the local area – is not correct because a new competitor would reduce the competitiveness of MME.
  3. Provide a low-priced delivery service – is correct because by offering a delivery service that is low-priced could improve sales.
  4. Advertise on national television – is not correct because national television would not be appropriate for local music shops.

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Business Studies Multiple Choice Question – 6 January 2019

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

Bob set up Bob’s Musical Fun (BMF). BMF is a high street shop that sells only rare vinyl records. BMF also takes bookings for a number of local bands. The customer asks BMF for a band that plays a particular type of music and BMF finds a band that suits the request. Bob needs a loan to expand his business. As BMF is an established business, the bank agreed to a loan with an interest rate of 6.0%.

Which ONE of the following would improve the competitiveness of BMF against other local music shops?

Select ONE answer:

  1. Offering advice on rare records
  2. Reducing opening hours
  3. A new competitor opens in the local area
  4. Advertising on national television

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 1:

  1. Offer advice on rare records – is correct because giving advice on rare records enables MME to compete with other music shops that do not offer this service.
  2. Reduce opening hours – is not correct because it reduces the opportunities for the customer to buy.
  3. A new competitor opens in the local area – is not correct because a new competitor would reduce the competitiveness of MME.
  4. Advertise on national television – is not correct because national television would not be appropriate for local music shops.

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