Business Studies Multiple Choice Question – 20 January 2022

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

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Nancy owned a corporate events company.

Sales revenue fell and her company failed.

This is an example of?

Select ONE answer:

  1. performance-related pay
  2. an increase in orders
  3. good management of cash flow
  4. changing market conditions

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 – performance related pay is not a factor determining demand for the product/service as it rewards employee performance
  2. Not correct – an increase in orders would increase the chance of the company doing well as demand rose
  3. Not correct – good management of cash flow is more likely to help the business continue as it enables the monitoring of cash flow movements
  4. Correct – Accurate definition of changing market conditions – the factors that alter the supply and demand for goods/services or sales revenue, e.g. price x quantity or business income. Identifies what causes market conditions to change e.g. recession, competitors. Therefore a fall in sales revenue could be due to either a fall in units demanded/sold or a decrease in the selling price of the products/service. Which may mean that Sarah’s business may not be able to cover her costs and therefore fail.

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Business Studies Multiple Choice Question – 19 January 2022

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

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In April 2021, due to heavy rainfall and poor weather, the UK Turnip Council warned that the supply of turnips was down by 50%.

The most likely result of this was …. ?

Select ONE answer:

  1. a decrease in the price of turnips
  2. a shift in the supply curve of turnips to the right
  3. a shift in the supply curve of turnips to the left
  4. a movement along the supply curve for turnips

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 – because decrease in the price of turnips would only happen if there had been an increase in supply
  2. Not correct – because shift in the supply curve of turnips to the right implies that there has been an increase in the supply of turnips due factors such as good weather, improvements in agricultural technology
  3. Correct – supply is the amount of goods and/or services a firm is able and willing to produce/provide at a given price and at a given time. Because the bad weather had damaged the crops and therefore turnips became scarce. The supply curve will shift left because the number of turnips available will be reduced no matter what price people pay.
  4. Not correct – because movement along the supply curve for turnips would have only happened if there had been a change in the price of turnips rather than a non-price factor such as the weather

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Business Studies Multiple Choice Question – 18 January 2022

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

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In 2021, the Patent Office granted 100 patents to Pear Ltd for new technologies that it might use in future Pear Phones.

Which one of the following is the main reason why Pear Ltd uses patents?

Select ONE answer:

  1. Patents legally protect Pear Ltd’s ideas
  2. A patent guarantees the commercial success of Pear Ltd
  3. It is a legal requirement for producing mobile phones
  4. UK patents are enforceable around the world

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 – a patent is a legal document guaranteeing the holder the exclusive right to use or license inventions/innovations. It will help Pear Ltd to protect their technology being copied by bigger rivals. This will allow Pear Ltd to exploit inventions / innovations and gain a competitive advantage over rivals.
  2. Not correct – because a patent cannot guarantee commercial success of a mobile phone because this will depend upon consumer demand, price and competitor actions
  3. Not correct – because whilst patents may be a sensible precaution they are not a legal requirement to produce mobile phones
  4. Not correct – because patents are only enforceable in the country in which they are issued

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Business Studies Multiple Choice Question – 17 January 2022

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

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Alex Sportswear produce a range of footwear for men, women, children, different sports and other leisure activities.

The most likely reason for Alex to use market segmentation is to …. ?

Select ONE answer:

  1. more effectively target its market
  2. reduce the need for market research
  3. avoid the need to advertise
  4. reduce the range of products being offered

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 – Market segmentation is the process of dividing a market up into different groups of customers. In a segmented market, customers are more likely to buy products that are made to match their needs, thus increasing Alex’s sales. This increases profitability and reduces the threat of direct competition.
  2. Not correct – because Alex will still need to carry out market research into what the different market segments would require
  3. Not correct – because Alex will still need to advertise in order to increase awareness of its products to different segments
  4. Not correct – because market segmentation increases the range of products as the needs of different segments are identified and provided for

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Business Studies Multiple Choice Question – 16 January 2022

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

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Alex Market Research carries out product trials on behalf of some of the biggest retail brands in the UK seeing what new products works well with retail customers in Staffordshire.

Businesses carry out product trials for new products to…?

Select ONE answer:

  1. guarantee sales
  2. reduce their margin of safety
  3. assess the likely levels of demand
  4. gather secondary research

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 – because product trials do not guarantee sales as they do not take other factors into consideration e.g. competition
  2. Not correct – because product trials should increase the margin of safety not reduce it because consumers are more likely to purchase a product if they have already tried it as a free sample
  3. Correct – Product trials is launching a product on a limited scale to measure initial reactions. Feedback from customers can be used to adapt or modify the product. This will increase the likelihood of successful sales when the product is launched on a national basis.
  4. Not correct – because products trials are a method of primary research because they collect first hand information

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