Category: Business Studies

Business Studies Multiple Choice Question – 1 August 2017

A small bookshop runs an overdraft of £1,000 for the past 12 months. The rate of interest on the overdraft was 8%. The bank has now written to the business saying that its overdraft rate will change to 10%? What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months?

Select ONE answer:

  1. £100
  2. £80
  3. £20
  4. £10
  5. £50

What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months at 16% interest?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – Year 1 interest = £1,000 * 8% = £80 Year 2 interest = £1,000 * 10% = £100. The difference is £100 -£80 = £20 increase in overdraft interest costs.

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Business Studies Multiple Choice Question – 22 July 2017

A business plan is?

Select ONE answer:

  1. A guarantee of success
  2. Produced by the bank
  3. Likely to include a marketing and financial plan
  4. A legal requirement
  5. Only required by companies

Explain one possible benefit of producing a business plan for potential investors:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 3 – will normally include a marketing and financial plan amongst other sections.

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Business Studies Multiple Choice Question – 21 July 2017

A stakeholder is ….?

Select ONE answer:

  1. Is always an owner of the business
  2. Is an individual or group affected by a firm’s actions
  3. Must be an employee of the business
  4. Must be linked to the government
  5. Must be a customer

State four stakeholders groups:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 2 – Stakeholders are individuals or groups affected by a firm’s decision either internally like an employee or externally like a customer.

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Business Studies Multiple Choice Question – 20 July 2017

A cash-flow forecast estimates?

Select ONE answer:

  1. Future profits
  2. Future assets
  3. Future sales
  4. Future inflows and outflows of cash
  5. Costs

Why might a sale not increase a firm’s cash-flow?:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 4 – A cash-flow forecast estimates future inflows and future outflows of cash

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Business Studies Multiple Choice Question – 19 July 2017

A Sole Trader is?

Select ONE answer:

  1. Is owned by shareholders
  2. Has limited liability
  3. Has unlimited liability
  4. Has “Ltd” after its name
  5. Is only legal for 5 years

Explain ONE reason why people set up in business as a sole trader:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS5 classes.

The answer is 3 – A sole trader has unlimited liability

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