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.

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Business Studies Multiple Choice Question – 5 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 following is a reason why a sole trader would become a private limited company?

Select ONE answer:

  1. The business will have unlimited liability
  2. The business can keep financial records confidential
  3. Shareholders are liable for all debts
  4. Increased ability to raise finance

 

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. The business will have unlimited liability – is not correct because the Ltd company does have limited liability.
  2. Can keep financial records confidential – is not correct because the Ltd company has to publish accounts.
  3. Shareholders are liable for all debts – is not correct because shareholders are only liable for the amount they invest.
  4. Increased ability to raise finance – is correct because the Ltd company can sell shares to raise finance.

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Business Studies Multiple Choice Question – 4 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 following is a reason why a sole trader would become a private limited company?

Select ONE answer:

  1. The business will have unlimited liability
  2. The risk of losing personal assets is reduced
  3. The business can keep financial records confidential
  4. Shareholders are liable for all debts

 

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. The business will have unlimited liability – is not correct because a Ltd company does have limited liability.
  2. The risk of losing personal assets is reduced – is correct because for a Ltd company the risks are lower than a sole trader due to limited liability.
  3. Can keep financial records confidential – is not correct because a Ltd company has to publish accounts.
  4. Shareholders are liable for all debts – is not correct because shareholders are only liable for the amount they invest.

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