The Multiple Choice Questions Blog

In September 2021, the average price of petrol in the UK increased by 16% per litre over September 2020, which resulted in higher inflation.

This increase in the price of petrol may have had a significant impact on UK businesses, because ….

Select ONE answer:

1. quality of products
2. promotion of products
3. sales forecasting
4. branding

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
2. Not correct
3. Correct – Inflation is an increase in the average price level/across the economy OR supply is the amount of goods provided or produced in a given time period at a certain price. Increased fuel prices will lead to increased transport costs. Costs of supplies may increase because a business may pass on increased costs of transport.
4. Not correct

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James Dyson made thousand’s of prototypes when designing his first bagless vacuum cleaner; all of them turned out to be failures.

This fact best demonstrates James Dyson’s …

Select ONE answer:

1. ethical stance
2. risk-taking
3. initiative
4. resilience

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
2. Not correct
3. Not correct
4. Correct – Resilience means not giving up easily/determination to succeed. It is a key characteristic of a successful entrepreneur. Which, given the high number of prototypes this is evident of James Dyson’s resilience.

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The UK Government tries to encourage banks to increase lending to small businesses.

Which one of the following is true about bank loans given to small businesses?

They are ….

Select ONE answer:

1. often secured against assets
2. an internal method of finance
3. usually short term compared to overdrafts
4. a form of trade credit

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 loan is a method of finance which is repaid over a specific period of time/medium or long term/with interest. Lending to small businesses can be risky. Therefore banks often require security/collateral to reduce the risk.
2. Not correct
3. Not correct
4. Not correct

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