The Multiple Choice Questions Blog

Business Referral Networking UK offers the opportunity to buy one of its franchises for £25 000.

Which ONE of the following is an advantage of buying a franchise?

Select ONE answer:

1. Product rangeBuyer keeps all the profit
2. Buyer chooses own suppliers
3. Buyer makes all the decisions
4. Buyer uses existing brand name

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 ==> Definition of franchise; A business model that allows an individual or business to acquire a licence to use another firm’s branding, product knowledge and systems for a prescribed period of time.  Business Referral Marketing UK a licence to trade using their brand name, products and business systems at a cost of £25 000.  Franchisees who buy into the Business Referral Marketing UK franchise may find it easier and less risky to build a successful business with an existing brand name rather than start with a new and unknown business name.

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Jo’s Floorings is a business that installs linoleum floors, is considering the market positioning of its new range of wooden flooring products. 

Which of the following is a method of market positioning?

Select ONE answer:

1. Product range
2. Market sampling
3. Market mapping
4. Product orientation

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 ==> Definition of market positioning: How you differentiate your brand, product or service from your competitors, in the mind of the customer.  Market mapping is a diagram illustrating a range of positions a business, product or service can take in a market based on any two variables that are important to customers.  By using market mapping Jo’s Floorings will be able to identify where it compares with competitors on variables such as high versus low price, and linoleum versus wooden flooring.
4. Not correct

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Lucy Jewels Ltd is a family-owned jewellery business, has 15 stores and 250 employees in the UK. 

Which of the following is an example of a fixed cost for Lucy Jewels Ltd?

Select ONE answer:

1. Store rents
2. Delivery costs
3. Stock purchases
4. Packaging costs

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 ==> Definition of fixed costs: costs that do not vary with output.  Lucy Jewels Its has 15 stores which will pay an annual rent.  Rent must be paid regularly, whether or not any sales are made therefore this is a fixed cost.
2. Not correct
3. Not correct
4. Not correct

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