The Multiple Choice Questions Blog

Whilst at Art College, Lucy made Christmas cards for friends and relatives.  She wants to start a full-time business but needs to decide between setting up as a sole trader or buying into a franchise.  The market for Christmas cards is very competitive but Lucy produces a card that is designed and made to the customer’s exact requirements.

Which ONE of the following is the most likely to give Lucy a competitive advantage?

Select ONE answer:

1. Having unlimited liability
2. Operating in a competitive market
3. Identifying different market segments
4. Providing a unique product

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy has a business that designs large fancy new gardens but has sadly recently experienced a fall in sales.

Lucy recorded the following transactions between January and June 2019.

• Money paid to Lucy by her customers £25,000
• Money owed to Lucy by her customers £50,000
• Cash outflow £150,000

Which ONE of the following is the most outcome from the above information?

Select ONE answer:

1. Growth
2. Franchise
3. Insolvency
4. Expansion

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy has a business that designs large fancy new gardens but has sadly recently experienced a fall in sales.

Which ONE of the following would explain this fall sales of Lucy’s business?

Select ONE answer:

1. Cost of raw materials has fallen
2. Gardens are smaller and there is less space for fancy new gardens
3. The Bank of England interest rates have remained the same
4. Lucy’s new improved staff training programme

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy has a business that designs large fancy new gardens but has sadly recently experienced a fall in sales.

Which ONE of the following would explain this fall sales of Lucy’s business?

Select ONE answer:

1. Weather has been poor over the last few months
2. Cost of raw materials has fallen
3. The Bank of England interest rates have remained the same
4. Lucy’s new improved staff training programme

Show the workings to arrive at your answer, and explain and justify your reasons:

Lucy started her business four years ago as a sole trader supplying and fitting new bathrooms.  She now wants her business to become a private limited company.  As part of this process, she needs to produce a business plan.

Which ONE of the following would Lucy include in her new business plan?

Select ONE answer:

1. Copy of the design she intends to use on the letter heading
2. All the receipts and invoices she has incurred in the last 4 years
3. The names and addresses of her employees
4. An overview of the nature of her bathrooms business

Show the workings to arrive at your answer, and explain and justify your reasons: