Business Studies Multiple Choice Question – 7 September 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A focus group is used in?

Select ONE answer:

  1. Qualitative market research
  2. Quantitative market research
  3. Quotient market research
  4. Market de-segmentation
  5. Secondary market research

What might a market research company use a focus group for:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1 – It is a form of qualitative research consisting of interviews in which a group of people is asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

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

Business Studies Multiple Choice Question – 6 September 2017

Secondary market research involves?

Select ONE answer:

  1. Field research
  2. Focus groups
  3. Collecting new data
  4. Using data already gathered
  5. Using surveys

Give ONE example of the type of data that would be gathered via secondary research rather than primary research. Explain why:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Secondary Market Research’s definition: Market research that’s already compiled and organised for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.

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

Business Studies Multiple Choice Question – 5 September 2017

Primary market research is?

Select ONE answer:

  1. The firm is 95% confident that a new product will succeed
  2. 95% of its customers say they will buy the firm’s new product
  3. The firm is 95% confident of the results of its findings
  4. 95 out of 100 of its products are likely to succeed
  5. There is a 95% chance of failure

State TWO factors that might influence the success of a new product:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3 – If repeated samples were taken and the 95% confidence interval was computed for each sample, 95% of the intervals would contain the population mean. A 95% confidence interval has a 0.95 probability of containing the population mean. 95% of the population distribution is contained in the confidence interval.

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

Business Studies Multiple Choice Question – 4 September 2017

Primary market research is?

Select ONE answer:

Is known as desk research
Uses data already gathered
Uses data gathered by the government
Uses data gathered for the first time
Is free

State ONE situation when primary research would have to be used:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Primary research involves the collection of original primary data.  It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, among others.

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

Business Studies Multiple Choice Question – 3 September 2017

Market share measures?

Select ONE answer:

Total Sales
Total Revenue
Sales of one brand compared to total market sales
Sales of all brands compared to total market sales
Profits of one brand compared to total market sales

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 – A company’s market share is its sales of its brands measured as a percentage of an industry’s total revenues. Determine a company’s market share by dividing its total sales or revenues by the industry’s total sales over a set period of time. Use this measure to get a general idea of the size of a company relative to the industry.

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

Accounting Multiple Choice Question – 2 September 2017

A business has forecast its telephone expense for the year to be £1800. This consists of a fixed element for line rental which is 1/3 of the total cost; the remaining 2/3 are variable based on the telephone calls made. The business has been informed that the cost of the line rental will be reduced by 1⁄4. However, the cost of calls will increase by 20%.

How much will the revised forecast telephone expense be, assuming the number of calls does not change?

Select ONE answer:

  1. £1,845
  2. £1,890
  3. £1,917
  4. £2,040
  5. £2,097

Explain and justify your answer?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – Fixed rental element is £1,800 / 3 = £600. A 25% reduction is a £150 saving. The cost of calls is therefore £1,200 which is they go up by 20% will be a £240 cost increase (£1,200 *1.2). The difference between the cost decrease in the fixed and cost increase in the call cost is -£150+£240 = £90 cost increase.

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

Accounting Multiple Choice Question – 1 September 2017

Which is the correct formula for calculating contribution?

Select ONE answer:

  1. Fixed costs divided by variable costs
  2. Fixed costs less variable costs
  3. Sales revenue divided by variable costs
  4. Sales revenue minus variable costs
  5. Fixed costs plus semi-variable costs

Why is knowing the contribution or contribution margin important for any company to know?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.

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