Business Studies Multiple Choice Question – 23 December 2017

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 NOT an example of a customer need or expectation?  Select ONE answer:

  1. Convenience
  2. Good quality
  3. Limited choice
  4. Value for money
  5. Happiness

What is meant by a business adding value?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – Customer needs and expectations concern: price – value for money; quality – products/services that are fit for purpose; adequate choice – so that at least one product closely matches each customer’s needs; convenience – products/services that can be quickly and easily accessed.

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Business Studies Multiple Choice Question – 22 December 2017

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

Which TWO of the following is NOT one of the main purposes of business activity?  Select TWO answers:

  1. To add value
  2. To meet customer needs
  3. To raise finance
  4. To produce goods or services
  5. To provide jobs for people

What are the principle sources of finance for start-up businesses?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answers are 3 and 5 – The main purposes of business activity (and roles of a business enterprise) are to produce goods or services, to meet customer needs and to add value (in order to generate income and wealth for business owners). Finance may need to be raised and jobs may be created in order to fulfill these purposes/roles, but these are not reasons why businesses exist.

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Economics Multiple Choice Question – 21 December 2017

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

A 2% cut in price leads to a 6% increase in sales.

What is the price elasticity of demand?

Select ONE answer:

  1. +3
  2. +0.333
  3. -3
  4. -0.333
  5. 30

Show your workings to arrive at your answer, and explain and justify your reasons:
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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3 – The formula for calculating the price elasticity of demand is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price. If PED > 1, then demand responds more than proportionately to a change in price i.e. demand is elastic. For example, if a 10% increase in the price of a good leads to a 30% drop in demand. The price elasticity of demand for this price change is –3. In this example PED is equal to +6% / – 2% or -3

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Economics Multiple Choice Question – 20 December 2017

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

For a price-inelastic product?

Select ONE answer:

  1. Demand never changes
  2. Demand does not change with income
  3. You can always charge the highest price in the market
  4. Demand does not change with price
  5. The change in quantity demanded is proportionately less than the change in price (in percentages)

Give the equation for income elasticity of demand:
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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 5 – If PED is between 0 and 1 (i.e. the % change in demand from A to B is smaller than the percentage change in price), then demand is inelastic.

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Economics Multiple Choice Question – 19 December 2017

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

The price of a product is likely to be lower if?

Select ONE answer:

  1. Demand is price inelastic
  2. There is limited competition
  3. It is in a niche market
  4. The product has a USP
  5. Entry into the market is easy

Explain and justify your answer:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 5 – If entry into a market is easy then competitors can come in because there are lower barriers to entry and charge a price lower than the incumbents and capture market share which will require a matching action from the incumbents to maintain their market share.

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