Tag: AQA

Lucy is the founder of Guinea Pig Love, a very successful global brand. She has won many awards including Staffordshire Young Entrepreneur of the Year in 2021.

Which one of the following is least likely to be a characteristic of a successful entrepreneur?

Select ONE answer:

1. Self-confident
2. Risk-taker
3. Resilient
4. Indecisive

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 – because an entrepreneur has to be self-confident and believe in their ideas and decision making, particularly when faced with difficult choices/decisions.
2. Not correct – because entrepreneurs do take risks which are balanced against rewards.
3. Not correct – because resilience means not giving up, which is crucial for a successful entrepreneur as businesses often struggle/fail, especially in the first year.
4. Correct – what is an entrepreneur e.g. someone who combines the factors of production in order to create a business/willingness to take risks involved in running a business. Many successful entrepreneurs have to be able to make many quick decisions for the survival of their business. If decisions are not made quickly vital opportunities would be lost thereby risking the success of the business.

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At the Stafford Vintage Trade Fair, held on 1 April 2021, Lucy managed to break-even by selling 40 items of costume jewellery she had made
that week.

Assuming fixed costs of £60, and an average selling price of £9, which one of the following represents Lucy’s variable cost per unit?

Select ONE answer:

1. £0.66
2. £1.50
3. £6.66
4. £7.50

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 -Break-even = Fixed cost (FC) / Selling Price-Average Variable costs, OR Contribution = FC/BE, OR average variable costs are total variable costs divided by output OR variable costs = sales revenue minus FC divided by breakeven OR variable costs are costs which vary with output OR Break-even is the output level where total costs equals total revenue. ==> 40 = £60/£9 – £7.50

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Lucy went on a business trip to France and came back with two restaurant receipts – one for €25.10 & one for €11.00.

If the exchange rate for the month end of December 2021 was £1 = €1.23, then calculate the combined price in sterling of these two receipts that need to be put in the month-end accounts.

Select ONE answer:

1. £44.40
2. £36.10
3. £29.35
4. £20.40

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 – The exchange rate is the price of one currency expressed in terms of another. The total of the spend is €36.10 divided by 1.23 = £29.35
4. Not correct

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The Game Group announced the closure of hundreds of retail stores in 2012, which led to thousands of job losses.

This was most likely due to ….

Select ONE answer:

1. a decrease in the price of computer games purchased online
2. lower opportunity costs for the Game Group
3. a lower break-even revenue level for computer consoles
4. an increase in debentures

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 – Computer games purchased online are a substitute for computer games sold in retail stores. So if they fall in price the online games will face an increase in demand as they represent better value for money. As a result, the demand for games sold in shops may fall causing the sales revenue for the Game Group shops to fall which led to the closures/job losses
2. Not correct
3. Not correct
4. Not correct

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

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

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