Tag: Business Studies

A business has the following cash flow information for one particular month:

• Opening balance: £15 000
• Cash inflow: £17 000
• Cash outflow: £34 000

What is the closing balance at the end of this month?

Select ONE answer

1. – £12 000
2. – £2 000
3. £9 000
4. £16 000

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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

Electromac is a small business with 50 employees.

It has a flat organisational structure.

A flat organisational structure has?

Select ONE answer

1. many managers
2. quicker decision-making
3. a narrow span of control
4. a long chain of command

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – Fewer managers in a flat structure due to having fewer layers in the structure.
2. Correct – A flat organisational structure e.g. where there are few levels/layers in the hierarchy. A small number of levels/layers results in better communication between managers and workers at Electromac. Because of a small number of levels there are fewer managers therefore decisions can be made more quickly than with other structures.
3. Not correct – A flat organisational structures tend to have a wide span of control due to managers having more employees under their direct authority.
4. Not correct – A long chain of command would have more layers than a flat organisational structure such as Electromac.

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

In March 2022, the pound sterling (£) depreciated against the euro (€) and the US dollar ($).

The most likely impact of this depreciation on UK businesses would be?

Select ONE answer:

1. export prices will increase
2. export orders will increase
3. import orders will increase
4. import prices will decrease

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

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

This multiple-choice question is suitable for Business Studies KS4 & KS5 classes

The answer is 2

1. Not correct – export prices will now be cheaper for foreign buyers
2. Correct –Depreciation of a currency is a decrease in the value of a country’s currency relative to one or more foreign currencies. The pound has depreciated meaning that European and American buyers need to exchange less of their own currency to buy the same number of pounds. This means that UK exports are now cheaper in Europe and America so the demand for exports increases.
3. Not correct – imports will now be more expensive to the UK businesses and therefore orders will decrease.
4. Not correct – import prices will increase as more pounds have to be exchanged for the same amount of euros and dollars.

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