Tag: Business Studies

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

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

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.

James Dyson made thousand’s of prototypes when designing his first bagless vacuum cleaner; all of them turned out to be failures.

This fact best demonstrates James Dyson’s …

Select ONE answer:

1. ethical stance
2. risk-taking
3. initiative
4. resilience

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 – Resilience means not giving up easily/determination to succeed. It is a key characteristic of a successful entrepreneur. Which, given the high number of prototypes this is evident of James Dyson’s resilience.

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