Tag: Business Studies

Business Studies Multiple Choice Question – 22 May 2021

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

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Jonny runs a very small wholesale nut business called Jonny’s Nuts. He has decided to apply for a £20,000 bank overdraft to help manage his working capital during the busy Christmas trading period.

What would be ONE benefit for Jonathan of using an overdraft?

Select ONE answer:

  1. The bank CANNOT demand immediate repayment
  2. It is a LONG TERM source of contingency finance
  3. Interest if ONLY paid on the amount owed
  4. It is SUITABLE for purchasing expensive equipment

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 3

  1. Not correct
  2. Not correct
  3. Correct – Definition of overdraft e.g. a credit facility which is agreed with a bank and money can be withdrawn from an account up to an agreed amount.  If Jonny does not need to use all of the £20 000 he only pays interest on the amount used.  This reduces Jonny’s finance costs compared to other sources of finance such as a bank loan.
  4. Not correct

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Business Studies Multiple Choice Question – 21 May 2021

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

woman draw a light bulb in white board
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A holiday company estimates that a 12% decrease in holiday prices would result in an 18% increase in demand for its low cost holidays.

The income elasticity of demand (YED) for low cost holidays is?

Select ONE answer:

  1. – 0.67
  2. + 0.67
  3. +1.5
  4. – 1.5

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – Definition of YED e.g. the relationship between the change in quantity demanded and a change in income, the formula is % Change in Quantity Demanded / % Change in Income ==> + 18% / – 12% = – 1.5

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Business Studies Multiple Choice Question – 20 May 2021

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

woman draw a light bulb in white board
Photo by Andrea Piacquadio on Pexels.com

A rail company announced the recruitment of 100 new train drivers. It decided to only use internal recruitment for these are vacancies.

The MOST LIKELY reason for them to use internal recruitment is which one of the following?

Select ONE answer:

  1. it takes longer than external recruitment
  2. the chance of promotion can motivate employees
  3. it attracts a wider range of potential candidates
  4. less is known about potential candidates

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 – The definition of internal recruitment e.g. potential applicants are found from within the organisation.  They may lose key personnel and their skills if there are not any prospects of promotion.  Employees may work harder or be more productive if they can see that promotion prospects are available within the business.
  3. Not correct
  4. Not correct

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

Business Studies Multiple Choice Question – 19 May 2021

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

woman draw a light bulb in white board
Photo by Andrea Piacquadio on Pexels.com

A major manufacturer of breakfast cereals aims to give away more than one billion cereal and snack servings to help poor people in need around the world.

Their strategy is MOST LIKELY to be influenced by which one of the following?

Select ONE answer:

  1. Government legislation
  2. The digital economy
  3. Ethical considerations
  4. Environmental considerations

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 3

  1. Not correct
  2. Not correct
  3. Correct – Definition of ethical considerations, is a set of moral values that a business follows for the greater good.  The manufacturer is responding to the issue of hunger across the world by donating large amounts of products.  They do not have to do this and is therefore acting from an ethical standpoint.
  4. Not correct

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

Business Studies Multiple Choice Question – 18 May 2021

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

woman draw a light bulb in white board
Photo by Andrea Piacquadio on Pexels.com

What is the main purpose of Health and Safety legislation?

Select ONE answer:

  1. Protects consumers from harmful products
  2. Ensures that UK businesses do not use slave labour
  3. Ensure that all products are described accurately
  4. It protects people from being harmed in the workplace

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 – Definition of non-price factor: anything apart from price that will change the amount of a good or service supplied at a given price and given time
  3. Not correct
  4. Not correct

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