Tag: Business Studies

Alex Chocolate Goodies aims to support its suppliers and their communities by paying above market prices for cocoa beans.

Alex Chocolate Goodies’s aim is most likely to be influenced by which one of the following?

Select ONE answer:

1. Government legislation
2. Ageing population
3. Profit maximisation
4. Ethical consideration

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 even if the government intervene Alex Chocolate Goodies will still pay above the market price.
2. Not correct – because this potentially relates to their target market but not to the price they pay for the beans.
3. Not correct – paying a higher price will reduce the profit margin which is not a profit maximising action.
4. Correct – Definition of ethical consideration e.g. set of moral values that a business follows for the greater good. This means that it creates a better image for the business as consumer perceive the business is behaving responsibly to its suppliers. Therefore, giving Alex a competitive advantage.

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After years of working for other people, Lucy left her full-time job to set up her own design business, Lucy Art Design.

Which one of the following is the most likely motive for Lucy’s decision to set up her own business?

Select ONE answer:

1. To work fixed hours
2. To gain more job security
3. To work independently
4. To ensure regular income

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 – because self employed people will work the hours necessary to make their business successful.
2. Not correct – because setting up a business is risky and does not offer any guarantee of job security.
3. Correct – Definition of independence e.g. free from outside control/not depending on authority of others. To work on her own/to make her own decisions rather than take instructions from managers. Develop/shape the business/drive the business in the direction she wants to go.
4. Not correct – because regular income cannot be guaranteed as it will be dependent on gaining revenues.

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In a business each employee has a job with clear rules and procedures.

Which of Handy’s cultures does this description most closely correspond to?

Select ONE answer:

1. Person culture
2. Power culture
3. Role culture
4. Task culture

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
4. Not correct

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

Read statements 1 and 2 and select the correct option from the following options:

• Statement 1: ‘Penetration pricing is more likely to be used if demand is price inelastic.’
• Statement 2: ‘Price skimming is more likely to be used if demand is price elastic.’

Select ONE answer:

1. Statement 1 is true. Statement 2 is true
2. Statement 1 is true. Statement 2 is false
3. Statement 1 is false. Statement 2 is true
4. Statement 1 is false. Statement 2 is false

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

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