Business Studies Multiple Choice Question – 14 January 2022

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

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Colin from Stafford is a heating engineer, has started his own business as a sole trader.

He needs to buy a new van.

Which one of the following would be the most suitable external source of finance to buy his van?

Select ONE answer:

  1.  Overdraft
  2. Commercial bank loan
  3. Retained profit
  4. Issue of share capital

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- because an Overdraft, although an external source of finance, is used as a flexible short-term method of finance, usually used for cash-flow problems and not to purchase an asset.
  2. Correct – External source of finance e.g. is money that is provided from outside of the business / a commercial bank loan is when finance is borrowed from an external source such as bank and is repaid over a period of time with interest. A bank loan is a medium term source of finance and is therefore suitable for purchasing an asset such as a van. Interest and capital would be paid over a period of time and Colin would be able to plan for this.
  3. Not correct – because retained profits are an internal source of finance.
  4. Not correct – because Colin is a sole trader and therefore cannot issue share capital as this method of finance is only available for limited companies.

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Business Studies Multiple Choice Question – 13 January 2022

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

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Lucy runs Mable’s Rescue, a Stafford based re-homing centre for guinea pigs, as an unpaid volunteer.

Lucy is most likely to be motivated by which one of the following reasons?

Select ONE answer:

  1. Adding value
  2. An ethical stance
  3. Maximising profits
  4. A paternalistic leader

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 – Motivation is the drive behind doing something. An ethical stance implies that Lucy is motivated by moral and social concerns. In the case the welfare of guinea pigs not pay is what motivates Lucy.
  3. Not correct
  4. Not correct

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Business Studies Multiple Choice Question – 11 January 2022

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 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 – An autocratic leadership style is one which entails strict discipline and the following of orders which would have been particularly appropriate under these dangerous/hazardous circumstances to get his/her staff and/or customers out of the shop quickly.
  3. Not correct
  4. Not correct

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Business Studies Multiple Choice Question – 25 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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UK High Street retailer, Mothercare, announced in 2019 that it was closing down all of its UK retail outlets.

This is MOST LIKELY due to an increase in….?

Select ONE answer:

  1. competition
  2. supplier credit terms
  3. cash flow
  4. turnover

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 1

  1. Correct – Correct – Definition of competition e.g. rivalry among sellers or a substitute business in the same market. More competition may lead to Mothercare losing customers to its competitors. Therefore Mothercare may have had to close its stores due to fewer customers and lower sales, and thus less profits
  2. Not correct
  3. Not correct
  4. Not correct

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Business Studies Multiple Choice Question – 24 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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The employees at JCB’s UK factories have been awarded a generous 5% pay increase and a £2,000 yearly bonus.

This is MOST LIKELY to result in….?

Select ONE answer:

  1. an increase in self-actualisation
  2. a reduction in safety needs
  3. an increase in empowerment
  4. a reduction in labour turnover

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 labour turnover e.g. the proportion of a workforce who leave within a specified time period.  The pay increase and bonus may reward/motivate employees at JCB.  This could result in fewer employees wanting to leave JCB due to the higher pay for the same amount of work.

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