Business Studies Multiple Choice Question – 30 June 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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The number of people aged under 30 in Ruritania is increasing each year.

Mumthings plc, a retailer of products for babies and children, is opening new stores in Ruritania.

Which one of the following factors is most likely to have influenced this decision by Mumthings plc?

Select ONE answer

  1. E-commerce
  2. Demographic
  3. Ethical
  4. Environmental

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 – e-commerce would not require Mumthings to open new stores in Ruritania.
  2. Correct – Demographics refers to changes in and the structure of the population. The under 30 population are more likely to have babies and buy Mumthings’s products. This increasing demand comes from demographic change and suggests a growing market for Mumthings.
  3. Not correct – ethical factors concern the way Mumthings runs its business, not whether they open stores.
  4. Not correct – environmental factors would influence the way Mumthings build and operate new stores in Ruritania, not whether they open new stores.

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Business Studies Multiple Choice Question – 28 June 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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Michelle owns and runs a virtual PA business servicing small and medium sized businesses in Staffordshire helping them cope with their routine administration tasks. The business is structured as a sole trader.

Michelle needs a new printer costing £5 000.

Which one of the following would be the MOST appropriate source of finance for Michelle?

Select ONE answer

  1. Overdraft
  2. Leasing
  3. Debenture
  4. Trade credit

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 – the photocopier will cost £5 000 and an overdraft is usually for small amounts of money or emergencies over a short period of time.
  2. Correct – Leasing allows a company to rent the use of a non-current asset, on payment of a regular fee. Michelle has the use of the printer immediately without having to find £5 000 but she will never own the asset, and because she knows what the regular payments will be, and she can be take the planned benefits of leasing agreements e.g. servicing/insurance/upgrades.
  3. Not correct – Michelle’s business is not a public limited company and therefore cannot issue debentures.
  4. Not correct – trade credit is not designed to purchase large items of capital equipment such as a £5 000 photocopier.

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Business Studies Multiple Choice Question – 26 April 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
Photo by Andrea Piacquadio on Pexels.com

Electromac produces audio products. The company was founded by music producer and singer Little Al.

The price elasticity of demand for Electromac Headphones is most likely to be low if the headphones.

Select ONE answer

  1. require a high proportion of a customer’s income
  2. have a unique and fashionable design
  3. are very similar to competitors’ headphones
  4. have low brand loyalty

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 – requiring a high proportion of income is likely to result in a high PED rather than a low PED as customers will be more price sensitive.
  2. Correct – % change in quantity demanded/ % change in price. If Electromac headphones have a unique and fashionable design customers will want to buy them regardless of price. This makes them less price sensitive thus leading to a low PED.
  3. Not correct – PED would be high rather than low as customers could easily switch to other headphone manufacturers on the market.
  4. Not correct – this would mean that customers are more willing to try other headphone brands over Electromac and it would have high.

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Business Studies Multiple Choice Question – 21 April 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 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

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Business Studies Multiple Choice Question – 20 April 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
Photo by Andrea Piacquadio on Pexels.com

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.

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