Business Studies Multiple Choice Question – 11 December 2017

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

Tyler is a small independent shoe store. It is located in local high street. A new hypermarket that sells shoes as part of its product offering has just been built at the bottom of the high street. Tyler has seen its sales fall in recent months and the owner is looking at ways he can compete more effectively.

Which ONE of the following is MOST LIKELY to help reduce Tyler’s costs in an effort to compete more effectively?

Select ONE answer:

  1. Increase its advertising in the local newspaper
  2. Provide better service by taking on more staff
  3. Increase the range of its shoes
  4. Ordering cheaper shoes from its suppliers
  5. Relocating to new premises

What are the other things that Tyler could do become more competitive through cost reduction?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Cheaper shoes will allow Tyler to reduce the price he charges and allow him to be more competitive as a result against his larger rival.

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Business Studies Multiple Choice Question – 10 December 2017

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

Valerie owns a dairy farm in Cornwall. In 2007 she decided to use some of the milk they produce to make their own brand of ice cream. After analysing the local competition they developed a brand called Truro’s best. It is very rich and creamy and is sold at a premium price. Most of their customers are in the catering industry – hotels and restaurants. Valerie has now an established product range and can also produce ice cream in any flavour to order.

Which ONE of the following suggests that there was an opportunity in the local market for Valerie’s ice cream to enter?

Select ONE answer:

  1. Unemployment in the region was rising
  2. Ice cream is made from milk
  3. There was only one supplier of premium-priced ice-cream in the area
  4. The pound is getting stronger against the Euro
  5. Large ice-cream manufacturers can supply ice-cream to order

What are other things would you consider to be important in determining whether there is an opportunity for Valerie in the premium ice-cream market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – if there is only one other supplier then there is an opportunity for Valerie to enter the local market as she can supply an established product range and flavours to order.

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Business Studies Multiple Choice Question – 9 December 2017

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

A business makes bottled and canned soft drinks? Which ONE of the following in itself is MOST LIKELY to make it more competitive against its rivals?

Select ONE answer:

  1. The employment of two extra workers
  2. An increase in profit compared to last year
  3. The launch of a new range of drinks at a lower price point at the same quality.
  4. A rise in the price of its drinks range
  5. New regulation on the use of sugar in soft drinks

What are other things would you consider to be important in making the business more competitive in the bottled and canned soft drinks market.
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – a new drinks range at a lower price point will make it more competitive as rivals struggled to compete and consumers value cheaper price and same quality.

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Business Studies Multiple Choice Question – 8 December 2017

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

A window cleaning company owned by Mike operating in central Birmingham wants to expand to the suburbs. It has looked at the services offered by its rivals.

Which ONE of the following is most likely to show that there is an opportunity for the business to grow?

Select ONE answer:

  1. Colin, a rival who works on his own, has a brother who lives in London.
  2. Isabella, the nearest rival, has many friends in the area and is trusted to look after house keys if they are away.
  3. Isabella has recently refused to clean schools due to poor margins.
  4. Colin is not in the UK for two months every summer.
  5. Mike charges very competitive prices.

What are other things would you consider to be important in spotting a new business opportunity in the window-cleaning market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 5 – if Mike charges competitive prices then he has an opportunity to take business away from his rivals from customers looking to get a better deal.

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Business Studies Multiple Choice Question – 7 December 2017

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

Which ONE of the following is MOST LIKELY to be important in spotting a new business opportunity in the cycling market?

Select ONE answer:

  1. Being able to produce a product cheaply
  2. Recognising other cyclists on the street
  3. Being a keen cyclist
  4. Identifying the possible competition
  5. Having a large amount of personal savings

What are other things would you consider to be important in spotting a new business opportunity in the cycling market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Identifying the potential competition to your potential opportunity.

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Business Studies Multiple Choice Question – 6 December 2017

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

According to the market map, where is there a business gap in the market for a new hairdresser?

Diagram 07

Select ONE answer:

High price / Traditional
High price / Fashion
Low price / Traditional
Low price / Fashion
Low price / European

Show your workings to arrive at your answer, and explain and justify your reasons using the diagram:
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – There are are no hairdressers offering Low price / Fashion in the current market.

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Business Studies Multiple Choice Question – 5 December 2017

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

Mario wants to open a restaurant specialising in South American cuisine. He thinks there might be a gap in the market in his home town of Stafford. He has drawn up a market map to identify where there any gaps in the market. There are currently 8 restaurants in Stafford.

Which ONE of the following are benefits to Mario from segmenting the market? Segmenting the market will help to……

Select ONE answer:

  1. Determine a product
  2. Improve internal communication in the business
  3. Reduce start-up costs
  4. Reduce staff turnover
  5. Focus on a specific customer group

Show your workings to arrive at your answer, and explain and justify your reasons using the diagram:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 5 – A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. Each market segment is unique, and businesses use various criteria to create a target market for their product or service. Businesses approach each segment differently, after fully understanding the needs, lifestyles, demographics, and personality of the target consumer within the segment.

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