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.

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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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Business Studies Multiple Choice Question – 23 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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PolyPlac, an international supplier of plastics, has to prepare yearly budgets. It uses historical-based budgeting to calculate its sales and production budgets.

Historical-based budgeting is MOST Likely to be?

Select ONE answer:

  1. prepared from scratch
  2. planned more carefully
  3. more accurate
  4. quick to prepare

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 historical-based budgeting e.g. a budget based on figures from previous years.  PolyPlac will use their current sales and production budgets as a basis for the new budget.  This method of budgeting is therefore very easy to produce as it does not entail any complex calculations.

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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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