Tag: KS4

Business Studies Multiple Choice Question – 23 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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Staffordshire Steel owns steel producing factories in the UK.

In 2022, the factories operated at an average of 70% of their capacity.

The most likely way for Staffordshire Steel to increase capacity utilisation is to?

Select ONE answer:

  1. increase spending on expansion projects
  2. attract demand from the rapidly expanding Russian market
  3. increase the price of its steel
  4. reduce the productivity of its workers

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 – expansion will increase potential capacity and therefore reduce capacity utilisation.
  2. Correct – capacity utilisation is the percentage of a firm’s potential output that it is currently used with the formula that Capacity utilisation = (Current output X 100) / Maximum output, and where capacity which is not being fully utilised is 30%. Additional demand from Russia will increase the use of Staffordshire Steel’s production facilities because they will have to produce more steel. This increased output will therefore move Staffordshire Steel closer to its potential capacity.
  3. Not correct – if they increases its prices, demand is likely to fall, leading to a fall in capacity utilisation.
  4. Not correct – reducing productivity of workers will make them less competitive as the labour cost of producing steel will increase.

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Business Studies Multiple Choice Question – 22 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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Colin’s company trains workers to lay road surfaces.

His forecasted and actual sales revenue for one month (up to 5 working days per week) are shown below.

  • Forecasted sales revenue £28 000
  • Actual sales revenue £14 000

In order to achieve his forecasted sales revenue, Paul could do each of the following, EXCEPT?

Select ONE answer:

  1.  advertise more
  2. cut costs
  3. discount the training fee
  4. offer training on more days per week

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 – advertising more should increase sales revenue as the service becomes better known/creates more demand/attracts more customers.
  2. Correct – Definition of sales forecasting, e.g. the estimation of likely revenue/income in a period, given the trading conditions or defines sales revenue. Cutting costs is not a factor that increases demand as it is a supply factor. Cutting costs may lead to an increase in profit not an increase in sales.
  3. Not correct – discounting the training fee could give an advantage over competitors and therefore lead to more orders/increase in sales volume.
  4. Not correct – offering training on more days of the week allows more training to take place and therefore more customers to be catered for.

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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.

woman draw a light bulb in white board
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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.

woman draw a light bulb in white board
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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
Photo by Andrea Piacquadio on Pexels.com

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