Business Studies Multiple Choice Question – 25 January 2018

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 a true statement about an ‘ordinary’ partnership?

Select ONE answer only:

  1. Day to day management is usually shared
  2. A partnership can only be owned by two people
  3. The owners have a separate legal identity to the business
  4. The owners have limited liability
  5. The owners do not pay taxes

Which UK act of parliament covers Partnerships?

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

The answer is 1 – An ordinary partnership can be owned by more than two people. None of the owners has a separate legal identity from the business; each owner has unlimited liability, which means an owner’s personal assets are not protected if business assets are insufficient to pay off business debts.

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Business Studies Multiple Choice Question – 24 January 2018

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

Which ONE of the following statements is true about using venture capital as a source of finance to start up a business?

Select ONE answer only:

  1. Venture capital is often used to raise small sums of money (e.g. up to £10,000)
  2. Venture capital firms often provide expert management support
  3. Venture capital is simple and quick to arrange
  4. Venture capital does not dilute ownership and control
  5. Venture capital firms want a relatively quick return

Name one other source of finance for start-up businesses:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 5 – Venture capital is supplied by merchant and specialised commercial banks or venture capital firms. It can be complex and time-consuming to arrange – requiring presentation of an in-depth business plan with detailed financial forecasts. Most venture capitalists are only interested in loans of £50,000 plus, and some of £250,000 plus. Most expect to take a minority shareholding in the business for a set period and to appoint a non-executive director who can provide informed financial and managerial advice and contribute to major decisions.

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Business Studies Multiple Choice Question – 23 January 2018

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

Which ONE of the following statements is true about using venture capital as a source of finance to start up a business?

Select ONE answer only:

  1. Venture capital is often used to raise small sums of money (e.g. up to £10,000)
  2. Venture capital firms often provide expert management support
  3. Venture capital is simple and quick to arrange
  4. Venture capital does not dilute ownership and control
  5. Venture capital firms do not want a relatively quick return

Name one other source of finance for start-up businesses:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2 – Venture capital is supplied by merchant and specialised commercial banks or venture capital firms. It can be complex and time-consuming to arrange – requiring presentation of an in-depth business plan with detailed financial forecasts. Most venture capitalists are only interested in loans of £50,000 plus, and some of £250,000 plus. Most expect to take a minority shareholding in the business for a set period and to appoint a non-executive director who can provide informed financial and managerial advice and contribute to major decisions.

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Business Studies Multiple Choice Question – 31 December 2017

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

A business’s fixed costs are £67 800, selling price per unit is £12.87, and total variable costs per unit are £8.50. Which ONE of the following is the break-even level of output (to the nearest whole number)?

Select ONE answer only:

  1. 12 500 units
  2. 12 667 units
  3. 10 000 units
  4. 8 525 units
  5. 15 515 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 5 – Break-even level of output = Fixed costs / Contribution per unit. Contribution per unit = Selling price per unit – Variable costs per unit. Therefore the breakeven level of output is: £67 800 / (£12.87 – £8.50) = £67 800 / £4.37 = 15 515 units.

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Business Studies Multiple Choice Question – 30 December 2017

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

A business’s fixed costs are £75 000, selling price per unit is £10, and total variable costs per unit are £5.50. Which ONE of the following is the break-even level of output (to the nearest whole number)?

Select ONE answer only:

  1. 16 667 units
  2. 12 000 units
  3. 10 000 units
  4. 18 500 units
  5. 18 667 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 1 – Break-even level of output = Fixed costs / Contribution per unit. Contribution per unit = Selling price per unit – Variable costs per unit. Therefore the breakeven level of output is: £75 000 / (£10 – £5.50) = £75 000 / £4.50 = 16 667 units.

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Business Studies Multiple Choice Question – 29 December 2017

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

A business’s fixed costs are £90 000, selling price per unit is £3, and total variable costs per unit are £2.50. Which ONE of the following is the break-even level of output (to the nearest whole number)?

Select ONE answer only:

  1. 122 500 units
  2. 120 000 units
  3. 100 000 units
  4. 180 000 units
  5. 166 667 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4 – Break-even level of output = Fixed costs / Contribution per unit. Contribution per unit = Selling price per unit – Variable costs per unit. Therefore the breakeven level of output is: £90 000 / (£3 – £2.50) = £90 000 / £0.50 = 180 000 units.

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Business Studies Multiple Choice Question – 28 December 2017

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

A business’s fixed costs are £60 000, selling price per unit is £10, and total variable costs per unit are £2.50. Which ONE of the following is the break-even level of output (to the nearest whole number)?

Select ONE answer only:

  1. 4 250 units
  2. 7 000 units
  3. 8 000 units
  4. 8 500 units
  5. 9 667 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3 – Break even level of output = Fixed costs / Contribution per unit. Contribution per unit = Selling price per unit – Variable costs per unit. Therefore the breakeven level of output is: £60 000 / (£10 – £2.50) = £60 000 / £7.50 = 8 000 units.

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