Tag: Tax

Big Brum plc is a multinational company.

It has recently been charged with being in breach of the Competition Act 1998 in respect of collusive behaviour in its UK operations.

If found guilty, the company could, amongst other sanctions, face a fine of?

Select ONE answer:

1. Up to 10% of annual worldwide revenues
2. Up to 10% of annual UK revenues
3. Up to 20% of annual worldwide revenues
4. Up to 20% of annual UK revenues

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Collusion can lead to a fine of up to 10% of annual worldwide revenues.
2. Not correct
3. Not correct
4. Not correct

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

The government recently passed regulations affecting the way in which car hire companies must address certain health and safety issues within their business.

Big Staffie plc is a major player in the UK car hire business.

In anticipation of these new regulations the company put in place procedures and technology which exceed these new government regulations.

From this Big Staffie plc’s response to the new regulations has been one of?

Select ONE answer:

1. Innovation
2. Entrenchment
3. Mere compliance
4. Full compliance

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Innovation in this context is where regulation serves to trigger the discovery and introduction of new procedures and technologies – the ‘innovation effect, as a basis for competitive advantage in an industry.
2. Not correct
3. Not correct
4. Not correct

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

Intervention by the government to impose a limit on businesses’ carbon emissions is an example of regulation motivated by the wish to address market failure caused by?

Select ONE answer:

1. Asymmetric information
2. Equity
3. Market imperfection
4. Externalities

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > An externality is an adverse social consequence which the private producer has no incentive to minimise.

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

Which of the following is an aspect of fiscal policy measures by the government?

Select ONE answer:

1. To raise short-term interest rates in the money markets
2. To support the exchange rate of the country’s currency
3. To control growth in the money supply
4. To alter rates of taxation

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > Fiscal policy is concerned with the government’s tax income, expenditure and borrowing (to make up the difference between income and expenditure).

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

Which of the following are the effects of reduced interest rates?

1 Consumer spending will increase
2 Business investment will be encouraged
3 Saving will increase

Select ONE answer:

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. 1,2 and 3

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Low interest rates will encourage spending rather than saving. Investment will be encouraged because the opportunity cost of investing is reduced.
3. Not correct
4. Not correct

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