MCQs - Paper 2 - 2022

(2022) A customer has bought a laptop from a computer shop.

By law, the computer shop must:

• match the price charged by a local competitor

• offer to upgrade the laptop for no extra charge

• provide virus protection to keep the customer’s files safe

• supply a laptop of satisfactory quality

(2022) Customer engagement:

• contributes to good customer service

• allows customers to try before they buy

• improves the product knowledge of employees

• shortens the supply chain

(2022) A perfume shop has a gross profit margin of 50%.

This means:

• for every £10 of sales, it makes £5 profit after all costs have been paid

• the perfume shop’s variable costs are exactly half of its fixed costs

• the shop charges customers double what it pays when buying the perfume

• to make £10 of profit, it needs to sell £50 of perfume

(2022) QT Homeware Ltd manufactures small kitchen appliances. The company has recently received a number of emails complaining that its kettles leak.

Which of the following actions would help QT Homeware Ltd deal with this problem?

• Include a cloth to wipe up any leaks in the box of all new kettles

• Launch a promotional campaign in a housekeeping magazine

• Meet with production workers to discuss how to reduce costs

• Physically test every hundredth kettle to ensure it is watertight

(2022) A drum kit manufacturer plans to make 500 drum kits this year. Estimated costs are as follows:

• raw materials £40 per drum kit

• rent £600 per month

• heating and lighting £900 per quarter

• other expenses £56 000 per annum

The manufacturer’s estimated total cost for the year is:

• £66 840

• £77 500

• £85 900

• £86 800

(2022) Which of the following would be a variable cost for a restaurant?

• Advertising fees

• Buildings insurance

• Chef's salary

• Fruit & vegetables

(2022) Which of the following is not a disadvantage of automation?

• Expensive to buy, so will need to find a way of raising finance

• Machines can break down, disrupting production

• Operatives may need training, increasing business costs

• The machinery can be reprogrammed, making production more flexible

(2022) Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate?

• Council incentives offering reduced business rates

• Greeting cards are destroyed if they get wet during transportation

• Lots of people who work on the industrial estate will buy cards

• The need to be close to the market because customers are unwilling to travel

(2022) Amaya is a gardener. She charges £15 per hour.

Her fixed costs are £18 000 per annum.

Her variable costs are £2 per hour.

How many hours of gardening will Amaya need to do to start to make a profit?

• 1059

• 1385

• 2340

• 3060

(2022) Which of the following is a benefit to a public limited company of using a share issue to raise finance?

• Dividends will need to be paid

• New skills will be brought into the company

• No interest will be paid

• Repayments will be spread over a long period of time