Business Studies

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Q. A business forecasts a growth rate of 10% per year. If its current revenue is $500,000, what will its revenue be in 2 years?
  • A. $550,000
  • B. $605,000
  • C. $610,000
  • D. $620,000
Q. A business forecasts sales of 2,000 units at a price of $50 each. What is the expected total sales revenue?
  • A. $80,000
  • B. $90,000
  • C. $100,000
  • D. $110,000
Q. A business has a current ratio of 2:1. If its current liabilities are $50,000, what are its current assets?
  • A. $100,000
  • B. $150,000
  • C. $200,000
  • D. $250,000
Q. A business has a profit margin of 15%. If the total sales are $200,000, what is the profit?
  • A. $25,000
  • B. $30,000
  • C. $35,000
  • D. $40,000
Q. A business has fixed costs of $20,000 and variable costs of $5 per unit. If the selling price is $15 per unit, how many units must be sold to break even?
  • A. 2,000 units
  • B. 1,000 units
  • C. 4,000 units
  • D. 3,000 units
Q. A business sells a product for $60 and incurs a variable cost of $30 per unit. What is the contribution margin per unit?
  • A. $20
  • B. $30
  • C. $40
  • D. $50
Q. A company aims to increase its market share by 10% over the next year. If its current market share is 25%, what will be its target market share?
  • A. 30%
  • B. 35%
  • C. 40%
  • D. 45%
Q. A company decides to adopt a flat organizational structure to enhance decision-making speed. Which principle of management does this reflect?
  • A. Centralization
  • B. Decentralization
  • C. Unity of command
  • D. Span of control
Q. A company has a debt of $100,000 and equity of $50,000. What is its debt-to-equity ratio?
  • A. 2:1
  • B. 1:2
  • C. 1:1
  • D. 3:1
Q. A company has a goal to increase sales by 25% over the next year. If current sales are $200,000, what will be the target sales?
  • A. $225,000
  • B. $250,000
  • C. $275,000
  • D. $300,000
Q. A company has a market share of 25% in a market worth $1,000,000. What is the company's revenue from this market?
  • A. $250,000
  • B. $500,000
  • C. $750,000
  • D. $1,000,000
Q. A company has a market share of 25% in a market worth $1,000,000. What is the company's sales revenue?
  • A. $250,000
  • B. $300,000
  • C. $200,000
  • D. $400,000
Q. A company has a return on investment (ROI) of 25%. If the investment was $200,000, what is the return?
  • A. $40,000
  • B. $50,000
  • C. $60,000
  • D. $70,000
Q. A company is facing high employee turnover. Which management principle should be prioritized to address this issue?
  • A. Stability of tenure
  • B. Authority and responsibility
  • C. Subordination of individual interests
  • D. Initiative
Q. A company’s operating income is $150,000 and its interest expenses are $30,000. What is its earnings before tax?
  • A. $120,000
  • B. $150,000
  • C. $180,000
  • D. $200,000
Q. A firm has a debt-to-equity ratio of 1.5. If its total equity is $200,000, what is its total debt?
  • A. $300,000
  • B. $400,000
  • C. $500,000
  • D. $600,000
Q. A marketing campaign costs $2,000 and generates $8,000 in sales. What is the return on investment (ROI)?
  • A. 200%
  • B. 300%
  • C. 400%
  • D. 500%
Q. A marketing team conducts a SWOT analysis to understand their competitive position. What management principle does this reflect?
  • A. Strategic planning
  • B. Operational efficiency
  • C. Human resource management
  • D. Financial management
Q. A product is priced at $80 and has a sales tax of 10%. What is the total price including tax?
  • A. $88
  • B. $90
  • C. $85
  • D. $92
Q. A product's demand increases by 15% when the price decreases by 10%. What is the price elasticity of demand?
  • A. 1.5
  • B. 1.0
  • C. 0.5
  • D. 2.0
Q. A product's price is reduced from $40 to $30. What is the percentage decrease in price?
  • A. 25%
  • B. 30%
  • C. 35%
  • D. 40%
Q. A project manager estimates that 40% of the project budget will be spent on resources. If the total budget is $150,000, how much will be spent on resources?
  • A. $50,000
  • B. $60,000
  • C. $70,000
  • D. $80,000
Q. A startup has an initial investment of $50,000 and expects to generate $10,000 in profit annually. What is the payback period?
  • A. 2 years
  • B. 3 years
  • C. 4 years
  • D. 5 years
Q. How can a company effectively respond to changes in the economic environment?
  • A. By ignoring the changes
  • B. By adjusting pricing strategies
  • C. By maintaining the same marketing approach
  • D. By reducing employee salaries
Q. How can businesses adapt to changes in the economic environment?
  • A. By ignoring market trends
  • B. By conducting regular market research
  • C. By maintaining the same pricing strategy
  • D. By reducing product variety
Q. How can businesses use PEST analysis?
  • A. To evaluate employee performance
  • B. To assess external factors affecting the business
  • C. To determine pricing strategies
  • D. To improve customer service
Q. How can changes in government policy affect a business environment?
  • A. They have no impact on business operations
  • B. They can create new opportunities or threats
  • C. They only affect large corporations
  • D. They are irrelevant to small businesses
Q. How can changes in government regulations affect businesses?
  • A. By increasing employee turnover
  • B. By altering market demand
  • C. By impacting operational costs and compliance
  • D. By enhancing customer loyalty
Q. How does technological advancement affect the business environment?
  • A. It has no effect on business operations
  • B. It can create new markets and opportunities
  • C. It only benefits tech companies
  • D. It increases the cost of production
Q. How does technological advancement impact the business environment?
  • A. It only affects production processes
  • B. It can create new markets and opportunities
  • C. It has no effect on customer preferences
  • D. It only benefits large corporations
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