--- title: "AP Business with Personal Finance Business Decision FRQ Practice" description: "27 Business Decision questions written in the AP format, each scored part by part." canonical: "https://fiveable.me/ap-business/frqs/business-decision" type: "frq-type-practice" subject: "AP Business with Personal Finance" --- # AP Business with Personal Finance Business Decision FRQ Practice ## What the Business Decision FRQ asks The Business Decision question is FRQ 4 on the AP Business with Personal Finance exam. You read about a business facing an opportunity or a problem, compare two courses of action on financial and nonfinancial criteria, and recommend one. - **40 min**: including a 15-minute reading period - **8 points**: across parts A to C - **15%**: of your exam score | Part | What it asks | Points | | --- | --- | --- | | A: Factors | An internal, market, or external factor, and the opportunity or problem it creates | 2 | | B: Criteria | The two options compared on return on investment, another financial criterion, and a nonfinancial one | 3 | | C: Recommendation | One option chosen and supported with three criteria and evidence | 3 | ## How Business Decision FRQ practice works 1. **Read the scenario.** The business, both courses of action, and every part, laid out the way the exam shows them. 2. **Write on a 39-minute timer.** About the time to plan for on exam day, reading included. Pause it or turn it off, and your response saves as you go. 3. **Submit for a score out of 8.** Your response is scored against the scoring guidelines written for that question. Your first score is included. ## All 27 questions ### Unit 1: Businesses, Competition, and New Ideas (4) - [Entrepreneurial opportunity and values decision](/ap-business/frq-practice?id=6aab97eb812357e79631069b&type=frq-4-business-decision) - [Specialty coffee business facility consolidation strategy](/ap-business/frq-practice?id=6ab2ad100f80f5dd5e1a3161&type=frq-4-business-decision) - [Small business scaling: distribution channel selection](/ap-business/frq-practice?id=6ab2ad9a0f80f5dd5e1a31b2&type=frq-4-business-decision) - [Supply chain decision: cost reduction versus quality commitment](/ap-business/frq-practice?id=6ab2ae080f80f5dd5e1a31f1&type=frq-4-business-decision) ### Unit 2: Marketing (3) - [Marketing positioning and pricing decision](/ap-business/frq-practice?id=6aab96c60c242de24d65d4fc&type=frq-4-business-decision) - [Fleet acquisition strategy amid regulatory constraints](/ap-business/frq-practice?id=6ab2ad1f0f80f5dd5e1a316d&type=frq-4-business-decision) - [In-house motor manufacturing versus import sourcing decision](/ap-business/frq-practice?id=6ab2ada20f80f5dd5e1a31b8&type=frq-4-business-decision) ### Unit 3: Personal Saving and Borrowing / Business Finance and Accounting (2) - [National distribution expansion strategy comparison](/ap-business/frq-practice?id=6ab2ad570f80f5dd5e1a3189&type=frq-4-business-decision) - [Business innovation strategy amid market competition](/ap-business/frq-practice?id=6ab2add60f80f5dd5e1a31d6&type=frq-4-business-decision) ### Unit 4: Management and Strategy (16) - [Premium outdoor equipment distribution strategy expansion](/ap-business/frq-practice?id=6a399c6b9217bf9fef8628a1&type=frq-4-business-decision) - [Customer service operations expansion strategy](/ap-business/frq-practice?id=6a3ad7ec0fd0d20ce19cb6fb&type=frq-4-business-decision) - [Premium knife manufacturer market expansion strategy](/ap-business/frq-practice?id=6a3ad80ddac4149c26128f85&type=frq-4-business-decision) - [Manufacturing capacity expansion strategy options](/ap-business/frq-practice?id=6a3ad85a0fd0d20ce19cb733&type=frq-4-business-decision) - [Furniture manufacturing expansion versus operational consolidation](/ap-business/frq-practice?id=6a3ad873dac4149c26128f8d&type=frq-4-business-decision) - [Supply chain strategy amid rising input costs](/ap-business/frq-practice?id=6a3ad8c0dac4149c26128f96&type=frq-4-business-decision) - [Supply chain strategy: domestic reliability versus cost reduction](/ap-business/frq-practice?id=6a3adad032bf2a59668be7cd&type=frq-4-business-decision) - [Regional cold storage facility expansion options](/ap-business/frq-practice?id=6a3adb4332bf2a59668be7d4&type=frq-4-business-decision) - [Organic skincare company pricing strategy decision](/ap-business/frq-practice?id=6a3adbde32bf2a59668be7e2&type=frq-4-business-decision) - [E-commerce expansion strategy for organic skincare manufacturer](/ap-business/frq-practice?id=6a3adc2c32bf2a59668be7e8&type=frq-4-business-decision) - [Strategic growth through product diversification or core investment](/ap-business/frq-practice?id=6a3adc8c32bf2a59668be7f0&type=frq-4-business-decision) - [Electric bicycle market positioning and pricing strategy](/ap-business/frq-practice?id=6a3adcf732bf2a59668be7fb&type=frq-4-business-decision) - [Manufacturing capacity expansion versus outsourcing decisions](/ap-business/frq-practice?id=6a3add4332bf2a59668be802&type=frq-4-business-decision) - [Business expansion strategy for organic skincare manufacturer](/ap-business/frq-practice?id=6a3addb932bf2a59668be80d&type=frq-4-business-decision) - [Strategic capacity expansion for custom cabinet manufacturer](/ap-business/frq-practice?id=6a3ade6732bf2a59668be817&type=frq-4-business-decision) - [Custom bicycle manufacturer facility expansion strategy](/ap-business/frq-practice?id=6a3aded132bf2a59668be822&type=frq-4-business-decision) ### Unit 5: Personal Goals, Budgeting, and Investing (2) - [Fleet ownership versus outsourced delivery logistics management](/ap-business/frq-practice?id=6ab2ad160f80f5dd5e1a3166&type=frq-4-business-decision) - [Premium tent manufacturer's strategic growth decision](/ap-business/frq-practice?id=6ab2ad8e0f80f5dd5e1a31a7&type=frq-4-business-decision) ## Sample question **Entrepreneurial opportunity and values decision** Use the following fictional scenario to answer all parts. Nia is starting a reusable lunch-bag business. She has experience sewing and values reducing material waste. Interviews with local families indicate interest in durable bags. She has USD 900 available to launch the business and wants to test demand before committing to long-term production. Local Proposal: sew a small batch using recovered fabric and sell directly at a weekend market. Setup costs are USD 600. For the first month, projected sales revenue is USD 1,200 and total ongoing costs are USD 500, leaving USD 700 before deducting the one-time setup cost. Nia can change designs after speaking with customers. Production depends on her limited sewing time. Supplier Proposal: order a standard design made with newly manufactured fabric and sell online. Setup costs are USD 850. First-month projected sales revenue is USD 1,700 and total ongoing costs are USD 900, leaving USD 800 before deducting the one-time setup cost. The supplier can make more bags, but Nia must commit to the standard design before seeing customer responses. All projections are uncertain, and both options fit within her available setup funds. Part A (0 points): i. Describe an internal, market or external factor affecting Nia. (1 pt) ii. Explain how that factor creates an opportunity or problem. (1 pt) Part B (0 points): i. Using projected first-month revenue as a financial criterion, describe a difference or similarity between the proposals, using evidence for both. (1 pt) ii. Using one other financial criterion, describe a difference or similarity between the proposals, using evidence for both. (1 pt) iii. Using one nonfinancial criterion, describe a difference or similarity between the proposals, using evidence for both. (1 pt) Part C (3 points): Prompt: Recommend one proposal for Nia. Explain why, using any three distinct financial and/or nonfinancial criteria and scenario evidence for each. ## Questions **How many responses can I get scored?** You can read every question without a plan. Your first scored response is included. A plan unlocks unlimited scoring. **What does the scenario look like?** A fictional business with an opportunity or a problem, and two courses of action described by their financial and nonfinancial implications. Your evidence comes from those details. **Do I have to pick one option?** Yes. Part C asks for a decisive recommendation backed by three criteria and evidence from the scenario. Saying both could work doesn’t answer it. **How is FRQ 4 different from the other Business FRQs?** FRQs 2 and 3 are shorter, with a suggested 12 to 13 minutes each on the exam. FRQ 4 asks you to weigh two full courses of action and recommend one, and it gets about 40 minutes. **Can I write my answer by hand?** Yes. Switch the editor to handwrite, write on paper, and add a photo of your page. ## Related - [Business Decision FRQ exam guide](/ap-business/ap-business-with-personal-finance-exam/business-decision-frq-guide/study-guide/UBLG2VDsbtemkRXFYHJY) - [AP Business with Personal Finance FRQs](/ap-business/frqs) - Any question by id: the `get_frq` tool on the [Fiveable MCP server](/mcp/docs) ## About This Document Canonical Fiveable pages are available as Markdown at the same path plus `.md`. - [llms.txt](https://fiveable.me/llms.txt): index of Fiveable's sections and URL patterns - [llms-full.txt](https://fiveable.me/llms-full.txt): complete subject and unit listing - [MCP server](https://fiveable.me/mcp): call Fiveable as tools instead of fetching pages (`https://fiveable.me/api/mcp`) - [MCP server for AP teachers](https://fiveable.me/mcp/teachers): a teacher's classes, assignments and AP-rubric grading (`https://fiveable.me/api/mcp/teacher`)