MCQ 2018

Revision Quiz

MCQ 2018

Multiple Select

Which two of the following are reasons why a sole trader would become a private limited company? Select two answers.

• The business will have unlimited liability

• The risk of losing personal assets is reduced

• The business can keep financial records confidential

• Shareholders are liable for all debts

• Increased ability to raise finance

Multiple Select

Which two of the following are examples of market segments for a computer games shop? Select two answers.

• Rival computer games shop

• Members of a computer club

• Computer games adverts

• Market research of computer games

• Teenagers who play computer games

The next questions apply to this scenario.

Multiple Select

Which two of the following would improve the competitiveness of MME against other local music shops?

Select two answers.

• Offering advice on rare records

• Reducing opening hours

• Providing a low-priced delivery service

• A new competitor opens in the local area

• Advertising on national television

Multiple Select

The bank has increased the interest rate on MME’s existing loan from 6.5% to 8%.

Identify two effects of this change on MME.

Select two answers.

• Decreased net cash flow

• Increased variable costs

• Decreased fixed costs

• Increased cash outflows

• Increased profit

Multiple Select

Which two of the advertisements above would break employment legislation when

recruiting a drummer for a band?

Select two answers.

Multiple Choice

Which one of the following would be a non-financial objective for Max?

• Generating wealth

• Personal satisfaction

• Maximising profit

• Regular income

Multiple Choice

Which one of the following would be a benefit for MME if it delayed paying its suppliers?

• Increased profit

• Increased cash flow

• Reduced interest payments

• Improved relationship with suppliers

Multiple Select

Which three of the following are examples of changes that could be made to the marketing mix of a small business?

• Employing additional marketing staff

• Conducting secondary market research

• Offering ‘buy one get one free’

• Selling the product online

• Introducing new items for sale

Multiple Select

Which two of the following are advantages to a business of using venture capital?

• It decreases access to additional finance

• The business would not have to produce a business plan

• The business can benefit from expert advice

• It allows more access to finance

• The business will pay a lower rate of Corporation Tax

Multiple Choice

Which one of the following would be a reason to set up a new business as a franchise?

• A franchisee can buy supplies from any supplier

• The wage rates for all the franchises are the same

• Franchisees can make all their own decisions

• A franchise has a lower risk of failure

The next questions are about 'Go Jewels'

Fill in the Blanks

What are the monthly total costs for Go Jewels?

Multiple Select

Which three of the actions below would improve Go Jewels’ cash flow, assuming sales remain the same?

• Buy cheaper raw materials

• Increase the price of each item

• Add additional products to the range sold

• Employ additional sales staff

• Rent cheaper premises

Multiple Select

Go Jewels is opening another shop in the next town. A business plan is being produced.

Which two of the following are the main reasons for producing a business plan? Select two answers.

• To include personal details of staff who will be employed

• To provide an opportunity to attract more customers

• To reduce the chance of the business failing

• To guarantee that the business makes a profit

• To help gain potential investors

Fill in the Blanks

Calculate the cash outflow for January

Fill in the Blanks

Calculate the net cash flow for February

Fill in the Blanks

Calculate the closing bank balance for March