Theme 1 - Mixed questions Part 1

Reducing congestion and pollution created by a local factory is most likely to be the objective of:

• Customers

• The local community

• Suppliers

• Employees

Reducing congestion and pollution created by a local factory is most likely to be the objective of:

• Finance provided by the owners from their own financial sources

• When a firm decides to raise funds by taking on an additional partner

• Profit kept within the business for reinvestment

• Capital provided by an investor who is willing to invest in a high risk enterprise

A local restaurant has a wide range of meals available on its menu. The customer need that is being met is:

• Convenience

• Price

• Choice

• Quality

Conflict is likely to occur between which of the following stakeholder groups when a factory decides to introduce a night shift to increase output levels?

• Suppliers and employees

• Owners and local community

• Customers and owners

• Employees and customers

Which of the following defines the term fixed cost? A cost which:

• Varies according to revenue

• Is only ever paid once

• Varies according to output

• Stays the same regardless of how much is produced

In April, a business had cash inflows of £33,000, cash outflows of £55,500 and an opening balance of £14,200. The closing balance for the month of April was:

• £8,300

• (£8,300)

• (£22,500)

• (£36,700)

An important aim/objective when starting up a business is to keep the business running. This is best described as:

• Maximising

• Survival

• Increasing market share

• Maximising sales

Last year, a business sold 19,600 units and made £98,000 in revenue. Its annual fixed costs were £30,000 and its variable cost per unit was £1.10. How much profit did it make last year?

• £46,400

• £68,000

• £76,440

• £128,000

Which of the following is an advantage to a business of operating as a private limited company over a partnership?

• Limited liability

• Financial accounts are kept private

• Harder to raise finance

• Personal possessions can be taken to pay any debt

A business has monthly fixed costs of £600 and a variable cost per unit of £1.00. Each unit is sold for £2.50. The total number of units the business will need to sell to break even per month is:

• 172

• 240

• 400

• 600