GCSE OCR Business Unit 5

Which of the following is the role of the finance function?

• Advertise for temporary Christmas staff

• Decide on new TV advert content

• Monitor costs and revenues

• Make sure products are high quality

Which of the following statements is false?

• Business growth may be limited by problems raising finance.

• Finance is needed to pay for the start-up costs of a business

• Marketing costs are always paid out of revenue so finance is not needed

• A business may need to change its legal form to raise money

A business that makes clothes decides to increase production. Which of the following is NOT likely to happen?

• Expenditures measured on the cash flow forecast will increase

• The firm may need to raise finance to expand production facilities

• The total costs of production will increase

• The firm will spend less money on raw materials.

Which of these would NOT be part of financial information a business would use?

• Population of UK

• Revenue

• Costs

• Net profit

What is retained profit?

• selling items that belong to the business

• Profit not shared between the shareholders as a dividend

• owner's savings being put into the business

• money raised through an appeal to the public

What is sale of assets?

• selling items that belong to the business

• Profit not shared between the shareholders as a dividend

• owner's savings being put into the business

• money raised through an appeal to the public

What is owner's capital?

• selling items that belong to the business

• Profit not shared between the shareholders as a dividend

• owner's savings being put into the business

• money raised through an appeal to the public

What is owner's crowdfunding?

• selling items that belong to the business

• Profit not shared between the shareholders as a dividend

• owner's savings being put into the business

• money raised through an appeal to the public

What is interest?

• The amount of money that is paid back to a company that's extra, on top of what you borrowed.

• a sum of money borrowed for a period of time, paid back bit by bit

• an arrangement with the bank that you can spend more than what is in your account

• when you get the goods from a supplier/business but pay at a later date

What is a loan?

• The amount of money that is paid back to a company that's extra, on top of what you borrowed.

• a sum of money borrowed for a period of time, paid back bit by bit

• an arrangement with the bank that you can spend more than what is in your account

• when you get the goods from a supplier/business but pay at a later date