What is the name given to the share of profits paid by a franchisee to a franchisor each year?

• Loyalties

• Patent

• Royalties

• Taxation

Which of the following would be included in a business plan for a start-up business?

• A review of the business objectives set last year

• Profits during the last 12 months

• Profit forecasts for the next 12 months

• Sales during the last 12 months

A sole trader finances their new business using a small business grant. Which of the following best describes a feature of this source of capital?

• A high rate of interest will be charged

• High application fees will be charged

• The funds obtained do not have to be repaid

• This source of capital can always be obtained without completing an application form

A sole trader business has unlimited liability. One key feature of unlimited liability is that:

• they are responsible for all of their debts

• they are working with a number of other people

• they cannot get finance from a bank

• they work on their own

If you advertised your intended new business on different social media platforms and asked a large number of people to invest money into the business, you would be looking for which source of capital?

• A group loan

• Business angel financing

• Crowdfunding

• Social media funding

Which of the following sources of capital usually involves individuals contributing finance by buying equity in the business?

• Bank loan

• Overdraft

• Crowdfunding

• Small business grant

Keenan is thinking of buying a franchise from a well-known chain of coffee shops.

Which of the following is a disadvantage to Keenan of becoming a franchisee?

• Customers will know the brand name

• Head office will offer business support

• Royalty payments have to be made to the franchisor

• The menu will include well-known drinks

Limited liability means that:

• One owner cannot sell their share in the business without the permission of the other owners

• Owners are liable for all debts of the business

• Owners do not risk losing personal possessions to repay the debts of thebusiness

• Profits must be shared equally between the owners of the business

usiness aims to break even during its first year of trading. Which section of a business plan is most likely to include this information?

• Banking

• Business objectives

• Marketing plan

• Resources plan

Which of the following needs to be submitted to Companies House when setting up a private limited company?

• Business plan

• Cash flow forecast

• Memorandum of Association

• Taxation