CTEC Business 2017

Which of the following would be classified as an external stakeholder of a private limited company?

• Directors

• Employees

• Partners

• Pressure Groups

A Cash Flow Statement:

• calculates how much profit a business has made

• lists the expected cash inflows and outflows of a business

• records the actual money flows of a business

• shows the net worth of a business

A business operating as a partnership:

• has at least 2 shareholders

• must share profits between the owners

• pays corporation tax

• requires a cerificate of incorporation

Which of the following functional areas of a business is most likely to be responsible for recruiting new staff?

• business support services

• Finance

• Human Resources

• Operations management

Which of the following are likely to be fixed costs for a clothing manufacturer?

• Business rates and insurance

• Fabric and thread

• Sewing machines

• Zips and buttons

which of the following is the correct definition of the term 'margin of safety'?

• the amount by which output can fall before a loss is made

• the maximum output that a business can produce

• the minimum level of output needed to make a profit

• the output level at which no profit or loss is made

the role of the manager is lower in status than the role of:

• a director

• a supervisor

• an apprentice

• an operative

the marketing department of a public limited company fails to inform the production department of a proposed advertising campaign. This is an example of:

• centralised decision makeing

• employee empowerment

• poor communication between business functions

• the division of work in a large organisation

A hierarchical organisational structure has:

• a short chain of command

• limited opportunities for delegation

• many tiers of responsibility

• no management function

Natalie is a sole trader, she makes footstools in her home workshop. She estimates her costs and revenues for 2017 as follows:

Fixed Costs - £4200 per annum

Raw Materials - £8 per footstool

Labour costs - £6 per footstool

Selling Price - £38 per footstool

If Natalie makes and sells 300 footstools her profit would be:

• £175

• £3000

• £7200

• £11400