Business basics

Which has unlimited liability ?

• PLC

• LTD

• Sole trader

Another term for shares :

• Equity

• Working capital

• Receivables

• Payables

Gross profit margin formula =

• Gross profit

  expenses x 100

• Gross profit

  cost of sales x 100

• Gross profit

  revenue x 100

Inventory =

• credit customers

• buildings

• non-current assets

• stock

Qualitative market research :

• closed questions

• large survey

• numerical statistics

• subjective opinions

Which are fixed costs ?

• rent, office salaries

• materials, packaging

• labour wages, ingredients

Formula for unit contribution =

• Variable cost per unit minus selling price

• Selling price minus variable cost per unit

• Selling price times variable cost per unit

Breakeven = Fixed costs / ?

• margin of safety

• variable cost per unit

• unit contribution

• revenue

Margin of safety =

• current output - breakeven

• current output x breakeven

• current output + breakeven

A reason for bias in market research :

• very clear questions

• good mix of respondents

• small sample size

• random sample