Year 9 accounting

Why do people start thier own business?

• To be their own boss

• Flexibility

• Achieving their dreams

• All of the above

What do we call a person who starts a business?

• Entrepreneur

• Enterprise

• Entreposuer

• Extraposer

Which word means a new way of doing things?

• internet

• innovation

• interpolation

• interpol

Which of the following is NOT an advantage of enterprise and entreprenuers.

• They create wealth

• They create jobs

• They sponsor football teams

• They support creativity

What percentage of businesses fail in the first 5 years?

• 25%

• 50%

• 12%

• 75%

Which of these is NOT a risk of setting up a business.

• Losing money

• Making money

• losing time

• Losing security

What is an advantage of a business using owner's capital as a source of finance?

• Very low rate of interest

• It will bring new skills to the business

• It doesn't need repaying

• Repayment is always spread over a period time

What is an advantage of a bank loan?

• There will be little or no interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back

What is an advantage of an overdraft?

• There is never interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back

What type of finance involves less profit going to the owners?

• Retained profit

• Sale of assets

• Overdraft

• Owner's capital