Unit 2 Finance for Business

Select one type of expenditure for a scarf shop

• Taking out a bank loan
• Paying wages to staff
• Selling scarves to customers
• Displaying accessories

Identify one way a business makes money

• Paying back a loan
• Selling products to customers
• Spending money on a new factory
• Buying materials to make products

Identify one example of expenditure

• Taking out a bank loan
• Receiving interest on savings
• Selling goods to customers
• Spending money on stock

Identify one example of cash inflow

• Buying promotional leaflets
• Purchasing raw materials
• Selling used machinery
• Paying electricity bills

Identify one source of business revenue

• Electricity bills paid for running the business
• Wages received by staff for the work they do
• Payments received from customers
• Purchase of inventory (stock)

Select one example of a cash outflow

• Product sales
• Sale of assets
• Stock purchases
• Receipt of a loan

What are debts owed by a business that are due to be repaid after a year?

• Current liabilities
• Long-term liabilities
• Current Assets
• Fixed Assets

What are debts owed by a business that are due to be repaid within a year?

• Current liabilities
• Long-term liabilities
• Current Assets
• Fixed Assets

Jean owns a business making baby clothes. Identify two of her variable costs

• Wages for the staff
• Insurance for the business
• Salary for the production manager
• Materials for the baby clothes
• Rent for the factory

Identify two start up costs for a manufacturing business

• Paying electricity bills
• Purchasing a new piece of machinery
• Replacing stock used to produce goods
• Buying a factory to locate the business
• Giving staff commission on sales