Business Start-up Costs Quiz

Identify one start-up cost for a new business venture from the options below.

• Salaries paid to staff in the business

• Insurance costs for the business

• Purchase of new machinery

• Payment of telephone bills

Which of the following is a source of revenue for a business?

• Sales of products to customers

• Rent paid for shop premises

• Money paid to suppliers

• Purchase of new stock

What is meant by the term 'overheads' in a business context?

• Costs related to direct labor

• Costs related to direct materials

• Indirect costs not directly tied to production

• Revenue from sales

What action will a business take when its costs exceed its revenue?

• Make a profit

• Break even

• Make a loss

• Become bankrupt

Samia owns a shop and is reviewing her current assets. Which of the following is considered a current asset?

• Shelving and storage used within the shop

• Money that Samia has used to set up the shop

• Businesses that Samia owes money to for her stock

• Customers who owe the shop money for goods bought

Ravindra is looking to increase his business revenue. What are two other ways he could spend money to achieve this goal?

• Invest in marketing and advertising

• Hire more staff

• Reduce product prices

• Improve customer service

How can expanding the product range help Ravindra increase his revenue?

• It attracts more customers

• It reduces costs

• It limits customer choices

• It decreases competition

In a break-even chart, what does the label "A" typically represent?

• Total cost

• Area of loss

• Fixed cost

• Total revenue

In a break-even chart, what does the label "B" represent?

• Total cost

• Area of loss

• Fixed cost

• Margin of safety

Avril's business recorded sales figures for Year 1. What was the total sales amount?

• £52,000

• £53,000

• £34,280

• £17,240