IGCSE Business Revision 3

Which one of the following is protected by legislation?

• Skills

• Age

• Experience

• Ability

Which one of the following is a current asset?

• Vehicle

• Cash

• Building

• Factory

Which one of the following is the total monthly cost for PPS?

• €692.50

• €931.50

• €2137.50

• €2312.50

Which one of the following would be a benefit to a business delaying paying

its suppliers?

• Improved cash flow

• Increased profit

• A reduction in the amount of interest paid

• Improved relationship with suppliers

Jewellery For You is a jewellery business making earrings and necklaces from

stones and pebbles found on local beaches. It makes 240 items a month.

Price per item €27

Variable costs per item €12

Fixed costs per month €600

Which one of the following would be the total monthly cost for Jewellery

For You?

• €924

• €3 480

• €6 480

• €7 080

Which one of the following is a reason why a business would produce a cash

flow forecast?

• It is a legal requirement that a business has a cash flow forecast

• A cash flow forecast ensures that the business will be successful

• It can help a bank decide whether it should lend money to a business

• To show the profit and loss of a business in the past six months

Which one of the following is a reason why a sole trader would want to

become a private limited company?

• The business can keep financial records confidential

• The business will have unlimited liability

• Shareholders are liable for all debts

• Increased ability to raise finance

Which one of the following is an example of an internal source of finance?

• Overdraft

• Crowdfunding

• Retained profit

• Share capital

Which one of the following is a result of average costs rising in a growing

large business?

• Economies of scale

• Diseconomies of scale

• Purchasing economies

• Financial economies

Which one of the following is the money left after all costs have been

subtracted from revenue?

• Gross profit

• Inflows

• Loss

• Profit