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Worksheets3.1.6 Business planning
Total questions: 15
Worksheet time: 12mins
Which of the following is an advantage to a new business start-up of producing a business plan?
It will guarantee survival
It will help test financial viability
It will ensure sales targets are met
It will not need to be referred to again by the business owner
In which section of the business plan would you expect to find details about market size and market research?
Objectives and key targets
Cash flow forecast
Market overview
Forecast revenue, costs and profit
Which of the following best describes a business plan? A written document that describes:
The business, its objectives, strategies, financial forecasts and market
The marketing plan of the business
The objectives and key targets of the business
How the business will produce its products
Which of the following is the formula for total costs?
Total costs minus total variable costs
Total fixed costs plus total variable costs
Total costs plus total variable costs
Total fixed costs minus total variable costs
Which of the following is a drawback of business planning?
Reduces risk by providing a guide for the business
The plan will need to be constantly updated
It will help to secure any finance required
Allows the business to review its progress
Which of the following best defines the term variable cost? A cost which:
Stays the same regardless of output
Changes according to output
Changes with time
Changes according to revenue
An existing business may use a business plan to:
Focus on the business idea before start-up
Present to shareholders at the AGM
Secure external finance for business expansion
To share with employees in the business
A business makes a profit when:
Total revenue is greater than total costs
Total revenue is less than total fixed costs
Total revenue is greater than total variable costs
Total revenue is less than total costs
Which of the following is a functional area of a business?
Outsourcing
Operations
Enterprise
Capital
Selling price x quantity is the formula for which of the following?
Profit
Total costs
Revenue
Variable costs
A business sells 12,000 units per year. Fixed costs per year are £50,000 and variable costs are £2.50 per unit. The business’s total costs are:
£30,000
£54,800
£62,000
£80,000
Which of the following is a major problem that an entrepreneur might encounter when writing a business plan for the first time?
To explain the business idea and where it came from
Forecasting product sales accurately
To include details about the owners
To find an appropriate format to present the plan
Which of the following defines the term revenue?
The money the business makes after total costs are deducted
The money the business makes after variable costs are deducted
The money the business makes from selling its goods or services
The money the business makes after fixed costs are deducted
Details regarding how many staff the business will need to employ, their pay rates and job descriptions would be found in which section of a business plan?
Finance
Human resources
Marketing
Operations
The fixed costs of a business are £300,000 per year and variable costs are £2.00 per unit.
The business sells 200,000 units per year at a selling price of £5.00. The profit made per year is:
£300,000
£600,000
£1,000,000
£1,500,000
