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Worksheets

BTEC Enterprise Component 3 Learning Aim B

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

Which of the following is the term for long term assets such as vehicles & buildings?

a)

Fixed assets

b)

Current Assets

c)

Current Liabilities

d)

Long term Liabilities

2.

Which of the following is the term for short term debts that a business owes such as an overdraft?

a)

Fixed Assets

b)

Current Assets

c)

Current Liabilities

d)

Long term Liabilities

3.

Which of the following categories would highlight the inventories that a business owns?

a)

Fixed Assets

b)

Current Assets

c)

Current Liabilities

d)

Long term liabilities

4.

Which of the following categories would highlight bank loans that a business owes?

a)

Fixed Assets

b)

Current Assets

c)

Current Liabilities

d)

Long term liabilities

5.

Net current assets is calculated by

a)

Current liabilities – current assets

b)

Current assets / Current liabilities

c)

Current liabilities / current assets

d)

Current assets – current liabilities

6.

This term refers to the money invested in a business

a)

Fixed assets

b)

Current assets

c)

Current liabilities

d)

Long term liabilities

e)

Capital

7.

Which term refers to the ease with which you can repay short term debts?

a)

Cash

b)

Cash Balance

c)

Liquidity

d)

Assets

8.

When a business finds repaying short term debts difficult they have

a)

Cash

b)

A Cash balance

c)

Good Liquidity

d)

Poor Liquidity

9.

What is the value of total assets?

a)

£4,000

b)

£20,000

c)

£10,000

d)

£18,000

10.

What is the value of net current assets?

a)

£6,000

b)

£2,000

c)

£10,000

d)

£18,000

11.

Which of the following is not benefit of producing financial documents?

a)

Ability to calculate revenues, costs & profits

b)

Maintains a record of all customers & suppliers

c)

Faulty goods can be tracked & refunds issued

d)

It can be a time consuming and expensive process

12.

Which of the following is used when buying goods from a supplier?

a)

Purchase order

b)

Delivery note

c)

Goods received note

d)

Credit note

13.

Which of the following is used when confirming arrival of goods from a supplier?

a)

Purchase order

b)

Delivery note

c)

Goods received note

d)

Credit note

14.

Which of the following is used when a customer returns a good to a supplier?

a)

Purchase order

b)

Delivery note

c)

Goods received note

d)

Credit note

15.

Which of the following is used when a supplier sends goods to a customer?

a)

Purchase order

b)

Delivery note

c)

Goods received note

d)

Credit note

16.

Which of the following is a request for money owed after goods have been received?

a)

Goods received note

b)

Credit Note

c)

Invoice

d)

Receipt

17.

Which of the following can be used to compare against the purchase order before final payment is made?

a)

Goods received note

b)

Credit Note

c)

Invoice

d)

Receipt

18.

Which of the following provides proof of purchase?

a)

Goods received note

b)

Credit Note

c)

Invoice

d)

Receipt

19.

A card which deducts payment for goods and services immediately from your bank account is called ___________.

a)

Cash

b)

A debit card

c)

A credit card

d)

A direct debit

20.

A card which enables payments for goods and services to be deferred for a period of one month is called ___________.

a)

Cash

b)

A debit card

c)

A credit card

d)

A direct debit

21.

Which form of payment gives flexibility and is most suitable for small purchases?

a)

Cash

b)

A debit card

c)

A credit card

d)

A direct debit

22.

Which form of payment gives flexibility and is most suitable for small purchases?

a)

Payment technologies

b)

A debit card

c)

A credit card

d)

A direct debit

23.

Which type of payment allows people to pay online or via their smartphones?

a)

Payment technologies

b)

A debit card

c)

A credit card

d)

A direct debit

24.

Which of the following are start-up costs for a restaurant?

a)

Wages

b)

Rent

c)

Furniture

d)

Stock

25.

Which of the following are running costs for a restaurant?

a)

Furniture

b)

Buying an oven

c)

Paying for logo design

d)

Purchase of ingredients

26.

Which of the following are both fixed costs?

a)

Rent & stock purchases

b)

Salaries & wages

c)

Wages & Rent

d)

Insurance & Salaries.

27.

Which of the following is NOT a variable cost?

a)

Paying business rates

b)

Paying wages

c)

Paying for ingredients

d)

Fuel for deliveries.

28.

How do you calculate total costs?

a)

Variable costs X Quantity

b)

Fixed costs + Total Variable Costs

c)

Start-up costs + Running costs

d)

Start-up costs + Variable Costs

29.

How do you calculate turnover or sales?

a)

Net sales – cost of sales

b)

Gross profit – expenses

c)

Fixed costs + Variable costs

d)

Price X Quantity sold

30.

___________ is calculated by Sales Revenue– cost of sales

a)

Gross profit

b)

Net profit

c)

Closing Balance

d)

Opening balance

31.

____________ is calculated by gross profit – expenses

a)

Gross profit

b)

Net profit

c)

Closing Balance

d)

Opening balance

32.

If a business wishes to increase its gross profit they may wish to

a)

Lower price

b)

Find cheaper suppliers

c)

Raise their cost of sales

d)

Keep the price the same

33.

If a business wishes to increase its net profit it must.

a)

Raise cost of sales

b)

Raise expenses

c)

Reduce prices

d)

Reduce expenses

34.

Which of the following is the term for indirect costs of running a business?

a)

Turnover or Sales Revenue

b)

Cost of sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

35.

Which of the following is the term for profits made before expenses are deducted?

a)

Turnover or Sales Revenue

b)

Cost of sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

36.

Which of the following is the term for stock purchases?

a)

Turnover or Sales Revenue

b)

Cost of sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

37.

Which of the following terms considers income made through sales?

a)

Turnover or Sales Revenue

b)

Cost of sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

38.

Turnover – cost of sales = Gross Profit – Expenses = which of the following terms?

a)

Total costs

b)

Variable costs

c)

Fixed costs

d)

Net Profit

39.

If turnover is lower than cost of sales what will happen to gross profit?

a)

Gross Profit is positive

b)

Gross Profit is negative

40.

Which of the following is not a means of increasing gross profit?

a)

Increasing the price

b)

Reducing the cost of sales

c)

Bulk buying stocks to get a cheaper price

d)

Reducing expenses

41.

Which of the following is not a means of increasing net profit?

a)

Reducing cost of sales

b)

Reducing expenses

c)

Increasing wages

d)

Increasing price

42.

Which of the following is the correct means by which you calculate the gross profit margin?

a)

Turnover – cost of sales

b)

Turnover – expenses

c)

(Gross profit / Turnover) X 100

d)

(Net Profit / Turnover) X 100

43.

Which of the following is the correct means by which you calculate the net profit margin?

a)

Turnover – cost of sales

b)

Turnover – expenses

c)

(Gross profit / Turnover) X 100

d)

(Net Profit / Turnover) X 100

44.

Calculate the gross profit

a)

£120,000

b)

£80,000

c)

£100,000

d)

£8,000

45.

Calculate the net profit

a)

£85,000

b)

£155,000

c)

£45,000

d)

£115,000

46.

Which of the following is an immediate aim in carrying out promotion?

a)

Increase profits

b)

Increase prices overtime

c)

Make people aware of the business and improve brand image

d)

Reduce costs

47.

Which of the following refers to the range of promotional activities that a business decides to use.

a)

Promotional benefits

b)

Media

c)

Promotional mix

d)

Advertising

48.

Moving images, print, ambient, digital and audio are all types of ___________

a)

Sales Promotion

b)

Personal Selling

c)

Public Relations

d)

Advertising

49.

When sales agents contact customers directly they are using ____________.

a)

Sales Promotion

b)

Personal Selling

c)

Public Relations

d)

Advertising

50.

Using press releases, exhibitions, sponsorship or promotional stunts are all examples of _________________.

a)

Sales Promotion

b)

Personal Selling

c)

Public Relations

d)

Advertising

51.

This method of promotion will allow customers to ask questions and give feedback, enabling sales staff to gain a better understanding of customer needs. It is _______.

a)

Sales Promotion

b)

Personal Selling

c)

Public Relations

d)

Advertising

52.

Using mail order catalogues, magazines, telemarketing & digital mail are all types of

a)

Sales promotions

b)

Personal selling

c)

Public Relations

d)

Direct Marketing

53.

Using Public Relations usually has the clear purpose of _________.

a)

Generating positive brand image

b)

Persuading people to make purchases

c)

Better understanding customers

d)

Introducing customers to a new product.

54.

Direct marketing occurs when a business uses which of the following methods?

a)

Print & billboard advertising

b)

BOGOFs, loyalty schemes

c)

Email or video conferencing

d)

Direct mail, catalogues

55.

Which of the following terms describes splitting up a market into areas where consumers have the same interests?

a)

Promotional campaign

b)

B2C

c)

Market segmentation

d)

B2B

56.

Which of the following methods of market segmentation methods uses age, gender & income status to segment customers?

a)

Demographic

b)

Geographic

c)

Psychographic

d)

Behavioural

57.

Which of the following is not a benefit of market segmentation?

a)

Understand the characteristics & needs of customers better

b)

Develop goods & services for a specific market

c)

Clear identification of target market

d)

A lack of focus on a given customer

58.

Which one of the following is not a cash outflow?

a)

Wages

b)

Marketing

c)

Rent

d)

Sales Revenue

59.

Which of the following is not a benefit of cash flow forecasting?

a)

Allows identification of inflows & outflows

b)

Expensive items can be bought at the best time

c)

It is unlikely to be 100% accurate

60.

Which of the following is not a possible reason for cash flow difficulties?

a)

Having too much money tied up inventories

b)

Debtors not paying promptly

c)

Bills arriving at the same time

d)

Having a variety of income sources