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SGS Business 2.4.2 Understanding Business Performance

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

A travel business has decided to increase the selling price of a 6-night holiday from £405 to £450 per person. Which is the correct percentage increase in selling price per person?

a)

10%

b)

11.11%

c)

90%

d)

91.11%

2.

A travel business has decided to increase the selling price of a standard 7-night package holiday from £405 to £450 per person. Which of the following is the correct percentage increase in selling price per person?

a)

10%

b)

11.11%

c)

90%

d)

91.11%

3.

The pie chart below shows information about five businesses that operate in the same market. The total market is valued at £5,000,000. Based on this information, the value of the market held by Business B is:

a)

£300,000

b)

£900,000

c)

£1,400,000

d)

£1,600,000

4.

A business gathers information regarding the population size of a specific area. Which of the following best describes the information collected?

a)

Marketing data

b)

Market data

c)

Financial data

d)

Financial information

5.

The graph below shows the increase in cars sales experienced by a second-hand car garage between last year and this year: Which of the following is the correct percentage increase in the number of second-hand cars sold by the garage between last year and this year?

a)

11.76%

b)

13.33%

c)

88.24%

d)

113.33%

6.

The table below shows the annual sales revenue for Fred’s Restaurant and the total yearly sales revenue for the restaurant market in which Fred’s operates: Based on this information, Fred’s Restaurant market share is:

a)

14.63%

b)

17.14%

c)

82.86%

d)

85.37%

7.

A business has conducted some market research into a suitable selling price that should be charged for product X. The results are shown below: Based on the information above only, which price would be the most appropriate for the business to charge for product X?

a)

£1.00

b)

£2.50

c)

£3.05

d)

£4.75

8.

Last year a business had total costs of £235,000. This year the business experienced an 8% increase in total costs. Which of the following is the business’s total cost figure for this year?

a)

£216,200

b)

£234,992

c)

£235,008

d)

£253,800

9.

The table below shows the number of surfboards sold by a business over an 8 week period. Based on this information, which of the following is the average weekly number of surfboards sold by the business?

a)

0.31

b)

3.25

c)

3.71

d)

4.5

10.

Which of the following is a problem that a business may experience when using financial data to make decisions? Figures are:

a)

Reliable

b)

Unbiased

c)

Accurate

d)

Out of date

11.

Which of the following is an example of marketing data?

a)

The level of unemployment in the UK

b)

Total spending on bicycles in Spain

c)

The sales figures of a business

d)

Total size of the UK cosmetics market

12.

Below is an extract from a business’ accounts for last year:

Based on this information, which of the following is the correct profit figure for the business for last year?

a)

£500,000

b)

£1,499,995

c)

£1,500,000

d)

£2,000,000

13.

The graph below shows the sales revenue for Businesses A, B, C, D and E for last year: Based on the information above, which two of the following statements are true?

a)

Business A has a lower sales revenue than business E

b)

Business E has the lowest sales revenue

c)

Business C has a lower sales revenue than business E

d)

Business A has the highest sales revenue

e)

Business D has a higher sales revenue than business B

14.

The table below shows selected financial data for Businesses X and Y for last year: Based on the information in the table above, which twoof the following statements are true?

a)

Business X had a higher gross profit than business Y last year

b)

Business X had a lower gross profit than business Y last year

c)

Business Y had a higher net profit than business X last year

d)

Business Y had a lower net profit than business X last year

e)

Business X had a higher sales revenue than business Y last year

15.

Average yearly profit as a percentage of the sum invested. This shows profitability and can be compared with the interest rates available on bank deposit accounts.

a)

Sum invested

b)

Gross profit margin

c)

Average rate of return

d)

Net profit margin

16.

Gross profit as a percentage of sales revenue

a)

Net profit margin

b)

Gross profit margin

c)

Average rate of return

d)

Sum invested

17.

Net profit as a percentage of sales revenue

a)

Net profit margin

b)

Gross profit margin

c)

Average rate of return

d)

Sum invested

18.

Cash put at risk when investing in new equipment or a new product

a)

Retained profit

b)

Cash flow

c)

Net profit margin

d)

Sum invested

19.

An investment has made £15,000 profit a year over a 5-year period. The investment was £90,000. Calculate the ARR.

a)

14%

b)

15%

c)

16%

d)

20%

20.

The sales revenue of a firm is £549 million and the net profit is £134 million. Calculate the net profit margin.

a)

409.7%

b)

25%

c)

24.4%

d)

26.2%

21.

Sales revenue is £632 million and cost of sales are £180 million. Calculate the gross profit margin.

a)

71.5%

b)

82.6%

c)

139.8%

d)

56.4%

22.

Average yearly profit as a percentage of the sum invested. This shows profitability and can be compared with the interest rates available on bank deposit accounts.

a)

Sum invested

b)

Gross profit margin

c)

Average rate of return

d)

Net profit margin