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Recap of topic 1

Total questions: 15

Worksheet time: 6mins

Name
Class
Date
1.

What is a primary sector business?

a)

Working with the extraction of raw materials

b)

Making this either by manufacturing or construction.

c)

Providing a service.

2.

Cash flow is an important objective for a business. This involves money flowing (a)   and out of the business.

3.

What are social and ethical objectives?

a)

Concerned with the aim of maximizing profit.

b)

Considering how a business can continue to trade over a period of time and not cease.

c)

Targets that relate to matters such as providing employment for people or improving facilities.

d)

Where a firm produces an increased range of unrelated goods and services.

4.

Cash flow is important, as it is essential to pay d (a)   on time.

5.

What is profit?

a)

Money made from sales

b)

Money left after all costs have been taken away

c)

Money owed to the business

d)

Money flowing out of the business

6.

Fixed costs d.......... n............ change with output.

(a)  

7.

Which one of the costs below is not a variable cost.

a)

Raw materials

b)

Staff who are paid per piece

c)

Managers salaries

d)

Fuel

8.

Which formula is used to calculate sales revenue:

(a)  

9.

If a business sells 4000 units of Brand X at £4 each, what is the total revenue?

(a)  

10.

Nissan manufacture cars, which industry is this in?

a)

Primary Sector

b)

Secondary Sector

c)

Tertiary Sector

d)

Quaternary Sector

11.

What type of company is an LTD?

a)

Private Limited Company

b)

Public Limited Company

12.

This is a small business that is owned by one person.

a)

Public Limited Company

b)

Private Limited Company

c)

Sole Trader

d)

Public Sector

13.

A problem with public limited companies, is that shares are sold privately, so only so much capital can be raised.

a)

False

b)

True

14.

A problem with a public limited company is that it can be subject to a h (a)   takeover because they cannot control who buys shares.

15.

The business is a separate entity and therefore the directors are not liable for the debts the business incurs. This is known as (a)   liability.