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WorksheetsBusiness Themes 1 and 2
Total questions: 52
Worksheet time: 26mins
Overdraft
A facility offered by a bank that allows an account holder to borrow money at short notice
When an individual is unable to pay their debts
When a company ceases trading
A long term source of finance
Brand loyalty
This is how you market your business
A customers willingness to buy a product from a particular business rather than from competitors
The logo that you use to advertise your business
A customers willingness to buy a product from competitors
Business plan
A document that tells you who owns it
A document that outlines how a business will advertise their products
A document that outlines how a business will fund a new business only
A document that outlines how an entrepreneur is going to set up a new business
Competitive advantage
Who your competitors are
An advantage a business has over its rivals that is unique and sustainable
A document showing you whats wrong with your business
A financial statement showing you your advantages over your competitors
Consumer
The person who invents the product/service
The person who buys the product/service
The person who buys and uses the products/service
The person who sells the product/service
Demographics
The laws that a business must comply with
The place where customers live and buy their products
Statistical differences that exist within a population, now and in the future
Out of date products
E-Commerce
Paying your bills online
A telephone company
Using the internet to carry out business transactions
Changing an existing product with technology
What source of finance is for short term emergencies
Overdraft
Bank Loan
Venture Capital
Crowdfunding
What is the break even point
Where sales revenue is the same as fixed costs
Where sales revenue is the same as variable costs
Where sales revenue is the same as total costs
Where fixed costs is the same as variable costs
What is trade credit
A short term source of finance from a supplier for stock.
A long term source of finance from a supplier for stock
A short term source of finance from a bank for stock
A long term source of finance from a bank for stock
Businesses that have unlimited liability are
incorporated
unincorporated
Limited companies
Franchises
What is the formula for break even
Fixed costs / contribution
Fixed costs / selling price
Variable costs / selling price
Fixed costs / margin of safety
What is the primary aim for all businesses?
To survive
To make profit
To expand
To create employment
What type of costs change according to the number of units required?
Fixed Costs
Variable Costs
Start Up Costs
Expansion Costs
Which of these is often a benefit of expansion?
Lower total costs
Improved quality
Guaranteed profit increase
Economy of Scale
Operating ethically often increases costs because...
Raw materials are coming from further away
Raw materials are in short supply
Suppliers are paid more for the raw materials they produce
Advertising costs increase to promote their brand image
Why are many car manufacturers moving away from producing petrol and diesel models?
Electric cars are in high demand
They are too expensive to manufacture
It is not a sustainable business model
There is a shortage of raw materials
Business plans should be SMART what do the letters R and T stand for?
Reasonable and Team
Realistic and Time Specific
Rational and Timely
Responsible and Targeted
Low levels of unemployment is good news because...
Consumers have more disposable income to spend with other businesses
Consumers pay lower rates of tax
Consumers have less disposable income to spend with other businesses
Consumers are more likely to be looking for employment
What piece of legislation was introduced in 2016 to ensure working aged adults have a better standard of living?
National Minimum Wage
The Equalities Act
The Health and Safety at Work Act
National Living Wage
Which piece of legislation was introduced to prevent discrimination in the workplace?
The Health and Safety at Work at 1974
Consumer Law
The Equalities Act 2010
Employment Law
Which of the following is most likely to be a benefit of business growth?
Increased costs
Increased sales
Increased competition
Increased chance of failure
What can business owners apply for to prevent rivals from copying their design features?
Trademark
Copyright
Patent
Restraining Order
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?
Internal (organic) growth
External growth
The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?
Internal (organic) growth
External growth
Which of the following is an example of a horizontal merger/takeover?
A chocolate producer buys another chocolate producer
A chocolate producer buys a cocoa farm
A chocolate producer buys a chain of coffee shops
A chocolate producer buys a car producer
If a business currently has sales of £250,000 in a market worth £2 million, what is it's market share?
10%
12.5%
17.5%
25%
As businesses grow in size, they usually benefit from 'economies of scale' - what does this mean?
Lower total costs
Lower average costs per unit
Higher total costs
Higher average costs per unit
which one of the following is not an example of a barrier to international trade?
quota
exchange rate complications
tariff
globalisation
Gross profit is equal to which of the following?
Operating profit + Revenue
Revenue - Cost of Sales
Revenue - operating profit
Revenue + Cost of sales
Items that can be seen and touched are known as...
Goods
Services
Someone who starts, operates and assumes the risk of a business is known as an...
Investor
Interest person
Entrepreneur
Business inventor
An entrepreneur needs which of the following characteristics?
very well dressed at all times.
know a person in business.
very good at accounts.
confident and determined.
Select TWO true statements that relate to a sole trader.
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
A sole proprietor has to share the profits made by the business. True or False?
True
False
Partnerships are set up by....
One person
Two or more people
Ten or more people
Twenty or more people
Which of the following are types of limited company? (Select 2 answers)
Personal
Private
Public
Premier
What type of ownership could a franchise have?
Sole trader
Partnership
Ltd. Company
All of the above
Which of the following is an advantage of operating as a franchise?
You can choose your own location
You can sell whatever you want
You have an established brand name
You do not have to pay for staff training
