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WorksheetsYear 9 Business Spring 2 - Units 1.1-1.3 plus Ownership
Total questions: 50
Worksheet time: 27mins
Pick one non-financial reward of starting a business.
Independence
Personal Financial Security
Profit
Celebrity Fame
A budding entrepreneur who is looking to set up a new enterprise is concerned that the business might not provide enough of a stable income to maintain his current standard of living. Which of the following best describes this risk?
Inability to break even
Lack of security
Business failure
Lack of independence
Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:
Services that have become obsolete
Products that have become obsolete
Changes in consumer demand
Changes in the interest rate
An entrepreneur has developed a unique product to launch into the market. Which of the following best describes how this new business idea came about?
An original idea
Adapting an existing product
Adapting an existing service
Adapting an existing idea
Which of the following statements is true in relation to goods and services?
Services can be touched and held, whilst goods are usually invisible
Goods can be touched and held, whilst services are intangible
Services are visible, whilst goods are usually invisible
Both goods and services are intangible
Which two of the following are examples of risk that can occur from business activity? Select two answers:
Profit
Lack of security
Independence
Business success
Financial Loss
Organises resources, makes business decisions & takes risks, are all examples of...
Functions of an entrepreneur
Characteristics of an entrepreneur
Aims and objectives
Sources of finance
Price
Quality
Choice
Convenience
Are ways to add value
Are roles of an entrepreneur
Examples of customer needs
Ways to market your product
Which of these is an example of primary research?
Focus Group
Internet
Company reports
Government statistics
What is information collected about opinions and views called?
Qualitative data
Quantitative data
Segmentation
Market Segmentation can be defined as...
Dividing customers into sub groups
Is a method of promotion
Is a qualitative form of market research
Transports products to customers
How is a market segmented by 'lifestyle'?
Products can be aimed specifically at the behaviour of a consumer.
People have different hobbies and interests, which can be connected to income and location.
Consumers live in different parts of the country and will have different tastes and needs. Those living in the city might want a smaller car
Age groups can be split into categories e.g. 0-10, 11-16 or 18+. Or even by young and old
An internet travel agent sells expensive round the world cruises. Which of the following market segments is the travel agent most likely to target?
Families with children under 5
Local residents
People with high incomes
Young students
Business Survival, Profit, Sales, Market share and Financial security are examples of?
Non financial aims and objectives
Financial aims and objectives
Financial motivation methods
Entrepreneurial skills
What is meant by the 'aim' of a business?
Long-term vision or goal of the business
Are more specific steps to achieve the aim; they tend to be S.M.A.R.T
Short term goals of a business
Ways a business can track their short term achievements
"organisations like the Co-op or the Body Shop have objectives which are based on their beliefs on how one should treat the environment and people who are less fortunate."
Price x Quantity sold is the calculation for..
Total costs.
Variable costs.
Revenue.
Break Even.
Total fixed costs + Total variable costs
Total Costs
Revenue
Margin of Safety
Break Even Point
Total variable costs are calculated...
Fixed cost for one unit x Quantity
Variable cost for one unit x Quantity
Fixed Costs + Variable Costs
Total Costs - Variable Costs
Total repayment – borrowed amount divided by borrowed amount x 100 is the calculation for what?
Break-even (units)
Interest (on loans) in %
Revenue
Profit % change
Fixed costs divided by sales price – variable cost per unit is the calculation for..
Break-even (units)
Break-even (revenue)
Interest (on loans) in %
Profit on a Break Even Chart
Actual sales – break-even sales =
Break-even
Margin of safety
Revenue
Profit
Cash inflows − cash outflows in a given period =
Net cash inflow
Net cash outflow
Net cash flow
Opening balance
What is Revenue?
Income from selling products or services
The money being paid out for bills
The money kept by an entrepreneur after costs are paid
The selling price of each of the items
What is a fixed cost
Costs that changes with output
Costs that remains the same regardless of output
Costs that change every 6 months
Costs that an entrepreneur fixes in for 12 months
Which two of the following are variable costs
Raw materials
Rent
Insurance
Packaging
Advertising
Calculate the revenue if a business sells 20,000 units at £2 each
£4500
£40,000
£45,000
£400,000
Business A has £5000 fixed costs per month. The variable costs per item they make and sell is £3. What is the businesses total costs if they make and sell 10,000 units.
£5003
£30,000
£35,000
£25,000
Which formula calculates profit?
Revenue - fixed costs = profit
Revenue - variable costs = profit
Revenue - total costs = profit
Revenue - profit = variable costs
What source of finance is for short term emergencies?
Overdraft
Bank Loan
Venture Capital
Crowdfunding
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
An amount of money that is paid back within an agreed amount of time, with interest is...
Bank loan
Angel investment
Overdraft
Retained profit
What does external sources of finance mean?
A source from within the business
A source from outside the business
A source from the owner of the business
A source from the shareholders
Businesses that have unlimited liability are..
incorporated
unincorporated
Limited companies
Franchises
In limited liability personal assets are protected
True
False
Neither
Both
Which is part of the marketing mix?
Product
People
Plans
Advertisinf
What is the most common form of business ownership?
Corporation
Company
Sole Trader
PLC
What is a form of business ownership in which 2 to 20 people jointly own a business with unlimited liability?
Sole Trader
Company
Partnership
LTD
What is the name of a person who owns part of a Limited Company?
Stakeholder
Shareholder
Trust Agent
Chairman
This type of organisation is a legal entity separate from its owners..
Sole Trader
Partnership
Limited Company
Franchise
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
A private limited company may change into a public limited company because it wants:
Limited liability
To raise additional finance
Unlimited liability
To avoid takeover
Which legal structure would an individual wishing to start-up a small business choose because it is quick, easy and inexpensive to set up?
Sole trader
Partnership
LTD
PLC
