WorksheetsExam Revision
Total questions: 10
Worksheet time: 8mins
Which one is a variable cost?
Packaging
Rent
Loan Repayments
Insurance
How can a business add value to a product/service?
Increase the price
Reduce the Quality
Use Quality materials
Use a market map.
Starting a business may be very daunting, the rewards can be great but an entrepreneur must try to minimize the (begins with R)
(a)
What does insolvency mean?
A product is no longer in demand
A product has become obsolete
A business can no longer pay their debts
A business has gone in to solvation
Liam is operating a local cheese producing company. His cheeses are getting more and more popular. However, there are some high costs associated with making each cheese. How could he reduce a variable cost?
Try to negotiate a cheaper rent on the premises he operates from?
Try to get a better rate on the loan for the machinery?
Try to negotiate a better deal with the suppliers who bring in the cow feed?
Take one of the cows out on a date at the local Kebab shop?
Caspian has started a started a Natural Remedy Shop. Using plants/flowers from his local area to help support problems such as hayfever, Arthritis etc.
He requires a loan of 15,000
His total repayment will be 17,225
Length of loan is 5 years.
Calculate the interest as a percentage of the loan. (to 2 decimal places)
(a)
Two benefits of being a ltd business? (private limited)
You will be limited with your liability to any debts you have.
You can sell shares on the stockmarket
You can sell shares to family/friends
You have unlimited liabilty.
Bailey has started his own Sports Shop selling sports wear/team wear for local clubs. In January he makes-
Number of sales= 1700
Sales price= £20
Variable Cost= 13
His breakeven point is 1500 sales
What is the margin of safety for January?
(a)
When we divide our potential target market into small groups using similar characteristics such as age, income, location (demographics)
Begins with M and there are two words
(a)
What are potential impacts of becoming a Franchisee
training and support provided
Access to a good location
Known and Trusted Brand
You can create your own rules eg-prices/offers
