Font size
WorksheetsYear 11 Business exam / revision
Total questions: 86
Worksheet time: 2hrs 2mins
Complete the diagram by writing the name of the missing documents in box 3 only
Statement of account (SOA)
Invoice
Receipt
State which method of payment would be the most efficient for paying this bill.
State why the chosen method would be the most efficient.
Jasmina wants to improve the way she controls her spending. She needs to calculate her annual total costs. State the formula used to calculate total cost.
Using the data, calculate the total costs for the year for JSG Ltd. Show your workings.
Complete the purchase order form for Daffodil bulbs by calculating the total price, subtotal, discount, and total amount.
Total price for Daffodil bulbs
Subtotal
Discount (5%)
Total amount
Jasmina has been checking the financial performance of her business for the last year. She wants you to calculate her gross profit. Calculate the gross profit from the data provided. Show your workings.
Explain one way Jasmina could improve her gross profit.
Jasmina wants to know how well her enterprise has been performing. She has identified the following problem in her previous years' financial statements: Retained profit has decreased from £4,284 in 2016 to £1,378 in 2017. Explain two actions Jasmina could take to improve the enterprise's retained profit figure.
Jasmina believes carrying out targeted advertising would help inform potential business customers about her services. She asks your advice about the two basic aspects of advertising. State the meaning of the two basic aspects of advertising.
Jasmina wants to know if she has enough cash to increase her promotional budget to help her enterprise grow. She has started to complete a cash flow statement for the past year. Complete the cash flow statement for the month of October by calculating the 'Additional domestic gardening jobs' cash inflow.
Complete the cash flow statement for the month of November by calculating the 'Total outflows' cash outflow.
Complete the cash flow statement for the month of December by calculating the 'Regular domestic gardening customers' cash inflow.
Complete the cash flow statement for the month of November by calculating the 'Net cash flow'.
Complete the cash flow statement for the month of December by calculating the 'Opening balance'.
Complete the cash flow statement for the month of October by calculating the 'Closing balance'.
Jasmina has forecast that the enterprise would have a negative closing balance in each month. Explain two solutions that would improve the negative closing balances that Jasmina has forecast for her enterprise.
Jasmina is worried about paying her debts in the future. She recognises the liquid capital ratio is an important measure of her ability to pay her debts. Calculate the liquid capital ratio for JSG Ltd.
Jasmina has calculated the profits for the year for her expanded business. Calculate the net profit margin for JSG Ltd. using the formula: Net profit margin = (Net profit / Revenue) × 100 Revenue/Turnover: £120,000 Net profit: £16,440
Jasmina wants to calculate the number of domestic customers jobs that she needs to take on to break even. She gives you the following information about these jobs: Cost and revenue information on Jasmina’s domestic customers Using the data above and the following blank chart, you should: - draw and label the fixed costs, total costs and revenues lines - identify the break-even point.
Calculate the margin of safety if Jasmina has 375 domestic customers.
State why knowing the margin of safety would be important for JSG Ltd.
Explain one impact on JSG Ltd of having inaccurate financial documents.
Explain two advantages for JSG Ltd of accepting credit card payments from customers.
State one way that JSG Ltd can segment the market when targeting business customers.
Jasmina is thinking of using loyalty incentives as a sales promotion method to attract new customers. Explain two advantages for JSG Ltd of using loyalty incentives as a sales promotion method.
Jasmina is aware there are factors that would influence which promotional method she uses. One of these factors is cost. Explain one other factor that is likely to influence Jasmina's choice of promotional method.
Evaluate which of these two public relations methods Jasmina should use to attract business customers. In your answer you should include: - an analysis of the key advantages and disadvantages of each method as a way of promoting her enterprise - a conclusion that recommends which public relations method would be best for JSG Ltd when trying to attract business customers.
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
Why do you need a business plan?
To explain your idea
the ability to get financing.
it's a road map that sets objectives and goals for the business
All of the above
All partnerships must be 50 - 50?
True
False
Your business plan should never list any risks or potential problems.
True
False
True or False: Business plans are used by new, rather than established, firms
TRUE
FALSE
Which of the following statements about business plans is TRUE?
Business plans eliminate risk to lenders
Business plans reduce risk to lenders
Business plans increase risk to lenders
Business plans have no impact on risk to lenders
Which of these pieces of information would NOT be in a business plan put together by a new business?
Target market
Market research
Profit
Estimated cashflow
An entrepreneur is creating a business plan for a new business ; they are including a section on sources of finance. Which of these are appropriate sources of finance to suggest? (Suggest as many as are appropriate)
Grant
Retained profit
Owner savings
Bank loan
Which of the following is it OK to leave out of a business plan?
Executive summary
Location
Marketing
Employees needed
None of the above
Machinery is an example of which factor of production:
Land
Labour
Capital
Enterprise
The total output of a business is 20,000 units and the total costs of production are £250,000. The average unit cost is:
£0.08
£1.25
£8.00
£12.50
A business decides to use £1 million from its bank account to invest in new machinery. The opportunity cost of this decision is that the:
New machinery may increase business output
Business is no longer earning money (interest) in the bank
Business has to pay £1 million for the new machinery
Quality of the product may be improved
Conflict is likely to occur between which of the following stakeholder groups when a factory decides to introduce a night shift to increase output levels:
Suppliers and employees
Owners and local community
Customers and owners
Employees and customers
Which of the following defines the term fixed cost? A cost which:
Varies according to revenue
Is only ever paid once
Varies according to output
Stays the same regardless of how much is produced
Details regarding how products will be produced and information relating to suppliers will be included in which part of a business plan?
Marketing
Human Resources
Finance
Business Operations
A business which grows potatoes and makes them into crisps is said to be operating in the:
Primary and secondary sectors
Primary and tertiary sectors
Secondary and tertiary sectors
Primary, secondary and tertiary sectors
A business decides to increase its selling prices. Which of the following stakeholders is most likely to be affected?
Suppliers
Local community
Employees
Customers
Which of the following statements is true of a public limited company?
It has unlimited liability
It is owned by the board of directors
It does not have to pay its shareholders a dividend
It is controlled by shareholders
Which of the following businesses is most likely to locate next to a source of skilled labour?
Fast food restaurant
High street fashion chain
A budget hotel
A car manufacturing plant
Which of the following is an advantage of growth through opening new stores?
Growth may be dependent on overall market growth
Less risky than taking over other businesses
Fast way of growing market share compared to external growth
New stores are guaranteed to be successful
Last year, a business sold 19,600 units and made £98,000 in revenue. Its annual fixed costs were £30,000 and its variable cost per unit was £1.10. How much profit did it make last year?
£46,440
£68,000
£76,440
£128,000
Which type of business is likely to have increasing shareholder value as an objective?
Sole trader
Partnership
Public limited company
Not-for-profit organisation
When a business increases its sales as a percentage of total market sales it is said to be:
Increasing its market share
Improving its customer satisfaction
Increasing its shareholder value
Maximising its profits
Last year a business sold 500 units per year. Fixed costs per year were £25,000 and its variable cost per unit was £90. This year sales and fixed costs remained the same, but variable costs per unit have increased by 10%. What is the business’s total costs this year?
£20,000
£24,500
£70,000
£74,500
Which of the following functional areas is most likely to use twitter to increase customer engagement?
Business Operations
Marketing
Finance
Human Resources
Which law would be broken if an employee refused to wear safety equipment provided by the business?
Equality Act (2010)
Health and Safety at Work Act (1974)
Consumer Rights Act (2015)
Trades Description Act (1968)
A business reduces the level of chemical emissions from its factory. Which of the following is the business aiming to reduce?
Noise pollution
Traffic congestion
Recycling
Air pollution
Which of the following is a feature of a weak economic climate?
High levels of consumer spending
Low levels of consumer spending
High levels of employment
Low levels of unemployment
Which of the following laws prevents employees being discriminated against on the basis of characteristics such as gender and race?
Equality Act (2010)
Health and Safety at Work Act (1974)
Consumer Rights Act (2015)
Trades Description Act (1968)
Which of the following is true in relation to the Health and Safety at Work Act (1974)?
Visitors to a business are not covered by the act
Employees must follow health and safety procedures set by the firm
Employees are the only people covered by the act
Customers visiting business premises are not covered by the act
Which of the following is a possible impact facing a hotel chain if facilities and accommodation are falsely described?
Sales may increase
Customer numbers may increase
Profits may increase
Reputation may decrease
Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods?
Imported raw materials dearer and exported finished goods cheaper
Imported raw materials cheaper and exported finished goods cheaper
Imported raw materials dearer and exported finished goods dearer
Imported raw materials cheaper and exported finished goods dearer
Which of the following is a drawback to a business of behaving in an environmentally responsible way?
Sales increase due to positive public image
Brand reputation is improved
Publicity may not persuade customers to buy
Easier to motivate and recruit employees
Which of the following statements is true in relation to UK legislation?
Product descriptions must be true, accurate and not misleading
Employers do not have to pay the national minimum or living wage
Customers cannot reject a falsely described product once purchased
Gender is not a protected characteristic of the Equality Act (2010)
Which of the following statements best describes the national living wage? The hourly pay rate set by the Government which must be paid to:
All employees
All employees aged over 21
All employees aged under 25
All employees aged over 25
Which of following is most likely to occur as interest rates fall?
Sales of luxury products increase
Sales of essential products increase
Sales of luxury products decrease
Sales of essential products decrease
Tesco’s F&F clothing brand has committed that, by 2020, it will only use cotton that has a minimal impact on the environment. This is an example of:
Waste disposal
Recycling
Using scarce resources
Sustainability
Which of the following is an example of a business minimising risk by selling products in different markets?
British fashion house, Burberry, selling its products in China
UK grocer, Sainsbury’s, aims to open more UK Sainsbury’s Local stores
British retailer, Argos, opens outlets in UK Sainsbury stores
UK retailer, Marks & Spencer, to close stores in 10 overseas markets
A business that uses renewable energy, such as solar and wind power, aims to reduce:
Recycling
Global warming
Traffic congestion
Waste disposal
Business operations is the department in a business that is responsible for:
Marketing
Finance
Production of goods/provision of services
Human resources
Which of the following products is likely to be made using job production?
Heinz baked beans
Cadburys Dairy Milk
Land Rover car
Made to measure wedding dress
Which of the following is a feature of flow production?
Products are produced continually on a production line
Products are one-off meeting customer needs exactly
Products are made in small identical groups
Cost of producing one unit is high
A benefit to a business of introducing lean production methods is that:
Unit costs should be minimised in the long term
New processes will be easily implemented
Training costs will be low
All staff will be happy to take on additional responsibilities
Which of the following stock control methods would involve frequent deliveries?
Flow production
Just in case
Job production
Just in time
A business that becomes more streamlined as a result of effective supply chain management is said to be running more:
Bureaucratically
Expensively
Efficiently
Autocratically
Which of the following is a benefit to a business of minimising waste in its supply chain?
Lower unit costs
Higher labour turnover
Higher revenue
Purchasing economies of scale can be achieved
Which of the following is a direct benefit of having an efficient logistics department?
Products arrive exactly when needed
Labour productivity will reduce
Efficiency will be minimised
Staff motivation will increase
Total quality management aims to:
Give production line staff minimal say in the level of quality standards
Check quality standards at the end of the production line
Ensure that quality is the responsibility of everyone in an organisation
Ensure a single person/single team is responsible for quality
An advantage to a business of asking customers to complete on line surveys regarding customer services is that:
An unbalanced view of quality standards may be gained
Low response rate
Cost effective to set up
Incentive to complete the surveys may need to be offered
The process of meeting customer needs successfully before, during and after a sale is called:
Procurement
Kaizen
Customer service
The sales process
An employee greeting a customer and offering help when required are specific examples of:
The sales process
Post sales service
Customer engagement
Product knowledge
Which of the following is a danger to a business of offering poor customer service?
Increased flexibility with pricing
Increased revenue
Negative word of mouth
Satisfied customers
A business that allows its customers to make purchases in store, via its website or by the telephone is called a(n):
Pure play retailer
Omni-channel retailer
E-tailer
Bricks and mortar retailer
The process of coordinating people and resources to ensure everything is in the right place at the right time is the role of which department in a business?
Logistics
Procurement
Supply chain management
Purchasing
