Free Printable BUSINESS COST, REVENUE AND PROFIT, BUSINESS OBJECTIVES

1.

What is a business objective?

a)

A service for customers

b)

An overall goal, or a long-term goal

c)

A way of making more profit

d)

A smaller goal, or short-term goal, that must be met so that the overall aim is achievable

2.

The price at which goods or services are offered by a business to their customers is called

a)

Selling price

b)

Cost

c)

Variable cost

d)

Currency

3.

Costs that must be paid regardless of how much of a good or service is produced. They do not change in the short term, regardless of output are called

a)

Variable costs

b)

Fixed costs

c)

Total costs

d)

The costs

4.

Fixed Cost + Variable Cost =

a)

Breakeven point

b)

Total costs

c)

Fixed costs

d)

Variable costs

5.

Costs that change based on the amount of goods and services produced.

a)

Total costs

b)

Fixed costs

c)

Variable costs

d)

Costs

6.

A positive difference between the revenues taken in by a business and the costs of operating a business (when a business makes more than it spends). :D

a)

Loss

b)

Profit

c)

Breakeven

d)

Sales

7.

Rent, administrative costs, insurance, employee salary are examples of ...

a)

Variable costs

b)

Fixed costs

c)

Costs

d)

Prices

8.

Raw materials, packaging, wages/labour costs are examples of

a)

Total costs

b)

Fixed costs

c)

Variable costs

d)

Benefits

9.

The income (amount of money) a business receives for in exchange for a product or service

a)

Costs

b)

Profit

c)

Loss

d)

Sales revenue

10.

What is the equation for revenue?

a)

Price x Quantity

b)

Price x Profit

c)

Profit x Quantity

d)

Price + Quantity

11.

Which two of the following are variable costs

a)

Raw materials

b)

Rent

c)

Insurance

d)

Water

e)

Salary

12.

Revenue = £100,000

Cost of sales = £50,000

Other expenses = £25,000

What is the gross profit?

a)

£25,000

b)

£50,000

c)

£100,000

d)

£75,000

13.

Revenue = £80,000

Cost of sales = £30,000

Other expenses = £10,000

What is the total net profit?

a)

£70,000

b)

£65,000

c)

£50,000

d)

£40,000

14.

The things a business has to pay for in order to start-up and operate on a daily basis.

a)

Output

b)

Costs

c)

Profit

d)

Revenue

15.

The formula for total costs is:

a)

fixed costs+variable costs= total costs

b)

output+fixed costs=total costs

c)

output+variable costs=total costs

16.

Total Costs / Quantity = _____

a)

Marginal Cost

b)

Average Cost

c)

Implicit Cost

d)

Explicit Cost

17.

Variable Cost/Quantity = _______

a)

Marginal Variable Cost

b)

Average Fixed Cost

c)

Average Variable Cost

d)

Marginal Total Cost

18.

Total Revenue - Total Cost = _____

a)

Profit

b)

Revenue

c)

Marginal Revenue

d)

Variable Revenue

19.

What it is called whereby long-run average total cost falls as the output increases?

a)

Economies of Scale

b)

Efficient Scale

c)

Constant Returns to Scale

d)

Diseconomies of Scale

20.

What it is known when long-run average total cost rises as the quantity of output increases?

a)

Diseconomies of scale

b)

Constant returns to scale

c)

Economies of scale

d)

Efficient scale

21.

When production increases fixed costs does what?

a)

Increases

b)

Decreases

c)

Remains the same

d)

Diminishes

22.

In the long-run all costs are:

a)

Variable Costs

b)

Fixed Costs

c)

Total Cost

d)

Marginal Cost

23.

When production is zero what would be the fixed cost?

a)

Not enough information

b)

More than zero

c)

Zero

d)

Same as if production was NOT zero

24.

When production increases average fixed costs does what?

a)

Increases

b)

Decreases

c)

Remains the same

d)

Decreases then increases

25.

What does the following formula show? $\frac{Output}{Input}$

a)

Productivity

b)

Total Output

c)

Specialization

d)

Production

26.

Period of time when it is not possible to vary the quantities of all the factors of production used in the production process

a)

Long-run

b)

Short-run

c)

Average-run

d)

Past-continuous

27.

Which of the following is the best definition of PROFIT?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for their costs.

c)

The total amount of money a business spends.

28.

Which of the following is the best definition of COSTS?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for materials.

c)

The total amount of money a business spends to make and sell their products and services

29.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made 15 blankets and sold all 15 of them. What is Kelly's total COST?

a)

$25

b)

$225

c)

$375

d)

$750

30.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made 15 blankets and sold all 15 of them. What is Kelly's total REVENUE?

a)

$550

b)

$225

c)

$1000

d)

$750

31.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made 15 blankets and sold all 15 of them. What is Kelly's total PROFIT?

a)

$25

b)

$225

c)

$375

d)

$750

32.

Loan repayment is...

a)

fixed cost

b)

variable cost

33.

Packaging is...

a)

fixed cost

b)

variable cost

34.

Utilities are...

a)

fixed cost

b)

variable cost

35.

Wages are...

a)

fixed cost

b)

variable cost

36.

It is also known as 'organic growth?'

a)

external growth

b)

internal growth

c)

economies of scale

d)

conglomerate

37.

It is where one company buys another company and so gains control of it.

a)

takeover

b)

merger

c)

integration

d)

conglomerate

38.

Large business can afford expensive machineries. What type economies of scale is this?

a)

technical

b)

financial

c)

managerial

d)

trading

39.

Large firms have access to more sources of finance than small firms, often at a lower rates of interest. What type of economies of scale is this?

a)

technical

b)

managerial

c)

financial

d)

trading

40.

What objective is concerned with "Behaving in a way which is ethically correct and moral"

a)

Social responsibilty

b)

Enterprise/Innovation

c)

Ethical procedure

41.

Which objective would this organisation likely to have?

a)

Profit Maximisation

b)

Survival

c)

Raise awareness for a needy cause

42.

Continuing to stay in business

a)

Survival

b)

Social Responsibility

c)

Customer Satisfaction

d)

Market Share

43.

Taking responsibility for the environment

a)

Provision of Service

b)

Growth

c)

Social Responsibility

d)

Survival

44.

Aiming to make a maximum amount of profit

a)

Profit Maximisation

b)

Sales Maximisation

c)

Growth

d)

Survival

45.

One of the claimed benefits of having clear objectives is that

a)

all customers know what the business is trying to achieve

b)

the managers have a sense of direction when taking decisions

c)

the business will always make a profit

d)

there will be no arguments between managers and workers

46.

A business might have growth as one of its objectives because

a)

they will be able to benefit from diseconomies of scale

b)

they would be more likely to increase market share

c)

the shareholders always prefer growth to increased profits

d)

all businesses have to grow in order to survive

47.

Most businesses are likely to put survival as their main objective when

a)

the competition is becoming weaker

b)

the economy is becoming weaker

c)

the government plans to increase grants to firms

d)

consumers are increasing their demand for products

48.

What is the most likely objective of a newly formed business enterprise?

a)

Survival

b)

Maximum profit

c)

Rapid growth

d)

Providing a service to the community.

49.

Which business objective is this "This is probably the most basic business objective. This is important for businesses in the first few months of opening as they are more vulnerable before they have established a customer base"

a)

Growth

b)

Market Share

c)

Profit

d)

Survival

50.

Which business objective is this "This is seen as a way to raise profits and enables the business to expand. This can be important in a public limited company where they need to pay increased dividends"

a)

Growth

b)

Market Share

c)

Profit

d)

Survival

51.

The examples of business objectives are:

a)

only for business survival

b)

only to make profit

c)

for survival,to make a profit,to expand,increase market share,and for social welfare

52.

Why are objectives important for businesses?

a)

They help businesses drift in performance.

b)

They provide motivation and direction.

c)

They increase competition.

d)

They reduce employee satisfaction.

BUSINESS COST, REVENUE AND PROFIT, BUSINESS OBJECTIVES

Total questions: 52

Worksheet time: 1hrs 20mins

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