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WorksheetsBusiness Plan & Finance Quiz
Total questions: 28
Worksheet time: 17mins
What is the primary purpose of a business plan?
To attract customers
To secure funding and guide the business
To reduce competition
To hire employees
Which section of a business plan outlines the business's goals?
Financial plan
Executive summary
Objectives
Market analysis
What does a market analysis in a business plan typically include?
Competitor information and target market
Employee salaries
Production costs
Profit forecasts
Why is a cash flow forecast important in a business plan?
To predict customer demand
To estimate future cash inflows and outflows
To calculate employee bonuses
To set advertising budgets
Which of the following is NOT typically included in a business plan?
Marketing strategy
Personal hobbies of the owner
Financial projections
Operational plan
Which source of finance is most suitable for a start-up business?
Retained profit
Personal savings
Floating on the Stock Market
Trade credit
What is an advantage of using a bank loan as a source of finance?
No interest is charged
The business retains full ownership
It does not need to be repaid
It is risk-free
Which source of finance involves selling shares in the business?
Overdraft
Venture capital
Share capital
Leasing
What is a disadvantage of using trade credit as a source of finance?
It can damage supplier relationships if payments are late
It requires collateral
It is only available to large businesses
It involves high interest rates
Which source of finance is most likely to be used for purchasing machinery?
Crowdfunding
Leasing
Overdraft
Retained profit
What is an advantage of using retained profit as a source of finance?
It does not need to be repaid
It is available to all businesses
It does not affect cash flow
It is quick to arrange
Which source of finance is most suitable for a small business with limited assets?
Mortgage
Crowdfunding
Share capital
What is a disadvantage of using venture capital as a source of finance?
The investor may want a share of ownership
It is only available to large businesses
It has high interest rates
It is difficult to arrange
Which source of finance is a short-term solution for cash flow problems?
Bank loan
Overdraft
Share capital
Retained profit
What is an advantage of using crowdfunding as a source of finance?
It allows businesses to raise funds without giving up ownership
It is guaranteed to succeed
It does not require a business plan
It is only available to large businesses
Which type of business ownership has unlimited liability?
Private limited company
Sole trader
Public limited company
Franchise
What is an advantage of a private limited company (Ltd)?
Shares can be sold to the public
The owners have limited liability
It is easy to set up
It does not require registration
Which type of business ownership is most likely to have shareholders?
Sole trader
Partnership
Public limited company
Franchise
What is a disadvantage of a partnership?
Limited liability
Shared decision-making can lead to disputes
High set-up costs
Difficulty in raising finance
Which type of business ownership involves buying the rights to use a brand name?
Sole trader
Partnership
Franchise
Private limited company
What is an advantage of a sole trader business?
Limited liability
Full control over decision-making
Easy to raise finance
Shared responsibility
Which type of business ownership is most suitable for a large business with many shareholders?
Sole trader
Partnership
Public limited company
Franchise
What is a disadvantage of a public limited company (PLC)?
Limited liability
High set-up costs and legal requirements
Difficulty in raising finance
Lack of control over decision-making
Which type of business ownership is most likely to have a deed of partnership?
Sole trader
Partnership
Private limited company
Public limited company
What is an advantage of a franchise?
The franchisee can use an established brand name
The franchisee has full control over decision-making
Low start-up costs
No need to follow the franchisor's rules
Draw the Nike swoosh
Match the following terms to the definition
Cash
The Money a business can spend now
Credit
Agreement to pay at a later date
cost
an expense paid out to run a business
capital
a firm's wealth : money + assets
inflation
an increase in price of goods/services
Match the following Female Business Tycoon Brands to their Owners
Jessica Alba
Beyoncé Knowles
Rihanna
Oprah Winfrey
