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WorksheetsA-Level Business Quiz
Total questions: 20
Worksheet time: 10mins
What is the main purpose of a business plan?
To guarantee business success
To attract investors and guide decision-making
To increase the cost of starting a business
To reduce competition in the market
Which of the following is NOT a key element of a business plan?
Market research
Employee holiday schedules
Financial forecasts
Business objectives
Which of the following is a limitation of business plans?
They ensure business success
They require time and effort to prepare
They eliminate all business risks
They prevent the need for finance
Which economic sector involves the extraction of natural resources?
Primary
Secondary
Tertiary
Quaternary
What is the main difference between public sector and private sector businesses?
Public sector businesses aim to make a profit, private sector businesses do not
Private sector businesses are owned by individuals, public sector businesses are state-owned
Public sector businesses focus only on healthcare and education
Private sector businesses only operate in the primary and secondary sectors
Why has the importance of the tertiary sector increased in many developed economies?
Due to a decline in industrial production
Because the demand for services has grown
As a result of increased globalisation and technology
All of the above
Which business structure has unlimited liability?
Public Limited Company
Private Limited Company
Sole Trader
Franchise
Which of the following is a key advantage of a private limited company (Ltd)?
Shares can be sold to the public
It has limited liability
It is easy to set up
There is no legal paperwork
Which business type is jointly owned by individuals who share profits equally?
Sole Trader
Co-operative
Franchise
Joint Venture
Why do businesses need finance?
To cover start-up costs
To fund expansion
To survive during difficult times
All of the above
What is the main difference between cash and profit?
Cash represents money physically available, profit is calculated revenue minus expenses
Profit is always higher than cash
Cash determines business success, profit does not
There is no difference
A business that cannot pay its debts and has to sell assets to repay creditors is undergoing:
Bankruptcy
Liquidation
Administration
Debt factoring
Which of the following is an internal source of finance?
Bank loan
Sale of unwanted assets
Venture capital
Trade credit
What is a key disadvantage of using venture capital as a source of finance?
High interest rates
Loss of some control over the business
Increased debt repayments
Limited availability
Which factor is important when choosing a source of finance?
Cost of finance
Flexibility
The purpose of the finance
All of the above
What is the main purpose of a cash flow forecast?
To predict future profitability
To monitor and plan business cash inflows and outflows
To reduce tax payments
To replace financial statements
Fixed costs are best described as:
Costs that vary depending on production levels
Costs that do not change regardless of output
Costs associated with selling goods
Costs that increase as sales revenue increases
What is an example of a variable cost?
Rent
Wages of production workers
Business insurance
Loan interest
What does the break-even point represent?
The level of output where revenue equals total costs
The maximum profit a business can make
The minimum number of employees needed
The point where losses exceed costs
A favourable variance in a budget means that:
Actual costs are higher than expected
Actual revenue is lower than expected
The business has performed better than expected
There is no impact on business performance
