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WorksheetsIGCSE Business Mixed Year 10 2.0
Total questions: 65
Worksheet time: 33mins
What are non-current assets?
Items of value that are likely to stay within the business for over a year
Items of value that can fluctuate in value on a regular basis
Items of value that the business can turn into assets within one year
Items owed by the business that should be paid back in under one year
What are current liabilities?
Items of value that are likely to remain within the business for over a year
Items of value that can fluctuate in value regularly
Items of value that the business can convert into assets within one year
Items owed by the business that should be paid back in under one year
What is the formula to calculate the operating profit margin?
(cost of sales / operating profit) × 100
(operating profit / cost of sales) × 100
(revenue / operating profit) × 100
(operating profit / revenue) × 100
What is the formula to calculate the current ratio?
Current liabilities / Current assets
Current assets / Current liabilities
Non-current assets / Non-current liabilities
Non-current liabilities / Non-current assets
What is the purpose of a statement of financial position?
To measure the profitability of a business.
To summarize everything the business owns and owes.
To predict the movement of money into and out of a business bank account.
To analyze the liquidity of a business.
According to the table, what is the Euro equivalent of 1 USD?
1.32 Euros
0.53 Euros
.76 Euros
1.59 Euros
Sutton Ltd produces teddy bears. Each month, their rent and insurance totals $20,000. The variable costs per teddy bear are $1.50.
What are the total fixed costs if they produce 35,000 teddy bears?
$10,000
$20,000
$30,000
$40,000
Which of the following is an example of a variable cost?
Interest on a loan
Insurance
Raw materials
Depreciation
The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:
Statement of Financial Position
Income Statement
Trial Balance
General Ledger
Choose examples of current assets
Debtors
Cash
Inventory
Stock
What is a cost?
Something the company receives
The price of a product
Something the company must pay
Something the company sells
What is a variable cost?
A cost which does not change
A cost which they must pay even if they produce nothing
A cost which changes the more or less the business produces
A cost the business pays when they start
What does the Acid Test Ratio measure?
A company's ability to meet short-term obligations with its most liquid assets
A company's profitability over a period of time
A company's overall financial health
A company's ability to meet long-term obligations
A company has an Acid Test Ratio of 0.8. What does this suggest?
The company may struggle to meet its short-term obligations with its liquid assets alone
The company is financially stable
The company has excessive liquidity
The company's long-term liabilities exceed its short-term assets
If a business makes/publishes financial documents it is more likely to
Pay correct amount of tax
Make more operating profit
Be approved for a bank loan
Spend too much time doing paper work
Effect of a lower variable cost per unit :
more needed to breakeven
a lower unit contribution
a higher unit contribution
a lower margin of safety
Contribution per unit is the amount of money each unit contributes towards _______ costs.
break-even
total
fixed
broken
What is meant by the term "margin of safety"?
The amount by which the actual output/units sold of a business is greater than its break-even output.
The amount of safety involved in producing enough sales revenue to cover total costs
The amount by which the break-even quantity of a business is greater than its actual output.
The amount of sales needed to cover all the costs of the business.
What is “Trade credit”?
Credit given by traders
this occurs when a company postpones paying suppliers for a while to improve cashflow
similar to loans, the company can arrange trade credit by allowing businesses to spend more than what is in their bank account and dip into the minus
Decrease £220 by 20%.
£170
£176
£200
£44
Increase £350 by 12%...
£392
£308
£42
£408
Formula for calculating percentage change
Change/original x 100
old - new/old x 100
new - old/new x 100
new - old/old x 100
Define trading bloc.
Groups of countries that agree to reduce or eliminate trade barriers between themselves
Union that adopts a common currency
Measure of the the price of a country’s exports relative to its imports.
refers to the value of exports minus imports.
Being a part of a trade bloc reduces
Tariffs
Profit
Quotas
Embargos
Markup is the % _________________ to the original cost price in order to make each item profitable.
subtracted
added
divided
multiplied
Interest rates go up - customers are more likely to buy
New trainers
Foreign holidays
Essentials
Airpods
Fee paid from franchisee to franchisor based on percentage of sales
royalty fee
license fee
advertising fee
Disadvantage of using retained profits to fund expansion
Not enough profit
Lower dividends paid to shareholders
Higher dividend payments
Expansion is slower
What is market share and why is it important for a business?
Market share is the profit margin of a company. It is important for a business because it reflects the company's financial stability.
Market share is the percentage of total sales in a market that is captured by a company. It is important for a business because it indicates its competitiveness and position in the market relative to its competitors.
Market share is the number of employees a company has. It is important for a business because it shows the company's ability to attract talent.
Market share is the amount of money a company spends on marketing its products. It is important for a business because it determines the company's brand image.
Interest rates decreased in the UK by 2%. What affect did this have on businesses?
Inflation will fall
Consumers will spend more
Business will be less likely to borrow money
Business sales revenue will decrease
Which of the following defines the term 'interest'?
The percentage of tax a business pays
The amount of VAT consumers pay
The cost of borrowing money
A trade barrier
Which of the following defines a stakeholder
A person who runs and owns their own business
A business that operatea using the name and brand of another business.
A person or group with an interest in the business
A person who buys shares in a business
Net cash flow can be
Positive
low %
Profitable
Negative
Working capital is another term for
Operating profit
Net current assets
Gross profit
Long term finance
Net current assets =
Current liabilities - current assets
Current assets - current liabilities
Current assets / current liabilities
Currents assets / current liabilities x 100
Which business sector deals with extracting raw material and natural resources?
primary sector
secondary sector
tertiary sector
all of the above
Which of the following businesses is most likely to locate close to its raw materials?
Yoghurt manufacturer
National supermarket chain
A store for luxury bags
British online clothing retailer
What happens at Break-even Point?
Company makes neither profit nor loss
Company makes profit
Company makes loss
Company goes bankrupt
An increase in fixed cost will do which of the following?
Shift the break-even point to the left
make the total cost curve more steep
Shift the break-even point to the right
make the total cost function flatter
If the currency of a country depreciates, it means that_____
The exports of that country become more competitive
It's cheaper to import from other countries
The country's trade surplus will grow
The country's trade deficit will grow
Argentina has placed a tax on foreign milk imports to protect their dairy farmers.
Tariff
Quota
Embargo
Change 1.4 to a percent.
14
14%
140%
40
Express 0.125 as a percentage.
1.25%
0.0125%
0.125%
12.5%
Private Limited Companies have to make Financial Information Public
True
False
Which two of the following are advantages of starting up and running as a franchise operation?
Select two answers:
The franchisee:
Has to provide all equipment such as IT systems
Gets advice and training from the franchisor
Has to pay royalties to the franchisor
May have to buy goods from the franchisor at a mark-up
Is part of a well-known firm with established brand name and product
Shareholders recieve a share of the profits a LTD makes called a
Dividend
Bonus
Commission
Cash Prize
What are some examples of on-the-job training?
Classroom lectures
Watching a training video
Job shadowing
Online courses
What is the definition of job enrichment?
Job enrichment refers to the practice of job rotation among employees.
Job enrichment is the process of increasing the depth of a job by adding responsibilities and opportunities for personal growth.
Job enrichment is the method of outsourcing tasks to external contractors.
Job enrichment is the process of reducing job responsibilities to increase efficiency.
Interest rates go down - which of the following become true?
Customers more likely to borrow
Customers less likely to borrow
Customers less likely to spend
Customers more likely to spend
Interest rates go up - which of the following becomes true?
Customers more likely to borrow
Customers more likely to increase spending
Customers more likely to decrease spending
Customers less likely to borrow
What is the key feature of a bank overdraft?
Flexibility in borrowing
No risk of repayment demand
Fixed interest rate
Long-term repayment terms
What are the advantages of overdrafts?
Flexible borrowing arrangement since monthly overdraft amounts might change
Only the amount that is overdrawn requires paying interest.
In the long run, overdrafts are typically less expensive than loans.
No interests, repayments involved
Short notice repayment
Which of the these sources of finance is least useful for dealing with cash-flow issues?
Trade Credit
Crowdfunding
Overdraft
Owner's Capital
What source of finance often requires no interest, equity, security or repayment?
Bank loan
Crowdfunding
Taking on a new partner
Overdraft
Contribution per unit
= Selling price per unit – Variable cost per unit
true
false
_____________________
= Total fixed costs ÷ Contribution per unit
Contribution per unit
Break-even point
Contribution per unit
= ________________________ – Variable cost per unit
selling price per unit
selling price per item
total fixed costs
·Selling price per candle = Dh100
·Variable cost per candle = Dh50
·Total fixed costs = Dh10,000
What is the contribution per unit?
Dh50
Dh60
Dh70
Dh80
Contribution per unit is the amount of money each unit contributes towards _______ costs.
break-even
total
fixed
broken
•rent
•internet
•insurance
•salaries
•loan repayments
These are examples of what costs?
average
fixed
total
variable
Clean and maintains the machine use in the process of creating the goods.
human resources
Marketing
Production
Finance
