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WorksheetsBusiness and Finance Quiz
Total questions: 54
Worksheet time: 27mins
What is a financial liability?
An asset owned by a company
Money owed by a business to another party
The profit earned by a business
Cash available in a company’s bank account
Calculate the break-even point if fixed costs are £20,000, selling price is £50, and variable cost per unit is £30.
400 units
1,000 units
500 units
667 units
What are fixed costs?
Costs that vary with production volume
Costs that do not change regardless of output
Costs related to variable expenses
Costs that increase with sales
What are variable costs?
Costs that vary with production volume
Costs that do not change regardless of output
Costs that remain fixed
Costs that do not affect profit
What is gross profit?
Sales revenue minus cost of goods sold
Total sales revenue
Net profit minus expenses
Income before tax
How do you calculate profit margin?
(Gross profit ÷ Sales revenue) × 100
(Sales revenue ÷ Gross profit) × 100
(Net profit ÷ Sales revenue) × 100
(Gross profit – Expenses) × 100
What risk is associated with taking out a bank loan?
Increased sales
Reduced cash flow due to repayments
Increased staff morale
Improved product quality
What happens if financial reports are inaccurate?
Poor decision making and possible legal consequences
Increased profits
No effect on business
Reduced taxes owed
Name two types of expenditure a small business faces before trading.
Advertising and Sales
Capital and Operational
Marketing and Payroll
Rent and Customer Service
Why is budgeting important?
To control costs and plan future spending
To increase taxes
To avoid employees
To reduce sales
What is the difference between gross profit and net profit?
Net profit accounts for all expenses including operating costs
Gross profit is after tax
Net profit excludes costs
Gross profit includes taxes
What is meant by ‘financial forecasting’?
Predicting future financial outcomes
Reporting past sales
Creating marketing plans
Setting employee salaries
What is a cash flow statement used for?
Tracking inflows and outflows of cash
Planning marketing activities
Tracking employee performance
Reporting sales revenue
What does ROI stand for?
Return on Investment
Rate of Interest
Revenue on Income
Return of Insurance
Why do companies use break-even analysis?
To determine the sales volume needed to cover costs
To calculate profit margins
To estimate taxes
To plan advertising
How do increased sales affect variable costs?
Variable costs increase with sales
Variable costs decrease with sales
Variable costs remain the same
Variable costs are unrelated
What is ‘working capital’?
Current assets minus current liabilities
Total assets
Profit minus expenses
Fixed costs minus variable costs
Why would a company apply for a bank loan?
To fund expansion or cover cash flow needs
To pay employee bonuses
To increase taxes
To reduce profits
What is ‘depreciation’?
Allocation of asset cost over useful life
Increase in asset value
Employee salary deductions
Marketing expenditure
What is the impact of high fixed costs on business risk?
Increases financial risk due to higher break-even points
Decreases financial risk
No impact
Reduces taxes
What is the purpose of organisational policies?
To provide guidelines and ensure compliance
To increase prices
To reduce staff
To eliminate competition
Name one UK policy all organisations must have.
Health and Safety policy
Data Sharing policy
Social Media policy
Marketing policy
What is a regulatory body?
An organisation that enforces industry standards and laws
A marketing team
A group of employees
Financial auditors
What power can regulatory bodies exercise?
Issue fines or prohibition notices
Increase salaries
Approve marketing campaigns
Set product prices
What could happen if a business breaches regulations?
Fines, legal action, reputational damage
Increased profits
New employees
Better marketing
What is ISO?
International Organization for Standardization
Internal Sales Office
International Sales Order
Inventory Stock Option
Why do organisations seek ISO accreditation?
To demonstrate compliance with international standards
To increase taxes
To fire employees
To avoid sales
What is people-based accreditation?
Certification recognising staff competence and skills
Product quality certification
Marketing approval
Financial audit
What is the benefit of people-based accreditation?
Improves staff motivation and business reputation
Increases prices
Reduces employee numbers
Improves tax returns
Why is policy development important for legal compliance?
Ensures the organisation meets legal obligations
Increases sales
Reduces employees
Improves marketing
What is whistleblowing?
Reporting illegal or unethical activities within an organisation
Employee training
Customer feedback
Marketing strategy
What is the role of a company’s code of conduct?
Set expectations for employee behaviour
Plan marketing
Approve sales
Manage finances
What is a prohibition notice?
Order to stop unsafe activity immediately
Marketing approval
Financial report
Employee appraisal
What is the Health and Safety Executive (HSE)?
UK regulatory body for workplace health and safety
Sales department
Marketing agency
Financial auditor
What is a common consequence of non-compliance with HSE?
Business closure or enforcement action
Increased sales
Marketing success
Employee bonuses
What does PERT stand for?
Project Evaluation Review Technique
Product Enhancement Revision Test
Project Estimate Resource Tracking
Planning Execution Review Timeline
What is the purpose of PERT?
To schedule and coordinate project tasks
To market products
To manage finances
To train employees
What is a Pareto chart?
Bar chart highlighting the most significant factors
Marketing chart
Financial report
Sales forecast
What is Scrum methodology?
Agile project management framework using sprints
Marketing plan
Financial audit
Employee training
Name one advantage of Scrum.
Improved team collaboration
Less communication
Lower costs
No training needed
What is a sprint in Scrum?
Fixed-length iteration of work
Meeting
Marketing event
Financial audit
Why use project management tools?
Organise tasks and resources effectively
Increase marketing
Reduce staff
Manage finances
What does a Gantt chart show?
Project schedule with task timelines
Marketing campaign
Financial status
Sales targets
What is a project milestone?
Significant event or checkpoint
Sales goal
Marketing campaign
Financial report
How does risk management help projects?
Identifies and mitigates potential problems
Increases costs
Reduces staff
Increases sales
What is the difference between Agile and Waterfall?
Agile is iterative and flexible; Waterfall is linear
Marketing styles
Financial plans
Employee training
What is project scope?
Defined objectives and deliverables
Marketing strategy
Sales goals
Employee roles
What is stakeholder management?
Managing project stakeholders’ expectations
Marketing plan
Financial report
Employee training
What is a project charter?
Document authorising and outlining the project
Marketing plan
Sales report
Employee handbook
Why is project evaluation important?
Assess success and learn lessons
Increase sales
Reduce costs
Train employees
Name the seven-component change model.
McKinsey 7S Model
ADKAR
Kotter’s 8-Step Model
Lewin’s Model
What does ADKAR stand for?
Awareness Desire Knowledge Ability Reinforcement
Analyse Design Knowledge Action Review
Assess Develop Keep Apply Reflect
Arrange Design Know Act Review
What is the first step in ADKAR?
Awareness of the need for change
Desire to change
Knowledge about change
Ability to implement change
How can organisations minimise resistance to change?
Communication and involvement
Ignore staff
Force change
Reduce salaries
