Which two of the following are possible objectives for someone setting up business as a sole trader? Select two answers,
To allow other people to make all the decisions
To benefit from limited liability
To gain financial support from shareholders
To take all the profits
To have full control of the decisions
A small manufacturing company has variable costs. Which three of the following are examples of variable costs? Select three answers
Raw Materials
Insurance premiums
Packaging
Loan repayments
Gas/electricity bills
Salaries
Which of the following is an internal source of finance? Select one answer
A loan from a bank
An overdraft
Selling assets
A stock market flotation
Which three of the following are examples of market segments for a small sports retailer? Select three answers
Rival sports retailers in the same area
Young members of local sports teams
A questionnaire conducted with customers
Individuals with interests in specialist sports
Manager of a local netball team
An advertisement in a local newspaper
The bank increases the rate of interest on the Hardacres loan to 10.5% Identify two effects of this change on the business Select two answers
An increase in cash outflows
Higher National Insurance payments
Lower variable costs
Higher fixed costs
Lower value added tax (VAT) payments
Joshua has applied for a patent for his product The main purpose of a patent is... Select one answer
To make it easier for Joshua to pay any taxes due
To ensure that Joshua gets repeated purchases
To place a limit of the number of people who can copy Joshuas idea
To register a new invention so Joshua has sole rights to its use
Which two of the following are examples of lateral thinking techniques? Select two answers
Mind mapping
Brainstorming business ideas with a group
Producing a business plan
Providing a wide range of products
Producing a cash flow forecast
Which two of the following are disadvantages of using personal savings as a source of finance? Select two answers
No interest will have to be paid
The amount available might not be sufficient
The money will not have to be repaid
Less money available to deal with emergencies
The money is instantly available
Identify two advantages to Andrew of setting up as a private limited company rather than starting as a sole trader Select two answers
The potential to raise more finance
All profits will go to Andrew
Andrew has total control of the business
Less risk due to limited liability
Fewer legal requirements
Which one of the following is NOT a source of added value for the retailer when selling crisps to the consumer? Select one answer
The brand name of the crisps
A unique selling point of the crisps
Competitors' crisp prices
The quality of the crisps
Which one of the following is an example of long term finance for a sole trader? select one answer
Share Capital
Overdraft
Bank loan
Trade credit
Which two of the following are the most likely advantages of starting a new business as a franchise? Select two answers
Training and support are provided
Ability to offer a different service
Can buy goods to sell from any supplier
Banks are more willing to lend money
Can pay staff lower wages
What are 3 ways of motivating staff working at Tesco, other than increasing their wage? Select 3 answers
Discounts
A company car
Praise
Training
Housing
Which two of the following would be drawbacks to business facing increased competition? Select two answers
Offering good products and service
Ability to increase prices
Need to cut staff levels
Not developing opportunities
An increase in innovation e
In deciding to set up in a business and manufacture the product herself, which of the following questions should Mandy NOT have asked herself? Select one answer
What are the set hours I will work?
Why not go at it alone?
What is the business were to fail?
Is the risk worth taking?
Some businesses produce goods while others produce services. Which two of the following are examples of goods? Select two answers
A bus journey
Freshly-prepared sandwiches
A newspaper
Haircut
Computer repairs
Which two of the following are subject to legislation to protect workers from discrimination? Select two answers
Qualifications
Age
Ability
Race
Skill
Which two of the following are examples of variable costs for a small manufacturing business? Select two answers Payment for..
Rent of the business premises
Insurance payments
Raw materials used in production
Advertising costs
Packaging of the finished products
Which two of the following methods are most likely to give Jack a competitive advantage? Select two answers
Providing high quality tuition
Operating as a sole trader
Providing a personalised service
Operating in a competitive market
Providing a service for a community
In 2009, good weather led to a large increase in the wheat harvest. Which of the following is the most likely effect of this increase? Select one answer
The price of wheat will fall
Charles will have to pay more for his pasta
The cost of wheat will rise
The demand for wheat will fall
