Which one of the following is a short-term source of finance?
Select one answer.
Retained profit
Share capital
Trade credit
Venture capital
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Which one of the following is a short-term source of finance?
Select one answer.
Retained profit
Share capital
Trade credit
Venture capital
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Which one of the following is an example of a cash outflow for a small business?
Select one answer.
Bank loan
Personal savings
Raw materials
Receipts
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Which one of the following is a definition of market share?
Select one answer.
Market research that can be collected and analysed
The proportion of sales in a market made by one business
The total amount of money from business sales
A group of people who discuss their views on a product
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Which two of the following are examples of variable costs?
Select two answers.
A. | Advertising | |
B. | Insurance | |
C. | Packaging | |
D. | Raw materials | |
E. | Rent |
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Read the following extract before answering.
Outline one reason why cash would be important to On Your Bike.
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Which one of the following is a long-term source of finance?
Select one answer.
Overdraft
Revenue
Trade credit
Venture capital
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Which two of the following can be interpreted from a break even diagram?
Select two answers.
A. | Insolvency | |
B. | Margin of safety | |
C. | Market share | |
D. | Net cash flow | |
E. | Profit |
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Read the following extract before answering.
State one fixed cost that Sports Tours Ltd will need to pay.
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Read the following extract before answering.
State one example of a cash outflow for That Feeling.
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Read the following extract before answering.
Figure 2 shows the age of entrepreneurs starting businesses in the UK since 2000.
Figure 2
(Source: adapted from https://startups.co.uk/the-average-entrepreneur/)
Using the information in Figure 2, identify what percentage of entrepreneurs were in the same age range as Justin when he started That Feeling.
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Read the following extract before answering.
Outline one benefit to employees at That Feeling from being mentored by Justin.
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Which two of the following are typical objectives for a start-up business?
Select two answers.
A. | Survival | |
B. | Customer satisfaction | |
C. | Expand overseas | |
D. | Sells shares on the stock market | |
E. | Become market leader |
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Read the following extract before answering.
To pay for the conversion of the premises, Aphrodite is considering two options:
Option 1: obtaining a bank loan
Option 2: crowd funding.
Justify which one of these two options Aphrodite should choose.
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Read the following extract before answering.
Evaluate the importance of achieving non-financial objectives for the success of That Feeling. You should use the information provided as well as your knowledge of business.
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In order to improve its cash flow position, Last Course Patisserie is considering two options:
Option 1: reducing the number of workers it employs
Option 2: increasing the average selling price of its desserts
Justify which one of these two options Last Course Patisserie should choose.
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Table 1 contains information about a small business for one month. The business sold 340 units in this month.
Fixed costs | £3 600 |
Variable costs (per unit) | £9 |
Table 1
Using the information in Table 1, calculate the total costs for one month. You are advised to show your workings.
£ .............................................................. |
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Explain one possible non-financial aim an entrepreneur may have when starting a small business.
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Figure 1 shows information about the financial performance of a business from January to March.
Figure 1
Using the information in Figure 1, calculate the total profit for the period January to March. You are advised to show your workings.
£ .............................................................. |
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Read the following extract before answering.
Last Course Patisserie has the following financial information for the month of April.
April | |
Raw materials for each dessert | £0.50 |
Packaging for each dessert | £0.20 |
Fixed costs | £2 730 |
Selling price for each dessert | £2.00 |
Table 2
Using the information in Table 2, calculate the level of output required to break-even in April. You are advised to show your workings.
.............................................................. desserts |
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In May suppliers increased the cost of raw materials by 4%.
April | |
Raw materials for each dessert | £0.50 |
Packaging for each dessert | £0.20 |
Fixed costs | £2 730 |
Selling price for each dessert | £2.00 |
Table 2
Using the information in Table 2, calculate the variable cost per dessert following the increase in the cost of raw materials.
£ ............................... |
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Explain one advantage to a small business of using trade credit as a source of finance.
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Table 1 contains information about cash payments of a small business in one month.
The business sold 200 units in this month. All customers paid in cash.
Selling price | £15 |
Rent | £500 |
Wages | £1 000 |
Advertising | £150 |
Table 1
Using the information in Table 1, calculate the net cash flow for this month You are advised to show your workings.
£ .............................................................. |
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Figure 1 shows the total costs for a business between May and July.
Figure 1
Using the information in Figure 1, calculate the percentage change in total costs between May and July. You are advised to show your workings.
............................................................. % |
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Read the following extract before answering.
On Your Bike has made the following forecasts for the costs and sales of its bikes for 2021.
Forecast | |
Total number of bike sales | 2,000 |
Total revenue | £1 100 000 |
Variable cost per bike | £350 |
Fixed costs | £150 000 |
Table 2
Using the information in Table 2, calculate the selling price per bike.
You are advised to show your workings.
£ .............................................................. |
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Read the following extract before answering.
Using the information in Table 2, calculate the profit On Your Bike is forecast to make from selling bikes in 2021. You are advised to show your workings.
Forecast | |
Total number of bike sales | 2,000 |
Total revenue | £1 100 000 |
Variable cost per bike | £350 |
Fixed costs | £150 000 |
Table 2
£ .............................................................. |
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Table 1 shows the cash-flow forecast for a small business.
Complete the table with the two missing figures.
May (£) | June (£) | |
Cash inflows | 12 600 | 13 400 |
Cash outflows | 8 200 | 9 100 |
Net cash flow | 4 400 | (ii) ......................... |
Opening balance | 600 | 5 000 |
Closing balance |
(i) ................................. |
9 300 |
Table 1
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Figure 1 shows the sales revenue of a business from January to April.
Figure 1
Using the information in Figure 1, calculate, to 2 decimal places, the percentage decrease in sales revenue from January to March. You are advised to show your workings.
............................................................................................ % |
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Explain one disadvantage to a small business of manufacturing a high quality product.
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Explain the importance of cash to the survival of a small business.
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Read the following extract before answering.
The owners of On Your Bike want to lower the break even level of output and have decided to do this by reducing costs.
Analyse the impact on On Your Bike of reducing costs in order to lower its break even level of output.
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