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13 Cards in this Set
- Front
- Back
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Which one of the following is an example of primary research?
1.Government statistics. 2.Newspaper articles. 3.Survey of customers. 4.Internet research. |
3.Survey of customers. |
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Which two of the following are key features of enterprise? 1.Employing at least one worker. 2.Having the right qualifications to run a business. 3.Being prepared to take risks. 4.Having a willingness to take on new ventures. 5.Registering as a private limited company. |
3. Being prepared to take risks. 4. Having the willingness to take on new ventures. |
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Identify two possible dissadvantages of opertaing a business as a franchise. 1.The cost of the initial invesment can be high. 2.Franchises have to take out a patent. 3.Franchises have to pay a higher rate of VAT. 4.A lack of freedom for the owner in making big decisions. 5.It can access help and advice from the franchise owner. |
1.The cost of the initial invesment can be high. 4.A lack of freedom for the owner making big decisions. |
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Number of pots produced and sold: 150 Average price per pot: £10 Variable cost per pot: £2 Fixed costs per month: £500 What are the total costs for Hancock’s during the month?
1.£450 2.£650 3.£800 4.£1500 |
3.£800 |
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Which three of the actions will most likely increase profit, assuming it sells the same number of pots each month? 1.Buy cheaper raw materials used to make its products. 2. Increase the sales price of an average pot to £11. 3.Increase the number of workers employed during the weekend. 4.Buy more expensive raw materials used to make its pots. 5.Increase advertising expenditure. 6.Relocate to cheaper premises. |
1. Buy cheaper raw materials used to make its products. 2.Increase the sales price of an average pot to £11. 6.Relocate to a cheaper prememsis. |
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A business imports high quality toy cars from the USA. when it started the exchange rate was £1=$2. It then changed to £1=$1.70. They kept the prices of the products the same.Identify two possible effects of the change in the exchange rate on the business. 1.Lower fixed costs for the business. 2.The costs of buying the toy cars from the USA will rise. 3.Makes it easier for Marcus to sell his toy cars in the UK. 4.Increased added value on each toy car sold by Marcus. 5.Marcus will make lower profits on each sale.
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2.The costs of buying the toy cars from the USA will rise. 5.Will make lower profits.
Remember SPICED!!! |
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Marcus used the idea of deliberate creativity to develop his ideas for the business. Deliberate creativity involves which two of the following techniques? 1.Starting a business which provides a service. 2.Brainstorming business ideas. 3.Drawing lists to compare options. 4.Producing a cash flow forecast. 5.Preparing a business plan. |
2.Brainstorming business ideas. 3.Drawing lists to compare options. |
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A sole trader has unlimited liability. Identify one disadvantage of unlimited liability for a sole trader such as Marcus. 1.The need to pay higher taxes. 2.Less control of the business. 3.The need to share profit with other shareholders. 4.Risk of losing personal possessions. |
4.Risk of loosing posessions. |
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Which two of the following taxes will Marcus have to pay in the course of running his business? 1.Corporation tax. 2.Distribution tax. 3.Income tax. 4.Labour tax. 5.National Insurance contributions. |
3.Income tax. 4.Labour tax. |
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Which one of the following would be an example of a calculated risk for Mark? 1.His fixed costs are 50% of his total costs. 2.There is a 40% chance of the business surviving the first year. 3.Mark’s variable costs rise by 25% in the first six months. 4.10% of his customers will be over 65 years old. |
2.There is 40% chance of his business surviving the first year. |
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Which two of the following sources of finance would be most appropriate for Mark to start up his business? 1.Personal savings. 2.Selling the business’s assets. 3.Issuing shares to new shareholders. 4.Retained profit. 5.Bank loan. |
1.Personal Savings. 5.Bank Loan. |
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Which two of the following are sources of added value for Mark’s business? 1.Offering late-night opening appointments. 2.Asking customers to complete a questionnaire after their appointment. 3.Ensuring he manages cash flow effectively. 4.Providing free refreshments and drinks for customers. 5.Locating in an area where other hairdressers already operate. |
1. Offering late-night opening appointments. 4.Providing free refreshments and drinks for customers. |
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Which three factors below are the most likely causes of the rise in price of cocoa? 1.Lower demand for cocoa from chocolate producers. 2.Increased profits made by cocoa producers. 3.News reports suggesting some health benefits from cocoa. 4.Greater supply of cocoa by producers. 5.Poor weather leading to a poor harvest of cocoa. 6.Higher demand for cocoa by chocolate manufacturers. |
3.News reports suggesting some health benefits form cocoa. 5.Poor weather leading to a poor harvest |
