Questions
Q1.
Answer the question with a cross in the box you think is correct .
If you change your mind about an answer, put a line through the
box and then mark your new answer with a cross .
Which one of the following is an example of a non-financial objective for an
entrepreneur starting a new business?
Select one answer:
(1)
A Survival
B Profit
C Market share
D Independence
(Total for question = 1
mark)
Q2.
Table 1 contains information about the number of new business start-ups in four cities
in the UK in 2016.
Using the information in Table 1, calculate, to 2 decimal places, the number of new start-
ups in Birmingham as a percentage of the number of new start-ups in London. You are
advised to show your workings.
........................................................... %
(Total for question = 2 marks)
Q3.
Answer the question with a cross in the box you think is correct .
If you change your mind about an answer, put a line through the
box and then mark your new answer with a cross .
Which one of the following is an example of a variable
cost? Select one answer:
(1)
A Rent
B Raw materials
C Insurance
D Advertising
(Total for question = 1
mark)
Q4.
Using the information below calculate the total costs for the business. You are advised
to show your workings.
Number of units sold:
240 Fixed costs: £1
100
Variable costs per unit: 45 pence
(2)
(Total for question = 2 marks)
Q5.
Look at Figures 1 and 2, read the extract carefully, then answer the
question.
Neil and Sue have produced the following break even diagram, showing the costs
and revenue for their business.
Figure 3
State one benefit to Meringue of having a low break even level of output.
(1)
.............................................................................................................................................
.............................................................................................................................................
(Total for question = 1
mark)
Q6.
Table 1 contains information about a small business for one month. The business sold
270 units in this month.
Using the information in Table 1, calculate the profit for this business. You are advised to
show your workings.
£ ...........................................................
(Total for question = 2 marks)
Q7.
Figure 1 shows a break even diagram for a business.
The business produces 400 units of output.
Using the information in Figure 1, calculate the margin of safety.
........................................................... units
(Total for question = 2 marks)
Q8.
Answer the question with a cross in the box you think is correct . If
you change your mind about an answer, put a line through the box
and then mark your new answer with a cross .
Which one of the following best defines the term
stakeholder? Select one answer.
A An owner of a private limited company
B Someone with an interest in the success of a business
C Any individual who takes decisions within a business
D An individual who owns shares in a business
(Total for question = 1
mark)
Q9.
Table 1 contains information about a small business.
The business increases the selling price of its product to £6.50 per unit.
Using the information in Table 1, calculate the decrease in the break even level of
output. You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q10.
Read the following extract before
answering. Write your answers in the
spaces provided.
When starting the business in 2007, Melanie took out a loan. The financial details of
this loan are in Table 2.
Using the information in Table 2, calculate the interest on the loan as a percentage of the
total amount borrowed. You are advised to show your workings.
(2)
(Total for question = 2 marks)
Q11.
Read the following extract before answering the
Question.
Last Course Patisserie Ltd is a small private limited company based in Devon which
produces hand-made desserts and puddings. The business was established in 1986.
Its owners previously worked in the food industry but felt they could offer better value
for money to customers. All of the desserts are made fresh to order which has provided
Last Course Patisserie with a reputation for being flexible when meeting customer
needs.
Getting the best ingredients for the desserts is a vital part of the business. Last Course
Patisserie
found excellent suppliers of free range eggs and dairy products close to its business
location. This means all ingredients could be delivered quickly when needed.
Last Course Patisserie has recently employed a new head chef from Switzerland who
has introduced a new range of products to the menu. This has proved to be very
popular with customers and the business now struggles to keep up with demand. Last
Course Patisserie is receiving increased orders for desserts but, due to the size of its
business premises, struggles to meet this increase in demand. The owners have
decided that it is the right time for Last Course Patisserie to expand and possibly
relocate to new premises.
Last Course Patisserie has the following financial information for the month of April.
Using the information in Table 2, calculate the level of output required to breakeven in
April. You are advised to show your workings.
(2)
(Total for question = 2 marks)
Q12.
Table 1 contains information about a small business for one month.
Using the information in Table 1, calculate the margin of safety. You are advised to show
your workings.
(2)
(Total for question = 2
marks)
Q13.
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.
Using the information in Table 1, calculate the net cash flow for this
month You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q14.
Figure 1 shows the total costs for a business between May and July.
Using the information in Figure 1, calculate the percentage change in total
costs between May and July. You are advised to show your workings.
(2)
(Total for question = 2 marks)
Q15.
Figure 1 shows the sales revenue of a business from January to April.
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.
(2)
(Total for question = 2 marks)
Q16.
Extract A
Amelia Cooper trained as a plumber six years ago. Since then she has worked for a
building company that carries out repairs to houses and business premises in the
Birmingham area.
Amelia is now in a position where she wants to start her own plumbing business
called Lili Heating Ltd. Even though there are many plumbers in the Birmingham
area Amelia feels she has a unique selling point - she is a woman. Many female
customers feel that they can relate more closely with a woman doing repairs in
their homes.
As part of her business plan, Amelia has identified some clear aims and objectives
and conducted a large amount of market research using the internet. Her target
market requires clear advice on what work needs to be done and how much she will
charge. Amelia also thinks she can cut down on advertising costs by getting her
customers to recommend Lili Heating Ltd to their friends and families. For this to
happen she knows that her work must be of the highest standard.
Amelia's business plan also included a wide range of financial information to help her
forecast the potential success of the business and see if she would need an overdraft.
As part of her market research Amelia collected quantitative research from the
Birmingham City Council website. Some of this information can be seen in Table 3.
Using the information in Table 3, calculate to 2 decimal places, the percentage of
people in the age group 45–49 that are female. You are advised to show your workings.
(2)
(Total for question = 2 marks)
Q17.
Read the following extract before answering the
question.
Sports Tours Ltd has been organising football tours to Munich, Germany since 2010.
The price of a hotel room in Munich in 2010 was €100.
Table 2 shows the value of the pound (£) in euros (€) in June 2010 and June 2019.
Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of
a hotel room in 2010. You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q18.
Read the following extract before answering the
question.
Sports Tours Ltd has been organising football tours to Munich, Germany since 2010.
The price of a hotel room in Munich in 2010 was €100.
Table 2 shows the value of the pound (£) in euros (€) in June 2010 and June 2019.
In 2019 the cost of a hotel room had increased to €130.
Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of
a hotel room in 2019. You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q19.
Read the following extract before answering the
Question.
On Your Bike has made the following forecasts for the costs and sales of its bikes for
2021.
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.
(2)
(Total for question = 2
marks)
Q20.
Read the following extract before answering the
Question.
On Your Bike has made the following forecasts for the costs and sales of its bikes for
2021.
Using the information in Table 2, calculate the selling price
per bike. You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q21.
Table 1 contains information about a small business for one month. The business sold
340 units in this month.
Using the information in Table 1, calculate the total costs for one month. You are
advised to show your workings.
(2)
(Total for question = 2
marks)
Q22.
Read the following extract before answering the
Question.
Last Course Patisserie Ltd is a small private limited company based in Devon which
produces hand-made desserts and puddings. The business was established in 1986.
Its owners previously worked in the food industry but felt they could offer better value
for money to customers. All of the desserts are made fresh to order which has provided
Last Course Patisserie with a reputation for being flexible when meeting customer
needs.
Getting the best ingredients for the desserts is a vital part of the business. Last Course
Patisserie
found excellent suppliers of free range eggs and dairy products close to its business
location. This means all ingredients could be delivered quickly when needed.
Last Course Patisserie has recently employed a new head chef from Switzerland who
has introduced a new range of products to the menu. This has proved to be very
popular with customers and the business now struggles to keep up with demand. Last
Course Patisserie is receiving increased orders for desserts but, due to the size of its
business premises, struggles to meet this increase in demand. The owners have
decided that it is the right time for Last Course Patisserie to expand and possibly
relocate to new premises.
Last Course Patisserie has the following financial information for the month of April.
In May suppliers increased the cost of raw materials by 4%.
Using the information in Table 2, calculate the variable cost per dessert following the
increase in the cost of raw materials.
(2)
(Total for question = 2 marks)
Q23.
Read the following extract before
answering. Write your answers in the
spaces provided.
When starting the business in 2007, Melanie took out a loan. The financial details of
this loan are in Table 2.
Using the information in Table 2, calculate, to 2 decimal places, the monthly repayments
for the loan. You are advised to show your workings.
(2)
(Total for question = 2
marks)
Q24.
Look at Figures 1 and 2, read the extract carefully, then answer the
question.
As a result of the queues in the shop, Neil and Sue have decided to implement a
contactless payment system at Meringue.
Outline one impact on Meringue of lengthy queues as customers wait to pay.
(2)
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
(Total for question = 2 marks)
Q25.
Explain one disadvantage of starting a small business as a partnership.
(3)
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
(Total for question = 3 marks)
Q26.
Answer the question with a cross in the box you think is correct .
If you change your mind about an answer, put a line through the
box and then mark your new answer with a cross .
Which one of the following is a long-term source of finance?
(1)
Select one answer.
A Overdraft
B Revenue
C Trade credit
D Venture capital
(Total for question = 1
mark)
Q27.
Which two of the following areas are covered by
employment law? Select two answers.
(2)
A Consumer rights
B Discrimination
C E-commerce
D Health and safety
E Quality of products
(Total for question = 2
marks)
Q28.
Answer the question with a cross in the boxes you think are correct
. If you change your mind about an answer, put a
line through the box and then mark your new answer with a cross
.
Which two of the following are examples of
services? Select two answers:
(2)
A Train journey
B Magazine
C Headphones
D Haircut
E Mobile phone
(Total for question = 2
mar)
