A Level - Theme 2 Quiz

_____ is the money put into the business by the owners.

• Contribution

• Overdraft

• Capital

• Elasticity

______ is the profit after tax that is put back into the business and not taken out by the owners.

• Net profit

• Gross profit

• Operating profit

• Retained profit

A _____ allows a business to spend more money than it has is their bank account.

• mortgage

• bank overdraft

• grant

• lease

No legal difference between the owners and the business =

• Unlimited liability

• Partial liability

• Limited liability

• Share capital

_____ refers to an asset that may be sold to pay a lender if a loan cannot be repaid.

• Debenture

• Collateral

• Grant

• Patent

Which if the following is an example of a cash inflow?

• VAT payable

• Raw materials

• Cash sales

• Loan repayments

_____ refers to the ability to which a business can pay their debts on time.

• Solvency

• Liability

• Inflation

• Extrapolation

_____ are costs that remain the same at all levels of output.

• Variable costs

• Running costs

• Fixed costs

• Direct costs

What is the formula for Total Sales Revenue?

• Price per unit + Quantity sold

• Price per unit / Quantity sold x 100

• Price per unit - Quantity sold x Cost of Sales

• Price per unit x Quantity sold

_____ refers to the quantity of output sold in a specific period of time.

• Raw materials

• Sales volume

• Variable costs

• Gross profit