Unit one revision check

Which one of the following is an example of a risk associated with starting a new business?

• Business success

• Business failure

• Independence

• Profit

Which one of the following is the correct formula for calculating the total revenue generated by each product sold by a business?

• Variable costs X Selling price per unit

• Fixed costs X Selling price per unit

• Quantity sold X Selling price per unit

• Total output X Total inputs

Which two of the following are examples of short-term methods of finance?

• A. Share capital

• B. Loan

• C. Trade credit

• D. Retained profit

• E. Overdraft

Which one of the following is not true of e-commerce?

• A. E-commerce concerns digitally enabled commercial transactions between and among organisations and individuals

• B. E-commerce concerns the sale or purchase of goods or services, conducted over computer networks

• C. E-commerce concerns orders made over the web (internet), extranet or electronic data interchange

• D. E-commerce concerns orders made by telephone calls, faxes or manually typed e-mails

Which two of the following are examples of methods of promotion?

• A. Advertising

• B. Personal shopping

• C. Sales

• D. Public Relations

• E. Niche Sales

Which two of the following objectives of a business’s stakeholders are most likely to be objectives of the business’s employees?

• A. Fair pay

• B. Clear, accurate product information

• C. Job sevurity

• D. Value for money

• F. Sound return on investment

A stakeholder is someone who has an ____________ in a businesses activities

If a business has more money flowing out of the business that it has flowing in, what does this refer to?

• A. Positive cashflow

• B. Negative cash flow

• C. Business profit

• D. Business loss

Why might a business construct a cash flow forecast?

• A. To determine the amount of profit or loss

• B. To help with their marketing

• C. To help with forward planning

• D. To calculate their total profit

Which statement about segmentation is a true drawback?

• A. It can be done through only age, gender and income

• B. It can be costly

• C. It can cause it to offer too many different products for sale

• D. All of these answers