Multi choice revision test

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1 Which one of the following is the most important feature of enterprise?

• A Poor planning
• B A willingness to take risks
• C Gaining qualifications
• D Employing people

2 Which two of the following are the most likely advantages of starting a new business as a franchise?

• A Training and support are provided
• B Ability to offer a different service
• C Can buy goods to sell from any supplier
• D Banks are more willing to lend money
• E Can pay staff lower wages

3 A small manufacturing company has variable costs. Which three of the following are examples of variable costs?

• A Raw materials
• C Packaging
• E Gas/electricity bills
• B Insurance premiums
• D Loan repayments

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5 James is looking to expand the business. He is considering using short-term sources of finance to do this. Which two of the following are examples of short-term sources of finance?

• A Loan from bank
• B Venture capital
• C Share capital
• D Trade credit
• E Overdraft

6 James decides that he will use his personal savings to finance the expansion. Which two of the following are disadvantages of using personal savings as a source of finance?

• A No interest will have to be paid
• B The amount available might not be sufficient
• C The money will not have to be repaid
• D Less money available to deal with emergencies
• E The money is instantly available