What is the margin of safety?

The difference between quantity sold and the breakeven point

Which of the following is possible objective for someone setting up business as a sole trader?

To have full control of the decisions

What is an export subsidy?

Government gives money to a business to make their products.

What is the formula for revenue?

Number of items sold x sale price

Which one of the following is the best definition of a stakeholder?

Person/group with an interest in the success of a business.

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Unit 1 Edexcel business

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Difficult concepts on Paper 1

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Questions 10

Answers

1
What is the margin of safety?
The difference between total costs and the breakeven point
The difference between the total costs and the total revenue
This is where the business has broken even
The difference between quantity sold and the breakeven point
2
Gail uses the internet to find information. What type of market research is this?
Primary research
Secondary Research
Segmentation
Focus Group
3
Which of the following is possible objective for someone setting up business as a sole trader?
To gain financial support from shareholders
To have full control of the decisions
To allow other people to make all decisions
To benefit from limited liability
4
Which two of the following taxes would a sole trader have to pay?
Income Tax
National Insurance
Distribution Tax
Corporation Tax
5
What is an export subsidy?
Government puts a limit on No. of products that can be sold
Government gives money to a business to make their products.
Government adds a tax to the cost of a product
Government stops businesses selling products
6
What is the formula for Profit
Total Costs - Total Revenue
Total Revenue - Total variable costs
Total Revenue - Total fixed costs
Total Revenue - Total Costs
7
Which need is represented by level 1 in Maslow's hierarchy of needs?
Self- Actualisation
Physical
Esteem
Security
8
What is the formula for revenue?
Number of items sold x fixed costs
Number of items sold x sale price
Number of items sold X costs to make
Number of items sold x variable costs
9
What is a document outlining the skills and qualities needed by a job applicant?
Job description
Job advertisement
Contract of Employment
Person Specification
10
Which one of the following is the best definition of a stakeholder?
Anyone who works within a business
The shareholders of a limited company who receive dividends
Person/group that is able to influence a business' decisions
Person/group with an interest in the success of a business.

Unit 1 Edexcel business Flashcards | StudBud