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RO64 Enterprise and Marketing Concepts LO5 Revision Quiz Flashcards | StudBud
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RO64 Enterprise and Marketing Concepts LO5 Revision Quiz
RO64 Enterprise and Marketing Concepts LO5 Revision Quiz
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1
Which of following describes a franchise?
A business where anyone aged 18 or over can buy shares in the business
A business that is owned by 2 or more individuals
A business owned an controlled by one individual
When a license is granted, allowing business to use a particular brand name
2
Which of the following is not a source of finance for a new sole trader?
Friends and family
Share capital
Personal savings
Loans
3
What is a financial forecast?
Prediction of money that will come in to the business in the future
A statement of money that has come in and left the business in the past
Prediction of money that will come in and leave the business in the future
A statement of money that has come in to the business in the past
4
Which of the following would not be included in a business plan
Information on key competitors
Information on friends and family
Description of a business' aims and targets
Financial forecasts
5
What is meant by the term marketing?
The advertising a business plans to create and use
Carrying out market research
The process of getting people interested in a buying from a business
Understanding customer needs and wants
6
What is a business angel?
Someone who provides a business owner with money in return of equity
Someone who helps a business win new customers
Someone who puts money into their own failing business
Someone who provides money to a failing business
7
Which of the following is an advantage of crowdfunding?
This allows for emergency purchases to be made
Easy and quick to access
Easy way to gain large amounts of finance
Pitching the business through a website acts as a form of promotion
8
What is meant by unlimited liability?
The owner is responsible for none of the debt a business has
The owner is responsible for all of the debt a business has
The owner is responsible to some of the debt the business has
9
Which of the following is not an advantage of the owner using their own savings?
No interest payments are made
Doesn't require borrowing money
Loaner may provide advice and guidance
Quick and convenient
10
"The owners can decide who the business' shares are sold to." This is describing;
Private Limited Companys
Partnerships
Sole Traders
Public Limited Companys
11
A partnership can sell shares in their business
False
True
12
A business who receives a grant from the government must pay it back in the future
True
False
13
Which of the following is a disadvantage of receiving a bank loan?
Money is lost if the business fails
Owner must give away part of the business
Investor may have a different vision for direction of the business
The business must pay interest on top of figure they borrowed
14
Which of these ownership types always benefits from limited liability?
Franchises
Partnerships
PLC
Sole trader
15
What is an entrepreneur?
A financial institution who gives people money to start their businesses
Someone who helps other people start their own businesses
Individual who has a business idea and plans to set up a new business
Someone who has had success in starting businesses before
16
Which of the following business types appoint board of directors?
Sole traders
Franchises
Partnerships
Public Limited Companies
17
Which of the following is a disadvantage of being in a partnership?
The initial cost of buying the license can be expensive
There is potential for disagreement and conflict
The owner has no one to share responsibility with
Banks are less keen to lend to these businesses as they are high risk
18
Which of the following is an advantage of being a sole trader?
As the brand is well known, it will be easier to raise finance
Greater capital investment availiable from the partners
They made all of the business decisions
The franchisee still owns the business, just not the idea
19
Which of the following is not a benefit of creating a business plan?
It clarifies a business idea to owner and others
It helps identify potential problems
It helps the business manage cash flow
It gives the business an outline of past failures
20
What is the difference between an aim and an objective?
An aim is how you will achieve goalds, objective is what your goals are
An aim is what you want to achieve, objective is how you will achieve it
