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iGCSE Business Section 1 and 6 Flashcards | StudBud
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iGCSE Business Section 1 and 6
iGCSE Business Section 1 and 6
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Business and the environment in which it operates Accounting and finance
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Questions
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Answers
1
what are the 4 factors of production?
Idea, People, Money, Time
Idea, Skill, Money and a Building
Land, Labour, Capital and Enterprise
2
which of the following are internal stakeholders?
owners
suppliers
the government
banks
3
changes to taxation is part of ...?
inflation
Fiscal policy
Monetary policy
economic growth
4
A business that can only have one owner is called a....?
private limited company
partnership
sole trader
public limited company
5
What is the margin of safety?
where a business has made a loss
where a business has sold more than is needed to break even
6
Must a partnership have a Deed of Partnership?
yes
no
7
what is the break even formula?
fixed costs - variable costs / selling price
selling price - variable costs / fixed costs
fixed costs / (selling price - variable cost)
8
the private sector consists of....
government owned businesses
private enterprise only
private and public enterprises
private enterprise and non-profit organisations
9
A person offering a franchise is called?
franchiser
franchisee
entrepreneur
franchise
10
the money required to set up a business is called?
money
loan
savings
start-up capital
11
How do I calculate Total Revenue?
price X quantity
total cost / quantity produced
total revenue - total costs
sales revenue - costs
12
What type of costs do NOT change with output?
indirect costs
Total costs
Fixed costs
Variable costs
13
A business that has raised more money from loans than from the sale of shares is ...?
High geared
Low geared
14
How do I calculate gross profit?
sales revenue - cost of sales
sales revenue-expenses
15
where would you see the 'opening balance'?
in a Balance sheet
in a Profit and Loss account
in a budget
In a cash flow
16
what is the correct definition of a stakeholder?
someone with a direct interest in the operations of the business
someone who owns the business
17
which sector deals with the provision of services such as hair cuts?
Tertiary
Quaternary
Secondary
Primary
18
Spending more money than you have in your bank account is....?
A loan
An overdraft
19
What is the division of labour?
where people do all tasks in a business
where people specialize in certain tasks and skills
where people are divided into teams
20
An advantage of budgeting is...?
it takes time to create
it helps control and monitor spending
21
A forecast is ....?
likely to be wrong
a prediction of likely future events
about the weather
certain to happen
22
A business that uses large amounts of machinery and minimal people is called....?
Labour intensive
Capital intensive
23
How could a business improve their working capital?
By paying bills before they are due
By increasing sales revenue
By increasing the amount of trade credit given
24
what are consumer goods?
goods sold by one business to another business
goods produced for consumers - ordinary people
25
What is a prospectus?
Financial statement
A brochure designed to persuade people to buy shares of PLCs
26
A loan used specifically to purchase land or property is called...?
Hire purchase
An overdraft
A bank loan
A mortgage
27
A business that sells shares on the stock exchange is called a .....?
partnership
public limited company
private limited company
sole trader
28
what is a liquid asset?
an asset that is easily changed into cash
water
29
Another term for indirect costs is..?
cost of sales
direct costs
expenses
30
Borrowing money from the bank for a fixed period of time and set amount of interest is...?
An overdraft
A bank loan
31
How do I calculate the closing balance?
opening balance - net cash flow
inflows - outflows
net cash flow + opening balance
opening balance - closing balance
32
what are liabilities?
assets
capital
debts
resources
33
Profit that is kept within the business for future use is called...?
retained profit
dividends
investment
savings
34
Which sector deals with the extraction of raw materials?
Quaternary
Tertiary
Secondary
Primary
35
what is a disadvantage of multinationals?
economies of scale
lack of accountability
environmental damage
increased consumer choice
36
In a company, what are the Articles of Association?
the details about the company
the details about how the company will be run
37
items required for human survival are ....
needs
wants
38
without a Deed of partnership, how are profits split between partners?
equally
depends how much they invested
39
Which of the following is NOT a method of protectionism?
Subsidies
Appreciation in the exchange rate
Tariffs
Quotas
40
What do we call the periods of boom and bust?
a Raleigh cycle
The trade cycle
the business cycle
economy
41
which of the following have unlimited liability?
public limited company
sole trader
private limited company
partnership
42
which of the following is the MOST important objective to a new start up business?
growth
survival
increase market share
profit
43
How do I calculate the working capital?
current assets - fixed assets
fixed assets - current assets
current liabilities - current assets
Current assets - current liabilities
