What is a mission statement for a business?

• A document outlining the legal structure of the company
• A statement describing the company's long-term goals and purpose
• A financial statement detailing the company's profits and losses
• A marketing plan for a new product

Which of the following is a factor that affects a business's choice of location?

• The legal structure of the organisation
• The location's proximity to competitors
• The business's advertising strategy
• The size of the business's logo

Which is not a function of a business plan?

• Identifying business needs
• Advertising new products
• Estimating future sales
• Calculating future spending

What is the term for a legal requirement to a percentage of profits to the government?

• Profit
• Revenue
• Tax
• Dividend

Which expansion activity is classed as "internal"?

• Buying a competitor
• Being acquired by a larger competitor
• Conglomerate integration
• Opening a new store

A store earns revenue of £5,000 per month. The fixed costs are £2,000, and the variable costs per item sold are £10. How much profit does the store make if they sell 300 items?

• £0
• £3,000
• £7,000
• £10,000

Which type of business organisation offers limited liability to its owners

• Sole trader
• Partnership
• Public limited company
• Freelance worker

What is a disadvantage of being a sole trader?

• Limited liability
• Difficulty in raising capital
• Limited control over the business
• Separate legal entity

Which of the following is not a potential benefit of franchising?

• Rapid growth of business
• Increased brand awareness
• Low risk
• Lower taxation

What is a business benefit of moving production from the UK to a developing nation?

• Improved communication
• Exchange rate fluctuations
• Reduced labour costs
• Import tarifs