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

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

What is the main advantage of a franchise for the franchisee?

• Full control over the business
• No sharing of profits
• Minimal support and training
• Using existing brand recognition

When a business weighs up the pros and cons of choosing one decision over another, it is known as…

• The capital risk
• Economic uncertainty
• The opportunity cost
• The financial burden

Which of the four factors of production could be described as "human effort, skills, or expertise"?

• Land
• Labour
• Capital
• Enterprise

Which expansion activity is classed as "external"?

• Opening a new factory
• Buying a competitor
• Selling additional shares
• Expanding an existing store

Which of the following is a service?

• Paying a shopkeeper for an ice cream
• Paying a barber for a haircut
• Buying groceries from a supermarket
• Buying a new mobile phone

The selling price of a bicycle is £200, and the fixed costs for the company are £10,000 per month. The variable cost to produce one bicycle is £80. Calculate the profit the company makes when it sells 150 bicycles in a month.

• £8,000
• £12,000
• £12,000
• £16,000

Which expansion activity is classed as "internal"?

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

What does the term "economies of scale" refer to in business?

• The point where a business makes a profit
• The minimum level of production required to cover costs
• The cost advantages that come with increased production
• The ability to set higher prices for products

What is the term for a business owned and operated by a single individual?

• Partnership
• Corporation
• Sole trader
• Limited liability company