When lots of individuals donate small amounts of money to a business, often for a specific project, it is known as…

• Kickstarter
• Goodwill
• Micro-transactions
• Crowdfunding

Which of the following is an advantage of preparing a cashflow forecast?

• It helps to predict future sales
• It helps a business to set its future aims and objectives
• It helps a business to predict liquidity problems
• It helps a business to predict future break-even points

Which term represents the total money earned by a business before deducting expenses?

• Net Income
• Gross Profit
• Revenue
• Operating Income

When revenue and costs are the same, it is called…

• …the margin of safety
• …a balance sheet
• …liquidity
• …the break-even point

Which type of business can raise additional funds by issuing new shares and selling them on the stock market?

• Private limited companies
• Partnerships
• Sole traders
• Public limited companies

The Acme Spring and Dynamite Company buys 400 pogo sticks for £4000 and sells each one for £35. How much is the total profit?

• £35
• £14,000
• £10,000
• £10

What is meant by start-up capital?

• The funds required to start a new business
• A new business hub within a capital city
• The revenue from a businesses first sale
• The person who sets-up the new business

Which of the following is a current liability?

• A mortgage
• Leasing a vehicle
• Bank loan
• Staff wages

What is the purpose of a cash flow forecast?

• Allows a business to monitor its sales
• Allows a business to anticipate liquidity problems
• Allows a business to borrow money
• Allows a business to delay payments

A business aims to increase its profitability by investing £15,000 over three years. During this time, it expects its profits to increase by a total of £24,000. What is the average rate of return?

• 16%
• 50%
• 100%
• 250%