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

A bakery generates £2,000 in daily revenue from selling cakes. The monthly fixed costs for the bakery, including rent and salaries, are £15,000. The variable cost to produce each cake is £5. Calculate the profit the bakery makes in a month if they sell an average of 20 cakes per day.

• £9,000
• £15,000
• £17,000
• £21,000

What does the term "stakeholder" refer to in the context of business?

• A type of legal document
• A person or group that has an interest in the business
• A company's CEO
• A specific type of product

"Bulk-buying" is an example of…

• Purchasing economies of scale
• Technical economies of scale
• Service economies of scale
• Production economies of scale

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 is not a function of a business plan?

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

A business purchasing a competitor is an example of...

• Conglomerate integration
• Forward vertical integration
• Backward vertical integration
• Horizontal integration

Sarah sells glasses of lemonade for £2. Her fixed costs are £20 for the day, and her variable cost per glass is £1. What is her profit after selling 50 glasses of lemonade?

• £8
• £18
• £30
• £70

Which of the four factors of production could be described as "the physical or natural resources used in production"?

• 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