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- 1. Multiple Choice
What is the name given to the share of profits paid by a franchisee to a franchisor each year?
Loyalties
Patent
Royalties
Taxation
- 2. Multiple Choice
Which of the following would be included in a business plan for a start-up business?
A review of the business objectives set last year
Profits during the last 12 months
Profit forecasts for the next 12 months
Sales during the last 12 months
- 3. Multiple Choice
A sole trader finances their new business using a small business grant. Which of the following best describes a feature of this source of capital?
A high rate of interest will be charged
High application fees will be charged
The funds obtained do not have to be repaid
This source of capital can always be obtained without completing an application form
- 4. Multiple Choice
A sole trader business has unlimited liability. One key feature of unlimited liability is that:
they are responsible for all of their debts
they are working with a number of other people
they cannot get finance from a bank
they work on their own
- 5. Multiple Choice
If you advertised your intended new business on different social media platforms and asked a large number of people to invest money into the business, you would be looking for which source of capital?
A group loan
Business angel financing
Crowdfunding
Social media funding
- 6. Multiple Choice
Which of the following sources of capital usually involves individuals contributing finance by buying equity in the business?
Bank loan
Overdraft
Crowdfunding
Small business grant
- 7. Multiple Choice
Keenan is thinking of buying a franchise from a well-known chain of coffee shops.
Which of the following is a disadvantage to Keenan of becoming a franchisee?
Customers will know the brand name
Head office will offer business support
Royalty payments have to be made to the franchisor
The menu will include well-known drinks
- 8. Multiple Choice
Limited liability means that:
One owner cannot sell their share in the business without the permission of the other owners
Owners are liable for all debts of the business
Owners do not risk losing personal possessions to repay the debts of thebusiness
Profits must be shared equally between the owners of the business
- 9. Multiple Choice
usiness aims to break even during its first year of trading. Which section of a business plan is most likely to include this information?
Banking
Business objectives
Marketing plan
Resources plan
- 10. Multiple Choice
Which of the following needs to be submitted to Companies House when setting up a private limited company?
Business plan
Cash flow forecast
Memorandum of Association
Taxation
- 11. Multiple Choice
Which of the following sources of capital usually includes business advice from an experienced entrepreneur?
Bank loan
Business angel
Crowdfunding
Own savings
- 12. Multiple Choice
Which of the following is a benefit of limited liability for the owners of a business?
Profit must be shared equally between them
They can easily raise extra capital by issuing more shares
They must repay all the debts of the business
They will only lose the amount they invested in the business if it fails
- 13. Multiple Choice
Mayer is thinking of starting a business by buying a franchise of Perfection Pizza. Which of the following is an advantage of starting a business by buying a franchise?
A royalty fee must be paid each year
It is more expensive than starting a completely new business
Mayer’s business will benefit from having an established brand name
Mayer can control what he sells in his business
- 14. Multiple Choice
A sole trader needs additional capital to help to set up a new business. The sole trader does not wish to pay any interest or sign a formal contract. Which of the following sources of finance should they avoid?
Borrow money from a friend
Gift from their sister
Loan from a bank
The sole trader’s own savings
- 15. Multiple Choice
When starting up a business what is paid to HMRC?
Cash
Saving
Profit
Taxation
- 16. Multiple Choice
Which of the following would not be included in a business plan?
A marketing plan
Business objectives
Employment legislation
Financial forecasts
- 17. Multiple Choice
Which of the following business owners benefits from limited liability?
A partner
A shareholder
A sole trader
The Government
- 18. Multiple Choice
Which of the following is a disadvantage of accepting a gift from your Aunt Beryl to finance a new business?
There may be disagreements if Aunt Beryl is not consulted on decisions
There is no application form for Aunt Beryl to complete
There will be no interest to repay to Aunt Beryl
Your Aunt Beryl may offer good business advice
- 19. Multiple Choice
Which of the following is a disadvantage of running a business as a partnership?
Can share ideas to expand the business
Limited legal requirements
Must share profit amongst the shareholders
Unlimited liability
- 20. Multiple Choice
Which of the following is a feature of a small business grant?
A limited amount of funds are generally available
Only sole traders can apply for a grant
The grant provider will ask for a royalty fee
The need to make monthly repayments to repay the grant
- 21. Multiple Choice
What is the name given to individuals who donate money to a crowdfunded project?
Lenders
Owners
Shareholders
Sponsors
- 22. Multiple Choice
Which of the following can be used by a business owner to outline the business goals and objectives for the coming year?
Business plan
Mintel report
The product lifecycle
Trade magazine
- 23. Multiple Choice
Which source of capital for a business start-up is most likely to be offered by a group of investors?
Bank loan
Business angel
Crowdfunding
Small business grant
- 24. Multiple Choice
Which of the following groups always receives a share of any profit earned by a business?
Customers
Employees
Lenders
Owners
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