Business Financial Concepts

Play an AI-generated podcast conversation about this lesson

Who is considered a stakeholder in a business?

Only the suppliers of the business
Anyone who has an interest in the activities of a business (correct)
Only the government
Only the workers of the business

What is a shareholder?

An investor who is not part-owner of a company
An investor who is part-owner of a company (correct)
A supplier of a company
A worker of a company

What is the main reason for a business to conduct a credit check?

To check the business's financial performance
To see if the business has existing debts
To ensure the business has a reliable credit history (correct)
To determine the business's break-even point

What type of business has unlimited liability?

Sole trade (A) Signup and view all the answers

What is the purpose of a deed of partnership?

To define the terms of a partnership (C) Signup and view all the answers

What is the break-even point in a business?

The point where revenue received meets all of the costs of the business (B) Signup and view all the answers

What is a type of unincorporated business owned by a group of two or more people?

Partnership (A) Signup and view all the answers

What is the level of risk in an incorporated business?

Limited liability (A) Signup and view all the answers

What is the main purpose of a guarantor in a loan?

To guarantee the repayment of the loan (C) Signup and view all the answers

What is retained profit?

Money that a business keeps, rather than paying out to its shareholders (A) Signup and view all the answers

Who are the stakeholders of a business?

Anyone who has an interest in the activities of a business (B) Signup and view all the answers

What type of business arrangement involves one business giving permission to another business to trade using its name and products?

Franchise (C) Signup and view all the answers

What is a private limited company?

A business owned by shareholders who invest in the business in return for a share of the profits and voting rights at the annual general meeting (A) Signup and view all the answers

Who are the individuals who pay a fee to trade using the name and products of an established business?

Franchisees (C) Signup and view all the answers

What is the term for the minimum amount that a business is legally allowed to pay its employees?

National Living Wage (B) Signup and view all the answers

What is ethics in a business context?

Moral principles or standards that guide the behaviour of a person or business (C) Signup and view all the answers

What type of product is a bicycle, which is larger than the raw materials used to make it?

Bulk-gaining product (C) Signup and view all the answers

What is the term for the percentage of total sales of a product in a market that is taken by one business?

Market share (A) Signup and view all the answers

What is the term for the amount of revenue left over once costs have been deducted?

Profit (A) Signup and view all the answers

What is the term for the physical characteristics of a landscape, such as being flat or hilly?

Topography (C) Signup and view all the answers

What is the term for a business strategy in which a company sells the same product for a lower price than its competitors?

Undercut (A) Signup and view all the answers

What is a public limited company?

A business that sells shares to the public (C) Signup and view all the answers

What is the lowest legal rate of pay for employees, depending on their age and their type of employment?

Minimum wage (D) Signup and view all the answers

What is the term for the laws that a business must comply with?

Legislation (B) Signup and view all the answers

What is the term for a facility provided by a bank allowing a current account holder to withdraw more money than there is in the account?

Overdraft (A) Signup and view all the answers

What is the term for a serious disagreement, usually between people, countries or ideas?

Conflict (B) Signup and view all the answers