26 Questions
Who is considered a stakeholder in a business?
Anyone who has an interest in the activities of a business
What is a shareholder?
An investor who is part-owner of a company
What is the main reason for a business to conduct a credit check?
To ensure the business has a reliable credit history
What type of business has unlimited liability?
Sole trade
What is the purpose of a deed of partnership?
To define the terms of a partnership
What is the break-even point in a business?
The point where revenue received meets all of the costs of the business
What is a type of unincorporated business owned by a group of two or more people?
Partnership
What is the level of risk in an incorporated business?
Limited liability
What is the main purpose of a guarantor in a loan?
To guarantee the repayment of the loan
What is retained profit?
Money that a business keeps, rather than paying out to its shareholders
Who are the stakeholders of a business?
Anyone who has an interest in the activities of a business
What type of business arrangement involves one business giving permission to another business to trade using its name and products?
Franchise
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
Who are the individuals who pay a fee to trade using the name and products of an established business?
Franchisees
What is the term for the minimum amount that a business is legally allowed to pay its employees?
National Living Wage
What is ethics in a business context?
Moral principles or standards that guide the behaviour of a person or business
What type of product is a bicycle, which is larger than the raw materials used to make it?
Bulk-gaining product
What is the term for the percentage of total sales of a product in a market that is taken by one business?
Market share
What is the term for the amount of revenue left over once costs have been deducted?
Profit
What is the term for the physical characteristics of a landscape, such as being flat or hilly?
Topography
What is the term for a business strategy in which a company sells the same product for a lower price than its competitors?
Undercut
What is a public limited company?
A business that sells shares to the public
What is the lowest legal rate of pay for employees, depending on their age and their type of employment?
Minimum wage
What is the term for the laws that a business must comply with?
Legislation
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
What is the term for a serious disagreement, usually between people, countries or ideas?
Conflict
Test your understanding of key business financial concepts, including revenue, income statements, stakeholders, and break-even points. Learn how businesses operate and make decisions based on financial data. Improve your knowledge of financial terms and their applications.
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