The Acme Spring and Dynamite Company buys 400 pogo sticks for £4000 and sells each one for £35. What is the unit cost?

• £35
• £14,000
• £10,000
• £10

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

• Net Income
• Gross Profit
• Revenue
• Operating Income

The Acme Spring and Dynamite Company has a break-even point of 4500 units. Its current output is 6000 units. What is its margin of safety?

• 10,500 units
• -1,500 units
• 1,500 units
• 4,500 units

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

Which of the following is not a valid start-up cost for a new business?

• Purchasing stock
• Advertising on social media
• Developing new products
• Implementing an extension strategy

The income a business makes from selling goods and services is known as…

• Profit
• Revenue
• Dividends
• Sales

The gap between the break-even point and the businesses current output is called…

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

Which of the following is true regarding government grants?

• There is nothing to repay
• They are easy to apply for
• Application procedures are simple
• Businesses can use them for any purpose

What is meant by a "liability"?

• What it owes
• What it owns
• An asset
• A depreciated item

How might a business mitigate short-term negative cash flow?

• Pay its bills early
• Use an overdraft
• Offer shorter trade credit periods to customers
• Make staff redundant