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Teacher:
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BUSS1 Revision Quiz - Week 4
1. Which of these is most likely to enable a startup to achieve higher added value?
A
A strong USP
C
A copied business idea
B
A high profit margin
D
A positive cash flow
2. These are all examples of demographic market segmentation except:
A
Gender
C
Age
B
Location of home
D
Occupation and Income
3. A common reason with a startup's actual sales are less than planned is:
A
Actual selling price is lower than plan
C
Costs are lower than plan
B
Sales volumes prove higher than plan
D
Too much stock is bought
4. An option for a firm looking to reduce its breakeven point is to:
A
Buy cheaper raw materials
C
Undertake an advertising campaign
B
Give the staff a pay rise
D
Reduce its selling price
5. The startup expenditure budget is concerned with:
A
A firm's revenues
C
The launch marketing plan
B
The startup's cash flows
D
Costs of the business
6. Which of the following best describes a fixed cost?
A
Increases proportionately with output
C
Has a direct relationship with output
B
Represents a fixed proportion of total costs
D
Remains constant irrespective of the level
of activity
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BUSS1 Revision Quiz - Week 4
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-27. Which of these is a benefit of employing staff on temporary contracts?
A
Better knowledge of the business
C
Fit in with business culture much quicker
B
Low-risk and lower-cost method of
D
Lower cost per hour compared with
recruiting
part-timers
8. "A franchisor will usually supply all of the following to a franchisee, except:"
A
Training
C
IT & management systems
B
Staff to run the franchise
D
Marketing support
9. Many start-ups begin life based at home. A key advantage of this is:
A
Makes it easier to recruit skilled staff
C
The entrepreneur can work more hours
B
Fixed costs are higher
D
Fixed costs and break-even point are lower
10. Which of these would be the lowest-cost method of research for a startup
A
"A postal survey to 3,000 householders"
C
Focus group meetings
B
In-depth telephone interviews with 100
D
Quick survey of followers on Twitter
customers
11. Dividends are paid by:
A
Sole traders and partnerships
C
Only private limited companies
B
Public and private limited companies
D
Partnerships and public sector
organisations
12. The weekly revenue of a chip shop selling 1,500 portions at an average price of £3.50 is
A
£2350
C
£5500
B
£4500
D
£5250
13. Which of these statements about a bank loan is correct? A bank loan…
A
Is usually for a fixed term
C
Is an internal source of finance
B
Does not have to be repaid
D
Is treated as a fixed asset
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BUSS1 Revision Quiz - Week 4
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-314. Which of these is likely to be the most costly source of finance for a start-up?
A
Government grant
C
Bank overdraft
B
Personal savings
D
Trade credit
15. The typical amount invested by a business angel into a startup is...
A
Anything above £1 million
C
£10k to £750k
B
£500k to £3.5 million
D
£5k to £10k
16. The difference between the actual output and the breakeven level is known as the:
A
Minimum cost line
C
Margin of safety
B
Buffer zone
D
Current ratio
17. For a startup to produce an expenditure budget, it needs to estimate…
A
Likely sales and production volume
C
Expected selling price
B
The timing of supplier payments
D
Competitor market share
18. For which of these startups would being located close to customers be most important?
A
An Italian restaurant
B
An online bookseller
C
A manufacturer of supermarket ready
meals
D
A firm of international management
consultants
19. The most common reason why a startup does too little market research is:
A
Too complicated
C
Lack of funds
B
Lack of time
D
Research is never needed
20. A startup is more likely to fail if:
A
The product quickly becomes successful
C
The entrepreneur has no experience
B
Market research is effective
D
Bank loans are used for finance
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BUSS1 Revision Quiz - Week 4
www.tutor2u.net