Level 1
Quiz 2 entrepreneur and business
1. Which word means “difference between income and expenditure”?
a. balance
b. profit
c. loss
2. Which word means “legally required”?
a. statutory
b. recommended
c. warranty
3. Which word means “positive balance”?
a. loss
b. profit
c. credit
4. What is 20% of £375?
a. £75
b. £7.50
c. £37.50
5. What is 25% of £375?
a. 93.75
b. £15.00
c. £93.75
6. You have placed an order for 6 microwave ovens with a wholesaler. They cost £95 each
pre-VAT. What is the total cost including VAT at 20%?
a. £570
b. £684
c. £114
7. You bought a batch of 10 sunglasses at £2.75 each (wholesale) to retail at £7.50. How
much profit will you make if you sell all the sunglasses?
a. £475
b. £750
c. £275
The next 3 questions are about the information below.
© BBC 2011
Level 1
Quiz 2 entrepreneur and business
Sunlight holiday club
Income Expenditure
Week beg 04/01/2011
Date
Details
£
p
£
p
45 05
01/02/11 Balance carried
forward from January
02/02/11 Monthly rent
100
00
05/02/11 Monthly broadband
14
99
140 00
05/02/11 Council grant
75 00
20/02/11 Lottery fund
Deposit for ice rink
60
00
25 00
various
Members’ payments
for ice skating
TOTAL
8. What is the total income for the week beginning 4th January?
a. £174.99
b. £110.06
c. £285.05
9. What is the total expenditure for the week beginning 4th January?
a. £285.05
b. £174.99
c. £110.06
10. What balance will be carried forward to the next week?
a. £285.05
b. £174.99
c. £110.06
© BBC 2011
Level 1
Quiz 2 entrepreneur and business
Answers
1. Which word means “difference between income and expenditure.”
a. balance
b. profit
c. loss
Yes, this is the right answer!
No, this is the excess of income over expenditure.
No, this is when expenditure exceeds income.
2. Which word means “legally required”?
a. statutory
b. recommended
c. warranty
Yes, this is the right answer!
No, statutory means legally required.
No, statutory means legally required.
3. Which word means “positive balance”?
a. loss
balance.
b. profit
c. credit
No, this means negative balance. Profit means a positive
Yes, this is the right answer!
No, this means obtaining goods or services and paying at a
later date. Profit means a positive balance.
4. What is 20% of £375?
a. £75
b. £7.50
c. £37.50
Yes, this is the right answer!
No, you have put the decimal point in the wrong place.
No, this is 10% of £375.
5. What is 25% of £375?
a. £93.75
b. £15.00
c. £93.75
No, you need to add a unit of measure (£ sign).
No, you need to divide 375 by 4, not by 25.
Yes, this is the right answer!
6. You have placed an order for 6 microwave ovens with a wholesaler. They cost £95 each
pre-VAT. What is the total cost including VAT at 20%?
a. £570
No, you need to add the VAT to the cost.
b. £684
Yes, this is the right answer!
c. £114
No, you need to add the VAT to the cost.
7. You bought a batch of 10 sunglasses at £2.75 each (wholesale) to retail at £7.50. How
much profit will you make if you sell all the sunglasses?
a. £475
Yes, this is the right answer!
b. £750
No, £750 is the sales takings. You need to subtract cost from
total sales to get the profit.
c. £275
No, £250 is the total cost. You need to subtract cost from
© BBC 2011
Level 1
Quiz 2 entrepreneur and business
total sales to get the profit.
8. What is the total income for the week beginning 4th January?
a. £174.99
b. £110.06
c. £285.05
No, add up the figures in the ‘income’ column.
No, add up the figures in the ‘income’ column.
Yes, this is the right answer!
9. What is the total expenditure for the week beginning 4th January?
a. £285.05
b. £174.99
c. £110.06
No, add up the figures in the ‘expenditure’ column.
Yes, this is the right answer!
No, add up the figures in the ‘expenditure’ column.
10. What balance will be carried forward to the next week?
a. £285.05
b. £174.99
c. £110.06
No, subtract the total expenditure from total income.
No, subtract the total expenditure from total income.
Yes, this is the right answer!
© BBC 2011