What is meant by a "dividend"?

• A portion of profits paid to shareholders
• Part-ownership of a business
• The sale of additional shares in a business
• An annual meeting of shareholders

A business aims to increase its profitability by investing £15,000 over three years. During this time, it expects its profits to increase by a total of £24,000. What is the average rate of return?

• 16%
• 50%
• 100%
• 250%

Which type of finance allows a business to pay its suppliers a few weeks after they receive their goods?

• Hire purchase
• Trade credit
• Short-term loan
• Retained profits

Which of the following is a current liability?

• A mortgage
• Leasing a vehicle
• Bank loan
• Staff wages

Costs which fluctuate in relation to the number of products produced is known as…

• Fixed costs
• Variable costs
• Total costs
• VAT

Which of the following sources of finance is not available to a new business?

• Sale of assets
• Personal savings
• Bank loan
• Government grants

Which of the following is a disadvantage of calculating the annual rate of return?

• The entire investment period is used
• It does not consider inflation
• It provides an easy-to-compare percentage value
• A simple comparison of investments can be made

On a cashflow forecast, an "closing balance" is…

• …cash remaining at the end of the current month
• …inflow minus outflow
• …the closing balance plus the cash inflow
• …cash remaining from the previous month

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

The difference between revenue and total costs is known as…

• Dividend
• Variable costs
• VAT
• Profit