Take this Exam: GCSE Business: Enterprise and Ownership | Zestly

Question 1

Elena leaves her job as a salaried accountant to start her own bakery. What is the primary risk and reward trade-off she is making?

Accepted Answer

She risks losing a steady income for the chance of profit and independence.

Answer

She risks her personal savings for the certainty that the business will be profitable.

Answer

She risks losing her professional reputation for the certainty of a higher salary.

Answer

She risks her business failing for the guarantee of a government grant.

Question 2

A bank manager asks a new entrepreneur for a business plan before approving a loan. What is the primary purpose of this document?

Accepted Answer

It helps the owner clarify their strategy and allows the lender to assess the risk of the loan.

Answer

It serves as a marketing document to attract customers to the new business.

Answer

It replaces the need for financial records by predicting future cash flow with absolute certainty.

Answer

It acts as a legal guarantee that the business will be successful and profitable.

Question 3

A new florist asks only her friends and family if they would buy her flowers. What is the main problem with this market research?

Accepted Answer

The sample is biased because friends and family are likely to give overly positive feedback.

Answer

The sample size is too large to be analysed effectively.

Answer

Friends and family are not allowed to be customers of a new business.

Answer

The research is too expensive to conduct compared to professional surveys.

Question 4

A stall owner pays rent of four hundred pounds a month and spends three pounds on materials for every item made. If they make two hundred items in a month, what is the total cost?

Answer

Four hundred pounds.

Answer

One thousand four hundred pounds.

Answer

One thousand pounds.

Answer

Six hundred pounds.

Question 5

A business is making a profit on paper but cannot pay its electricity bill this week. What is the difference between profit and cash flow?

Answer

Profit is the money spent on assets, while cash flow is the money spent on wages.

Answer

Profit is the difference between revenue and costs, while cash flow is the timing of money moving in and out.

Answer

Profit is a short-term measure, while cash flow is a long-term measure of success.

Answer

Profit is the money in the bank, while cash flow is the total sales made.