Year 11 - Finance Unit Plenary

• Business Studies
• Upper Secondary (Key Stage 4)
• GCSE

Year 11 - Finance Review Quiz

Go to lessonup.app and enter the class code.

What are costs that do not change when a business' output changes?

1. Total costs
2. Variable costs
3. Fixed costs
4. Revenue

What is an asset that a bank holds as security for the repayment of a loan?

1. Capital
2. Credit
3. Costs
4. Collateral

Zara designs and sells jewellery.

Using the information calculate what her revenue for the month is.

Unit selling price	£68
Total costs	£32
Units sold	275

1. £8,800
2. -£9,900
3. £9,900
4. £18,700

The following month Zara makes £22,100 in revenue.

How many units did she sell?

Unit selling price	£68
Total revenue	£22,100
Units sold	?

1. 310
2. 280
3. 325
4. 300

What are the business' profits each month?

Revenue	£28,000 p/m
Fixed costs	£12,000 p/m
Variable costs	£19,000 p/m

1. £3,000
2. -£3,000
3. -£9,000
4. £16,000

Match terms A-D with 1-4 on the break even chart.

Revenue

Break-even point

Fixed costs

Total costs

Mark has a business producing handbags.

Calculate the break-even output using the data.

Selling price	£25 per bag
Fixed costs	£7,500 p/a
Variable costs	£10 per bag

1. 5,000
2. 500
3. 300
4. 750

Barbera has a hat business.

Calculate the break-even level of output using the figures in the table.

Selling price	£50 per hat
Fixed costs	£25,000 p/a
Production costs	£30 per hat

1. 833 units
2. 8,333 units
3. 1,250 units
4. 125 units

If total costs are greater than revenue, the business will...

1. make profit.
2. break-even.
3. sell less units.
4. make a loss.

What is the net cash flow if the total inflows are £800 and the total outflows are £3,000?

1. -£2500
2. -£2,200
3. £2,200
4. £3,800

What is the formula for closing balance?

1. Opening balance − Net cash flow
2. Inflow - Outflow
3. Net cash flow + opening balance
4. Opening balance divided by net cash flow

Use the data to find the closing balance for Kimmi's garage.

Total outflow	£4,210
Net outflow	£460
Opening balance	£1,055

1. £595
2. £595
3. £0.43
4. £1,515

What is the formula for calculating the average rate of return (ARR)?

1. Average yearly profit / cost of investment x 100
2. Cost of investment / Average yearly profit x 100
3. Cost of investment x Average yearly profit
4. Cost of investment x 100

An entrepreneur is considering a project which will need an investment of £250,000. She wants an average rate of return of 10%.

Calculate the average yearly profit of her investment project.

Average yearly profit	?
Investment required	£250,000
ARR	10%

1. £25,000
2. £0.000004
3. £25m
4. £2,500