What is the primary purpose of a business plan?

• To provide a CV for the business owners
• To secure financing from investors
• To provide a roadmap for the business's operations and goals
• To advertise the business

What is meant by a "business aim"?

• A specific target
• A positive net profit
• An overall direction of the business
• Improved revenue

A business purchasing a competitor is an example of...

• Conglomerate integration
• Forward vertical integration
• Backward vertical integration
• Horizontal integration

Which of the four factors of production could be described as "the physical or natural resources used in production"?

• Land
• Labour
• Capital
• Enterprise

A store earns revenue of £5,000 per month. The fixed costs are £2,000, and the variable costs per item sold are £10. How much profit does the store make if they sell 300 items?

• £0
• £3,000
• £7,000
• £10,000

Which of the following is a factor that affects a business's choice of location?

• The legal structure of the organisation
• The location's proximity to competitors
• The business's advertising strategy
• The size of the business's logo

Which of the following is not a potential benefit of franchising?

• Rapid growth of business
• Increased brand awareness
• Low risk
• Lower taxation

What is the term for the legal recognition of a business as a distinct entity separate from its owners?

• Partnership agreement
• Limited liability
• Incorporation
• Merger

What is the main advantage of a franchise for the franchisee?

• Full control over the business
• No sharing of profits
• Minimal support and training
• Using existing brand recognition

What is a business's primary objective?

• Maximising profits
• Providing employment
• Minimising costs
• Maximising market share