What term is used to show the potential profit from an investment?

• Annual percentage rate
• Scale of economy
• Investment portfolio
• Average rate of return

Which of the following is an advantage of calculating the annual rate of return?

• Provides a clear and easy to understand percentage value
• Easy to compare the potential returns of different investments
• It considers the entire investment period
• The estimated annual profits from the investment are used

The gap between the break-even point and the businesses current output is called…

• …the margin of safety
• …a balance sheet
• …liquidity
• …the break-even point

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

When a business spends money to become more profitable, it is known as…

• Paying dividends
• Investment
• Profit share
• Commission

Which of the following is a liability?

• Fixed assets
• Current assets
• Short-term debts
• Share value

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

The income a business makes from selling goods and services is known as…

• Profit
• Revenue
• Dividends
• Sales

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%

When lots of individuals donate small amounts of money to a business, often for a specific project, it is known as…

• Kickstarter
• Goodwill
• Micro-transactions
• Crowdfunding