Edexcel A-Level Business Theme 2.2 Financial planning overview quiz quiz

The particular colour scheme chosen for the company logo

The total number of directors sitting on the board

The legal ownership form chosen for the business

A change in consumer trends or the economic cycle

$8

$32

$12

$20

3,333 units

5,000 units

8,000 units

320,000 units

5,000 units

12,000 units

2,000 units

7,000 units

Setting all of the budgets across the whole business to exactly zero

Basing the budget straight on last year's actual figures

A budget that ends up having no variances at all

Starting each budget from zero so every cost must be justified

$4,000 adverse

$4,000 favourable

$104,000 favourable

$54,000 adverse

$5,000 adverse

$5,000 favourable

$165,000 favourable

There is no variance

Total assets minus the firm's total liabilities owed

The value of the fixed assets on their own

Current assets minus current liabilities

Cash held plus the issued share capital

Customers reliably paying their invoices on time

Deliberately holding only very little stock

Having strong and healthy working capital

Overtrading and customers paying late

Because it can run out of cash to pay its bills

Because profit and cash always mean exactly the same thing

Because the business happens to have limited liability

Because the business chooses to use budgets at all