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OCR GCSE Business topic 5 Finance overview quiz quiz

12questions. Pick an answer and you'll see why right away.

  1. What is the difference between cash and profit?

  2. Which of these is an internal source of finance?

  3. A business sells 3,000 units a month at 12 each. What is its monthly revenue?

  4. Which of these is a fixed cost?

  5. Fixed costs are 10,000, variable cost is 4 per unit and output is 2,000 units. What is the total cost?

  6. A product sells for 20 with a variable cost of 12 per unit and fixed costs of 16,000. What is the break-even output?

  7. A business breaks even at 4,000 units and expects to sell 5,200 units. What is its margin of safety?

  8. On a break-even chart, where is the break-even point?

  9. In a month, inflows are 18,000 and outflows are 21,000. What is the net cash flow?

  10. A month has an opening balance of 2,000 and a net cash flow of minus 5,000. What is the closing balance?

  11. An investment of 40,000 earns total profit of 60,000 over 5 years. What is the average rate of return?

  12. Why might a business not simply choose the investment with the highest average rate of return?