Tag: KS4

Williams is a small pottery business specialising in manufacturing ceramic plates. The table below contains the financial information for January.

Calculate the Total Costs for Williams during the month of January.  Select ONE answer only:

1. £600
2. £1,200
3. £1,800
4. £2,400

Show your workings to arrive at your answer, and explain and justify your reasons:

Which ONE of the following is a result of being a sole trader?

Select ONE answer only:

1. The owner is only liable for the money that they invest in the business
2. The business owner is likely to face a greater risk
3. The business owner can take all the profits of the business
4. The business owner can sell shares to raise money
5. The business owner has to pay an accountant to do audit their accounts

Discuss the reasons why customers may trust a private limited company more than a sole trader

Which ONE of the following is a result of being a sole trader?

Select ONE answer only:

1. The owner is only liable for the money that they invest in the business
2. The business owner is likely to face a greater risk
3. The business owner receives will have greater control of the business
4. The business owner can sell shares to raise money
5. The business owner has to pay an accountant to do audit their accounts

Explain ONE reason why a business may choose to become a private limited company

Which ONE of the following is a benefit of operating as a sole trader?

Select ONE answer only:

1. The business owner can benefit from limited liability
2. The business has to repay all loans instantly
3. The owner receives all the business’s revenues
4. The owner is liable for all of the business’s debts
5. The owner has to pay an accountant to do their taxes

Discuss the likely benefits to a business of changing from a sole trader to a private limited company.

Which ONE of the following is a cash outflow from a business?

Select ONE answer only:

1. Encouraging customer payment
2. Sales revenue
3. Receiving a bank loan
4. Purchasing assets
5. Cutting raw material costs

Explain ONE reason why a strong cash flow is important to a business.