GCSE Business Quiz

A great way to check your knowledge and understanding of GCSE Business Studies topics is to complete a revision quiz. Having been a senior examiner for almost ten years, I can tell you that examiners love to see sharp, accurate knowledge in written responses. As a teacher with over twenty years’ experience, I always encourage my students to practise key terms and concepts regularly to learn the crucial Business content to make their answers shine. Short quizzes, like this GCSE Edexcel Business Studies one I’ve written for you, are fun and help you gauge your progress on particular topics, giving you more confidence to build on your strengths and tackle your weaknesses.

3. Which one of the following describes the margin of safety?

• a) The difference between the maximum level of output and the break-even point
• b) The difference between the break-even point and the total revenue earned
• c) The difference between revenue and total costs
• d) The difference between the actual level of output and the break-even point

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Explanation

Explanation for Question 3 goes here.

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4. Which one of the following is a short-term source of finance?

• a) Share capital
• b) Retained profit
• c) Trade credit
• d) Venture capital

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Explanation

Explanation for Question 4 goes here.

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5. Which one of the following is an example of a cash inflow?

• a) Revenue
• b) Loan repayments
• c) Staff wages
• d) Rent and rates

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Explanation

Explanation for Question 5 goes here.

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6. The graph shows information about the financial performance of Roundlake Cafe from January to March.

Identify the total profit or loss made by Roundlake Cafe during the three-month period.

• a) £36,000 profit
• b) £30,000 loss
• c) £6,000 profit
• d) £2,000 loss

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Explanation

Explanation for Question 6 goes here.

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7. Which one of the following is an example of a variable cost for a car wash business?

• a) Cleaning fluids
• b) Manager salary
• c) Rent and rates
• d) Interest on loans

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Explanation

Explanation for Question 7 goes here.

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8. The table shows costs and price information for a business producing pre-packed sandwiches.

What is the business's break-even point?

• a) 10,000 sandwiches
• b) 4,000 sandwiches
• c) 2,500 sandwiches
• d) 6,667 sandwiches

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Explanation

Explanation for Question 8 goes here.

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9. Which one of the following is a description of crowdfunding?

• a) A flexible arrangement with a bank to allow a business to spend more than it has in its account
• b) Money received from investors that specialise in high-risk enterprises in return for a share of the business
• c) Raising modest investments from many people to fund a business project, typically using an online platform
• d) Money from the sale of equipment, vehicles, land, buildings or reduced-price inventory

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Explanation

Explanation for Question 9 goes here.

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10. Which one of the following is an example of a fixed cost for a hairdressing salon?

• a) Staff salaries
• b) Laundry costs (e.g. towels and gowns)
• c) Shampoo and conditioner
• d) Coffee/tea for customers

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Explanation

Explanation for Question 10 goes here.

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11. Which one of the following is the formula used to calculate net cash flow?

• a) Opening balance - Cash inflows
• b) Cash inflows - Cash outflows
• c) Revenue - Total costs
• d) Fixed costs ÷ Contribution

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Explanation

Explanation for Question 11 goes here.

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12. Which one of the following is the most suitable source of finance to fund the purchase of new business premises?

• a) Crowdfunding
• b) Overdraft
• c) Trade credit
• d) Mortgage

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Explanation

Explanation for Question 12 goes here.

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13. Which one of the following is the formula used to calculate closing balance?

• a) Total cash inflows - Total cash outflows
• b) Opening balance - Net cash flow
• c) Opening balance + Net cash flow
• d) Revenue - Total costs

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Explanation

Explanation for Question 13 goes here.

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14. Which one of the following is the formula used to calculate the gross profit margin?

• a) (Revenue ÷ Total costs) x 100
• b) (Gross profit ÷ Revenue) x 100
• c) (Revenue ÷ Gross profit) x 100
• d) (Gross profit x Revenue) x 100

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Explanation

Explanation for Question 14 goes here.

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