MCQ Paper 1 revision practice Flashcards
Formula for market capitalisation
Current share price of an individual share x number of issued ordinary shares
(Share price x number of shares)
What are recievables?
What is owed to the business
What are payables?
What the business owes
State three business objectives
Survival
Growth
Profit
State three factors influencing the costs and demand of a business
Interest rates
Competition
Income of customers
State three factors that could influence a business’s share price
Competitors
Economic environment
Takeover
Two strengths of sole trader
Be your own boss
Gain all the profit
Two drawbacks of being a sole trader
Unlimited liability
Smaller skills set
Formula for gross profit
Total revenue - Cost of goods sold
What are ordinary shares?
Shares issued by public limited companies
Will reducing output help a business reduce its capacity?
No
What is the formula for capacity utilisation?
Actual output/Potential output x 100
Formula for selling price per unit
Total revenue/Output
Formula for contribution per unit
Output per period (units)/Number of employees at work
Formula for break even output (units)
Fixed costs (£)/Contribution per unit (£)
