GCSE Business, Finance. Usually met in years 9 to 11.
Learn where businesses get money from, and the key finance words such as cash flow, fixed costs and break-even.
What you practise
Internal and external sources of finance
Loans, overdrafts and crowdfunding
Key finance terms
Starts with owner’s capital and loans and builds to venture capital and the margin of safety. Practice moves up a level when a round goes well and down when it does not.
Sample questions
Each sample comes with the method and the reason every wrong option is wrong. Real practice rounds are ten questions at your level.
Sample question, level 2 of 5
What does ‘interest’ mean?
The extra money paid back on top of a loan, for borrowing it
A bank letting a business take more money out of its account than it has in it, up to a limit
Costs that stay the same however much is produced, such as rent
Costs that rise as more is produced, such as materials
Raising money from a large number of people, usually online
Show the answer and method
Answer: A, The extra money paid back on top of a loan, for borrowing it
The method: Interest means the extra money paid back on top of a loan, for borrowing it.
Why the other options are wrong:
B, A bank letting a business take more money out of its account than it has in it, up to a limit: That describes overdraft.
C, Costs that stay the same however much is produced, such as rent: That describes fixed costs.
D, Costs that rise as more is produced, such as materials: That describes variable costs.
E, Raising money from a large number of people, usually online: That describes crowdfunding.
Sample question, level 4 of 5
What does ‘break-even point’ mean?
The money coming into and going out of a business over time
The number of sales at which total revenue equals total costs
A supplier letting a business pay for goods some time after they arrive
Costs that stay the same however much is produced, such as rent
Money raised by selling shares in a company
Show the answer and method
Answer: B, The number of sales at which total revenue equals total costs
The method: Break-even point means the number of sales at which total revenue equals total costs.
Why the other options are wrong:
A, The money coming into and going out of a business over time: That describes cash flow.
C, A supplier letting a business pay for goods some time after they arrive: That describes trade credit.
D, Costs that stay the same however much is produced, such as rent: That describes fixed costs.
E, Money raised by selling shares in a company: That describes share capital.
