Putting a Business Idea into Practice | Edexcel GCSE Business (1BS0)
Putting a Business Idea into Practice
- 68 questions
- 4 subtopics
- Paper 1
- Paper 1
Putting a Business Idea Into Practice is examined in Paper 1, Investigating small business (Theme 1).
It covers business aims and objectives, business revenues, costs and profits, cash and cash flow and sources of business finance.
Sample questions from Putting a Business Idea into Practice
Answer each one closed book first, then open the answer.
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Business aims and objectives
Why is survival the main objective for most new businesses?
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Many start-ups close in their first years because of weak sales or cash shortages. A business must survive before it can grow or make large profits. -
Business aims and objectives
What is a social objective?
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A social objective aims to benefit society or the environment rather than just make money. A café might aim to employ young people leaving care. -
Business revenues, costs and profits
A T-shirt printer sells 150 shirts at £8 each. Its fixed costs are £1,200 and its variable costs are £3 per shirt. Calculate its profit or loss.
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The printer makes a loss of £450. Revenue is £1,200 and total costs are £1,650. -
Business revenues, costs and profits
How is the break even point shown on a break even diagram?
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The break even point is where the total revenue line crosses the total costs line. A line down to the output axis shows the break even output. -
Cash and cash flow
What is the difference between cash and profit?
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Cash is the money a business has available at a point in time. Profit is the amount by which revenue exceeds costs over a period. -
Cash and cash flow
State how opening and closing balances are calculated in a cash-flow forecast.
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The closing balance is the opening balance plus net cash flow. The opening balance is the closing balance of the previous period. -
Sources of business finance
What is venture capital?
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Venture capital is finance from investors who put money into small businesses with high growth potential. Venture capitalists take a share of the business in return. -
Sources of business finance
State the formula for the interest on a loan as a percentage.
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Interest (%) = (total repayment − amount borrowed) ÷ amount borrowed × 100.
The 4 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Business aims and objectives | Aims and SMART objectives, financial aims from survival to market share, non-financial aims such as social goals and independence, and why objectives differ between businesses. | 16 |
| Business revenues, costs and profits | Revenue, fixed and variable costs, profit and loss, the break even point, break even revenue and the margin of safety, worked calculations, and reading a break even diagram. | 18 |
| Cash and cash flow | Why cash matters and how its shortage causes insolvency, cash against profit, cash-flow forecasts with inflows, outflows and balances, and worked forecasts for real businesses. | 16 |
| Sources of business finance | Short and long-term finance, overdrafts, trade credit, personal savings, venture capital, share capital, bank loans, retained profit and crowd funding, with interest calculated as a percentage. | 18 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
Edexcel GCSE Business Active Recall Guide
Every topic, not just this one. 672 questions with their answers.