What's covered
Key facts
Brainstorming is generating many ideas freely in a group before evaluating them.
Selling above the break-even point begins to generate profit.
A small or biased sample can give misleading market-research results.
An angel investor uses their own money to back a start-up.
A business in financial trouble may seek formal help called administration.
Banks usually ask for a business plan because it shows whether the loan will be repaid.
A short summary of an idea given quickly is called an elevator pitch.
Break-even is the point at which revenue equals total cost.
A small group of customers asked their opinions in detail is called a focus group.
A drawback of borrowing from a bank is that interest must be repaid even if profits fall.
Sample questions
A taste of the 62 questions in this topic — answers marked. Sign up to practise the full set with spaced repetition.
Which is a good source of business-idea inspiration?
- •Avoiding all conversation with people
- •Ignoring every product that already exists
- •Refusing to look at any market need
- ✓Spotting a problem in everyday life
What is profit?
- •Just costs alone
- •Just sales alone
- ✓Revenue minus all costs
- •Revenue plus all costs
Which is an example of primary research?
- ✓Asking shoppers about their preferences in person
- •Looking up sales statistics online
- •Reading a news article about a sector
- •Reading a published industry report
Which is an internal source of start-up money?
- •A grant from a charity
- •A loan from a high-street bank
- •An investment from venture capital
- ✓The owner's own savings
Which is a common reason new businesses fail in the first year?
- •Banks insisting on free money
- ✓Poor cash-flow management
- •Suppliers giving away free stock
- •Too many customers willing to buy
Which section belongs in a business plan?
- •A guide to the local primary schools
- •A recipe for a chocolate brownie
- •A timetable of every UK bus route
- ✓Financial forecasts for the first year
Try it for four weeks. Free.
One school. Unlimited classes. No card limit. No teacher limit. If your students aren't practising daily by the end of the trial, you owe us nothing.