Question 1: Define the term 'revenue' in the context of a business.

Answer: Revenue is the total amount of money a business earns from selling its products or services.

Question 2: Give two examples of fixed costs a small cafe might have.

Answer: Examples include rent for the premises and salaries of permanent staff.

Question 3: Explain the difference between 'expenses' and 'profit' in a business.

Answer: Expenses are the costs incurred to run the business, while profit is the money left after subtracting expenses from revenue.

Question 4: List three types of income a small online business might receive.

Answer: Sales income from products, delivery charges, and any commissions received.

Question 5: A bakery sells cakes. One day, it sells 50 cakes at £3 each. Calculate the total revenue for that day.

Answer: Total revenue = 50 cakes x £3 = £150.

Question 6: Describe what an entrepreneur should consider when planning their business’s finances.

Answer: An entrepreneur should consider costs, potential income, profit margins, savings, and how to manage cash flow.

Question 7: Sketch a simple chart showing the difference between 'income' and 'expenses.' Label the axes and the two sections clearly.

Answer: A bar chart with 'Income' and 'Expenses' on the y-axis and categories or time on the x-axis; the 'Income' bar should be taller than the 'Expenses' bar to show profit.

Question 8: Draw a basic financial plan for a small business. Include sections for 'Expected Income,' 'Fixed Costs,' 'Variable Costs,' and 'Profit.'

Answer: A large blank space divided into four sections labeled accordingly, with space for students to write or illustrate examples under each heading.

Question 9: What is meant by 'cash flow' in a business? Why is it important?

Answer: Cash flow is the movement of money in and out of a business. It is important because it helps ensure the business can pay its bills and stay operational.

Question 10: Imagine you are starting a small business. List three ways you could increase your income.

Answer: Offering new products or services, increasing marketing efforts, and expanding to new markets or customers.

Question 11: Explain why keeping accurate financial records is important for a small business.

Answer: Accurate records help track profits and expenses, prepare for taxes, and make better financial decisions.