Lesson 1.2.2

1.2.2 Financial Aims and Objectives Quiz: NCFE Business & Enterprise, Unit 1

20 questions · by Revision Ninja

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This free Financial Aims and Objectives quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 1: Entrepreneurship. It covers lesson 1.2.2, Financial Aims and Objectives, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. Financial aims and objectives set a business targets about which of these?

    • Its brand image and reputation
    • Its service quality and delivery
    • Its staff numbers and training
    • Its revenue, costs, cash and profit

  2. A café wants to raise its revenue without changing its prices. Which action would do that?

    • Move to a unit with a lower monthly rent
    • Switch to a cheaper bean supplier to widen the profit margin
    • Persuade each customer to spend more per visit
    • Buy cups and napkins in bulk to save money

  3. A bakery wants to lower its costs. Which of these actions would achieve that?

    • Raise the price of every loaf and cake by 10p
    • Run a promotion to attract new customers
    • Open on Sundays to catch the weekend trade
    • Lease the ovens instead of buying them

  4. A candle sells for £8.00. The materials, labour and overheads in each one come to £5.50. What is the profit per unit?

    • £2.50
    • £1.45
    • £13.50
    • £5.50

  5. A sauce firm lists everything it owns. Which item is an intangible asset?

    • Bottles of stock in the warehouse
    • A refrigerated van on the road
    • A patent on its secret recipe
    • Cash counted in the till each night

  6. In business finance, what does liquidity measure?

    • The total worth or value of a business
    • The movement of money in and out of the business
    • The ability of a business to turn sales into profit
    • The ability of a business to pay its debts

  7. A firm's profit and its cash flow are not the same thing. What does cash flow measure?

    • The money moving into and out of the firm
    • The firm's ability to settle its debts
    • The total worth of the assets it owns
    • The amount left once costs are paid

  8. A firm sets the target 'cut what we pay suppliers by 10% this year'. Which financial objective is that?

    • Increase its value
    • Improve its liquidity
    • Decrease its costs
    • Increase its revenue

  9. Which of these things that a bakery owns counts as a tangible asset?

    • The delivery vans it owns
    • The loyalty of repeat buyers
    • The copyright on its logo
    • The strength of its brand

  10. What is a firm trying to do when it aims to increase its value?

    • To raise the total worth of the business
    • To raise the number of staff it hires
    • To raise the amount of cash it holds
    • To raise the profit made on each sale

  11. A café sets an objective to grow revenue by 10% this year. What does revenue measure?

    • The money left after wages, rent and stock are paid
    • The cash held in the business bank account
    • The value of the premises, equipment and stock it owns
    • The money coming in from goods and services sold

  12. A sandwich shop wants to increase its sales revenue. Which action is most likely to achieve this?

    • Renegotiating the rent on its premises
    • Switching to a cheaper supplier of bread
    • Cutting the number of staff on each shift
    • Opening longer hours to serve more customers

  13. A delivery firm wants to reduce its operating costs. Which action would best achieve that?

    • Advertising on local radio to win new orders
    • Training drivers in customer service skills
    • Offering next-day delivery as a premium service
    • Planning driver routes to use less fuel

  14. A café wants to widen the profit margin it earns on every cup it sells. Which action would do that?

    • Give loyalty cards to regular customers
    • Buy its coffee beans from a cheaper supplier
    • Open a second branch in the next town
    • Sell more cups by dropping the price a little

  15. Two rival firms earn the same yearly profit, but one would sell for far more. What best explains that?

    • It charges higher prices than its rival does
    • It owns a strong brand and a loyal customer base
    • It employs more staff than its rival does
    • It has been trading for more years than its rival

  16. Increasing the value of the business is a key aim for many owners. Why does it matter to them?

    • It raises the profit kept from every pound of sales
    • It raises the sum they receive if they sell up
    • It draws more shoppers in and lifts weekly takings
    • It keeps the firm's day-to-day bills paid on time

  17. A firm is said to have poor liquidity. What does that tell you about it?

    • It sells fewer units than its main rivals do
    • It makes a smaller profit on each unit sold
    • It owes more to its bank than it owns in total
    • It may struggle to pay short-term bills on time

  18. What does it mean to say that a business is solvent?

    • Its assets are worth more than its total debts
    • Its sales revenue is rising year on year
    • Its cash covers this month's wages, rent and supplier bills
    • Its selling price is above its cost per unit

  19. Why can a profitable business still run out of cash?

    • Customers may take months to settle their bills
    • Fixed costs stay the same however much is sold
    • Suppliers may raise the price of raw materials
    • Profit is measured after tax has been deducted

  20. Which of these targets is a financial objective rather than a non-financial one?

    • Improving the wellbeing and job security of staff
    • Cutting the cost of producing each unit
    • Lowering the firm's carbon footprint
    • Giving staff time off to volunteer locally