BTEC Business key terms Level 2- Exam Questions Solved 100% Latest Version 2024-2025
Revenue/ sales - Answers The amount a company earns from selling its products.
Variable costs - Answers Costs that can go up or down
Fixed cost - Answers Costs that do not vary with the quantity of output produced
Start up cost - Answers A cost that has to be paid before the business can start trading
Budgeting - Answers Financial forward planning making sure the business has enough money to spend
on bills or new stock
Trading Profit and Loss account - Answers A statement showing if the business has made or lost money
Break even - Answers The point at which total revenue and total cost are equal. They business does not
make a profit or a loss
Inflow/ sales - Answers The money coming into a business from sales
Outflow/ exspenses - Answers The money that leaves the business, such as paying bills
Gross profit - Answers Is the first type of profit made. The business does not keep this
Net profit - Answers The last type of profit made. This business keeps this.
Gross profit calculation - Answers Sales - cost of sales= ________ profit
Net profit calculation - Answers Gross profit - expenses = _________ profit
Assets - Answers Anything of value that is owned by the business such as a car or stock
Liabilities - Answers What a business owes to another person or business. For example payments to a
bank
Debtors - Answers An individual or business who has borrowed funds from a business and so owes it
money
Creditor - Answers An individual or business that has lent funds to a business and is owed money
Interest - Answers The cost of borrowing. Money added onto a loan.
Running cost - Answers Costs that are paid each month such as rent or phone bill
Sources of finance - Answers How to fund a business. For example a loan or mortage
If an account is under budget - Answers Favourable
Revenue/ sales - Answers The amount a company earns from selling its products.
Variable costs - Answers Costs that can go up or down
Fixed cost - Answers Costs that do not vary with the quantity of output produced
Start up cost - Answers A cost that has to be paid before the business can start trading
Budgeting - Answers Financial forward planning making sure the business has enough money to spend
on bills or new stock
Trading Profit and Loss account - Answers A statement showing if the business has made or lost money
Break even - Answers The point at which total revenue and total cost are equal. They business does not
make a profit or a loss
Inflow/ sales - Answers The money coming into a business from sales
Outflow/ exspenses - Answers The money that leaves the business, such as paying bills
Gross profit - Answers Is the first type of profit made. The business does not keep this
Net profit - Answers The last type of profit made. This business keeps this.
Gross profit calculation - Answers Sales - cost of sales= ________ profit
Net profit calculation - Answers Gross profit - expenses = _________ profit
Assets - Answers Anything of value that is owned by the business such as a car or stock
Liabilities - Answers What a business owes to another person or business. For example payments to a
bank
Debtors - Answers An individual or business who has borrowed funds from a business and so owes it
money
Creditor - Answers An individual or business that has lent funds to a business and is owed money
Interest - Answers The cost of borrowing. Money added onto a loan.
Running cost - Answers Costs that are paid each month such as rent or phone bill
Sources of finance - Answers How to fund a business. For example a loan or mortage
If an account is under budget - Answers Favourable
