A2 Business - Finance review

What is asset?

• An item of property owned by a person or company
• An item owned by a business that lasts for several years.

What is NOT a source of Internal finance?

• Retained profit
• Sale of existing assets
• Issue of shares
• All are sources of Internal finance

They are considered owners of the business and have voting rights, entitled to dividends which depend on their share and earnings of the corporation. They are called _________.

• stockholder

• stakeholder

• employees

• investors

A card that borrows money but it has to be paid back

• Debit Card 
• Credit Card 
• Baseball Card 
• Pokemon Card 

How do we calculate total costs?

• Fixed Costs - Variable Costs
• Total Revenue - Fixed Costs
• Variable Costs x Total Revenue
• Fixed Costs + Variable Costs

What happens at Break Even Point?

• Company makes neither profit nor loss
• Company makes profit
• Company makes loss
• Company goes bankrupt

Gross Profit - ??? = Net Profit

• Expenses
• Sales
• Cost of Sales
• Money Out

Revenue is ...

• Money made from selling products
• Money paid to suppliers for materials
• Expenses x Units produced
• Monthly rent payments to landlord

Fixed costs _______ vary with production. (fill in the blank)

• Do
• May
• Sometimes
• Do not

Which source of finance is internal?

• Government Grant
• Retained Profits
• Bank Loan
• Overdraft