Finance LO2

Is the price a business asks a customer  to pay for a single product.  

• Price
• Sales
• Revenue
• Costs

Is the income that a business receives from selling its goods or services.

• Price
• Sales
• Revenue
• Costs

Is the spending that is necessary to set up and run a  business.  

• Price
• Sales
• Revenue
• Costs

Is the amount of money a business has left over after  subtracting its costs from its revenue.

• Profit
• Loss

What is start up capital?

• Finance needed before starting trading.
• Finance paid after trading.
• Finance paid to banks.

Profit is important to businesses because:

• it improves businesses, cash balances
• it can be used to measure business size
• it is a measure of businesses, success
• businesses need to pay taxes to the government

Profit is important to businesses because:

• it improves businesses, cash balances
• it can be used to measure business size
• it is a measure of businesses, success
• businesses need to pay taxes to the government

What is capital expenditure?

• Money spent for fixed assets which last about 6 months.
• Money spent for fixed assets which last about for more than a year.
• Money spent on a day-to-day basis.
• Money spent per hour rate.

A person who is not necessarily the owner of the business but has a stake on how the business is performing is called __________.

• stakeholder

• stockholder

• partners

• manager

Which one is not included in the Break Even formula?

• variable costs per unit
• total fixed costs
• selling price per unit
• cost price per unit