National 5 Business - Finance Quiz

What is the finance department responsible for?

• looking after employees

• communicating with customers

• manufacturing the products

• managing the business finances

What is a bank overdraft?

• plastic card which authorises payments

• sum of money borrowed for a property

• limit placed on your bank account which allows you to take out more that you have in it

• money kept back every year from profits and reinvested in the business

Which of the following is not an advantage of a bank loan?

• interest charged

• repaid in instalments

• arranged relatively quickly

• repaid over a period of time

Which of the following is not a disadvantage of a grant?

• doesn't need to be repaid

• may not be awarded it

• need to meet criteria

• not the largest amount of money

Which source of finance is only for limited companies?

• bank loan

• share issue

• mortgage

• venture capital

Which source of finance is best for high potential start up businesses?

• bank loan

• loan from family and friends

• venture capital

• savings

Mark is needing to purchase a new van, which source of finance would you suggest?

• bank loan

• mortgage

• hire purchase

• debenture

Aimee has just received an unexpected bill, which source of finance would you suggest?

• savings

• retained profits

• bank loan

• bank overdraft

What is a cash budget?

• shows the profit made by a business

• shows at which point the business covers its costs

• forecast of future receipts and payments

• shows the value of the business at a particular date

Which of the following is a cause of cash flow problems?

• increasing sales

• taking out a bank loan

• purchasing new computers for all employees

• choosing a cheaper supplier