Small Business and Economics - Hard

Which of the following would NOT count as expenses when preparing a budget for a gardening business:

• A. Money paid to a sign-writer to update the business vehicle logo
• B. Money paid to a fuel supplier for the business lawnmower
• C. Money paid to the business mechanic for repairing a vehicle used in the business
• D. Money paid to the owner for landscaping advice

From a financial viewpoint which of the following would be the least important factor to take into account when considering a credit card:

• A. Whether the card has much lower interest rates than others
• B. Whether the card has an annual fee
• C. Whether you have a choice of colours available with your card
• D. Whether the card has a set minimum monthly repayment or not

Select the INCORRECT statement concerning wealth management and creation:

• A. You generally need to lose money before you make any
• B. It is not essential to take huge risks to make money
• C. Wealth can be planned and budgeted for
• D. Sound financial advice can assist with wealth management and growth

Which of the following is not recognised as an advantage of online shopping?

• A. Online shopping allows you to search for the best price before you buy
• B. Online shopping allows you to search for the best features before you buy
• C. Online shopping means you may lose track of your spending
• D. Online shopping means you can purchase goods without leaving the comfort of your home

Which of the following is not recognised as an advantage of using credit cards?

• A. It allows a buyer the ability to buy now and pay at a later date
• B. If buying is not monitored closely people risk building up a high level of debt quickly and then struggling to repay it
• C. When repaid on time it is possible to avoid large interest charges
• D. Using some credit facilities such as tap and go are easier and quicker for consumers

The decisions people make every day in relation to budgets and saving money have an impact on their financial position, wellbeing and lifestyle. These decisions are best described as:

• A. Financial planning
• B. Debt control
• C. Debt reduction
• D. Financial gambling

In addition to budgeting and managing personal finances effectively it is also possible to improve your financial position by following some key points. Select the INCORRECT piece of advice from the following:

• A. People should maximise their potential income – by taking proactive steps such as striving for a promotion
• B. People should understand their financial situation and take control of financial decisions
• C. People should keep control of debt
• D. People should strive to spend more in order to make more money down the track

There are a range of bank accounts which exist because:

• A. People’s needs, incomes and hopes for the future differ so we need a range of accounts so we can choose which is most suitable
• B. All people need to lock their money away and not be able to touch it or they’ll spend it
• C. No-one can survive life without regularly using a credit card
• D. Banks are always trying to charge higher fees so the range of accounts they offer will always increase

Debt in itself is not a bad thing provided:

• A. You enjoy the good life while you can
• B. You keep entering Tattslotto each week
• C. You develop a financial plan and budget to reduce the debt
• D. You let people know you are successful

The Australian banking system was deregulated in 1985. This meant that the government:

• A. Permitted overseas competitors to enter the Australian banking system
• B. Permitted banks to operate within their own regulations without government interference
• C. Permitted banks to act outside government regulations in the interests of competition in the banking industry
• D. Permitted banks to trade in Australia without any limitations or regulations