business gr 10 finance quiz 1

Working capital is sometimes called as...

• kidney of a company

• life blood of a company

• life blood of debts

• the breath air of a company

An example of working capital is...

• pay electricity bills.
• pay for machinery.

• pay for rent cost.

• pay for factory and warehouse.

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.

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 revenue expenditure?

• Money spent on yearly expenses

• Money spent on hour to hour expenses
• Money spent on day to day expenses
• None of the above

What is NOT a source of Internal finance?

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

This is the cash that is generated by the business when it operates successfully

• Retained profits

• Share capital

• Angel investor

• Owner savings

Which of the statements about retained profits is false?

• You have unlimited amounts of money available

• Shareholders and employees could be frustrated because there is less profit to be 'shared out'

• You do not have to pay interest

• You are free to use it for any purpose

Which of the following is NOT usually considered a personal source of finance.

• Savings

• Redundancy payments

• Crowdfunding

• Credit card

A short-term source of finance from a bank that usually is only used in an emergency/when needed

• Bank Overdraft

• Bank Loan

• Share capital

• Grants