Finance Quiz Session 7

What are the three main sources of money in a business?

• Sales, External Investment, Internal Investment

• Debt, Marketing Campaigns, Growth

• Start-up, Working Capital, Leasing

• Business Angels, Share Capital, Trade Credit

When might a business need extra finance?

• Start-up, Growth, Working Capital

• Debt, Unforeseen Circumstances, Marketing Campaigns

• Crowd Funding, Business Angels, Share Capital

• Leasing, Other Businesses, Trade Credit

What is the definition of start-up costs?

• The costs incurred in the day-to-day running of a business

• Costs that don't change with the number of products sold

• The costs incurred when setting up a business

• Costs that can be traced directly to the production of a specific product

What are fixed costs?

• The costs incurred in the day-to-day running of a business

• Costs that don't change with the number of products sold

• The costs incurred when setting up a business

• Costs that can be traced directly to the production of a specific product

What are variable costs?

• The costs incurred in the day-to-day running of a business

• Costs that don't change with the number of products sold

• The costs incurred when setting up a business

• Costs that can be traced directly to the production of a specific product

What is the formula for calculating profit?

• Revenue - Costs = Profit

• Costs - Revenue = Profit

• Profit - Costs = Revenue

• Costs - Profit = Revenue

What is the purpose of a cash flow forecast?

• To predict the future money in and out of a business

• To calculate the break-even point

• To monitor and control budgets

• To track sales and revenue

What are the benefits of budgeting?

• Stops companies from spending too much and increases profits

• Allows unnecessary spending and reduces flexibility

• Creates a culture of saving and limits flexibility

• Reduces unnecessary spending and provides a culture of saving

How do you calculate closing balance?

• Total cash available + cash outflows

• Opening balance + Net cash flow

• Opening balance - Net cash flow

• None of the above

Which of the following are uses of cash flow forecasting?

• The opportunity cost of spending time doing the forecast

• It can help a business to get a bank loan

• Inaccuracies caused by unexpected events

• Being able to plan spending so you a can meet your debt obligations