IGCSE Enterprise - Unit 6 Finance Quiz

Creditor: A creditor in a business context is:

• A. A person or company to whom money is owed

• B. A person or company that owes money

• C. A person or company that lends money

• D. A person or company that borrows money

Grant: In a business context, a grant is:

• A. A person who provides financial advice to businesses

• B. A sum of money given by a government or other organization for a particular purpose

• C. A type of loan provided by banks

• D. A type of investment made by businesses

Share or Equity: A share or equity in a business context is:

• A. A unit of ownership interest in a corporation or financial asset

• B. A unit of debt owed by a corporation or financial asset

• C. A unit of credit provided by a corporation or financial asset

• D. A unit of investment made by a corporation or financial asset

Overdraft: An overdraft in a business context is:

• A. An arrangement with a bank that allows an account holder to borrow money when their account reaches zero

• B. A loan given by a bank to a business

• C. A type of investment made by a business

• D. A type of insurance policy

Friendly Society: A friendly society is:

• A. A society where everyone is friendly

• B. A mutual association for the purposes of insurance, pensions, savings or cooperative banking

• C. A society that provides free financial advice to its members

• D. A society that provides loans to its friends

Credit: Credit in a business context is:

• A. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

• B. The money that a customer owes a business

• C. The money that a business owes a customer

• D. The money that a business owes a supplier

Lessee: A lessee in a business context is:

• A. The person who gives property on lease

• B. The person who takes property on lease

• C. The person who sells property

• D. The person who buys property

Solvency: Solvency in a business context is:

• A. The ability of a company to meet its long-term financial obligations

• B. The ability of a company to make a profit

• C. The ability of a company to increase its sales

• D. The ability of a company to invest in new projects

Venture Capital: Venture capital in a business context is:

• A. Money that is invested in new or emerging companies that are perceived as having high growth potential

• B. Money that is invested in established companies that are perceived as having low growth potential

• C. Money that is invested in real estate

• D. Money that is invested in government bonds

Lessor: A lessor in a business context is:

• A. The person who gives property on lease

• B. The person who takes property on lease

• C. The person who sells property

• D. The person who buys property