Chapter 10: Finance (Grade 11)

Which statement explains one of the key finance function?

• To support marketing decisions

• To support business planning and decision making

• To provide information about how a business could grow

• To provide information to improve operational activities

Which statement explains one of the key finance function?

• To support the development of products

• To support the targeting of customers

• To provide financial information such as costs, revenue, cash flow

• To provide information on the training needs of workers

What is the definition for "finance"?

• Money raised and used by a business

• Money used by customers to buy products

• Money created investing in other businesses

• Money used by workers

What is a definition of the "finance function"?

• The area of business that deals with issues related to the workforce

• The area of business that provides operational information, such as quality control and production methods

• The area of business that provides financial information such as budgets and cash flow forecasts to support planning and decision making

• The area of business that encourages sales through market research and marketing strategies

What is the explanation of "financial information"?

• Information that includes details about production methods, quality and working with suppliers

• Information that includes staffing requirements, recruitment and selection and motivation

• Information that includes graphs of sales figures and market share

• Information that includes details of profit, loss, cash flow, profit margin, average rate of return.

What is meant by "production costs"?

• Costs related to setting up a business

• Costs that are related only to the paying of workers

• Costs that are directly related to the making of the products

• Costs are related to the selling of products and services

What is meant by "profit"?

• Where money is used to pay motivational methods to workers

• Where fixed costs are greater than variable costs

• Where revenue is less than total cost

• Where revenue is greater than total costs

What is meant by "forecasting cash flow"?

• The actual profit made by a business over time

• The expected revenues and expenditure of a business over time

• The actual revenues and expenditure of a business over time

• The expected profit of a business over time

What is meant by "break-even output"?

• Where profit is being made

• Where the total revenue is less than total costs

• Where total revenue equals total profit

• Where total revenue equals total costs, and no profit or loss is being made

What is the meaning of stakeholders?

• Financial assets

• Individuals with interest or concern in an organisation

• Individuals who have bought part of the company

• Inventory management techniques