Business Finance Quiz

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 NOT a source of Internal finance?

• Issue of shares

• All are sources of Internal finance

• Retained profit

• Sale of existing assets

Short-term assets and short-term liabilities are referred to as the firm's:

• capital structure

• capital budget.

• cash flow.

• working capital.

A business organization that is similar to a sole proprietorship but has two or more owners is called a:

• dual company.

• limited liability company.

• partnership.

• corporation.

Which ONE of the following relates to the ability of a business to pay its debts as they fall due?

• profitability

• growth

• liquidity

• efficiency

Which of the following is a type of short-term external source of funds?

• leasing

• debentures

• mortgages

• overdraft

Retained Profits is an example of:

• External Finance

• Long-Term Finance

• Unsensible Finance

• Internal Finance

Short-term finance includes:

• Mortgage

• Bank Overdraft

• Debt Factoring

• Bank Load

• Trade Credit

Debt Factoring is:

• Factoring the amount of debt you have into your business plan.

• Writing off the debt that a business owe you.

• Making plans for the future of the business.

• Selling invoices to a factoring company.

When using Hire Purchase, the business does not own the item...

• True

• False