IB Business management HL (Gia Như 27.12.2024)

What is the term for the money required to start a business?

• Working capital
• Revenue expenditure
• Start-up capital
• Capital expenditure

What is the main reason businesses need finance for growth?

• To pay wages
• To buy raw materials
• To acquire additional premises or equipment
• To pay utility bills

What is a short-term source of finance?

• Mortgage
• Long-term bank loan
• Overdraft
• Sale of shares

What is the formula for calculating net cash flow?

• Cash inflow - Cash outflow
• Total sales revenue - Total costs
• Current assets - Current liabilities
• Trade receivables - Trade payables

What does positive working capital indicate?

• The business has more liabilities than assets
• The business has plenty of finance to cover day-to-day expenses
• The business is insolvent
• The business has no debts

What is the difference between cash and profit?

• Cash is the money that flows in and out daily
• Profit is the money that flows in and out daily
• Cash is the surplus after all costs are paid
• Profit is the surplus after all costs are paid

What is bankruptcy?

• Dissolution of a limited company
• Protection of a limited company
• An individual or partnership unable to pay debts
• Selling of assets to pay liabilities

What is the term for money that is to be repaid within one year?

• Long-term finance
• Short-term finance
• Capital expenditure
• Revenue expenditure

What is working capital?

• Current assets - Current liabilities
• Total sales revenue - Total costs
• Cash inflow - Cash outflow
• Trade receivables - Trade payables

What is the role of finance in a business?

• To cover initial setup costs
• To manage risks
• To measure business performance
• All of the above