29 - Business Finanace

29 - Business Finanace

11th Grade

25 Qs

quiz-placeholder

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29 - Business Finanace

29 - Business Finanace

Assessment

Quiz

Business

11th Grade

Easy

Created by

Niall Clark

Used 9+ times

FREE Resource

25 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

What is the primary purpose of start-up capital?
To buy machinery & equipment
To pay employee wages
To cover legal expenses
To pay dividends to shareholders

Answer explanation

Start-up capital is used to purchase assets and equipment needed to establish the business.

2.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

What is working capital used for?
Long-term expansion
Buying new machinery
Day-to-day expenses
Paying off long-term loans

Answer explanation

Working capital is for daily expenses like wages, inventory, and rent.

3.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

What is the formula for working capital?
Current liabilities - current assets
Current assets - current liabilities
Fixed assets - current liabilities
Fixed assets - long-term debt

Answer explanation

Working capital = current assets - current liabilities.

4.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

Which of the following is an internal source of finance?
Retained profits
Bank loan
Trade credit
Issuing debentures

Answer explanation

Internal sources include retained earnings, sale of assets, and reducing working capital.

5.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

A business sells an unused warehouse to raise funds. What source of finance is this?
Trade credit
Sale of assets
Leasing
Bank overdraft

Answer explanation

Sale of assets generates cash by selling unneeded equipment or property.

6.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

A business delays payments to suppliers to improve cash flow. What is this called?
Trade credit
Hire purchase
Debt factoring
Equity financing

Answer explanation

Trade credit allows businesses to delay payments, improving short-term liquidity.

7.

MULTIPLE CHOICE QUESTION

10 sec • 4 pts

Which financing method allows a business to sell trade receivables to a third party for immediate cash?
Bank overdraft
Leasing
Debt factoring
Trade credit

Answer explanation

Debt factoring helps businesses get cash quickly by selling unpaid invoices.

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