Financial literacy Grade 8

What is a sole trader?

• A person who owns the business and is fully responsible for its debts.

• A type of partnership.

• A corporation.

• A type of cooperative.

What are the two types of sole traders?

• Service business and trading business.

• Manufacturing business and service business.

• Trading business and cooperative.

• Service business and corporation.

What is capital?

• The amount of money contributed by the owner to start the business.

• The total assets of a business.

• The total liabilities of a business.

• The profit made by the business.

What is the difference between fixed capital and working capital?

• Fixed capital is used for long-term assets, while working capital is for daily operations.

• Fixed capital is for daily operations, while working capital is for long-term assets.

• Both are the same.

• Fixed capital is the owner's investment, while working capital is the business's profit.

What is income?

• Money received by a business for providing services or selling goods.

• The total expenses of a business.

• The owner's investment in the business.

• The profit made by the business.

What is a loss?

• A deficit that occurs when a business's expenses exceed its income.

• The profit made by the business.

• The total assets of a business.

• The owner's investment in the business.

What are expenses?

• Payments made for goods and services needed to run the business.

• The total income of a business.

• The owner's investment in the business.

• The profit made by the business.

What is profit?

• The difference between money received (income) and payments made (expenses).

• The total expenses of a business.

• The owner's investment in the business.

• The total assets of a business.

What is a transaction?

• An exchange of money and valuable items between people or businesses.

• The total income of a business.

• The owner's investment in the business.

• The total expenses of a business.

What are liabilities?

• Money owed to other businesses, financial institutions, or individuals outside the owner of the business.

• The total assets of a business.

• The owner's investment in the business.

• The total income of a business.