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CAM UNIT 5 AS (part 1)

Authored by tran tai

Business

Professional Development

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CAM UNIT 5 AS (part 1)
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50 questions

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1.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is start-up capital?

The money needed to expand a business
The money required to begin operating a business
The profit earned by a business
The revenue generated by a business

2.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

Which of the following is a reason a business might need finance for growth?

To pay wages
To purchase additional premises or equipment
To cover daily operating costs
To pay utility bills

3.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is overtrading?

Expanding too quickly or experiencing a downturn in sales
Making excessive profits
Paying off all debts
Reducing production costs

4.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

Which of the following is a short-term need for finance?

Purchasing new machinery
Paying wages or utility bills
Developing a new product
Expanding into new markets

5.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is the main difference between short-term and long-term finance?

Short-term finance is repayable within 12 months
Long-term finance is repayable within 12 months
Short-term finance is used for capital expenditure
Long-term finance is used for daily operating costs

6.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

Which of the following is an example of a long-term need for finance?

Paying wages
Purchasing raw materials
Developing a new product
Paying utility bills

7.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

What is the primary purpose of start-up capital?

To pay dividends to shareholders
To cover initial costs such as premises and equipment
To generate profit
To reduce production costs

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