Finance Unit Topics Quiz

Which of the following is an example of a financial record maintained by finance?

• Employee attendance sheets

• Cash budgets and income statements

• Marketing brochures

• Product catalogs

What is another responsibility of finance besides paying bills?

• Hiring new staff

• Conducting market research

• Paying wages and salaries to employees

• Organizing company events

What is retained profit?

• Profit made by the business in the current year

• Profit made by the business in previous years and reinvested

• Profit given to shareholders

• Profit used to pay off debts

What is one disadvantage of retained profit?

• It is always available

• It can take too long to build up

• It is easy to access

• It is not affected by market conditions

What must be paid in addition to the loan amount in a bank loan?

• Principal

• Interest

• Dividend

• Tax

What is a disadvantage of a bank loan?

• No interest is charged

• Interest has to be paid in addition to the loan amount

• It cannot be arranged quickly

• It is a short-term source of finance

How is a bank loan typically repaid?

• In a lump sum at the end

• Over a long period of time

• Only when the borrower decides

• Without any schedule

How is a mortgage typically paid back?

• In a lump sum

• In installments

• Through barter

• With stocks

What is one disadvantage of a mortgage?

• No interest is charged

• Property can be lost if repayments are missed

• It is only available for small amounts

• It is not secured against property

What can happen if mortgage repayments are missed?

• The interest rate decreases

• The property can be lost to the lender

• The loan is forgiven

• The repayment period is extended