
B207B-Assestment 1
Authored by Nabiha Khan
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University
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5 questions
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1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is a bank overdraft and how does it work?
A bank overdraft is a type of loan that must be repaid immediately.
A bank overdraft allows account holders to earn interest on their balance.
A bank overdraft is a fee charged for maintaining a low account balance.
A bank overdraft is a facility that allows an account holder to withdraw more money than is available in their account, up to a predetermined limit.
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What are the advantages of leasing equipment for a small business?
Higher initial costs
Advantages of leasing equipment for a small business include improved cash flow, access to modern technology, reduced maintenance costs, and flexibility in upgrading equipment.
Limited access to new technology
Increased maintenance responsibilities
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What are some common methods for managing working capital?
Reducing employee salaries
Increasing product prices
Cutting marketing expenses
Optimizing inventory, improving receivables, extending payables, and maintaining cash reserves.
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
How can retained earnings be reinvested into a business?
Distributing retained earnings as dividends to shareholders
Investing in stocks of other companies
Using retained earnings to pay off debts
Retained earnings can be reinvested into a business by funding new projects, purchasing equipment, or expanding operations.
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What are the benefits of using leasing as a financing option?
Benefits of leasing include lower upfront costs, flexibility, improved cash flow, potential tax advantages, and access to the latest equipment.
Higher maintenance costs
Inflexibility in payment terms
Limited access to equipment upgrades
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