Investment and Business Decisions Quiz

What does cash flow directly affect in a business?

• Financial stability and growth opportunities

• Marketing strategies

• Product quality

• Employee satisfaction

Which technique helps evaluate the profitability of investments in relation to cash flow implications?

• Accounting Rate of Return (ARR)

• Payback Period

• Net Present Value (NPV)

• Break-even Analysis

What may significant cash flow requirements for investments lead to?

• Improved customer satisfaction

• Reduced employee turnover

• Lower production costs

• Additional borrowing

What ratio is assessed to evaluate the level of risk when borrowing for investments?

• Gearing ratio

• Profit margin ratio

• Inventory turnover ratio

• Market share ratio

What directly affects the viability and timing of investment projects?

• Employee training programs

• Competitor analysis

• Availability of funding

• Customer feedback

Which of the following is a source of funding for businesses?

• Product discounts

• Customer loyalty programs

• Employee bonuses

• Retained profit

What does ROI assess in investment projects?

• Profitability and potential benefits

• Market trends

• Employee satisfaction

• Environmental impact

What type of investments may have higher ROI targets?

• High-risk investments

• Low-risk investments

• Ethical investments

• Environmental investments

Why is it important to align investments with the strategy, objectives, and culture of a business?

• To increase employee turnover

• To reduce production costs

• To improve customer satisfaction

• To ensure the investment aligns with the vision and mission statement

What can help prevent resistance to change by employees during investment implementation?

• Increasing salaries

• Reducing working hours

• Offering free products

• Considering the business’s culture