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WorksheetsYear 10 Business Revision
Total questions: 23
Worksheet time: 12mins
What are the types of debt finance?
Bank loan, credit card, leasing, overdraft, trade credit
Bank loan, credit card, self-funding, leasing
Bank loan, credit card, overdraft, private investment
Bank loan and credit card
What are the types of equity finance?
Self-funding, private investors, credit card, venture capitalist
Self-funding, private investors, venture capitalists, crowdfunding
Private investors, leasing, overdraft
Self-funding and crowdfunding
The financial objectives of a business include
Profitability, liquidity, solvency, growth and efficiency
Profitability, liquidity, solvency, growth and income
Liquidity, solvency, growth and income
Profit and growth
Which financial objective refers to the businesses ability to meet their long-term debt and financial obligations?
Profitability
Liquidity
Solvency
Growth
Which financial objective refers to how easy assets can be turned into cash to meet the short-term cash flow obligations of a business?
Profitability
Liquidity
Solvency
Growth
What is a disadvantage of self-funding?
You retain full ownership control of the business
Easiest and quickest source of finance
Don’t need to pay back interest to lenders
Could put a strain on your personal and family life
What is an advantage of a bank loan?
Businesses need meet a range of requirements before being accepted for the loan
Repayment burden
Requires a partial funding requirement
Has lower interest rates compared to credit cards
What is Net Profit?
Total sales revenue less the costs of goods sold
Gross profit less all other operating expenses
The assets of a business less the liabilities
The total sales revenue less interest
The Debt Ratio measures?
How much of the businesses assets are funded by the owner
How much money the business has borrowed from the bank
How well the business is doing
How much of the businesses assets are funded by debt
What does a poor Net Profit Ratio indicate?
The business has significant expenses, and a low volume of sales
The business has very few expenses
the business is making a large volume of sales
The business has a large volume of sales and very few expenses
What is a fixed cost?
A cost that changes according to the volume of sales, e.g. packaging
A cost that remains the same regardless of the number of items sold, e.g. phone bill
An expense that changes on a daily basis
A cost that doesn't change forever
What is a variable cost?
Cost that changes as output (or sales) changes
Cost that remains the same regardless of the number of items sold
A cost that will never change
An expense that varies once a year
What does the Net Profit Ratio measure?
The relationship between total owner's equity and total assets
The difference between what your business is worth (assets) minus what you owe (debts and liabilities)
How many cents a company generates in profit for each dollar of sales
How much money a business has
A debt ratio of 75% is ....... and indicates that.......
Positive; the majority of the businesses assets are funded by debt
Negative; the majority of the businesses assets are funded by debt
Positive; not a lot of the businesses assets are funded by debt
Negative; the business has a lot of assets
Cash Flow is...
How money moves
Money withdrawn from the business
The flow of money into your bank account
Inflows from sales revenue and outflows from expenses
An example of a variable cost is...
Business internet plan
Insurance
Packaging
Rent
An example of a fixed cost is...
Raw materials
Packaging
Rent
Labour directly involved in the manufacturing process
To improve the overall financial position of a business the key is to...
Reduce expenses and increase sales revenue
Increase sales and increase the number of staff employed
Increase liabilities and reduce assets
Decrease revenue and increase expenses
The criteria used to evaluate include
Competitiveness, stakeholder satisfaction and effectiveness
Competitiveness, stakeholder satisfaction, effectiveness and efficiency
Competitiveness, evaluation, stakeholder satisfaction and efficiency
Competitiveness and stakeholder satisfaction
The criteria of effectiveness refers to how the effective the strategy will be at helping the business achieve its objectives.
True
False
The PEST analysis stands for
Political, Economic, Socio-cultural and Technological
Political, Economic, Stakeholder and Technological
Political, Environmental, Socio-cultural and Technological
Profitability, Economic, Solvency and Technology
In the SWOT analysis, what are the internal factors?
Strengths and Opportunities
Strength and Weaknesses
Opportunities and Threats
Weaknesses and Threats
Accounts receivable is...
A current liability account in which a company records the amount it owes to suppliers
A current asset account in which a company records the amount it is owed by its customers
