WorksheetsEconomic management
Total questions: 10
Worksheet time: 5mins
If you were running a business, what would be your main economic aim?
To generate profits.
To create value.
To deliver a quality product or service to customers.
None of the above.
How can you fund a company?
Owners' contributions
Borrowing money from banks
Profits from their business activities.
All of the above.
If you were a firm's shareholder, what would you think about increasing debt levels to fund a new investment?
I think it's ok.
I would prefer to fund it by shareholders' contributions.
When comparing different projects to invest in, what do you have to assess?
Expected return on the money you are going to invest
When you will get your money back
It is not possible to forecast return or payback period before the project starts.
Both return and time are relevant to make investment decisions.
Consider these two options:
A- Receiving €1,000 today
B- Receiving €1,000 in 1 year
Which of the above would you prefer?
There are no differences between A and B
Option A
Option B
A firm's balance sheet displays:
Assets, equity and liabilities
The stream of incomes and expenses in 1 year
Changes in assets and liabilities after 1 year
The firm's owners
When calculating a professional football club's annual profits, which of the following items will NOT be considered as an income?
Ticketing
Broadcasting
Venues built during the current year
Commercial
Which of the following items will be excluded from the calculation of annual profits?
Payment of debt interest
Purchase of 10 new cars
Payrolls
All of the above will be considered.
Which of the following is the payment a shareholder can expect from a company?
Profits
Dividends
Interest payment
Do you have any background in finance?
Yes
No
