WorksheetsAS Business Finance
Total questions: 20
Worksheet time: 11mins
Short-term assets and short-term liabilities are referred to as the firm's:
cash flow.
capital budget.
capital structure
working capital.
A business organisation that is similar to a sole proprietorship but has two or more owners is called a:
limited liability company.
corporation.
dual company.
partnership.
Which ONE of the following relates to the ability of a business to pay its debts as they fall due?
growth
liquidity
efficiency
profitability
Which of the following is a type of short-term external source of funds?
leasing
overdraft
mortgages
debentures
Retained Profits is an example of:
Internal Finance
External Finance
Unsensible Finance
Long-Term Finance
Short-term finance includes:
Bank Overdraft
Trade Credit
Debt Factoring
Mortgage
Bank Load
Debt Factoring is:
Selling invoices to a factoring company.
Factoring the amount of debt you have into your business plan.
Writing off the debt that a business owe you.
Making plans for the future of the business.
When using Hire Purchase, the business does not own the item...
True
False
When taking out a Mortgage the business may buy...
Property
Company Cars
Vans
Land
Machinery
Which ONE of the following items would be found in the income statement of a business?
equipment
investments
gross profit
accounts payable
A business has current liabilities of $200 000 million and current assets of $250 000 million.
Which of the following statements correctly describes the position of the business?
The business has a current ratio of 0.8:1 and has a liquidity problem
The business has a current ratio of 1.25:1 and has a liquidity problem
The business has a current ratio of 0.8:1 and does not have a liquidity problem
The business has a current ratio of 1.25:1 and does not have a liquidity problem
What is ONE method of controlling current liabilities?
selling accounts receivable at a discount
having a tight policy on allowing trade credit
making interest and loan repayments on time
offering discounts for cash and early payment
What are the owners of private and public limited companies called?
Stakeholders
Managers
Board of directors
Shareholders
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is a drawback for an entrepreneur setting up a business as a sole trader?
Profit is shared
Financial accounts are kept private
Limited liability
Unlimited liability
revenue
