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WorksheetsNat 5 BM - Finance
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Which source of finance is ONLY available to an Ltd or PLC company?
a)
Selling shares
b)
Bank loan
c)
Grants
d)
Retained profits
2.
Which source of finance is NOT available to ALL types of business organisations?
a)
Selling shares
b)
Selling unwanted assets
c)
Grants
d)
Leasing
3.
What is the name for a large amount of money borrowed from a bank to pay for property/premises?
a)
Overdraft
b)
Loan
c)
Mortgage
d)
Debt
4.
Which source of finance involves getting rid of unwanted items that the company owns?
a)
Sale of liabilities
b)
Sale of assets
c)
Jumble sale
d)
Sale of equity
5.
Name the person who likes to take on risky investments in return for part ownership of the business?
a)
Adventurer
b)
Investor
c)
Donor
d)
Venture Capitalist
6.
What source of finance involves paying a deposit for an asset then making monthly payments, after which you own the asset outright.
a)
Leasing
b)
Renting
c)
Hire purchase
d)
Savings
7.
What is NOT a benefit of leasing?
a)
Can get to use asset quickly
b)
You own it after a certain period of time
c)
Asset is replaced if it becomes obsolete
d)
Do not need to pay out a large sum of money up front
8.
Which source of finance is only available to organisations in the public sector?
a)
Grants
b)
Selling shares
c)
Taxes
d)
Hire purchase
9.
Which source of finance do most sole traders use at the start of the business?
a)
Own savings
b)
Retained profits
c)
Donors
d)
Debentures
10.
Fill in the blank - a disadvantage of using retained profits as a source of finance is that the money cannot be _____ for something else.
a)
used
b)
deposited
c)
borrowed
d)
controlled
11.
What is the name of the document which is used to show future income and expenditure for a business?
a)
Cash budget
b)
Cash statement
c)
Income statement
d)
Income budget
12.
What is NOT a benefit of preparing a cash budget?
a)
helps determine profits for owners and shareholders
b)
ensures there will be enough cash to pay employees and suppliers
c)
will help business plan when to invest in new equipment
d)
helps to plan a bank overdraft or additional funding in advance of when needed
13.
What name is given to the situation of having excess cash expected at the end of next month?
a)
Cash surplus
b)
Cash deficit
c)
Cash profit
d)
Cash loss
14.
What name is given to the situation of having a negative cash balance expected at the end of next month?
a)
Cash surplus
b)
Cash deficit
c)
Cash profit
d)
Cash loss
15.
Identify the action below which would NOT help a cash deficit situation?
a)
Implement tighter inventory control and reduce wastage
b)
Negotiate a temporary overdraft with the bank
c)
Sell unwanted assets
d)
Award bonuses to staff to help motivate them
16.
What is the name given to fixed costs + variable costs?
a)
Overall costs
b)
Total costs
c)
Company costs
d)
Break-even costs
17.
If total costs are greater than sales, what will the company make?
a)
Neither a profit or loss
b)
A loss
c)
A profit
d)
A surplus
18.
Select the example of a variable cost from list below
a)
Rent
b)
Insurance
c)
Raw materials
d)
Bank loan repayments
19.
Select the example of a fixed cost from the list below
a)
Wages of piece rate staff
b)
Raw materials
c)
Machine fuel
d)
Light and heat
20.
When does break-even happen?
a)
Total costs = Total sales
b)
Total costs > Total sales
c)
Total costs < Total sales
d)
Total costs = Fixed + Variable costs
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