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Chapter 6 Start-up Regulation and Financing Quiz B

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is 'finance'?

a)

Loans a business takes out.

b)

Cash the business has to use to set up.

c)

All monies available for the business to use on a day-to-day basis.

d)

The way a business secures money for its operations.

2.

What are the two main types of finance available to a business?

a)

Loans and savings.

b)

Equity and debt finance.

c)

Crowdfunding and Angel investing.

d)

Bank overdrafts and loans.

3.

Bridging finance is

a)

Offered by financial institutions and is used when a person or business uses debt finance to purchase a new asset, but it still waiting to sell an existing asset.

b)

A facility offered by a financial institution that allows an individual or business to withdraw more money from their account than they have available from $500 to $10 000.

c)

A financial agreement between a business and its supplier, whereby the supplier agrees to provide goods to the business when required, but does not expect payment for the goods until a later date.

4.

What is over-capitalisation?

a)

When a business does not have enough equity or debt finance to source the purchase of assets and the run the business.

b)

When the business has too much capital.

c)

When a business uses its sources of finance to purchase more assets than it requires to operate, affecting the efficiency objective.

d)

When the business has too many owners.

5.

What does a budget show?

a)

Income, expenses and overall profit or loss

b)

Income, expenses and overall surplus or deficit

c)

Profit or loss

d)

Income and expenses

6.

What does a break-even analysis show?

a)

unit sales

b)

sales and costs

c)

profit and loss

d)

Fixed costs, variable costs, break-even point, sales, total costs

7.

What are the main sections of a business plan?

a)

Marketing plan, Human resources plan, Operations plan, Financial plan

b)

Executive Summary, Marketing plan, Operations plan, Financial plan

c)

Executive summary, Business profile, Marketing plan, Human resources plan, Operations plan, Financial plan

d)

Business profile, Marketing plan, Human resources plan, Operations plan, Financial plan

8.

Which of the following is an example of Equity Finance?

a)

Bank overdraft

b)

Angel investors

c)

Leasing

d)

Bank loan

9.

Which of the following is an example of debt financing?

a)

Crowdfunding

b)

Venture Capitalists

c)

Leasing

d)

Self-funding

10.

The 'Sharks' from Shark Tank are examples of

a)

Crowdfunding

b)

Venture capitalists

c)

Angel investors

d)

Trade credit