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Business finance

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which of these sources of finance is internal?

a)

retained profit

b)

Mortgage

c)

Venture capital

d)

Crowd funding

2.

Which of these is a short term source of finance?

a)

Mortgage

b)

share capital

c)

Venture capital

d)

Bank overdraft

3.

Trade Payable is a suitable source of finance to fund the purchase of what?

a)

A New delivery vehicle

b)

Inventories

c)

Property

d)

direct labour

4.

A rights issue involves the sale of of what?

a)

New shares on the stock market

b)

Fixed Assets

c)

New shares to existing shareholders

d)

Part of the business

5.

which of the following is an example of a cash inflow

a)

Wages

b)

cash sales

c)

Rent

d)

interest paid

6.

The opening cash balances for a business was US$35700 and the net cash flow was negative US$11500 the clsoing balance is:

a)

US$ 24200

b)

US$ 11500

c)

US$ 37200

d)

None of the above

7.

Which of the following is an example of a cash outflow?

a)

Interest Received

b)

cash from trade receivable

c)

Fresh injection of capital

d)

Payment for raw materials

8.

When a business cannot pay its debts it is said to be?

a)

Liquid

b)

Insolvent

c)

Overtrading

d)

Overheating

9.

Which is an example of a fixed business cost?

a)

Raw materials

b)

Interest Payments

c)

Packaging

d)

Wages to production workers

10.

If total cost is US$ 350 000 000 and output is 100 000 units what is average cost?

a)

US$ 100 000

b)

US$ 35

c)

US$ 350

d)

US$ 3500

11.

If variable cost is £10 per units and fixed costs are £400 000, what is the total cost of producing 50 000 units?

a)

£900 000

b)

£450 000

c)

£4 0000 0000

d)

£50 000

12.

Which one of the following expressions is true?

a)

Profit = TC+TR

b)

Average cost = FC /Q

c)

TR = P x FC

d)

Profit = TR - TC