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Worksheets

3.1 Students 2020

Total questions: 30

Worksheet time: 10mins

Name
Class
Date
1.
Which of the following does not describe "Fixed assets"? (3.1)
a)
Are items that have long term value and can be used over again
b)
Help to determine the scale of a business’s operations
c)
Have the purpose of regenerating money for the business
d)
Are cheap
e)
Can provide collateral
2.
Should a low-income South American farmer who plants chilis for a living consider microfinance?
a)
Yes
b)
No
3.

Which classification of 'sources of finance' is leasing relevant to?

a)

Internal source

b)

external source

c)

raw materials costs

4.
What is debentures?
a)
essentially long term loans issued by a business
b)
Secured loan for purchase prooerty
c)
catered to meet specific developement needs of borrower
d)
businesses decide to ‘go public’ by floating their shares on a stock exchange for the first time
e)
Existing companies can raise further finance by selling more sales
5.
Kickstarter.com is an example of which source of finance
a)
Donation
b)
Grant
c)
Crowd-funding
d)
Sponsorship
e)
Subsidy
6.
Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services
a)
true
b)
false
7.

What is share capital?

a)

The finance a company raises by issuing common or preferred stock.

b)

The finance a company raises from the sale of shared assets

c)

the building that the company share with its business partners

8.
money needed to run a business which is raised from borrowing rather than shares.
a)
Grant
b)
Leasing
c)
Loan capital
d)
Retained profits
e)
Personal Funds
9.

Which sources are not internal source of finance?

a)

Sale of assets

b)

Loan capital

c)

Personal funds

d)

Retained profits

10.

What is the time period of more than tweleve months but less than five years?

a)

Short term

b)

medium term

c)

Long term

11.
Which sources of finance do Sole Trader often use?
a)
Sale of assets
b)
Personal funds
c)
Retained profits
d)
Loan Capital
12.
what is an example of revenue expenditure?
a)
wage
b)
steaks you eat
c)
loan from bank
d)
grants
13.

What's the difference between the venture capital and business angels?

a)

Venture Capital usually runs by an individual but business angel is in groups

b)

VC is more proactive and engaged with decisions in the business than a business angel.

c)

venture capitalists seek to invest in small to medium-sized businesses that have high growth potential

d)

Business angels invest for higher-risk, possibly lower-return companies while VCs make calculated investments to limit their risk in high return companies

14.
Trade credit is an internal source of finance
a)
true
b)
false
15.

What is an example of subsidies?

a)

Disney and Pixar merges

b)

Mr Shipley receives crowd funding to get his hair back

c)

Tesla gets a tax break for employing many people during an economic collapse

d)

A rich investor donates a substancial sum of money to a starting entrepreneur

16.
What are some advantages of trade credit for buyers and sellers
a)
Increasing sales
b)
Retain customer loyalty
c)
Discount for fast payment
d)
All of the above
17.
what is the difference between leasing and renting?
a)
There is no difference
b)
Leasing is a contract that grants you the use of an asset, but rent has involvement of paying for the property periodically. 
c)
Lease is something you pay once a year to the landlord, but rent you pay for the bank
d)
Lease you pay periodically to the landlord but rent granst you the asset of a property
18.
What are the pros of retained profit?
a)
No additional debt
b)
Stay in control
c)
Felxible
d)
All of the above
e)
None of the above
19.
Which of the following is a internal finance?
a)
Share capital
b)
sponserships
c)
selling assets
d)
venture capital
e)
donation
20.
What is one of the advantages of Share Capital?
a)
It lowers the cost of production
b)
Provides huge amount of finance
c)
It has maximum 30 days credit
d)
It is a gift from the government
21.
What is loan capital?
a)
Earning money
b)
sources of finance obtained from commercial lenders such as banks. 
c)
Money that got rasied from other company
d)
Spending money to other company
e)
Learning business
22.

What is venture capital?

a)

money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.

b)

is an amount that is expensed immediately

c)

is the money raised from selling shares in the company

d)

a powerful tool that businesses can use to improve cash flow

e)

Is financing that calculating and precise investors provide to startup companies and small businesses that are believed to have long-term and high growth potential.

23.

What is an overdraft?

a)

sum of money given by a government or other organization for a particular purpose

b)

deficit in a bank account caused by drawing more money than the account holds

c)

financial support given by a sponsor

d)

practice of funding a project or venture by raising small amounts of money from a large number of people

24.
Who are debtors?
a)
People or organizations that owe money to the business.
b)
People or organizations that give money to the business.
c)
People or organizations that donate money to the company
25.
Which is an example of Revenue Expenditure?
a)
Electricity bills
b)
Machinery
c)
Land
26.
Are fixed assets long term or short term?
a)
Long term
b)
Short term
27.
What are indirect costs?
a)
Costs that are not clearly identified with the production of a good or service
b)
Cost of machinery or capital invested into the company
28.
Which of these includes an example of "selling assets"?
a)
Selling the HR department
b)
Selling some of the workers to another company
c)
Selling dormant equipment such as machinery that has been replaced
29.
What's a benefit of microfinance?
a)
allows customers to be happier and live a satisfying life
b)
more cats
c)
empowering rural people for attaining self-sustaining socio-economic upliftment
d)
provide better living opportunities for those rich people
30.
what is a good definition of Direct Costs?
a)
Costs that are direct
b)
Expenses that directly go into producing goods or providing services