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WorksheetsBUSINESS FINANCE
Total questions: 44
Worksheet time: 18mins
Holder of stocks can earn income in the form of ______________.
Dividends
Interest
Financial market where stock issued for medium security.
Capital Market
Money Market
Primary Market
Secondary Market
Which of these is a short term source of finance?
Mortgage
share capital
Venture capital
Bank overdraft
Trade Payable is a suitable source of finance to fund the purchase of what?
A New delivery vehicle
Inventories
Property
direct labour
which of the following is an example of a cash inflow
Wages
cash sales
Rent
interest paid
Which of the following is an example of a cash outflow?
Interest Received
cash from trade receivable
Fresh injection of capital
Payment for raw materials
Which is an example of a fixed business cost?
Raw materials
Interest Payments
Packaging
Wages to production workers
Planning of income and expenses to run a business for certain time frame in the future is called?
Operating Budget
Budget Analysis
Forecasting
Leveraging
What you give up when you make a choice is called?
Opportunity Cost
Law of Survival
Deferment
Best Choice
Planning of income and expenses to run a business for certain time frame in the future is called?
Operating Budget
Budget Analysis
Forecasting
Leveraging
A company's income before interest and taxes are applied is called?
gross earnings
net profit
net income
operating income
In order to make a __________, a business must have more income than expenses.
loss
profit
retail cost
asset
This occurs when a business spends more money than they make.
profit
loss
capital
asset
The point at which a business is making the same amount of money it is spending.
capital
asset
profit
break-even
Property or money that has value that is owned by a company.
assets
liabilities
startup costs
operating costs
Expenses that a business is obligated to pay.
capital
liabilities
assets
retail price
Buying or renting a facility and paying for business license fees are examples of...
retail costs
assets
operating costs
startup costs
Paying rent, purchasing supplies, and paying employees are examples of...
capital
retail costs
operating costs
startup costs
A business often needs capital to operate. One way to get capital is to...
Borrow money in the form of a loan.
Partner with someone who will invest money.
Both choices
Neither choices
Which ratio or ratios measure the overall efficiency of the firm in managing its investment
in assets and in generating return to shareholders?
Gross profit margin and net profit margin.
Return on investment.
Total asset turnover and operating profit margin.
Return on investment and return on equity.
Which ratio or ratios measure the overall efficiency of the firm in managing its investment
in assets and in generating return to shareholders?
Gross profit margin and net profit margin.
Return on investment.
Total asset turnover and operating profit margin.
Return on investment and return on equity.
How would payments for taxes be classified?
Operating outflow.
Investing outflow.
Operating inflow.
Financing outflow.
Indicate which of the following current assets and current liabilities are operating accounts (O) and
thus included in the adjustment of net income to cash flow from operating activities
Marketable securities
Current portion of long-term debt
Accounts payable
Inventory
Income taxes payable
An important use of money is to
store in the bank
pay debts
measure of value
pay for goods and service
The stock exchange is a marketplace where
all businesses raise financial capital
second-hand stocks are bought and sold
brokers buy and sell securities
shares are exchanged for stocks
A document that demands payment at a future date
standing order
bill of exchange
cheque
debit card
Provides financial services to the government
Building societies
Central Banks
Commercial Banks
Credit unions
Which of the following is a form of savings?
Bank loan
Term deposit account
Overdraft
Credit card
One roles of a stock market is to:
Buy shares from shareholders who want to sell
Allow buyers and seller of shares to trade in second-hand shares
Provide loans to all types of companies
Allow private limited companies to raise capital from the sale of shares to the public
Anything that leads to uncertainty about costs, prices and demand for your product
financial risk
production risk
technical risk
price risk
Marketing risk derives from price risk, product quality, and market availability.
financial risk
production and technical risk
marketing risk
price risk
A risk which arises from environmental liability, regulations, and the business structure of your operation
human risk
marketing risk
legal risk
price risk
Anything that leads to uncertainty about costs, prices and demand for your product
financial risk
production risk
technical risk
price risk
