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QUIZ 1 (FINALS) - BBF

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

The process of making investment decisions regarding the utilization and management of long-term capital.

a)

Capital budgeting

b)

Capital projects

c)

Capital asset

d)

Capital

2.

The net amount of cash and cash equivalents being transferred into and out of a business

a)

Cash credit

b)

Cash flow

c)

Cash budget

d)

Cash advance

3.

The uncertainty regarding the number of units (goods or services) sold due to possible price and market fluctuations

a)

Systematic risk

b)

Equity risk

c)

Sales risk

d)

Operating risk

4.

The uncertainty in operating incomes arising from the mix of variable and fixed operating costs

a)

Systematic risk

b)

Equity risk

c)

Sales risk

d)

Operating risk

5.

NPV stands for;

a)

Net present value

b)

Net position value

c)

Net proportion value

d)

Net practical value

6.

Used for the business' day-to-day activities, and this refers to the current assets and the current liabilities of the company

a)

Equity shares

b)

Working capital

c)

Cash equivalent

d)

Inventory

7.

As raw materials and supplies are part of working capital, the best sources of these are the suppliers providing credit to business owners

a)

Commercial paper

b)

Secured loans

c)

Trade credit

d)

Term loan

8.

It is where a commercial bank may provide finance by discounting the bills or invoices of its customers

a)

Term loan

b)

Accrued expenses

c)

Deferred incomes

d)

Factoring

9.

An arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible securities or guarantees.

a)

Overdrafts

b)

Cash credit

c)

Loans

d)

Purchasing and discounting of bills

10.

Under this arrangement, the borrower is required to transfer the physical possession of the property of goods to the bank as security

a)

Hypothecation

b)

Pledge

c)

Mortgage