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Finance function Topic 5.1

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which statement explains one of the key finance function?

a)

To support marketing decisions

b)

To support business planning and decision making

c)

To provide information about how a business could grow

d)

To provide information to improve operational activities

2.

Which statement explains one of the key finance function?

a)

To support the development of products

b)

To support the targeting of customers

c)

To provide financial information such as costs, revenue, cash flow

d)

To provide information on the training needs of workers

3.

What is the definition for "finance"?

a)

Money raised and used by a business

b)

Money used by customers to buy products

c)

Money created investing in other businesses

d)

Money used by workers

4.

What is a definition of the "finance function"?

a)

The area of business that deals with issues related to the workforce

b)

The area of business that provides operational information, such as quality control and production methods

c)

The area of business that provides financial information such as budgets and cash flow forecasts to support planning and decision making

d)

The area of business that encourages sales through market research and marketing strategies

5.

What is the explanation of "financial information"?

a)

Information that includes details about production methods, quality and working with suppliers

b)

Information that includes staffing requirements, recruitment and selection and motivation

c)

Information that includes graphs of sales figures and market share

d)

Information that includes details of profit, loss, cash flow, profit margin, average rate of return.

6.

What is meant by "sales revenue"?

a)

Money gained from selling products and services

b)

Money that is paid to make products and services

c)

Money that is raised to pay for an investment

d)

Money that is used to help expand the business

7.

What is meant by "production costs"?

a)

Costs related to setting up a business

b)

Costs that are related only to the paying of workers

c)

Costs that are directly related to the making of the products

d)

Costs are related to the selling of products and services

8.

What is meant by "profit"?

a)

Where money is used to pay motivational methods to workers

b)

Where fixed costs are greater than variable costs

c)

Where revenue is less than total cost

d)

Where revenue is greater than total costs

9.

What is meant by "forecasting cash flow"?

a)

The actual profit made by a business over time

b)

The expected revenues and expenditure of a business over time

c)

The actual revenues and expenditure of a business over time

d)

The expected profit of a business over time

10.

What is meant by "arranging finance"?

a)

The different ways a business could avoid making a loss

b)

The different sources a business could use to raise additional money

c)

The different ways a business could raise revenue

d)

The different sources a business could use to increase profit

11.

What is meant by "break-even output"?

a)

Where profit is being made

b)

Where the total revenue is less than total costs

c)

Where total revenue equals total profit

d)

Where total revenue equals total costs, and no profit or loss is being made

12.

What does the average rate of return show?

a)

Shows the different choices over the expected life of an investment

b)

Shows the different options to increase profit

c)

Shows the different choices to increase sales revenue

d)

Shows the different options of reducing total costs