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EDC 1

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

The point at which neither profit nor loss is made is known as

a)

break even point.

b)

fixed point

c)

variable point

d)

revenue point

2.

What is interest?

a)

Something you do not have in economics

b)

The money corporations pay to their stockholders

c)

To set aside income for a period of time so that it can be used later

d)

The payment people receive when they lend their money or allow someone else to use their money

3.
Who pays interest on a loan
a)
a lender
b)
 a borrower
c)
a credit union
d)
a creditor
4.

Banks provide which of the following EXCEPT

a)

debit cards

b)

loans

c)

check writing services

d)

government subsidies

5.

Which is a good reason to use a Financial Institution?

a)

Putting your allowance in a safe place

b)

Lending your friend $5

c)

Borrowing money to buy a new toy

6.
Sales tax is __________ to the price
a)
subtracted
b)
added
c)
multiplied
d)
divided
7.

The most important element of cost is

a)

Material

b)

Labour

c)

Overheads

d)

All of these

8.
What is an advantage of a bank loan?
a)
There will be little or no interest
b)
You can pay in smaller installments
c)
They are quick and easy to arrange
d)
You don't have to pay it back
9.

What source of finance could lead to an unwanted takeover of the business?

a)

Sale of assets

b)

Owner's capital

c)

Trade credit

d)

Share issue

10.
Which is an example of an internal source of finance?
a)

Owners' Funds

b)

Hire Purchase

c)

Leasing

d)

Trade credit

11.

___________ continues to implement its various programmes and projects throughout the country to assist the Small Scale Industries(SSI) units.

a)

KVIC

b)

NSIC

c)

SIDC

d)

SSIC

12.

The type of capital resources that a startup business needs to begin operating usually depends on the ____________

a)

vendors’ lead time

b)

location.

c)

owner’s preferences

d)

industry

13.

SBA stands for:

a)

Small business accountants

b)

Small business administration

c)

Small business adequacy

d)

Small business advisors

14.

___________ are used for getting mentorship for startups.

a)

Funding sources

b)

Incubators

c)

Decelerators

d)

Collaborators

15.

One of the disadvantages of a franchise business for a franchisee is ______________.

a)

Lack of independence.

b)

Franchise businesses typically have a high failure rate.

c)

Lack of brand identity.

d)

Training is not normally provided by the franchisor.