WorksheetsSmall Business and Economics - Hard
Total questions: 21
Worksheet time: 7mins
Name
Class
Date
1.
Which of the following would NOT count as expenses when preparing a budget for a gardening business:
a)
A. Money paid to a sign-writer to update the business vehicle logo
b)
B. Money paid to a fuel supplier for the business lawnmower
c)
C. Money paid to the business mechanic for repairing a vehicle used in the business
d)
D. Money paid to the owner for landscaping advice
2.
From a financial viewpoint which of the following would be the least important factor to take into account when considering a credit card:
a)
A. Whether the card has much lower interest rates than others
b)
B. Whether the card has an annual fee
c)
C. Whether you have a choice of colours available with your card
d)
D. Whether the card has a set minimum monthly repayment or not
3.
Select the INCORRECT statement concerning wealth management and creation:
a)
A. You generally need to lose money before you make any
b)
B. It is not essential to take huge risks to make money
c)
C. Wealth can be planned and budgeted for
d)
D. Sound financial advice can assist with wealth management and growth
4.
Which of the following is not recognised as an advantage of online shopping?
a)
A. Online shopping allows you to search for the best price before you buy
b)
B. Online shopping allows you to search for the best features before you buy
c)
C. Online shopping means you may lose track of your spending
d)
D. Online shopping means you can purchase goods without leaving the comfort of your home
5.
Which of the following is not recognised as an advantage of using credit cards?
a)
A. It allows a buyer the ability to buy now and pay at a later date
b)
B. If buying is not monitored closely people risk building up a high level of debt quickly and then struggling to repay it
c)
C. When repaid on time it is possible to avoid large interest charges
d)
D. Using some credit facilities such as tap and go are easier and quicker for consumers
6.
The decisions people make every day in relation to budgets and saving money have an impact on their financial position, wellbeing and lifestyle. These decisions are best described as:
a)
A. Financial planning
b)
B. Debt control
c)
C. Debt reduction
d)
D. Financial gambling
7.
In addition to budgeting and managing personal finances effectively it is also possible to improve your financial position by following some key points. Select the INCORRECT piece of advice from the following:
a)
A. People should maximise their potential income – by taking proactive steps such as striving for a promotion
b)
B. People should understand their financial situation and take control of financial decisions
c)
C. People should keep control of debt
d)
D. People should strive to spend more in order to make more money down the track
8.
There are a range of bank accounts which exist because:
a)
A. People’s needs, incomes and hopes for the future differ so we need a range of accounts so we can choose which is most suitable
b)
B. All people need to lock their money away and not be able to touch it or they’ll spend it
c)
C. No-one can survive life without regularly using a credit card
d)
D. Banks are always trying to charge higher fees so the range of accounts they offer will always increase
9.
Debt in itself is not a bad thing provided:
a)
A. You enjoy the good life while you can
b)
B. You keep entering Tattslotto each week
c)
C. You develop a financial plan and budget to reduce the debt
d)
D. You let people know you are successful
10.
The Australian banking system was deregulated in 1985. This meant that the government:
a)
A. Permitted overseas competitors to enter the Australian banking system
b)
B. Permitted banks to operate within their own regulations without government interference
c)
C. Permitted banks to act outside government regulations in the interests of competition in the banking industry
d)
D. Permitted banks to trade in Australia without any limitations or regulations
11.
Select the following INCORRECT statement concerning Australia’s currency:
a)
A. Australian money consists of both coins and banknotes
b)
B. Because the prices of different goods and services for sale differ, notes are supplemented by a range of coins in Australia
c)
C. Australia is moving toward a notes only currency within the next 12–18 months
d)
D. In Australia our currency is used and accepted across the entire nation
12.
To avoid the inconvenience of many different currencies when countries were so close geographically, 12 European countries agreed to introduce a uniform currency – this has become known as:
a)
A. Bitcoin
b)
B. The euro
c)
C. Cryptocurrency
d)
D. The deutschmark
13.
With the development of tap and go technology, credit and debit cards are a very popular, quick payment option. Tap and go refers to:
a)
A. Paying for products or services online rather than in person
b)
B. Paying for products or services within seven days of a purchase
c)
C. Paying on the spot without goods to be delivered by Australia Post
d)
D. Paying electronically with a card or your phone, often without the need for a signature or PIN number
14.
Using credit wisely is an important strategy for being a smart consumer. Which of the following is a reason for NOT using credit?
a)
A. Easy credit can lead to impulse purchases because people forget that they will have to repay the debt
b)
B. Credit provides an ability to purchase items immediately
c)
C. Credit allows convenience of buying items online
d)
D. People can take advantage of special offers when using credit
15.
In relation to advertising, a wise consumer needs to:
a)
A. Accept that advertisers risk too much by exaggerating claims (so they are always very honest)
b)
B. Turn off all advertisements and make their mind up on the spot when buying a product or service
c)
C. Be wary of claims that are made in advertisements and to do some background research
d)
D. Only buy after watching more advertisements on the same type of product
16.
There has been a trend towards looking after the legitimate rights of consumers. One type of protection is warranties, which are:
a)
A. Rights to demand a refund if anything ever goes wrong with the product
b)
B. A written promise by the dealer or manufacturer that a product is free from faults
c)
C. Unlimited guarantees that a consumer will be completely satisfied with the product
d)
D. A level of protection for buyers allowing them to return the goods purchased within 48 hours without question
17.
The Trade Practices Act is federal legislation that sets out the conditions under which the consumer is entitled to a refund or exchange. Select the INCORRECT statement concerning rights under this legislation:
a)
A. If you buy a product that doesn’t work properly, the retailer must exchange or refund your money
b)
B. If you return an item simply because you have changed your mind, the retailer is under no obligation to give you a refund
c)
C. If you buy a product but change your mind the retailer must issue you a refund
d)
D. Where the product inside the packaging is different from that displayed, or if the product is different from the way it is described in advertising, you are also entitled to an exchange or refund
18.
A useful payment method is direct debit. Under this arrangement:
a)
A. Payments can be deducted from your savings or credit card once a month
b)
B. Payment is debited to your credit card immediately
c)
C. Payment is made by attending the store in person once a month to pay in cash
d)
D. Payment is made in cash ‘on the spot’
19.
Many financial institutions are working with technology companies to develop more efficient, effective methods of allowing consumers to pay for goods or services. Which of the following is NOT a potential future technology method of purchase:
a)
A. Wearable payment bracelets or rings which will link to the wearer’s bank account
b)
B. Use of biometric data, such as a fingerprint, to ensure that the purchaser is the account holder
c)
C. Trials of microchip technology where a chip under the skin would link to a bank account
d)
D. Paying less when using a technology than when paying with cash
20.
Many stores, such as Target and Big W, go beyond the minimum required by law in regard to consumer refunds or exchanges. They do this because:
a)
A. They believe they are always in the wrong anyway
b)
B. They make such a profit it is not worth wasting time on individual complaints
c)
C. They do not want any complaints
d)
D. They see this as a marketing tool to encourage faith in consumers buying their products
21.
Which of the following would NOT count as revenue when preparing a budget for a gardening business:
a)
A. Income from customers for mowing lawns regularly
b)
B. Money paid to a fuel supplier for the business lawnmower
c)
C. Income for occasional rubbish removals from customer yards
d)
D. Money paid to the owner for landscaping advice
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