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S5 Review Materials - Finals

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

What factors influence the choice of finance when businesses with existing borrowings find it difficult to secure additional loans due to the increased perceived risk?

a)

Size and legal form of business

b)

Amount required

c)

Length of time

d)

Existing borrowing

2.

What factors influence the choice of finance, indicating that the longer the borrowing period, the higher the cost due to accrued interest payments?

a)

Size and legal form of business

b)

Amount required

c)

Length of time

d)

Existing borrowing

3.

What factors influence the choice of finance, making it more challenging for sole traders and partnerships to borrow from banks and other lenders because they are perceived as being at a higher risk of not being able to repay the borrowed money?

a)

Size and legal form of business

b)

Amount required

c)

Length of time

d)

Existing borrowing

4.

What factors influence the choice of finance, with businesses needing large capital amounts opting for share issues and debentures? In contrast, are those requiring smaller capital amounts better suited for bank loans, leasing, and hire purchases?

a)

Size and legal form of business

b)

Amount required

c)

Length of time

d)

Existing borrowing

5.

A financing alternative involves large corporations and affluent individuals supporting a business concept by securing modest capital contributions from a broad audience, typically facilitated through online platforms and social media networks.

a)
Crowdfunding
b)

Microfinance

c)

Government Grants

d)
Crowdsourcing
6.

An alternative source of finance where small amounts of capital loaned to entrepreneurs in countries where business finance is often difficult to obtain.

a)
Crowdfunding
b)

Microfinance

c)

Government Grants

d)
Crowdsourcing
7.

An external source of finance where the government support business in their country by providing grants and other financial assistance.

a)
Crowdfunding
b)

Microfinance

c)

Government Grants

d)
Crowdsourcing
8.

Which of the following is NOT a benefit of Equity Financing?

a)

Money has never been repaid.

b)

Does not change the ownership of the company.

c)

There is no ongoing cost.

d)

If the business makes a loss, it does not have to pay dividend to shareholders.

9.

Which of the following is considered a limitation of debt financing?

a)

Interest is changed on the amount borrowed and this increases business costs.

b)

The amount borrowed must be repaid.

c)

Interest must be paid even if the business makes a loss.

d)

All of these

10.

A long-term loan used for the purchase of land or buildings.

a)

Bank Loan

b)

Mortgage

c)

Debenture

d)

Hire Purchase

11.

A bond issued by a company to raise long-term finance usually at a fixed rate of interest.

a)

Bank Loan

b)

Mortgage

c)

Debenture

d)

Hire Purchase

12.

Provision of finance by a bank which the business will repay with interest over an agreed period of time

a)

Bank Loan

b)

Mortgage

c)

Debenture

d)

Hire Purchase

13.

The purchase of an asset by paying a fixed repayment amount per time period over an agreed period of time.

a)

Bank Loan

b)

Mortgage

c)

Debenture

d)

Hire Purchase

14.

Obtaining the use of non-current asset by paying a fixed amount per time period for a fixed period of time. This is usually paid quarterly.

a)

Leasing

b)

Share Issue

c)

Debenture

d)

Hire Purchase

15.

A source of permanent capital available to limited liability companies. No interest has to be paid.

a)

Leasing

b)

Share Issue

c)

Debenture

d)

Hire Purchase

16.

A short-term external finance source which involves enhancing business liquidity by selling trade receivables.

a)

Debt Factoring

b)

Trade Credits

c)

Overdraft

d)

Breakeven

17.

A financing source where the supplier effectively extends credit by providing funds for the cost of goods throughout the agreed credit period.

a)

Debt Factoring

b)

Trade Credits

c)

Overdraft

d)

Breakeven

18.

It is an agreement with the bank that allows a business to spend more money than it has in its account up to an agreed limit.

a)

Debt Factoring

b)

Trade Credits

c)

Overdraft

d)

Breakeven

19.

An example of internal source of finance which is represented by the company's liquidity, which pertains to the funds available in its bank account or readily accessible at any given moment.

a)

Retained Profit

b)

Use of Work Capital

c)

Sales of Non-current Assets

d)

Owner's Savings

20.

An example of internal source of finance where a sole trader or members of a partnership can put their savings into their unincorporated businesses.

a)

Retained Profit

b)

Use of Work Capital

c)

Sales of Non-current Assets

d)

Owner's Savings

21.

These are profits remaining after all expenses, tax, and dividends have been paid.

a)

Retained Profit

b)

Use of Work Capital

c)

Sales of Non-current Assets

d)

Owner's Savings

22.

Which type of production are single specialist units produced?

a)

Flow production

b)
Batch production
c)

Job production

d)

Lean production

23.

Which type of production are several identical products completed at each production stage?

a)

Flow production

b)
Batch production
c)

Job production

d)

Lean production

24.

Workers' salary is an example of ___________.

a)

Variable Cost

b)

Fixed Cost

c)

Average Cost

d)

Total Cost

25.

Raw materials are example of ___________.

a)

Variable Cost

b)

Fixed Cost

c)

Average Cost

d)

Total Cost

26.

What is the formula in finding the total cost?

a)

Total Cost = Fixed Cost / Variable Cost

b)

Total Cost = Fixed Cost + Variable Cost

c)

Total Cost = Fixed Cost - Variable Cost

d)

Total Cost = Fixed Cost * Variable Cost

27.

Which of the following is NOT the reason why businesses relocate their operations?

a)

Reduce the production cost

b)

Avoid legal barriers

c)

Achieve growth

d)

Locate production closer to the market

28.

What is the difference between capital expenditures and revenue expenditures?

a)
Capital expenditure is for short-term expenses, while revenue expenditure is for long-term assets.
b)
Capital expenditure is used for daily operations, while revenue expenditure is for investments.
c)
The main difference is that capital expenditure is for long-term assets, while revenue expenditure is for short-term expenses.
d)
Capital expenditure is for immediate expenses, while revenue expenditure is for future planning.
29.

Which of the following is a task of quality control supervisor?

a)
Managing inventory control
b)
Supervising marketing campaigns
c)
Overseeing quality assurance process
d)
Handling customer service inquiries
30.

What is the definition of production?

a)
Production is the process of creating goods and services.
b)
Production is the process of destroying goods and services.
c)
Production is the process of transporting goods and services.
d)
Production is the process of consuming goods and services.