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BTEC business 29/4 unit 3 finance recap

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which is a variable cost : ?

a)

rent

b)

raw materials

c)

insurance premiums

d)

office salaries

2.

Which is a fixed cost ? :

a)

packaging

b)

labour wages

c)

delivery fuel

d)

BT phone line rental

3.

Which is a long-term source of finance ?

a)

bank overdraft

b)

mortgage

c)

retained profit

d)

sale of assets

4.

Which involves giving up some ownership control ?

a)

bank loan

b)

overdraft

c)

trade credit for stock

d)

venture capital

5.

Insurance =

a)

capital expenditure

b)

revenue expenditure

6.

Building a factory =

a)

capital expenditure

b)

revenue expenditure

7.

Which source of finance allows a firm to own a vehicle ?

a)

hire purchase

b)

leasing

8.

Peer to peer lending =

a)

One Lord lending to another Lord

b)

One seaside town lending to another seaside town

c)

A business owner lending to another business owner

d)

A bank loan

9.

Rent received =

a)

Revenue income

b)

Capital income

10.

Interest received (on the business bank account positive balance) =

a)

Capital income

b)

Revenue income

11.

A debenture holder receives :

a)

a fixed rate of interest

b)

a variable rate of interest

12.

A small, local savings and loans organisation =

a)

credit card

b)

credit onion

c)

credit union

d)

credit balance

13.

Premium Bonds :

a)

can win a prize

b)

are available from banks

c)

are part of the National Lottery

d)

unsafe

14.

Margin of safety =

a)

breakeven - output

b)

output-breakeven

c)

output x breakeven

d)

Output + breakeven

15.

Stock (inventory) is a

a)

non-current assets

b)

current asset