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WorksheetsBus. Found- Financial Management
Total questions: 12
Worksheet time: 6mins
Which of the following is a common method for a purchasing option for a business?
Leasing
Donating
Borrowing from employees
Ignoring the need
What does a credit rating primarily measure for a business?
The number of employees
The ability to repay debts
The amount of inventory
The size of the office
Which of the following is considered an income source for a business?
Rent paid to the landlord
Sales revenue
Utility bills
Loan repayments
Which of the following is an example of a business expenditure?
Interest earned on savings
Payment for sale of products and services
Customer payments
Dividend received
What is the main difference between leasing and financing when acquiring business equipment?
Leasing means you own the equipment immediately; financing means you never own it.
Leasing means you rent the equipment; financing means you buy it over time.
Leasing is always more expensive than financing.
A lender is reviewing a business loan application. Which of the following criteria is the lender most likely to consider?
The business’s logo and mascot
The business’s repayment history
The business’s building design
The business’s website traffic
If a business has a poor credit rating, what is a likely consequence when applying for a loan?
The loan will be approved with low interest rates
The loan may be denied or have higher interest rates
The loan will be approved automatically
Which of the following best describes the process of managing business expenses?
Ignoring bills until the end of the year
Tracking and controlling costs to stay within budget
Spending as much as possible
Only paying for salaries
A business is deciding between leasing and financing a new delivery van. What is one advantage of leasing over financing?
The business owns the van immediately
Lower upfront costs
No monthly payments required
The van never needs maintenance
A business wants to improve its chances of getting a loan. Which strategy would be most effective?
Lowering its credit rating
Making bill payments on time
Ignoring lender requirements
Reducing its customer base
A company is considering whether to lease or finance new computers. What factors should it analyze to make a strategic decision?
The color of the computers
Total cost over time, cash flow impact, and technology needs
The number of employees who like computers
The location of the supplier
A lender is evaluating two businesses for a loan. Business A has a high credit rating but low current income. Business B has a moderate credit rating but strong, consistent income. Which business is more likely to be approved, and why?
Business A, because credit rating is the only factor
Business B, because strong income shows repayment capacity
Both equally, because ratings and income don’t matter
