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ENTREP4:BUSINESS PLAN IMPLENTATION-1:MIDTERM EXAMINATION

Total questions: 40

Worksheet time: 30mins

Name
Class
Date
1.

Budgeting involves creating a plan for how a business will spend its money over a specific

a)

Budget line

b)

Period

c)

Record

d)

Department

2.

Which of the following describes financial forecasting?

a)

Reviewing last year’s budget

b)

Estimating future revenues and expenses

c)

Paying suppliers on time

d)

Writing a business proposal

3.

The main purpose of budgeting is to:

a)

Avoid future plans

b)

Increase costs

c)

Manage resources effectively

d)

Decrease income

4.

Cash flow refers to:

a)

The movement of goods between suppliers

b)

The movement of money in and out of the business

c)

The flow of customers entering the store

d)

The record of employee hours

5.

Which statement helps a business identify its assets, liabilities, and equity?

a)

Cash Flow Statement

b)

Income Statement

c)

Balance Sheet

d)

Profit Report

6.

What does liquidity ensure?

a)

Enough cash to meet daily obligations

b)

More long-term debts

c)

Reduced supplier payments

d)

Increased liabilities

7.

Managing costs allows an entrepreneur to:

a)

Spend without control

b)

Cut unnecessary expenses

c)

Eliminate sales

8.

Financial forecasting is based on:

a)

Guessing future prices

b)

Current data and trends

c)

Past marketing campaigns

d)

Employee surveys

9.

The purpose of accurate record-keeping is to:

a)

Record all business transactions correctly

b)

Reduce transparency

c)

Hide company income

d)

Avoid financial reports

10.

Variance analysis compares:

a)

Sales with competitors

b)

Forecasted results with employee ratings

c)

Actual performance with the financial plan

d)

Marketing data with production volume

11.

Which of the following is an example of cash outflow?

a)

Customer payments

b)

Rent and salaries

c)

Sales revenues

d)

Investments received

12.

Entrepreneurs monitor cash flow to ensure:

a)

The business remains liquid

b)

Profit loss occurs

c)

Debts increase

d)

Cost overrun

13.

Which statement summarizes income and expenses over time?

a)

Balance Sheet

b)

Income Statement

c)

Cash Flow Report

d)

Budget Sheet

14.

A financial plan becomes effective when:

a)

Cash flow is monitored regularly

b)

Records are ignored

c)

Spending is uncontrolled

d)

Budgets are skipped

15.

The movement of money into a business from customers is called:

a)

Outflow

b)

Inflow

c)

Equity

d)

Debt

16.

The process of identifying value-generating expenses and cutting unnecessary ones is known as:

a)

Forecasting

b)

Cost management

c)

Budgeting

d)

Accounting

17.

Which statement provides insights into liquidity?

a)

Balance Sheet

b)

Cash Flow Statement

c)

Audit Report

d)

Annual Budget

18.

The process of estimating future profitability is called:

a)

Financial forecasting

b)

Budgeting

c)

Variance analysis

d)

Record-keeping

19.

Entrepreneurs evaluate financial goals through:

a)

Variance analysis

b)

Supplier audit

c)

Cost computation

d)

Income review only

20.

Accurate financial records allow a business to:

a)

Delay payments

b)

Measure its performance

c)

Hide financial data

d)

Skip evaluation

21.

(a)   is the process of planning how a business will spend its money.

22.

A (a)   is a plan that outlines expected income and expenses.

23.

(a)   forecasting estimates future revenue and expenses.

24.

The movement of money in and out of the business is called (a)   .

25.

Managing (a)   involves reducing unnecessary expenses.

26.

Accurate (a)   ensures that all transactions are properly recorded.

27.

Financial statements show a business’s overall (a)   .

28.

The (a)   statement reports income, expenses, and profit.

29.

The (a)   sheet presents assets, liabilities, and equity.

30.

The (a)   statement shows the inflow and outflow of cash.

31.

(a)   management identifies value-generating expenses.

32.

A business must maintain accurate (a)   to achieve transparency.

33.

Financial plans should be reviewed and (a)   regularly

34.

Paying rent or utilities is an example of cash (a)   .

35.

A good business plan is useless unless it is (a)   upon

36.

Branding is the process is the creating of a (a)   for a product or service

37.

Coca-cola positions itself as a beverage associated with (a)   & togetherness.

38.

Risk Management is the process of identifying, assessing, and mitigating threats that could negatively impact a (a)   .

39.

Key performance indicators (KPIs) aligned with (a)   objectives.

40.

According to (a)   (2012), financial management during implementation is about translating financial plans into operational results-ensuring that projections made in the business plan are achieved through proper monitoring and decision-making.