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Finance Qualification Test

Total questions: 20

Worksheet time: 9mins

Name
Class
Date
1.

Which of the following best describes business administration?

a)

The process of producing goods and services

b)

The organization and management of business activities to achieve goals

c)

The study of consumer buying habits

d)

The selling of products to other businesses

2.

Which function of management involves setting objectives and deciding how to achieve them?

a)

Organizing

b)

Planning

c)

Leading

d)

Controlling

3.

What is a sole proprietorship?

a)

A business owned by two or more partners

b)

A business owned by shareholders

c)

A business owned by one person

d)

A government-owned enterprise

4.

Which of the following is an example of human resources management?

a)

Managing company finances

b)

Hiring and training employees

c)

Purchasing office supplies

d)

Developing marketing campaigns

5.

The primary goal of most businesses is to:

a)

Provide employment

b)

Increase government revenue

c)

Maximize profits

d)

Reduce competition

6.

Which one defines entrepreneurship?

a)

Working as an employee within an established company

b)

The process of creating, organizing, and running a business while taking on financial risk

c)

Government regulation of commercial activities

d)

Selling shares of stock on a public exchange

7.

List ways technology has improved business operations in recent years. Select all that apply.

a)

Automation of tasks increases efficiency and reduces errors

b)

Cloud-based tools enable real-time remote collaboration

c)

Higher rent costs reduce profitability

d)

Data analytics supports faster, better-informed decisions

e)

Slower internet speeds increase downtime

8.

What is the difference between leadership and management in a business setting?

a)

Leadership sets vision and motivates people, while management plans and controls resources to meet goals

b)

Leadership handles budgeting, while management focuses on inspiration and vision

c)

Leadership enforces rules, while management ignores processes

d)

There is no meaningful difference; both terms are interchangeable

9.

You are the manager of a small café and sales have decreased over the past three months. Select two actions you could take to improve business performance.

a)

Introduce limited-time promotions and a loyalty program

b)

Reduce product quality to cut costs

c)

Analyze sales data to adjust menu offerings and pricing

d)

Ignore customer feedback and keep the current strategy

e)

Improve social media presence and local advertising

10.

A company wants to expand into a new market but lacks the funds to do so. Which of the following are suitable sources of financing paired with a valid advantage? Select two.

a)

Bank loan — provides immediate capital while the owners retain control

b)

Equity financing (selling shares) — no required repayment on the funds raised

c)

Personal credit card — carries no interest and minimal risk

d)

Government grant — requires no repayment if eligibility criteria are met

e)

Barter with suppliers — easily scales to fund large expansions

11.

FINANCING DECISIONS RELATE TO THE

a)

DIVIDEND DECISIONS

b)

ASSETS PROCUREMENT

c)

RESREVE BUILDING

d)

ACQUISITION OF CAPITAL

12.

Decisions about financing refer to the

a)

Accounts receivable

b)

Acquisition of funds

c)

Administration of assets

d)

Accounting department

13.

Which type of financing is needed to pay for the current operating activities of a business (1-2 months-a year)?

a)

start-up financing

b)

short-term financing

c)

long-term financing

14.

What is the meaning of Business Finance?

a)

Use of money in business

b)

Solving financial problems

c)

Financial situation of business

d)

Financial plan of business

15.

This is something you put up to get a loan from a creditor

a)

Capacity

b)

Collateral

c)

Character

d)

Capital

16.

Carlos is planning to start a restaurant, he has already assessed the idea and has decided to move ahead with the....

What will the next step be?

a)

Writing down a Business Plan

b)

Hiring People

c)

Buy the shop

d)

Start selling food

17.

Why do you need a business plan?

a)

To raise capital

b)

Gets everyone involved to focus on the same goals

c)

Gives an objective look at what you are doing and why

d)

It is required by law

18.

What is the purpose of a business plan?

a)

To document your financial activity during one year

b)

Legal document to be filed with the SEC

c)

States the purpose and vision of your company

d)

States the amount of capital you need to run the company

19.

Jasmine is planning to start a restaurant, she has already assessed the idea and has decided to move ahead with the....

What will the next step be?

a)

Writing down a Business Plan

b)

Hiring People

c)

Buy the shop

d)

Start selling food

20.
A brief account of the key points contained in a business plan
a)
Executive Summary
b)
Company Description
c)
Mission Statement
d)
Vision Statement