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WorksheetsBusiness and Finance Quiz
Total questions: 50
Worksheet time: 25mins
Which source of finance must usually be repaid with interest?
Retained profit
Share capital
Bank loan
Government grant
Which source of finance gives the lender partial ownership of the business?
Bank loan
Debenture
Share capital
Trade credit
Which source of finance is most suitable for a short-term cash flow problem?
Venture capital
Trade credit
Share issue
Retained profit
A disadvantage of using retained profit is that it:
Increases interest costs
Reduces ownership control
Limits funds available to owners
Requires regular repayments
Which source of finance is most appropriate for a start-up with high growth potential?
Trade credit
Venture capital
Overdraft
Retained profit
What does liquidity measure?
Profitability
Long-term growth
Ability to meet short-term debts
Market share
Which of the following is a current asset?
Machinery
Inventory
Long-term loan
Buildings
The acid test ratio excludes which item?
Cash
Trade receivables
Inventory
Current liabilities
An acid test ratio of 0.5 suggests that the business:
Has excess liquid assets
May struggle to meet short-term liabilities
Is very profitable
Has too much inventory
Which formula represents the acid test ratio?
Current assets ÷ current liabilities
(Current assets − inventory) ÷ current liabilities
Profit ÷ revenue
Revenue ÷ capital employed
What is a distinctive capability?
A legal structure
A unique strength giving competitive advantage
A marketing objective
A financial target
Which of the following is most likely to be a distinctive capability?
High staff turnover
Strong brand loyalty
High costs
Poor cash flow
A distinctive capability is hardest for competitors to copy when it is:
Based on price
Based on culture and skills
Widely available
Short-term
Which business is most likely to have a distinctive capability?
A firm selling identical products to competitors
A firm with patented technology
A firm with low demand
A firm with high staff absence
During which phase of the business cycle does unemployment usually rise?
Boom
Recovery
Recession
Peak
Which phase of the business cycle is characterised by falling GDP?
Growth
Boom
Recovery
Recession
A business is most likely to expand capacity during which phase?
Recession
Trough
Boom
Decline
Government tax revenues are likely to be highest during which phase?
Recession
Trough
Boom
Recovery
Which organisation structure is associated with role culture?
Centralised decision-making
Clear hierarchy and job descriptions
Few rules
Entrepreneurial leadership
Role culture is most common in:
Small start-ups
Charities
Bureaucratic organisations
Family businesses
Which culture is dominated by one or a few individuals?
Role culture
Task culture
Power culture
Person culture
A disadvantage of power culture is that it:
Is slow to respond
Discourages initiative
Depends heavily on key individuals
Has too many rules
Which organisation is most likely to have a power culture?
Large government department
Multinational corporation
Small owner-managed business
Hospital trust
Primary market research involves:
Using existing data
Collecting new data
Government statistics
Competitor reports
Which of the following is an example of secondary research?
Focus groups
Questionnaires
Government census data
Interviews
A benefit of primary research is that it is:
Cheap
Always accurate
Specific to business needs
Quick to collect
Which method provides qualitative data?
Online survey with closed questions
Sales figures
Focus groups
Market share data
Which form of ownership has unlimited liability?
Private limited company
Public limited company
Sole trader
Franchise
Which type of business can sell shares to the public?
Sole trader
Partnership
Private limited company
Public limited company
One advantage of a private limited company is:
Unlimited liability
Easy access to public finance
Limited liability
No legal requirements
A partnership usually involves:
One owner
Limited liability
Shared decision-making
Selling shares
The main role of HRM is to:
Increase sales
Manage people effectively
Control finance
Produce goods
Which is an internal method of recruitment?
Job centre
Recruitment agency
Promotion
Online advertising
Which document outlines job responsibilities?
Person specification
Job description
Employment contract
CV
A benefit of internal recruitment is that it:
Brings new ideas
Is time-consuming
Motivates employees
Increases training costs
Which is an example of on-the-job training?
External courses
Mentoring
College programmes
Online qualifications
An advantage of off-the-job training is that it:
Is cheaper
Causes no disruption
Allows focus away from work
Requires no planning
Induction training mainly aims to:
Improve productivity immediately
Teach advanced skills
Introduce new employees to the business
Prepare managers
Which training method is most suitable for developing management skills?
Shadowing
Formal courses
Apprenticeships
Manual training
A disadvantage of on-the-job training is that it:
Is unrealistic
Disrupts production
Is too theoretical
Lacks relevance
Poor liquidity is most likely to affect a business’s ability to:
Increase market share
Pay suppliers
Improve branding
Train staff
Which source of finance improves liquidity without increasing ownership dilution?
Share issue
Bank loan
Retained profit
Venture capital
Market research is particularly important when a business is:
Closing down
Launching a new product
Reducing costs
Paying dividends
A business in a recession is most likely to focus on:
Expansion
Cost control
Increasing prices
Hiring more staff
Which culture is likely to suit project-based work?
Power culture
Role culture
Task culture
Person culture
Which form of ownership offers limited liability and private control?
Sole trader
Partnership
Private limited company
Franchise
Effective HRM can improve business performance by:
Reducing competition
Increasing employee motivation
Lowering demand
Increasing prices
Which ratio is most useful to lenders assessing short-term risk?
Gross profit margin
Net profit margin
Acid test ratio
ROCE
A distinctive capability is most closely linked to:
Core competence
Market size
Legal structure
Business cycle
Which training method is most cost-effective for experienced employees?
Induction
External courses
Coaching
Full-time education
