This quiz works best with JavaScript enabled. Home > Business Finance > Business Finance > Business Finance – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The currency code for the US Dollar A) USD. B) FRN. C) USN. D) USC. Show Answer Correct Answer: A) USD. 2. Which of the following is paid after tax: A) Salary. B) Interest. C) Dividend. D) Commission. Show Answer Correct Answer: C) Dividend. 3. Which of the following is the correct formula to calculate total sales revenue? A) Selling price per unit x output sold. B) Total fixed costs + total variable costs. C) Unit cost x output. D) Total inflows -total outflows. Show Answer Correct Answer: A) Selling price per unit x output sold. 4. Commercial banks earn money in all of the following ways EXCEPT: A) Investing in other companies. B) Charging fees for their services. C) Collecting interest on loans. D) Taking a percentage off of all deposits. Show Answer Correct Answer: D) Taking a percentage off of all deposits. 5. Disadvantage of issuing of share as a source of finance is A) Permanent source of capital as it will not need to be redeemed. B) Debt capital. C) Cost of interest rate. D) The ownership of the company in case of public limited companies may be diluted or change hands from the original shareholders. Show Answer Correct Answer: D) The ownership of the company in case of public limited companies may be diluted or change hands from the original shareholders. 6. On an income statement, which of the following is another name for an overhead? A) Outflow. B) Receipt. C) Expense. D) Payment. Show Answer Correct Answer: C) Expense. 7. A written outline of how the business will be promoted to increase customers and sales A) Strategic plan. B) Marketing plan. C) Financial plan. D) None of the above. Show Answer Correct Answer: B) Marketing plan. 8. By definition, the money market involves the buying and selling of. A) Funds that mature in more than one year. B) Flows of funds. C) Stocks and bonds. D) Short-term funds. Show Answer Correct Answer: C) Stocks and bonds. 9. Funds required for purchasing current assets is an example of A) Fixed capital requirement. B) Ploughing back of profits. C) Working capital requirement. D) Lease financing. Show Answer Correct Answer: C) Working capital requirement. 10. What technology allows businesses to present their financial information in a meeting? A) Email. B) Database. C) Word processing. D) Powerpoint. Show Answer Correct Answer: D) Powerpoint. 11. ..... is an example of short term finance. A) Shares. B) Debentures. C) Trade Credit. D) None of these. Show Answer Correct Answer: C) Trade Credit. 12. He is the one who supervises the company's operation and ensuring that the strategies are well executed and planned. A) Finance manager. B) President. C) Marketing manager. D) Shareholders. Show Answer Correct Answer: B) President. 13. Which is an example of Revenue expenditure A) Motor Van. B) Gym equipment. C) Salary. D) Premises. Show Answer Correct Answer: C) Salary. 14. What is productivity A) The amount of things you get done in a set time. B) Amount and value of goods and services produced (outputs) from set amount of resources. C) The cost of making goods and services. D) Countries overall income. Show Answer Correct Answer: B) Amount and value of goods and services produced (outputs) from set amount of resources. 15. A company decision to purchase new delivery trucks resulted in the need to build a new loading dock to handle the different design of the vehicles. This situation is an example of A) Independent projects. B) Complementary projects. C) Mutually exclusive projects. D) Unnecessary projects. Show Answer Correct Answer: B) Complementary projects. 16. Interest payments that are based on the original principal and previous interest recognized are based on A) Present value. B) Future value. C) Simple interest rate. D) Compound interest rate. Show Answer Correct Answer: D) Compound interest rate. 17. A person who invests in a corporation by buying stock and is a partial owner A) Quote. B) Shares. C) Stock broker. D) Shareholder. Show Answer Correct Answer: D) Shareholder. 18. The amount of debt and equity used by a firm to finance its operations is called the firm's: A) Debt ratio. B) Working capital ratio. C) Capital structure. D) Financial position. Show Answer Correct Answer: C) Capital structure. 19. A system for buying and selling shares of companies A) NYSE. B) Stock market. C) Shares. D) Indexes. Show Answer Correct Answer: B) Stock market. 20. The financial needs of a business can be categorised into ..... categories. A) 4. B) 2. C) 6. D) 3. Show Answer Correct Answer: B) 2. ← PreviousNext →Related QuizzesBusiness Finance QuizzesBusiness Finance Quiz 1Business Finance Quiz 2Business Finance Quiz 3Business Finance Quiz 4Business Finance Quiz 5Business Finance Quiz 7Business Finance Quiz 8Business Finance Quiz 9Business Finance Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books