This quiz works best with JavaScript enabled. Home > Finance > Business Finance > Business Finance > Business Finance – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a type of financial intermediary that pools savings of individuals and makes them available to business and government users. Funds are obtained through sale of shares. A) Mutual fund. B) Savings and loans. C) Savings bank. D) Credit union. Show Answer Correct Answer: A) Mutual fund. 2. Investor who want steady income may not prefer-? A) Bonds. B) Equity shares. C) Preference shares. D) Debentures. Show Answer Correct Answer: B) Equity shares. 3. Which is not a long-term external source of finance? A) Leasing. B) Share issue. C) Reducing Trade receivables. D) Debenture. Show Answer Correct Answer: C) Reducing Trade receivables. 4. Which of the following is not a role of a financial manager A) Prepare financial statements, business activity reports, and forecasts. B) Develop advertising strategy to attract customers. C) Supervise employees who do financial reporting and budgeting. D) Review company financial reports and seek ways to reduce costs. Show Answer Correct Answer: B) Develop advertising strategy to attract customers. 5. Something thought to be a necessity or essential items required for life A) Needs. B) Impulse Buying. C) Budget. D) None of above. Show Answer Correct Answer: A) Needs. 6. What is investment diversification? A) Investment with high profit. B) Investment from different profit-making activities. C) Investment with low risks. D) Investment with no risks. Show Answer Correct Answer: B) Investment from different profit-making activities. 7. A business organisation that is similar to a sole proprietorship but has two or more owners is called a: A) Partnership. B) Corporation. C) Dual company. D) Limited liability company. Show Answer Correct Answer: A) Partnership. 8. The department that is responsible in requesting acquisitions and delivery of assets needed by the company is called ..... A) Logistics. B) Budget officer. C) Cashier. D) Finance officer. Show Answer Correct Answer: A) Logistics. 9. An advantage of taking of a new partner is that: A) It reduces the risk of a takeover. B) The partner will bring additional finance. C) The other partners will now have limited liability. D) It ensures the business will be able to get a loan. Show Answer Correct Answer: B) The partner will bring additional finance. 10. What kind of investment is said to have higher returns? A) Average risk. B) Low risk. C) High risk. D) Risk free. Show Answer Correct Answer: C) High risk. 11. This is a sum of money saved or made available for a particular purpose. A) Fund. B) Maturity. C) Financing. D) Risk. Show Answer Correct Answer: A) Fund. 12. Which formula would calculate sales revenue? A) Selling Price + Number of Items Sold. B) Selling Price x Number of Items Sold. C) Selling Price x Cost of Sales. D) Selling Price x Variable Costs. Show Answer Correct Answer: B) Selling Price x Number of Items Sold. 13. Types of Financial Institutions that accept deposits and lend money. A) Thrift Bank. B) Investment Bank. C) Commercial Bank. D) Internet Bank. Show Answer Correct Answer: C) Commercial Bank. 14. Mainly deposit taking financial institutions that extend credit to retail and consumer market A) Islamic Banks. B) Thrift Banks. C) Cooperatives. D) Commercial Banks. Show Answer Correct Answer: D) Commercial Banks. 15. Which of the following formula is correct for working out sales revenue? A) = Fixed costs + variable costs. B) = price x units (output or Sales). C) = gross profit-expenditure. D) = revenue-cost of sales. Show Answer Correct Answer: B) = price x units (output or Sales). 16. Justin Time, a Sole trader has completed a cash flow forecast that shows 3, 000 short at the end of next month. How would you advise him to obtain this money? A) Bank loan. B) Overdraft. C) Mortgage. D) Share Issue. Show Answer Correct Answer: B) Overdraft. 17. This source of business finance is the portion of profit which is invested in business, rather than distributing is as dividend to shareholders. A) Debentures. B) Preference Share. C) Retained Earnings. D) Equity Share. Show Answer Correct Answer: C) Retained Earnings. 18. The responsibility of business owners for all of the debts of the business A) Limited liability. B) Unlimited liability. C) Marketing. D) Legal debt. Show Answer Correct Answer: B) Unlimited liability. 19. Working capital is sometimes called as ..... A) Life of blood. B) Life of soul. C) Life of money. D) Life of human. Show Answer Correct Answer: A) Life of blood. 20. Which of these is a short term source of finance? A) Venture capital. B) Bank overdraft. C) Share capital. D) Mortgage. Show Answer Correct Answer: B) Bank overdraft. 21. Which of the following would appear in the 'capital employed' section of the statement of financial position? A) Share capital. B) Overdraft. C) Revenue. D) Tax due. Show Answer Correct Answer: A) Share capital. 22. A disadvantage of break-even analysis is: A) It is assumes that all of the products are sold. B) It is easy to work out. C) It allows businesses to predict how changes in sales may affect costs, revenues and profits. D) That businesses can use it to help persuade a bank to give them a loan. Show Answer Correct Answer: A) It is assumes that all of the products are sold. 23. Which of the following does Not belong to the group? A) GSIS. B) Government banks. C) Government non-banking. D) SSS. Show Answer Correct Answer: B) Government banks. 24. It is the process of comparing amounts in the financial statements within the same accounting period. A) Horizontal Analysis. B) Financial Statement Analysis. C) Vertical Analysis. D) Diagonal Analysis. Show Answer Correct Answer: C) Vertical Analysis. 25. Businesses might choose to use external sources of finance because A) Potential cash flow problems are avoided. B) There are no interest charges. C) There is insufficient retained profit. D) There is an expected rise in interest rates. Show Answer Correct Answer: C) There is insufficient retained profit. 26. Which is an internal source of finance? A) Owners' funds. B) Debenture. C) Overdraft. D) Mortgage. Show Answer Correct Answer: A) Owners' funds. 27. Which current account is most appropriate for someone with a low credit rating? A) Standard. B) Packaged, premium. C) Basic. D) Student. Show Answer Correct Answer: C) Basic. 28. What is an advantage of a bank loan? A) There will be little or no interest. B) You can pay in smaller installments. C) They are quick and easy to arrange. D) You don't have to pay it back. Show Answer Correct Answer: B) You can pay in smaller installments. 29. Fill in the blank with the best answer:A measure of how well a business generates cash flow in relation to its invested capital is ..... A) Equity financing. B) Stock. C) Return on capital. D) None of above. Show Answer Correct Answer: C) Return on capital. 30. You have P 50 000 now to invest. If you can earn 10% per annum on your deposit, and can invest for five years, what will be the future value of your deposit (to the nearest dollar) at the end of the investment period? A) P85 025. B) P99 456. C) P80 526. D) P150 493. Show Answer Correct Answer: C) P80 526. ← PreviousNext →Related QuizzesBusiness Finance QuizzesFinance QuizzesBusiness Finance Quiz 1Business Finance Quiz 2Business Finance Quiz 3Business Finance Quiz 4Business Finance Quiz 5Business Finance Quiz 6Business Finance Quiz 7Business Finance Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books