This quiz works best with JavaScript enabled. Home > Finance > Business Finance > Business Finance > Business Finance – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A limit placed on the quantities of a product that can be imported A) Tariff. B) Quota. C) Embargo. D) None of the above. Show Answer Correct Answer: B) Quota. 2. A hair salon has a balance of LE 37, 000 in their account. To pay this month's wages, the manager withdraws LE42, 000What is the best source of finance for this case? A) Overdraft. B) Bank loan. C) Leasing. D) Trade credit. Show Answer Correct Answer: A) Overdraft. 3. What technology would be used to remind customers to pay bills? A) Email. B) Powerpoint. C) Word processing. D) Spreadsheets. Show Answer Correct Answer: A) Email. 4. A type of financial institution known to successfully raise funds for big corporations and governments A) Investment Bank. B) Thrift Bank. C) Commercial Bank. D) Universal Bank. Show Answer Correct Answer: A) Investment Bank. 5. What is the first step in the accounting cycle? A) Transactions are recorded in journals. B) Financial statements are prepared. C) Closing entries are completed. D) Journal entries are posted in the appropriate accounts. Show Answer Correct Answer: A) Transactions are recorded in journals. 6. Which of the following is NOT a reason why a business needs money? A) To start the business. B) To expand the business. C) To deal with a negative cash-flow problem. D) To increase prices of its products. Show Answer Correct Answer: D) To increase prices of its products. 7. Which of these famous entrepreneurs DID NOT start his business before the age of 25: A) Steve Jobs-Apple Computer. B) Louis Braille-Braille Writing System. C) Wally Blume-Denali Moose Tracks. D) Mark Zuckerberg-Facebook. Show Answer Correct Answer: C) Wally Blume-Denali Moose Tracks. 8. What you give up when you make a choice is called? A) Deferment. B) Best Choice. C) Law of Survival. D) Opportunity Cost. Show Answer Correct Answer: D) Opportunity Cost. 9. The central bank of the United States A) Foreign exchange market. B) FDIC. C) Federal reserve bank. D) Bancorpsouth. Show Answer Correct Answer: C) Federal reserve bank. 10. GDR can not be issued in which of the following country? A) USA. B) China. C) India. D) Canada. Show Answer Correct Answer: C) India. 11. In this kind of working capital policy, some of the temporary working capital requirements are financed by long-term sources of financing. A) Aggressive. B) Modern. C) Maturity-matching. D) Conservative. Show Answer Correct Answer: D) Conservative. 12. It involves day-to-day operations carried out by the lower-level management. A) Strategic planning. B) Financial. C) Tactical planning. D) Operational planning. Show Answer Correct Answer: D) Operational planning. 13. An advantage of grants and subsidies source of finance is A) Firms must locate a particulate area. B) Unlimited grants subsidies in terms or time and amount. C) Don't have to be repaid. D) Can be difficult to qualify. Show Answer Correct Answer: C) Don't have to be repaid. 14. With which one of the following sources of finance, is the term redeemable associated? A) Equity Shares. B) Debentures. C) Global Depository Receipt. D) Public Deposits. Show Answer Correct Answer: B) Debentures. 15. These instruments are issued by financially sound businesses to fund investments in inventories and receivables. A) Treasury bills. B) Preferred stock. C) Commercial papers. D) Money market funds. Show Answer Correct Answer: C) Commercial papers. 16. The method of calculating interest once during the entire life of the loan, on the original sum borrowed, is known as: A) Compounding. B) Simple interest. C) Interest on interest. D) Rule of 72. Show Answer Correct Answer: B) Simple interest. 17. The management of a firm's cash, inventory, and payables is referred to as: A) Asset management. B) Working capital management. C) Capital management. D) Cash-flow forecasting. Show Answer Correct Answer: B) Working capital management. 18. A statement of a company's operating and financial performance issued at the end of its fiscal year is a A) Income Statement. B) Balance Sheet. C) Statement of Cashflow. D) Annual Report. Show Answer Correct Answer: D) Annual Report. 19. The time value of money suggests that a peso received today is worth ..... a peso received in the future. A) Less than. B) More than. C) The same as. D) None of the above. Show Answer Correct Answer: B) More than. 20. Which one is NOT the function of the controller? A) Economic appraisal. B) Protection of assets. C) Selling stocks. D) Evaluation of company objective and policies. Show Answer Correct Answer: C) Selling stocks. 21. Which is an example of a person obtaining unpaid work experience? A) Sarah researches information about different careers. B) Kelly volunteers at a local radio station. C) Ben performs contract work for his friend's new company. D) Jim hires Kevin to cut his lawn every week. Show Answer Correct Answer: B) Kelly volunteers at a local radio station. 22. Also called "rational buying" ; Careful consideration of the product, features, price, etc. is made. A) Opportunity Cost. B) Budget. C) The envelope system. D) None of above. Show Answer Correct Answer: A) Opportunity Cost. 23. Which of the following is the least likely source of funds for a non-profit organization? A) Fund-raising events. B) Charitable donations. C) Brand recognition. D) Sponsorship deals. Show Answer Correct Answer: C) Brand recognition. 24. Cost of supplies are increasing month on month-how could you solve this problem? A) Hold a sale and get rid of stock. B) Take out a bank loan to cover increasing costs. C) Look for a cheaper supplier. D) Offer customers discounts. Show Answer Correct Answer: C) Look for a cheaper supplier. 25. Which one of the following sources of funds is convertible into equity shares? A) Inter corporate deposits. B) Debentures. C) Loans from commercial banks. D) Bonds. Show Answer Correct Answer: B) Debentures. 26. Which of the following refers to the activity of planning, organizing, monitoring and controlling financial resources? A) Financial management. B) Financial market. C) Financial instrument. D) Financial institution. Show Answer Correct Answer: A) Financial management. 27. A decrease or loss in value A) Price ceiling. B) Depreciation. C) Price floor. D) Appreciation. Show Answer Correct Answer: B) Depreciation. 28. This is the cash that is generated by the business when it operates successfully A) Share capital. B) Owner savings. C) Venture capitalist. D) Retained profits. Show Answer Correct Answer: D) Retained profits. 29. Which of the following statements regarding finance leases is correct? A) The lessor is normally responsible for repairs and maintenance. B) The lease exists for the whole or major part of the asset's useful life. C) Ownership of the asset remains with the lessor. D) The lease is essentially the short-term rental of an asset. Show Answer Correct Answer: B) The lease exists for the whole or major part of the asset's useful life. 30. A flower seller plans to increase stocks of plants. Which is the most likely source of finance? A) Bank overdraft. B) Debentures. C) Leasing. D) Share issue. Show Answer Correct Answer: A) Bank overdraft. ← 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