This quiz works best with JavaScript enabled. Home > Finance > Business Finance > Business Finance > Business Finance – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 30 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A firm has applied for a bank loan. The manager will ask all of the following questions except: A) How long will the loan be needed for?. B) How powerful are the computers?. C) How liquid is the business?. D) How big is the loan needed?. Show Answer Correct Answer: B) How powerful are the computers?. 2. A market in which currencies of different countries are bought and sold A) Foreign bank. B) Federal reserve bank. C) Foreign exchange market. D) International business finance. Show Answer Correct Answer: C) Foreign exchange market. 3. If Wal-Mart wanted to build a new store, which bank would they most likely go to get a loan. A) Central bank. B) Retail bank. C) Loan company. D) Commercial bank. Show Answer Correct Answer: D) Commercial bank. 4. Euity shareholders are called? A) Guardian of the company. B) Partners of the company. C) Owners of the company. D) Excecutives of the company. Show Answer Correct Answer: C) Owners of the company. 5. Which of the following is a source of long-term finance? A) Bank overdraft. B) Trade credit from suppliers. C) Factoring of trade debts. D) Mortgage on property. Show Answer Correct Answer: D) Mortgage on property. 6. The amount paid for the privilege of borrowing money is called A) Rate of return. B) Interest. C) Operating budget. D) Cash flow. Show Answer Correct Answer: B) Interest. 7. Which of the following statements concerning preference shares is correct? A) Preference shares are always a type of debt capital. B) Preference shares carry the same voting rights as ordinary shares. C) Preference shares carry the right to a fixed rate of dividend each year. D) The payment of a preference share dividend is guaranteed each year. Show Answer Correct Answer: C) Preference shares carry the right to a fixed rate of dividend each year. 8. What is start up capital? A) Finance needed before starting trading. B) Finance paid after trading. C) Finance paid to banks. D) None of above. Show Answer Correct Answer: A) Finance needed before starting trading. 9. The system of governing a company so that the interests of corporate owners and other stakeholders are protected A) Opportunity cost. B) Scarcity. C) Corporate governance. D) Corporate responsibility. Show Answer Correct Answer: C) Corporate governance. 10. Which of the following is normally prepared first? A) Cash budget. B) Production budget. C) Sales budget. D) None of the above. Show Answer Correct Answer: C) Sales budget. 11. The United States operates within what type of economic system? A) Command. B) Traditional. C) Market. D) Mixed. Show Answer Correct Answer: D) Mixed. 12. Expenses are those items that are: A) Direct costs for producing goods. B) Costs associated with operating a business. C) All the company outflows. D) None of above. Show Answer Correct Answer: C) All the company outflows. 13. What is the finance department responsible for? A) Looking after employees. B) Manufacturing the products. C) Managing the business finances. D) Communicating with customers. Show Answer Correct Answer: C) Managing the business finances. 14. Which of these sources of finance is internal? A) Venture capital. B) Retained profit. C) Mortgage. D) Crowd funding. Show Answer Correct Answer: B) Retained profit. 15. Variable Expenses are A) Food. B) Occurs only once a year. C) Change month to month, like food or clothes. D) Money for a house payment. Show Answer Correct Answer: C) Change month to month, like food or clothes. 16. Business must have permits and follow industry specific regulations. This means? A) Ensuring Compliance and Financial Requirements. B) Tracking Liquidity and Financial Requirements. C) Developing Financial Scenarios. D) Applying for Permit and Financial Requirements. Show Answer Correct Answer: A) Ensuring Compliance and Financial Requirements. 17. Which of the following service provided by financial institutions? A) Buying the business of customers. B) Investing customers savings in stocks and bonds. C) Paying savers interest on deposit funds. D) Lending money to customers. Show Answer Correct Answer: A) Buying the business of customers. 18. The working capital of a business is given by A) Capital employed. B) Net assets. C) Non-current assets. D) Net current asset. Show Answer Correct Answer: D) Net current asset. 19. It is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit. A) Universal Bank. B) Commercial Bank. C) Investment Bank. D) Thrift Bank. Show Answer Correct Answer: B) Commercial Bank. 20. Fill in the blank with the best answer:Finance is the business function that involves decisions about money ..... A) Management. B) Accounting. C) Investments. D) None of above. Show Answer Correct Answer: A) Management. 21. What is the first step of the capital budgeting process? A) Determine potential projects. B) Forecast cash flows. C) Identify cost of capital and risks. D) Set capital spending goals. Show Answer Correct Answer: D) Set capital spending goals. 22. The value of a currency in one country compared with the value in another A) Unit of account. B) Exchange rate. C) Store of value. D) Medium of exchange. Show Answer Correct Answer: B) Exchange rate. 23. The wealth of the owners of a corporation is represented by A) Earnings per share. B) Profits. C) Cash flow. D) Share value. Show Answer Correct Answer: D) Share value. 24. Income that is not consistent or is not the same amount each pay period A) Budget. B) Irregular Income. C) Want. D) None of above. Show Answer Correct Answer: B) Irregular Income. 25. These refer to cash, accounts receivable, inventories, and prepaid expenses. A) Current assets. B) Noncurrent assets. C) Owner's equity. D) Current liabilities. Show Answer Correct Answer: A) Current assets. 26. Which is an external factor that affects market price? A) Available credit terms. B) Location of items in store. C) Number of items in stock. D) Consumer buying power. Show Answer Correct Answer: D) Consumer buying power. 27. Economic principle requiring that people decide which goods and services to use or not use due to limited resources and unlimited wants A) Opportunity cost. B) Scarcity. C) Supply. D) Economics. Show Answer Correct Answer: B) Scarcity. 28. It refers to the minimum level of current assets required by a firm to continue the operation of the business and to cover up all current liabilities. A) Permanent working capital. B) Working capital. C) Net working capital. D) Temporary working capital. Show Answer Correct Answer: A) Permanent working capital. 29. These are current assets used in the operations of the business. A) Net working capital. B) Temporary working capital. C) Permanent working capital. D) Working capital. Show Answer Correct Answer: D) Working capital. 30. What is the definition of expenses? A) The money from selling goods and services. B) Cash you are spending in the business. C) Costs of running the business. D) The outgoings relating specifically to vehicles. Show Answer Correct Answer: C) Costs of running the business. ← 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