This quiz works best with JavaScript enabled. Home > Finance > Business Finance > Business Finance > Business Finance – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the purpose of budgeting A) Estimating income and expenses. B) Saving for future expenses. C) Increasing income. D) Helping spend wisely. Show Answer Correct Answer: A) Estimating income and expenses. 2. A recruitment agency floats itself on the stock market. This means that A) It borrows money from the stock market. B) Its share are available to buy on the stock market. C) It recruits workers from the stock exchange. D) Its sales increase. Show Answer Correct Answer: B) Its share are available to buy on the stock market. 3. It is composed of the variable and fixed costs needed to run the operations of the business A) Operating budget. B) Cash receipts. C) Production budget. D) Sales revenue. Show Answer Correct Answer: A) Operating budget. 4. Trade payables is a suitable source of finance to fund the purchase of what? A) A new delivery vehicle. B) Inventories. C) Property. D) Direct labour. Show Answer Correct Answer: B) Inventories. 5. To provide income and achieve growth for business A) Private finance. B) Financial investment. C) Financial expenditures. D) Public finance. Show Answer Correct Answer: B) Financial investment. 6. ..... is an asset promised by a business to a creditor if repayment of a loan isn't completed. A) Collateral. B) Capital Budget. C) Depreciation. D) Time Value. Show Answer Correct Answer: A) Collateral. 7. What do businesses often develop to be able to store and analyze data for the sole purpose of making business decisions? A) Survey methods. B) Operating procedures. C) Management policies. D) Information systems. Show Answer Correct Answer: D) Information systems. 8. Word processing would be likely used to ..... A) Create a businesses annual reports. B) Create income statements. C) Create charts and graphs. D) Store customer information. Show Answer Correct Answer: A) Create a businesses annual reports. 9. What is the capital needed to finance the day-to-day running expenses and pay short-term debts of a business? A) Start-up capital. B) Non-current assets. C) Current assets. D) Working capital. Show Answer Correct Answer: D) Working capital. 10. Deal with choosing small and large projects with several investment opportunities such ad cash flows and return investment A) Capital market. B) Investment decision. C) Business finance. D) Financial desicion. Show Answer Correct Answer: B) Investment decision. 11. What is NOT a source of Internal finance? A) Retained profit. B) Sale of existing assets. C) Issue of shares. D) All are sources of Internal finance. Show Answer Correct Answer: C) Issue of shares. 12. What is the formula for closing balance? A) Fixed costs + Variable costs. B) Variable costs per unit x Quantity. C) Cash inflows-Cash outflows. D) Opening balance +/-Profit/loss. Show Answer Correct Answer: D) Opening balance +/-Profit/loss. 13. Adventurous plc has recently sent goods to its first non UK customers but has taken out insurance because it is worried about the possibility of payment default. what types of risk does such a non-payment represent? A) Liquidity risk. B) Physical risk. C) Credit risk. D) Trade risk. Show Answer Correct Answer: C) Credit risk. 14. The key measure of inflation-the change in the cost of buying a fixed basket of goods and services. A) Gross domestic product. B) Gross price product. C) Consumer domestic index. D) Consumer price index. Show Answer Correct Answer: D) Consumer price index. 15. Which of the following sources of finance to companies is the most widely used in practice? A) New share issues. B) Rights issues. C) Retained earnings. D) Bank borrowings. Show Answer Correct Answer: C) Retained earnings. 16. What is a business description? A) Something that describes what your business does and what its about. B) The same as a business plan. C) Theres no such thing. D) None of above. Show Answer Correct Answer: A) Something that describes what your business does and what its about. 17. A merger between two or more companies in the same type of business is called a A) Vertical integration. B) Friendly takeover. C) Horizontal integration. D) Joint venture. Show Answer Correct Answer: C) Horizontal integration. 18. Fill in the blank with the best answer:A ratio that refers to how long the company's money is "tied up" between purchasing raw materials and receiving cash for selling products is ..... A) Equity financing. B) Stock. C) The cash conversion cycle. D) None of above. Show Answer Correct Answer: C) The cash conversion cycle. 19. The effective use of all the things available to your business is known as ..... A) Business management. B) Resource management. C) Personal management. D) Financial management. Show Answer Correct Answer: B) Resource management. 20. The amount paid for the privilege of borrowing money. A) Creditor. B) Interest. C) Principal. D) Collateral. Show Answer Correct Answer: B) Interest. 21. Which of the following is an example of an institutional investor? A) The Bank of England. B) The Financial Reporting Council. C) The Financial Conduct Authority. D) A unit trust. Show Answer Correct Answer: D) A unit trust. 22. It is the allocation of scarce resources according to an economist's perspective is called ..... A) Division of profits and losses. B) Arbitrary ratio. C) Finance. D) Asset allocation. Show Answer Correct Answer: C) Finance. 23. What is the formula for Profit/loss? A) Variable costs per unit x Quantity. B) Opening balance +/-profit/loss. C) Total revenue-Total Costs. D) Fixed costs + Variable costs. Show Answer Correct Answer: C) Total revenue-Total Costs. 24. An advantage that an overdraft has over a bank loan is that:1) it has a fixed rate of interest 2) it is paid back over a fixed time period 3) no dividends have to be paid to shareholders as with a loan 4) the size of the overdraft can vary with the needs of the business A) . B) . C) . D) . Show Answer Correct Answer: A) . 25. Which profit is the largest one that a business will make? A) Gross Profit. B) Net Profit. C) Full Profit. D) Formula Profit. Show Answer Correct Answer: A) Gross Profit. 26. Criteria businesses should use to decide when to offer credit include all of the following except offering credit A) During specific times of the year. B) Only in specific areas of the country. C) For specific types of products. D) To specific categories of customers. Show Answer Correct Answer: B) Only in specific areas of the country. 27. What is the definition of Revenue? A) Income from the sales of goods and services. B) Income from the cost of goods and services. C) The money made on products. D) Cash coming into the business. Show Answer Correct Answer: A) Income from the sales of goods and services. 28. Making posters and commercials are examples of: A) Finances. B) Manufacturing. C) Design. D) Marketing. Show Answer Correct Answer: D) Marketing. 29. What is a marketing plan? A) The same as a financial plan. B) A plan that shows how your business will be advertised and or financially ran. C) Doesn't exist. D) None of above. Show Answer Correct Answer: B) A plan that shows how your business will be advertised and or financially ran. 30. Which will NOT be considered by a firm before deciding on a suitable source of finance to use? A) The views of the workers. B) How long the finance is used for. C) The purpose of the finance-what it will be used for. D) The rate of interest on loans. Show Answer Correct Answer: A) The views of the workers. ← 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 8Business Finance Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books