This quiz works best with JavaScript enabled. Home > Finance > Business Finance > Business Finance > Business Finance – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Finance Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What period of time does a balance sheet cover? A) One moment in time. B) One quarter. C) One tax year. D) One year. Show Answer Correct Answer: A) One moment in time. 2. Which of the statements about retained profits is false? A) You have unlimited amounts of money available. B) Shareholders and employees could be frustrated because there is less profit to be 'shared out'. C) You do not have to pay interest. D) You are free to use it for any purpose. Show Answer Correct Answer: A) You have unlimited amounts of money available. 3. A business has made a net profit if; A) All Costs are greater than Revenue. B) Revenue is greater than All Costs. C) Revenue is greater than Cost of Sales. D) Cost of Sales is greater than Revenue. Show Answer Correct Answer: B) Revenue is greater than All Costs. 4. A break even chart does not show what? A) The margin of safety. B) How much output a business has to produce to break even. C) How much money a business will make at the break even point. D) Costs, revenue and profit at different levels of output. Show Answer Correct Answer: C) How much money a business will make at the break even point. 5. Which of the following is an example of an internal source of finance? A) Selling unwanted assets. B) Issuing new shares. C) Hire purchase. D) Loan from family and friends. Show Answer Correct Answer: A) Selling unwanted assets. 6. Firms that require funds from external sources can obtain them from ..... A) Financial markets. B) Private placement. C) Financial institutions. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. John says that his job duties include planning what will be done, organizing and directing workers, and solving problems related to worker productivity. His job can be best described as a: A) Manager. B) Bookkeeper. C) Broker. D) Cashier. Show Answer Correct Answer: A) Manager. 8. In many financial decisions, identifying andevaluating risk is difficult A) Evaluate alternatives. B) Evaluating risk. C) Financial planning information sources. D) Consequences of choices. Show Answer Correct Answer: B) Evaluating risk. 9. Advantage of sale of assets as a source of finance A) This source of finance is not available for a newly formed businesses and unprofitable and under profitable firms. B) A good way of raising cash from capital that may be tied up in building that are not being used. C) Must be repaid. D) Reduces storage cost of high inventory. Show Answer Correct Answer: B) A good way of raising cash from capital that may be tied up in building that are not being used. 10. In which life stage may a student loan be most important? A) Adolescence. B) Childhood. C) Middle Age. D) Young Adult. Show Answer Correct Answer: D) Young Adult. 11. How a company will make customers aware of its products/services? A) Marketing Plan. B) Industry Overview. C) Product and Service Plan. D) Growth Plan. Show Answer Correct Answer: A) Marketing Plan. 12. Which is not a feature of a current account A) An overdraft limit. B) Rate of interest paid on positive balances. C) Standing orders automatically created. D) Charges on unauthorised overdrafts. Show Answer Correct Answer: C) Standing orders automatically created. 13. What type of budgets refers to the variable and fixed costs needed to run the operations of the company but are not directly attributable to the generation of sales? A) Operation Budget. B) Sales Budget. C) Financial Budget. D) Production Budget. Show Answer Correct Answer: A) Operation Budget. 14. ADRs stands for-? A) American Depository Receipts. B) American Direct Receipts. C) American Domestic Receipts. D) American Domestic Revenue. Show Answer Correct Answer: A) American Depository Receipts. 15. These funds are available for short time. A) Insurance. B) Mutual funds. C) Long-term debt. D) Money market debt. Show Answer Correct Answer: D) Money market debt. 16. What is the capital needed by an entrepreneur when first starting a business? A) Retained profits. B) Working capital. C) Start-up capital. D) Bank loan. Show Answer Correct Answer: C) Start-up capital. 17. State the advantage of Owners savings A) No interest is paid. B) This makes better use of the capital tied up in the business. C) Permanent source. D) None of above. Show Answer Correct Answer: A) No interest is paid. 18. Which of the following is not categorised as Current Asset in a Balance Sheet? A) Inventories. B) Bank Balances. C) Plants and Machinery. D) Trade Debtors. Show Answer Correct Answer: C) Plants and Machinery. 19. Though banks have started extending loans for ..... Periods, generally such loans are used for ..... Periods. A) Long, short. B) Long, medium. C) Medium, short. D) Short, long. Show Answer Correct Answer: A) Long, short. 20. A contractual agreement to sell a company's products or services in a designated geographic area A) Limited liability company. B) Partnership. C) Franchise. D) Corporation. Show Answer Correct Answer: C) Franchise. 21. Mainly used for transactions to finance the shipment and handling of merchandise between the exporter and importer. A) Commercial Papers. B) Short Term Bank Loans. C) Banker's Acceptances. D) Commercial Finance company loans. Show Answer Correct Answer: C) Banker's Acceptances. 22. Which of the following sources of finance does not have interest added. A) Bank Loan. B) Mortgage. C) Overdraft. D) Owners' Capital. Show Answer Correct Answer: D) Owners' Capital. 23. Which of the following is not a benefit of using spreadsheets? A) Calculations automatically done for you. B) Replicate cells. C) Save and edit later. D) Software can be expensive. Show Answer Correct Answer: D) Software can be expensive. 24. The part of capital raised from owners of the company is known as: A) Bond. B) Share. C) Retained Earnings. D) Debenture. Show Answer Correct Answer: B) Share. 25. ..... Is a financial instrument created by an Indian Depository to enable a foreign company to raise funds from the Indian securities market. A) American Depository Receipt. B) Indian Depository Receipt. C) Foreign Depository Receipt. D) European Depository Receipt. Show Answer Correct Answer: B) Indian Depository Receipt. 26. Which source of finance below would best be described as loan capital? A) Ordinary share capital. B) Debentures. C) Debt factoring. D) Equity finance. Show Answer Correct Answer: B) Debentures. 27. Ahmed wants to open another branch of his smoothie store. What is the best source of finance for this case? A) Trade credit. B) Overdraft. C) Bank loan. D) Leasing. Show Answer Correct Answer: C) Bank loan. 28. .....? ..... financing is the use of borrowed money to obtain needed assets. A) Integrity. B) Income. C) Solvency. D) Debt. Show Answer Correct Answer: C) Solvency. 29. It is an area of finance that focuses on the handling and management of financial resources of a business organization. A) Business Finance. B) Public Finance. C) Personal Finance. D) Private Finance. Show Answer Correct Answer: A) Business Finance. 30. Shares which have a fixed rate of return but have the option of participating in profits. A) Equity share. B) Debentures. C) Participating preference share. D) Convertible preference share. Show Answer Correct Answer: C) Participating preference share. ← 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