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FREE BUSINESS AND STUDY GAMES ABOUT FINANCE
EXAM QUESTIONS
Qs and Ans Expert- Explanation
This Exam contains:
-Guarantee passing score -44 Questions and Answers -format set of multiple-choice -Expert- Explanation
Question 1: Leasing
Answer:
Renting equipment or premises
Question 2: Contribution =
Answer:
SP-VC
Question 3: Breakeven chart
Answer:
A graph which shows total revenue and total costs, allowing the bep to be drawn.
Question 4: Closing balance
Answer:
The amount of money in a business at the end of the month.
Question 5: Retained profit
Answer:
Profit which is kept back in the business and used to pay for investment in the business.
Question 6: Insolvency
Answer:
When a business can no longer pay its debts.
Question 7: Margin of safety
Answer:
The difference between the output and the breakeven point.
Question 8: External sources of finance
Answer:
Finance from outside the business e.g. bank loan
Question 9: Cumulative cash flow
Answer:
The sum of cash that flows into a business overtime.
Question 10: Cash Flow Forecast
Answer:
A prediction of how cash will flow through a business is a period of time.
Question 11: Loan
Answer:
Borrowing a sum of money which has to be paid back with interest over s period of time.
Question 12: Stocks
Answer:
Materials that a business holds.
Question 13: BEP=
Answer:
TFC/SP-VC
Question 14: Factoring
Answer:
A source of finance where a business is able to receive cash immediately for the invoices it has issued and sells the debts to a factor.
Question 15: Cashflow
Answer:
The flow of cash in and out of the business
Question 16: Share
Answer:
A part ownership in a business
Question 17: Outflow
Answer:
The cash flowing out of the business, its payments.
Question 18: Venture Capitalist
Answer:
An individual or company which buys shares in what they hope will be a fast growing company with a long term view of selling the shares at a profit.
Question 19: Revenue
Answer:
The amount of income received for selling goods and services.
Question 20: Total Costs =
Answer:
FC + VC
Question 21: Business Plan
Answer:
A plan for the development of a business giving forecasts of items such as sales, costs and cash flow.
Question 22: Personal savings
Answer:
Money that has been set aside
Question 23: De Stocking
Answer:
Reducing the level of stocks in a business
Question 24: Shareholders
Answer:
The owners of a company.
Question 25: Internal sources of finance
Answer:
Finance from within the business e.g. sale of assets
Question 26: Collateral
Answer:
Assets owned by a business which are used to guarantee repayments of a loan.
Question 27: Mortgage
Answer:
A loan where property is used as security.
Question 28: Fixed Costs
Answer:
Costs which do not vary with the output produced such as rent, business rates, advertising costs, admin costs and salaries.
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