FREE BUSINESS AND STUDY GAMES ABOUT FINANCE

PDF Download

FREE BUSINESS AND STUDY GAMES ABOUT FINANCE

EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -44 Questions and Answers -format set of multiple-choice -Expert-Verified 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.