Which of the following is true regarding bank loans?
- Missed payments are consequence-free
- Banks do not charge interest if you also have a personal account with them
- Long-term repayment options are available
- An overdraft is usually cheaper than a loan
When a business spends money to become more profitable, it is known as…
- Paying dividends
- Investment
- Profit share
- Commission
Which of the following is a disadvantage of calculating the annual rate of return?
- The entire investment period is used
- It does not consider inflation
- It provides an easy-to-compare percentage value
- A simple comparison of investments can be made
Which factors should a business consider when choosing finance options?
- Cost, timescales, amount to be borrowed, and the size and type of their business
- Specific, measureable, achievable, realisitic, time-bound
- Personal savings, loans, government grants, credit, share issues, and crowd funding
- Profit, revenue, fixed costs, and variable costs
Which term represents the total money earned by a business before deducting expenses?
- Net Income
- Gross Profit
- Revenue
- Operating Income
Which of the following is a long-term liability?
- An overdraft
- Trade credit payments
- Bank loan
- Taxes
When revenue and costs are the same, it is called…
- …the margin of safety
- …a balance sheet
- …liquidity
- …the break-even point
A business wishes to purchase a new machine and wishes to spread the repayments over several months. What type of finance is this?
- Trade credit
- Business loan
- Hire purchase
- Overdraft
A "statement of financial position" is also know as…
- A balance sheet
- Income statement
- Boston Matrix
- Product lifecycle
When lots of individuals donate small amounts of money to a business, often for a specific project, it is known as…
- Kickstarter
- Goodwill
- Micro-transactions
- Crowdfunding
