Which of the following is a current liability?
- A mortgage
- Leasing a vehicle
- Bank loan
- Staff wages
What is the main purpose of an income statement?
- To show the financial position of a company at a specific point in time
- To provide a summary of cash inflows and outflows
- To measure the profitability of a company over a specific period
- To detail the changes in equity during a specific period
When revenue and costs are the same, it is called…
- …the margin of safety
- …a balance sheet
- …liquidity
- …the break-even point
Which of the following is an advantage of calculating the annual rate of return?
- Provides a clear and easy to understand percentage value
- Easy to compare the potential returns of different investments
- It considers the entire investment period
- The estimated annual profits from the investment are used
What is meant by start-up capital?
- The funds required to start a new business
- A new business hub within a capital city
- The revenue from a businesses first sale
- The person who sets-up the new business
A "statement of financial position" is also know as…
- A balance sheet
- Income statement
- Boston Matrix
- Product lifecycle
A business aims to increase its profitability by investing £15,000 over three years. During this time, it expects its profits to increase by a total of £24,000. What is the average rate of return?
Which of the following is not a valid start-up cost for a new business?
- Purchasing stock
- Advertising on social media
- Developing new products
- Implementing an extension strategy
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 of the following is true regarding government grants?
- There is nothing to repay
- They are easy to apply for
- Application procedures are simple
- Businesses can use them for any purpose
