A ______ is when all expenses have been paid.
- Dividend
- Profit
- Share
- Segment
Which type of short-term loan allows a business to spend more money than they have available in their bank account?
- Loan
- Credit
- Overdraft
- Mortgage
What is the purpose of the margin of safety?
- It allows business to calculate the difference between variable costs and fixed costs
- It allows a business to identify how many more sales it must make before it reaches profitability
- It allows business to identify how far sales can fall before a loss is made
- It allows a business to calculate the gap between sales output and total costs
Which of the following is a long-term liability?
- An overdraft
- Trade credit payments
- Bank loan
- Taxes
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
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
Which type of loan is not provided by a bank?
- Overdraft
- Fixed-term loan
- Mortgage
- Business grants
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
When a business spends money to become more profitable, it is known as…
- Paying dividends
- Investment
- Profit share
- Commission
Which of the following is an example of cash outflow?
- Purchasing stock
- Sale of goods
- Money from investors
- Loans from banks
