Abusiness will make a loss if:

its total costs are greater than its revenue

One advantage to a company of using a bank loan to fund its expansion is that:

the money can be paid back in instalments

Short term finance is most likely to be used by a business when it:

needs money to continue trading

Which of the following is the finance function of a business most likely to be concerned about?

The cost of running the business

Which of the following tasks is part of the role of the finance function?

Providing cash flow information to management

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GCSE Business (OCR 9-1): Finance 1

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A multiple choice quiz for students taking GCSE Business (OCR 9-1) on Finance topics

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Questions 10

Answers

1
Which type of cost will not change even if output increases?
Production cost
Fixed cost
Total cost
Variable cost
2
Abusiness will make a loss if:
its revenue is greater than its total costs
its fixed costs are greater than its variable costs
its variable costs are greater than its fixed costs
its total costs are greater than its revenue
3
One advantage to a company of using a bank loan to fund its expansion is that:
business costs will fall
the money can be paid back in instalments
cash flow monitoring will not be required
interest is added to the amount that is owed
4
Financial data for Sciser Ltd in 2016 is shown below. Sciser Ltd’s gross profit in 2016 was:
£43,000
£15,000
£4000
£47,000
5
Which of the following is a long term source of finance for an established company?
An overdraft
A share issue
Sale of assets
Trade credit
6
Short term finance is most likely to be used by a business when it:
has plenty of money in its bank account
needs money to continue trading
wants to build a new factory
is looking for a new partner
7
Which of the following is the finance function of a business most likely to be concerned about?
The reputation of the business
The cost of running the business
The communication methods used by the business
The ethical profile of the business
8
Which of the following is a consequence to a business of an increase in its monthly rent?
Profit increases
Variable costs rise
Total revenue falls
Break-even quantity increases
9
Which of the following tasks is part of the role of the finance function?
Ordering raw materials from suppliers
Recruiting and training employees
Choosing which pricing method to use
Providing cash flow information to management
10
A business sells 3000 items at 50p each. Its revenue is:
£1500
£15,000
50p
£3,000

GCSE Business (OCR 9-1): Finance 1 Flashcards | StudBud