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

The cost of running the business

Abusiness will make a loss if:

its total costs are greater than its revenue

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

Providing cash flow information to management

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

needs money to continue trading

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

the money can be paid back in instalments

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

GCSE Business (OCR 9-1) UNIT 2: 5. Finance 1 Flashcards | StudBud