limited liability means . . . .

your business is sued in court, not you

revenue expenditure is . . . .

spending on resources already consumed / consumed shortly

sale and leaseback is . . .

selling assets and leasing them back from the buyer

A bank overdraft means . . .

spending more than in your a/c, maximum agreed by the bank

capital expenditure is . . . .

spending on business resources that can be used repeatedly

sales volume is . . . .

the amount of output sold in a particular time period

peer to peer lending . . .

is person lends to others, no prior knowledge of them

consumer trends . . . .

relates to the habits and behaviour of consumers

unlimited liability means . . . .

no legal difference between business and owner

is an interest free method of raising finance

Just In Time production . . .

involves minimising amount of the stock held by a business

incorporated business is . . .

business and owners have seperate legal identities

Owner's capital is provided . . .

at start up, also if there is a need

many people invest in a project or business online

if a business has an acid test ratio of less than 1 : 1, it means its . . . .

current assets - stock cannot cover its current liabilities

sales revenue . . . .

value of output sold in a particular period of time

the holder of a debenture is . . .

a creditor of the company, not an owner

working capital . . . .

money needed for day to day running of business

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A level business - theme 2

32 termsStudBud Administration2,909 plays

Flashcards32 cardsFPractice quizPHost liveL

Questions 32

Answers

1
limited liability means . . . .
all actions are done in the name of the owner
your business is unincorporated
financial exposure to failure of business
your business is sued in court, not you
2
full capacity is the the point where a business ccannot produce any more output
true
false
3
an internal cause of business failure includes
change in legislation
changes in consumer tastes
competition
lack of planning
4
Capital is the money provided by owners, this is an example of :
external finance
short term finance
internal finance
long term finance
5
revenue expenditure is . . . .
spending on resources that can be used repeatedly
spending on resources once
spending on resources already consumed / consumed shortly
money generated by the business or its owners
6
sale and leaseback is . . .
selling assets and leasing them back from the buyer
hiring assets with a view to purchasing them
selling assets and approving of another business hiring them
leasing an asset for a period of time
7
A bank overdraft means . . .
spending only what is in your a/c
spending more than in your a/c, maximum agreed by the bank
long term source of finance
limitless funding
8
retained profit is the cheapest source of finance for a business
true
false
9
business angel will invest . . . .
due to high tax rates
for a stake in a business
as there is no risk involved
nothing else to do
10
downsizing is the process of reducing capacity, usually by laying off staff
false
true
11
appropriate source of finance for limited liability business is . . . .
crowd funding
share capital
peer to peer lending
personal savings
12
capital expenditure is . . . .
spending on business resources that can be used once
spending on business resources that can be used repeatedly
profit after tax
spending on resources already consumed
13
sales volume is . . . .
total costs of producing a given level of output
calculated by multiplying price x quantity of output
the amount of output sold in a particular time period
total money the business receives from the sales of output
14
peer to peer lending . . .
is a type of overdraft
is a non repayable loan to a business
involves many people invest in a business or project
is person lends to others, no prior knowledge of them
15
external cause of business failure is . . . .
over borrowing
poor financial management
changes in consumer tastes
lack of funds
16
consumer trends . . . .
are not affected by seasonal variations
does not take spending into account
relates to the habits and behaviour of consumers
involves ignoring the needs of consumers
17
One advantage of using internal finance is
there are no drawbacks
There is an interest charge on all cash
it is available immediately
it involves checking the owner's credit history
18
unlimited liability means . . . .
no legal difference between business and owner
an incorporated business
owner and business have seperate legal identities
usually a PLC
19
trade credit . . .
involves paying a deposit in advance
is an internal source of finance
is an interest free method of raising finance
is approved immediately to a start up
20
Just In Time production . . .
involves minimising amount of the stock held by a business
means continuous improvement
21
incorporated business is . . .
no legal diffence between owners and business
the owners can be sued in court
business and owners have seperate legal identities
a business which has unlimited liability
22
A grant . . . .
is repaid with interest
does not have to be repaid
most do not have to be repaid
no grants have to be repaid
23
Owner's capital is provided . . .
for the first year
18 months after starting
for the first six months
at start up, also if there is a need
24
variance analysis - trying to find differences between actual and expected financial outcomes
false
true
25
crowd funding . . .
is a long term loan
highly profitable for a venture capitalist
the same as peer to peer lending
many people invest in a project or business online
26
cash is the most liquid of all business assets
false
true
27
if a business has an acid test ratio of less than 1 : 1, it means its . . . .
current assets - stock cannot cover its current liabilities
finances do not indicate any issue
it has adequate levels of finance
current assets - stock can cover its current liabilities
28
sales revenue . . . .
cannot be calculated for a day
quanity of output sold
not necessary for business survival
value of output sold in a particular period of time
29
retained profit is money before tax that is put back into the business
true
false
30
the holder of a debenture is . . .
an internal source of finance
a creditor of the company, not an owner
becomes an owner of the company
not going to be repaid on a set date
31
finance appropriate for unlimited liability business is . . .
share capital
debenture
venture capitalists
grant
32
working capital . . . .
current liabilities - current assets
money needed for day to day running of business
is not influenced by the size of the business
does not take current liabilities into account

A level business - theme 2 Flashcards | StudBud

A level business - theme 2

32 termsStudBud Administration2,909 plays

A level business - theme 2

Flashcards32 cardsFPractice quizPHost liveL

Questions 32

Answers

1
limited liability means . . . .
all actions are done in the name of the owner
your business is unincorporated
financial exposure to failure of business
your business is sued in court, not you
2
full capacity is the the point where a business ccannot produce any more output
true
false
3
an internal cause of business failure includes
change in legislation
changes in consumer tastes
competition
lack of planning
4
Capital is the money provided by owners, this is an example of :
external finance
short term finance
internal finance
long term finance
5
revenue expenditure is . . . .
spending on resources that can be used repeatedly
spending on resources once
spending on resources already consumed / consumed shortly
money generated by the business or its owners
6
sale and leaseback is . . .
selling assets and leasing them back from the buyer
hiring assets with a view to purchasing them
selling assets and approving of another business hiring them
leasing an asset for a period of time
7
A bank overdraft means . . .
spending only what is in your a/c
spending more than in your a/c, maximum agreed by the bank
long term source of finance
limitless funding
8
retained profit is the cheapest source of finance for a business
true
false
9
business angel will invest . . . .
due to high tax rates
for a stake in a business
as there is no risk involved
nothing else to do
10
downsizing is the process of reducing capacity, usually by laying off staff
false
true
11
appropriate source of finance for limited liability business is . . . .
crowd funding
share capital
peer to peer lending
personal savings
12
capital expenditure is . . . .
spending on business resources that can be used once
spending on business resources that can be used repeatedly
profit after tax
spending on resources already consumed
13
sales volume is . . . .
total costs of producing a given level of output
calculated by multiplying price x quantity of output
the amount of output sold in a particular time period
total money the business receives from the sales of output
14
peer to peer lending . . .
is a type of overdraft
is a non repayable loan to a business
involves many people invest in a business or project
is person lends to others, no prior knowledge of them
15
external cause of business failure is . . . .
over borrowing
poor financial management
changes in consumer tastes
lack of funds
16
consumer trends . . . .
are not affected by seasonal variations
does not take spending into account
relates to the habits and behaviour of consumers
involves ignoring the needs of consumers
17
One advantage of using internal finance is
there are no drawbacks
There is an interest charge on all cash
it is available immediately
it involves checking the owner's credit history
18
unlimited liability means . . . .
no legal difference between business and owner
an incorporated business
owner and business have seperate legal identities
usually a PLC
19
trade credit . . .
involves paying a deposit in advance
is an internal source of finance
is an interest free method of raising finance
is approved immediately to a start up
20
Just In Time production . . .
involves minimising amount of the stock held by a business
means continuous improvement
21
incorporated business is . . .
no legal diffence between owners and business
the owners can be sued in court
business and owners have seperate legal identities
a business which has unlimited liability
22
A grant . . . .
is repaid with interest
does not have to be repaid
most do not have to be repaid
no grants have to be repaid
23
Owner's capital is provided . . .
for the first year
18 months after starting
for the first six months
at start up, also if there is a need
24
variance analysis - trying to find differences between actual and expected financial outcomes
false
true
25
crowd funding . . .
is a long term loan
highly profitable for a venture capitalist
the same as peer to peer lending
many people invest in a project or business online
26
cash is the most liquid of all business assets
false
true
27
if a business has an acid test ratio of less than 1 : 1, it means its . . . .
current assets - stock cannot cover its current liabilities
finances do not indicate any issue
it has adequate levels of finance
current assets - stock can cover its current liabilities
28
sales revenue . . . .
cannot be calculated for a day
quanity of output sold
not necessary for business survival
value of output sold in a particular period of time
29
retained profit is money before tax that is put back into the business
true
false
30
the holder of a debenture is . . .
an internal source of finance
a creditor of the company, not an owner
becomes an owner of the company
not going to be repaid on a set date
31
finance appropriate for unlimited liability business is . . .
share capital
debenture
venture capitalists
grant
32
working capital . . . .
current liabilities - current assets
money needed for day to day running of business
is not influenced by the size of the business
does not take current liabilities into account