Business Theme 2 - End of Theme Test

Front

Which are sources of external finance? Options: Bank loans, equity financing, and trade credit; Internal cash reserves, retained earnings, and asset sales; Government grants, subsidies, and tax incentives; Personal savings, family loans, and crowdfunding

Back

Bank loans, equity financing, and trade credit

Front

What are methods of finance?

Back

Equity financing, Debt financing, and Grants

Front

Explain the implications of limited and unlimited liability.

Back

Limited liability means personal assets are protected; unlimited liability means personal assets are at risk.

Front

The relevance of a business plan in obtaining finance is:

Back

It helps in securing finance by outlining the business strategy and financial projections.

Front

Interpret a simple cash-flow forecast and explain the calculations based on changes in the cash-flow variables.

Back

A cash-flow forecast is a financial statement that estimates the flow of cash in and out of a business over a specific period.

Front

What are the uses and limitations of a cash-flow forecast?

Back

A tool for predicting future financial liquidity and identifying potential shortfalls.

Front

Which of the following is not a source of external finance? Family and friends, Banks, Personal savings, Business angels

Back

Personal savings

Front

The purpose of sales forecasts is to:

Back

Predict future sales and revenue

Front

Name one difficulty of sales forecasting.

Back

Lack of historical data

Front

Sales volume is calculated by:

Back

Multiplying the number of units sold by the price per unit