Business Finance

Business Finance

Level 2 Business Technical Component

Poll

Which of these sources of finance would you use to start a business?

• Bank Loan

• Money from Friends & Family

• Overdraft and Credit Card

• Savings

Multiple Choice

If you hear the word "finance", what comes into your mind?

• bank

• treasurer

• money

• ATM

Fill in the Blank

Revenue is __________ from sales

Fill in the Blank

Which type of cost remains the same each month?

Fill in the Blank

Which cost will change according to the units sold?

Multiple Select

What do you call fixed and variable costs added together?

• Hybrid Costs

• Mixed Costs

• Together Costs

• Total Costs

Multiple Select

When total revenue is more than total costs, its called a

• Loss

• Profit

• Extra revenue

• Sell out

Multiple Select

Buying tables and chairs for a new cafe would be a...

• New Business Cost

• Start Up Cost

• Running Cost

• One-Off Cost

Multiple Select

The cost of ingredients used to make cakes for a bakery would be a...

• Start Up Cost

• Baking Cost

• Running Cost

• Fixed Cost

Open Ended

What are the benefits of learning about business finance?

Multiple Choice

What is an advantage of a bank loan?

• There will be little or no interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back

Multiple Choice

Which is an example of an external source of finance?

• Owners' Funds

• Sale of assets

• Retained profits

• Bank loan

Multiple Choice

Which is an example of an external source of finance?

• Owners' Funds
• Hire Purchase
• Retained profits
• Sale of assets

Multiple Choice

Which is an example of an internal source of finance?

• Owners' Funds

• Venture Capital

• Overdraft

• Trade credit

Multiple Choice

What does external mean?

• A source from within the business
• A source from outside the business

Multiple Choice

Finance departments record all transactions such as what?

• Payments and revenue.
• Transport and Infrastructure.

Multiple Choice

It is the allocation of scarce resources according to an economist's perspective is called ________.

• Division of profits and losses

• Arbitrary ratio

• Finance

• asset allocation

Multiple Choice

One of the financial institutions that operates by collecting premiums from clients is called ____________ .

• brokerage

• credit union

• investment banks

• insurance companies

Multiple Choice

Profit is important to businesses because:

• it improves businesses, cash balances
• it can be used to measure business size
• it is a measure of businesses, success
• businesses need to pay taxes to the government

Multiple Choice

What is start up capital?

• Finance needed before starting trading.
• Finance paid after trading.
• Finance paid to banks.

Business Revenue, Costs and Profits

Key Terms

Define the following term and add an example for each:

Revenue

Fixed Costs

Variable Costs

Total Costs

Profit

Loss

Start-Up Costs

Running Cost