Managing Business Activities Quiz

Which of the following is a source of internal finance?

• Grants

• Venture capital

• Crowdfunding

• Owner's capital: personal savings

What is the purpose of a business plan in obtaining finance?

• To increase sales

• To provide a roadmap for business operations

• To demonstrate the viability of the business to potential financiers

• To assess the market competition

Which method of production is characterized by producing goods in large quantities without interruption?

• Cell production

• Flow production

• Batch production

• Job production

What does the break-even point represent?

• The point where total revenue is maximized

• The point where total costs are minimized

• The point where total revenue exceeds total costs

• The point where total revenue equals total costs

Which of the following is a method of external finance?

• Peer-to-peer funding

• Retained profit

• Owner's capital

• Sales of assets

What is the main implication of limited liability for business owners?

• Owners' personal assets are protected from business debts

• Owners have unlimited access to business profits

• Owners can lose personal assets if the business fails

• Owners are personally responsible for all business debts

Which of the following is a factor affecting sales forecasts?

• Product design

• Office location

• Employee satisfaction

• Historical sales data

What is the primary purpose of variance analysis in budgeting?

• To assess employee performance

• To predict future sales

• To determine the break-even point

• To compare actual performance with budgeted figures

Which of the following is a method to improve liquidity?

• Decreasing sales revenue

• Increasing fixed assets

• Reducing current liabilities

• Increasing long-term debt

What is the effect of high inflation on businesses?

• Increased purchasing power of consumers

• Stable pricing of goods and services

• Decreased cost of raw materials

• Increased cost of borrowing