CAM Business AS level (Cindy 17.12.2024)

Why do businesses need finance to start up?

• To increase profits
• To buy premises, equipment, and raw materials
• To reduce taxes
• To manage customer relationships

What is start-up capital?

• Money required for daily operations
• Money required to begin operating
• Money required for marketing campaigns
• Money required for employee salaries

Why do businesses need finance for growth or expansion?

• To increase profits
• To acquire additional premises or equipment
• To reduce taxes
• To manage customer relationships

What is the distinction between short-term and long-term finance?

• Short-term finance is repayable within 5 years
• Short-term finance is repayable within 12 months
• Long-term finance is repayable within 1 year
• Long-term finance is repayable within 6 months

What is the difference between cash and profit?

• Cash is money in the form of notes and coins
• Cash is the surplus after all costs have been paid
• Profit is money in the form of notes and coins
• Profit is the total sales revenue

What is working capital?

• Current liabilities minus current assets
• Current assets minus current liabilities
• Long-term liabilities minus current assets
• Long-term assets minus current liabilities

What is positive working capital?

• Current liabilities exceed current assets
• Current assets exceed current liabilities
• Long-term liabilities exceed current assets
• Long-term assets exceed current liabilities

What is negative working capital?

• Current liabilities exceed current assets
• Current assets exceed current liabilities
• Long-term liabilities exceed current assets
• Long-term assets exceed current liabilities

What is revenue expenditure?

• Expenditure on non-current assets
• Expenditure on everyday running costs
• Expenditure on marketing campaigns
• Expenditure on employee salaries

What is capital expenditure?

• Expenditure on non-current assets
• Expenditure on everyday running costs
• Expenditure on marketing campaigns
• Expenditure on employee salaries