Cam Business AS level (Hiền 22.12.2024)

What is start-up capital?

• Money for daily operations
• Money to begin operating
• Money for long-term projects
• Money for marketing

What is the main reason businesses need finance when starting up?

• To pay taxes
• To buy premises, equipment, and raw materials
• To pay dividends
• To invest in stocks

What is a key reason for business growth or expansion finance?

• To buy another existing business
• To pay off debts
• To reduce working hours
• To increase wages

What is the term for money that is to be repaid within one year?

• Long-term finance
• Start-up capital
• Short-term finance
• Working capital

What is the difference between cash and profit?

• Cash is the surplus after costs
• Cash is the money flowing in and out daily
• Profit is the money flowing in and out daily
• Profit is the amount needed for daily operations

What happens during liquidation?

• A sole trader is judged unable to pay debts
• A limited company is dissolved
• A company is protected to renegotiate debts
• A business merges with another

What is working capital?

• Current liabilities minus current assets
• Current assets minus current liabilities
• Total sales revenue minus total costs
• Cash inflow minus cash outflow

What does positive working capital indicate?

• The business has more liabilities than assets
• The business has more assets than liabilities
• The business is insolvent
• The business has no cash

What is the risk of having too much working capital?

• The business will become illiquid
• The business will need short-term loans
• The business has assets not working hard enough
• The business will fail

What is the meaning of liquidity?

• The ease with which an asset can be turned into cash
• The amount of profit a business makes
• The amount of cash inflow
• The total sales revenue