HSC Business Studies - Finance | Baamboozle - Baamboozle

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What are the TWO types of finance.

Debt and Equity

Name TWO of the Ratios.

Current, Debt to equity, profit, expense

Why would a business factor its accounts receivables? a)To improve cash flow b)To increase owner's equity c)To increase the value of current assests d)To improve the value of the business

a)To improve cash flow

Name THREE types of finacial institutions

Banks, investment banks, finance companies, superannuation funds, unit trusts

A sole trader invests $500000 into her own business. What is this an example of? a) Efficiency b) Growth c) Liquidity d) Solvency

d) Solvency

Which of the following allows shareholders of a public company to acquire additional shares at a discount? a) New issue b)Placements c)Private equity d)Unsecured notes

b)Placements

Name TWO objectives of finacial management

Profitability, growth, efficiency, liquidity, solvency

NAme the TWO sources of finance.

Internal and Extenral

What are THREE problems of financial management?

Insufficient cash, inadequate capital, non-productive assests, delays, failure, overstocking

Name ONE type of short term debt finance

Overdraft, Commercial Bills, Factoring

The efficiency of a business can best be determined by which of the following? a)Gross Profit ration b)Value of Current assests c) Value of current liabilities d)Accounts recievable turnover ratio

d)Accounts recievable turnover ratio

What is needed to start a buinsess?

Money

Name a variable cost that a business may have.

Materials, Electiricy, Wages

Name a fixed cost a buisness would have.

Salaries, Depreciation, Insurnance, Leases

Sally is considering investing in a business. To help her consider which business to invest in, she should consider cmparative ratio analysis becuase...a)cash flow is assessed b)market share is determined c) similar businesses are evaluated

c) similar businesses are evaluated

What is ONE example of of a non-current asset.

building, machinery, vehicles

Name ONE type of long term debt.

MOrtgage, debentures, leasing, unsecured notes

What is the cost of borrowing money?

Interest

Which of the following would be the focus of a business aiming to reduce expenses? a)Changing task design b) Differentiating its product c) Establishing cost leadership d) Developing quality expectations

c) Establishing cost leadership

The statement of finacial position.

Balance Sheet

Name one type of ordinary share issue.

New issue, right issue, placements, share purchase plan

What is another word for Owners Funds?

Equity

Name one heading that would appear on a Balance Sheet

Assests, liabilities, owners equity

Which of the followoing is an example of legal compliance for a sports store? a)Paying taxes on time b)Offsetting carbon emissions c)Induction of new employees d)Paying dividends to shareholders

a)Paying taxes on time

A business is purchasing a new property. Which source of finance would be the most appropriate? a) Shares b) Mortgage c)Debenture d) Letter of Credit

b) Mortgage