Finance Quiz 1

Question 1 of 8

1

Short term finance is money borrowed for one year or less

Select one of the following:

True
False

Explanation

Question 2 of 8

1

Long term finance is money borrowed for more than two years?

Select one of the following:

True
False

Explanation

Question 3 of 8

1

Funds are most needed when first setting up a business. This is because a lot of resources are needed before trading can begin. Some of these resources are 'one-off' items. For example, a new restaurant would need to buy cookers, refrigerators, utensils, furniture, glassware and other equipment including knives, forks and plates. Other start-up costs might include research, converting premises, legal fees, website design and marketing,

Select one of the following:

True
False

Explanation

Question 4 of 8

1

Bank Overdraft - allows a business to borrow an unlimited amount of money over an unlimited period

Select one of the following:

True
False

Explanation

Question 5 of 8

1

A disadvantage of using credit cards to borrow money to support a business is that interest rates can be very high is the borrowed amount is not repaid within the given period - usually 56 days?

Select one of the following:

True
False

Explanation

Question 6 of 8

1

Share capital is an external, long term type of finance, which avoids the need to pay interest charges?

Select one of the following:

True
False

Explanation

Question 7 of 8

1

Internal sources of finance include: RETAINED PROFIT, SALE OF ASSETS AND PERSONAL SAVINGS

Select one of the following:

True
False

Explanation

Question 8 of 8

1

A MORTGAGE is a long term loan secured against a business?

Select one of the following:

True
False

	Created by Michelle Parker about 2 years ago

True False questions - basic finance questions

Finance Quiz 1

Question 1 of 8

Short term finance is money borrowed for one year or less

Select one of the following:

Explanation

Question 2 of 8

Long term finance is money borrowed for more than two years?

Select one of the following:

Explanation

Question 3 of 8

Select one of the following:

Explanation

Question 4 of 8

Bank Overdraft - allows a business to borrow an unlimited amount of money over an unlimited period

Select one of the following:

Explanation

Question 5 of 8

A disadvantage of using credit cards to borrow money to support a business is that interest rates can be very high is the borrowed amount is not repaid within the given period - usually 56 days?

Select one of the following:

Explanation

Question 6 of 8

Share capital is an external, long term type of finance, which avoids the need to pay interest charges?

Select one of the following:

Explanation

Question 7 of 8

Internal sources of finance include: RETAINED PROFIT, SALE OF ASSETS AND PERSONAL SAVINGS

Select one of the following:

Explanation

Question 8 of 8

A MORTGAGE is a long term loan secured against a business?

Select one of the following:

Explanation