On a cashflow forecast, an "closing balance" is…
- …cash remaining at the end of the current month
- …inflow minus outflow
- …the closing balance plus the cash inflow
- …cash remaining from the previous month
What is meant by a "dividend"?
- A portion of profits paid to shareholders
- Part-ownership of a business
- The sale of additional shares in a business
- An annual meeting of shareholders
On a cashflow forecast, an "opening balance" is…
- …cash remaining at the end of the current month
- …inflow minus outflow
- …the closing balance plus the cash inflow
- …cash remaining from the previous month
Which of the following is not a valid start-up cost for a new business?
- Purchasing stock
- Advertising on social media
- Developing new products
- Implementing an extension strategy
Which type of business can raise additional funds by issuing new shares and selling them on the stock market?
- Private limited companies
- Partnerships
- Sole traders
- Public limited companies
Which of the following is not a valid business investment?
- Purchasing a more efficient machine
- Purchasing a new sign for the shop front
- Developing a new product
- Selling unused manufacturing equipment
Which of the following is true regarding government grants?
- There is nothing to repay
- They are easy to apply for
- Application procedures are simple
- Businesses can use them for any purpose
Which of these statements is true?
- A positive cashflow means more money is flowing out of the business than in to it
- Businesses can improve cashflow by offering longer trade credit times to customers
- Poor cashflow can cause a profitable business to fail
- A positive net cash flow is the same as profit
Which type of loan is not provided by a bank?
- Overdraft
- Fixed-term loan
- Mortgage
- Business grants
Which term refers to the revenue remaining after deducting the cost of goods sold?
- Net Income
- Gross Profit
- Operating Income
- Earnings Before Interest
