Business Management

Question 1

1Current assets GH¢30,000; current liabilities GH¢15,000. The current ratio is

Hard

A. 2 : 1 B. 15 : 1 C. 1 : 2 D. 3 : 1

Question 2

2An overdraft is a form of

Hard

A. long-term finance B. short-term finance C. equity D. grant

Question 3

3SWOT analysis examines strengths, weaknesses, opportunities and

Hard

A. taxes B. targets C. threats D. trends

Question 4

4Factoring involves a business

Hard

A. borrowing from friends B. buying factories C. issuing shares D. selling its receivables to a third party for immediate cash

Question 5

5In SWOT analysis, "threats" are

Easy

A. new opportunities B. external factors that may harm the business C. internal weaknesses D. internal strengths

Question 6

6Working capital is

Hard

A. total assets B. share capital C. fixed assets minus debts D. current assets minus current liabilities

Question 7

7The responsibility of a business to act in ways that benefit society is

Easy

A. liquidation B. profit maximisation C. corporate social responsibility D. monopoly

Question 8

8The level of output at which total revenue equals total cost is the

Easy

A. profit point B. break-even point C. margin of safety D. shutdown point

Question 9

9Leasing equipment instead of buying helps a business to

Hard

A. own the asset immediately B. increase debt always C. avoid all costs D. conserve cash for other uses

Question 10

10Inflation affects a business by

Easy

A. increasing the value of money B. raising its costs C. reducing all prices D. removing competition