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AP Intermediate 2nd Year Business Studies — practice by topic

Browse 744 questions across 15 Business Studies topics. Choose what you want to revise, then open a question to check its answer and worked solution.

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Business Studies topics

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Worked practice questions

The money required to carry out business activities is called:

  1. business finance
  2. gross profit
  3. working capital
  4. capital structure
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Correct answer: A. business finance

Business finance is the money required to establish, run, modernise or expand a business and to buy assets.

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The primary objective of financial management is to:

  1. maximise sales volume
  2. maximise the shareholders' wealth
  3. minimise the number of employees
  4. maximise total assets
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Correct answer: B. maximise the shareholders' wealth

The primary aim of financial management is wealth maximisation — maximising the shareholders' wealth.

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The three broad financial decisions are the investment decision, the financing decision and the:

  1. marketing decision
  2. dividend decision
  3. production decision
  4. staffing decision
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Correct answer: B. dividend decision

Finance function rests on three decisions: investment, financing and dividend.

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  2. Open the question to check the correct answer and read its worked solution.
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