BBA Finance Business Studies — practice questions
66 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice BBA Finance Business Studies in the app →Money required for carrying out business activities is called:Financial management is concerned with the optimal procurement and:The primary aim of financial management is to maximise:The three broad financial decisions are investment, financing and:A long-term investment decision, such as buying a new machine, is called a:Decisions about levels of cash, inventory and receivables are:Two projects carry the same risk but return 10 and 12 per cent. Normally the firm picks:Shareholders' funds refer to equity capital and:Interest must be paid whether or not a firm earns profit, so debt brings:The cost incurred in raising funds is called:Debt is considered the cheapest source partly because interest is:A company afraid of a takeover bid, wanting no dilution of control, will prefer:The portion of profit distributed to shareholders is the:Companies with good growth opportunities generally pay dividends that are:Even a profitable company may not declare a dividend if it is short of:Investors generally view an increase in dividend as:Preparing a financial blueprint of a firm's future operations is:Financial planning is typically done for a period of:Financial plans made for a period of one year or less are called:Financial planning usually begins with the preparation of a:The mix between owners' funds and borrowed funds is called:The chance that a firm fails to meet its payment obligations is called:Funds needed to buy land, buildings, plant and machinery are the firm's:Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:A trading concern usually needs how much fixed capital compared with a manufacturing concern?A firm selling on credit with a slow turnover needs more:Sources that meet needs for a period exceeding five years are:Funds required for more than one year but less than five years come from:Trade credit, bank loans and commercial paper mainly provide funds for:Short-term financing is most common for financing:Seasonal businesses that build stock before the selling season typically need:Funds provided by the owners of an enterprise, including reinvested profits, are:Which pair are the two important sources of owner's funds?Loans from banks, debentures, public deposits and trade credit together form:A burden of borrowed funds is that interest must be paid even when:Collecting receivables faster, selling surplus stock and ploughing back profit are examples of:Suppliers, lenders and investors outside the firm are:A limitation of internal sources of funds is that they:Profits kept back in the business instead of paid as dividend are:Which is a merit of retained earnings?Excessive ploughing back of profits may cause dissatisfaction because shareholders get:Credit extended by one trader to another for buying goods is:In the buyer's records, trade credit appears as sundry creditors or:Trade credit is granted to customers who have reasonable financial standing and:Anything that is acceptable as payment for goods and services is:Pebbles would fail as money because they are widely available. Money needs:A banana fails as money because it spoils. Money must have:Heavy gold bars are poor money because they are hard to carry. Money needs:Money must break into smaller parts so purchases of any size can be made. This is:When money makes buying and selling easier than barter, it is acting as a:When prices let buyers compare the worth of different goods, money is acting as a:Cash held in the form of coins and paper money is called:Money kept in checking accounts that can be taken out at any time forms:Deposits that pay interest but cannot be withdrawn on demand are:The measure of readily available money, made of currency plus demand deposits, is:The broader measure that adds time deposits and less accessible money is:Profit-oriented institutions that take deposits, lend and invest in securities are:Not-for-profit financial cooperatives owned by their members are:Depository institutions formed to encourage household saving and make home mortgage loans are:A bank cannot open without an operating licence known as a:Financial institutions standing between the suppliers and demanders of funds perform:Large pools of money set aside to pay retirement benefits later are:Buying and selling government bonds to speed up or slow the economy is called:The rule that member banks must keep part of their deposits in cash or at a district bank is the:The interest rate the central bank charges its member banks is the:The central bank's power to set consumer credit rules and margin requirements is called: