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MBA Finance Business Studies — practice by topic

Browse 30 questions across 4 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

Business Studies (30)Corporate Finance (30)Financial Management (30)Sources of Business Finance (30)

Try a Business Studies question

Funds needed to buy land, buildings, plant and machinery are the firm's:Read the answer and worked solution →Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:Read the answer and worked solution →A trading concern usually needs how much fixed capital compared with a manufacturing concern?Read the answer and worked solution →A firm selling on credit with a slow turnover needs more:Read the answer and worked solution →

Worked practice questions

Funds needed to buy land, buildings, plant and machinery are the firm's:

  1. Fixed capital requirements
  2. Working capital requirement
  3. Trade credit requirement
  4. Seasonal stock requirement
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Correct answer: A. Fixed capital requirements

1. These assets stay in the business a long time. 2. They are bought when the firm starts. 3. This need is fixed capital. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

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Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:

  1. Loan capital
  2. Working capital
  3. Fixed capital
  4. Share capital
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Correct answer: B. Working capital

1. They cover day-to-day operations. 2. They finance current assets and expenses. 3. That is working capital. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

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A trading concern usually needs how much fixed capital compared with a manufacturing concern?

  1. A smaller amount
  2. A larger amount
  3. The same amount
  4. Twice the amount
Show answer and solution

Correct answer: A. A smaller amount

1. Fixed capital depends on the nature of business. 2. Manufacturing needs heavy plant. 3. So trading needs a smaller amount. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

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How to practise

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