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Business Units Quiz 4 (Form 4, Economics)
 

Business Units Quiz 4 (Form 4, Economics)Versión en línea

True/False questions on business units in Cameroon

por YAKILI LMS
1

Hire purchase involves paying installments to own the asset later.

2

Selling outdated assets reduces cash flow.

3

Outdated assets can be disposed of to raise funds.

4

Subsidies reduce the cost of production.

5

Continuity of a partnership can be affected by the withdrawal of a partner.

6

Borrowing from njangi involves group savings and rotating credit.

7

Grants must be repaid with interest.

8

Continuity assurance is guaranteed in a partnership with indefinite life.

9

Depreciation is a non-cash expense that lowers profit before tax.

10

Njangi borrowing requires formal collateral like fixed assets.

11

Leasing contracts can include maintenance services.

12

Depreciation charges create non-cash expenses.

13

Business privacy refers to keeping business affairs confidential within limits.

14

Commercial banks require collateral for loans, depending on risk.

15

Trade credits can improve a firm’s liquidity.

16

Trade credits allow buyers to defer payment.

17

Continuity is more secure in a company than in a sole proprietorship.

18

A joint venture is a form of business unit that can involve partnership.

19

Hire purchase transfers ownership at the time of signing the contract.

20

Government grants sometimes require meeting conditions.

21

A sole trader needs at least three partners to form a business.

22

Display of business privacy implies non-disclosure of sensitive information to outsiders.

23

A partnership is formed by agreement between two or more persons to carry on a business.

24

Plough back profits increases internal funds.

25

Grants and subsidies are often tied to performance targets.

26

Admission of new partners changes capital structure.

27

Leasing is a method of acquiring assets without full purchase.

28

Commercial banks provide term loans to businesses.

29

Easy formation reduces start-up time for small businesses.

30

Formation of business units can be easy when there is a legal framework.

31

NGOs can help with market information.

32

A partnership may share profits as agreed in the partnership deed.

33

Leasing provides ownership immediately.

34

Interest on bank loans is a cost to the business.

35

Hire purchase is different from leasing because ownership transfers after payment.

36

Past savings can be reinvested as plough back profits.

37

NGOs can provide business support and training.

38

Njangi borrowing uses social collateral rather than formal collateral.

39

Grants and subsidies are non-repayable assistance.

40

Depreciation charges reduce taxable income.

41

Easy formation of a business unit can attract foreign investors.

42

Depreciation increases cash flow.

43

Admission of new partners can change profit sharing ratios.

44

A partnership is automatically a separate legal person from its partners.

45

Access to additional capital improves business expansion opportunities.

46

Outdated asset sales are a source of cash flow for firms.

47

Saving from profits increases equity.

48

Increase in capital can come from new partners or reinvestment.

49

Trade credits always require payment upfront.

50

Specialisation allows workers to perform specific tasks more efficiently.

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