Page 385 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Section 5 – Fill in the gaps

The answers to questions 1–20 are shown in the box below. Identify the correct answer for each question and
fill in the gaps.

Timing Survive Leasing

Assets Reward Profit

Small Appropriation Start-up

Acid test Closing Liabilities

Legal Discount Owns

Gross Current Expenses

Revenues Liquidity Retained

1 New businesses need finance for capital. (5-2)

2 profit is an important internal source of finance for most businesses. (8)

3 If a business needs to purchase a new motor vehicle they might use . They will
not own the vehicle, but the cost is spread over a number of years. (7)

4 Micro-finance loans are usually for amounts and usually repaid in six months. (5)

5 The structure of a business is one of the main factors considered in making the
finance choice. (5)

6 Without cash a business will be unable to . (7)

7 The most important figures on a cash-flow forecast are the balances. (7)

8 A cash-flow forecast shows the of cash inflows and cash outflows. (6)

9 Offering a might encourage trade receivables to pay more quickly. (8)

10 Working capital is important for the of a business. (9)

11 Cash is not the same as . (6)

12 Profit is a for risk taking. (6)

13 An income statement records all of the and costs of a business. (8)

© Cambridge University Press 2014 IGCSE Business Studies Section 5 – Fill in the gaps 1