BUSS3 Quiz

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1. A benefit of critical path analysis is that

  • it automatically increases a business's profits
  • it can beused to calculate the impact of delays to the completion of a project
  • it measures the risks of a decision
  • it allows a firm to complete a project quickly
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Other questions in this quiz

2. What is working capital?

  • The capital a firm possesses to fund its day-to-day operations
  • current assets / current liabilities
  • the money a firm possesses to pay back its long-term debts
  • money used to purchase capital equipment

3. What is the formula for average rate of return (ARR)?

  • net cash flow / the number of years x initial cost of investment
  • net cash flow / the number of years / initial cost of investment x 100
  • Profit / the number of years x 100
  • Profit for the year / total equity x 100

4. What is gearing?

  • Preparing to enter a new market
  • The amount of a firm's capital that is funded by loans as opposed to share capital
  • The amount of a firm's capital that is funded by share capital as opposed to loans
  • Total equity + non current liabilities / cash flow x 100

5. What is the difference between the acid test ratio and current ratio?

  • Acid test includes inventories
  • Nothing
  • Acid test excludes inventories
  • Current ratio excludes inventories


Former Member

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