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6. What is the formula for ARR?

  • no. of years/ initial cost
  • total net return/no. of years/initial cost x 100
  • total net return/no. of years

7. One reason why businesses invest?

  • to replace an obsolete or depreciated asset
  • to enhance the image of the business

8. What is correlation?

  • The smoothing of fluctuations to see if a trend is significant
  • The extension of a trend.
  • The relationship between two variables
  • The trend as it moves year to year
  • The relationship between two trends.

9. What is a profit centre?

  • A centre that generates profit
  • An identifiable part of a business that is responsible for revenue and costs.
  • A department in a firm

10. What is a test market?

  • The analysis of a marketing using factitious data.
  • The launching of a product in a geographical area in order to asses marketing methods used.
  • To enter into a new market