MCVSD Business & Finance Fundamentals 3

Question 1

What does 'accounts receivable' represent for a business?

Accepted Answer

Money owed to the business by its customers

Answer

Money the business owes to suppliers

Answer

The business's monthly payroll

Answer

Bank loan balances

Question 2

Which economic principle states that as price increases, consumer demand typically decreases?

Accepted Answer

Law of Demand

Answer

Law of Supply

Answer

Principle of Scarcity

Answer

Principle of Utility

Question 3

In business, what is a 'budget'?

Accepted Answer

A financial plan estimating future income and expenses

Answer

A record of past spending

Answer

A list of business assets

Answer

An employee performance review

Question 4

What is the primary role of a credit score in personal finance?

Accepted Answer

To measure a person's creditworthiness for lenders

Answer

To determine a person's net worth

Answer

To calculate investment returns

Answer

To set interest rates for savings accounts

Question 5

Which term describes total business expenses exceeding total revenues?

Accepted Answer

Loss

Answer

Profit

Answer

Revenue

Answer

Equity

Question 6

In marketing, what is a 'target market'?

Accepted Answer

The specific group of consumers a business aims to reach

Answer

The geographic location of a store

Answer

A pricing strategy for bulk sales

Answer

A competitor analysis report