Ten questions on payback, ratios, capacity, break-even, gearing, elasticity, HR and the difference between profit and cash. Test your knowledge with this…
10 questions • Zestly
• A firm, Zenith Ltd, is considering a new machine costing £100,000. It generates annual net cash inflows of £25,000 for 5 years. What is the…
• Apex Co has current assets of £150,000 and current liabilities of £100,000. What is its current ratio?
• A factory produces 8,000 units per month using a maximum capacity of 10,000 units. What is the capacity utilisation rate?
• A bakery sells cakes for £10 each. Variable costs are £6 per cake. Fixed costs are £4,000 per month. What is the break-even point in units?
• Why is a firm with high gearing particularly vulnerable when interest rates rise?
• A luxury watch manufacturer finds that its price elasticity of demand is -0.5. If the firm increases its prices by 10%, what will happen to…
• A firm decides to switch from a high-cost, high-quality production method to a low-cost, mass-production approach. What is the most likely…
• A manager at a call centre uses strict monitoring and performance-related pay to control staff. Which HR approach is this?
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