The Advanced Numeracy Test Workbook - Mike Bryon [12]
A Subtracting total liabilities from total assets
B Subtracting debits from credits
C Establishing the profit or loss position each year
D Adding income to the value of assets
Answer
Q24. In business, ‘biannual’ means:
A Once a year
B Every two years
C Twice a year
Answer
Q25. The term ‘seed money’ is used by which of the following:
A Venture capitalists
B Landlords
C Actuaries
D Notaries
Answer
Q26. Security means:
A An evaluation of a credit or investment risk
B A non-taxable earning received by a landlord at the beginning of a lease
C Someone in uniform standing by a supermarket till
D Something of value offered by a debtor
Answer
Q27. Intellectual royalty:
A Means ownership of an intellectual product such as a computer program
B Means that the author asserts him- or herself as the originator of an original idea
C Is the proceeds from permitting others to use your property
D Means none of these
Answer
Q28. Underwriting risk is created by:
A An increase in exchange price
B A new share issue not selling
C Inflation
D Adverse government decisions
Answer
Q29. An example of revenue is:
A A company’s gross sales
B An individual’s tax liabilities
C A company’s corporation tax bill
D A business’s net sales
Answer
Q30. A restrictive covenant is:
A A legal device to limit free trade
B An agreement to preserve the status quo until a court can give a matter full consideration
C An order by a court
D A limitation to the property rights of an owner written into the deeds
Answer
Q31. To rescind on a contract without risk of penalty could occur in which of the following situations?
A When you provide written notice that you intend to rescind on the agreement
B When a court nullifies the contract
C If the contract were verbal and not written
D None of these
Answer
Q32. The widely accepted definition of the point at which an economy is in recession is:
A When economic activity as measured by gross domestic product starts to decline
B When unemployment rises above 3 per cent of the economically active population
C When gross domestic production declines for two consecutive quarters
D When retail prices fall for a period in excess of 12 consecutive months
Answer
Q33. A rally means:
A Prices increase rapidly
B Profits are up markedly
C Confidence increases noticeably
D Speculative investors have rushed to the market
Answer
Q34. Quality assurance is:
A A management method that seeks to ensure the production of high-quality services or products
B An international classification of quality
C A process of control that seeks consistent high quality in manufacturing
D Small groups of employees meeting to seek improvements in production methods
Answer
Q35. Proxy means:
A A display of foresight
B A person authorized to vote or act for another
C How you are viewed by others
D A lease assigned to another
Answer
Q36. Pro rata means:
A Something for something
B For the duration of one’s life
C A qualified opinion
D Proportionate allocation
Answer
Q37. The generally assumed relation between risk and return is a:
A Direct correlation
B Negative correlation
C Positive correlation
D Zero correlation
Answer
Q38. A poison pill is:
A A legal document that details the case for the plaintiff’s allegations
B A slang term for a letter of redundancy
C A device that makes a company’s shares less attractive to an unwanted acquirer
D The term used by the Securities and Exchange Commission when they name an insider trader
Answer
Q39. Petrodollars are:
A Dollars spent on development projects in the oil-producing countries
B Money earned from the sale of oil
C The name for rich Texans who made their money in oil
D Dollars paid to oil-producing countries and deposited in Western banks
Answer
Q40. ‘Permutations’ means:
A Different subgroups that can be formed from a single sample
B Perks of the job such as company cars and health club memberships
C Changes in attitude
D Alternative plans adopted when plan A fails
Answer
Q41. The statement ‘patent