The Advanced Numeracy Test Workbook - Mike Bryon [14]
D A J curve
Answer
Q59. ‘In perpetuity’ means:
A A physical thing
B An interest-only loan
C For ever
D For a lifetime
Answer
Q60. Pull inflation is likely to happen when:
A Too much money chases too few goods
B Spending increases
C The cost of raw materials rises
D The market is flooded by too many goods
Answer
Q61. Demand for luxury goods is:
A Highly inelastic
B As elastic as crude oil
C Highly elastic
D As elastic as any other purchase
Answer
Q62. ‘Economic life’ can be defined as:
A Gross individual product
B The period over which the original cost has been fully written off
C When a resource’s economic value falls below 50 per cent of its replacement cost
D The period during which income generated exceeds the operating costs
Answer
Q63. The effect where an increase in the level of production creates a reduction in unit cost is called:
A Economic efficiency
B Economy of scale
C Production rate curve
D Scale relationship
Answer
Q64. An auction in which prices start high and then bid downwards is called:
A Double-sided auction
B Reserve price auction
C Dutch auction
D County auction
Answer
Q65. Credo is:
A A business philosophy
B A critical path
C A type of high-yield bond
D The most commonly occurring value in a data set
Answer
Q66. The term to describe a non-profit-producing part of an organization is:
A Department
B Echelon
C Cost centre
D Head office
Answer
Q67. Cereals and metals are termed:
A Raw materials
B Commodities
C Aggregates
D Essentials
Answer
Q68. The acceptance of risk in return for payment is:
A Underwriting
B Transaction risk management
C Risk analysis
D Risk premium
Answer
Q69. An evaluation of the internal controls of a business is called:
A An audit trail
B A test of reasonableness
C A procedural audit
D Systems analysis
Answer
Q70. A low-priced speculative share is called:
A Junior shares
B Futures
C Penny shares
D Junk stock
Answer
Q71. Paper profit is:
A The before-tax gain from selling shares
B The amount owned but not yet collected
C The current value minus the purchase price
D The ability to produce net income
Answer
Q72. A big factor in stock inventory risk is:
A Input price fluctuations
B Obsolescence
C Wear and tear
D Floods and fire
Answer
Q73. A managed portfolio of investments that issues its own shares to investors is called:
A A municipal bond
B A trust fund
C A preferred stock fund
D A mutual fund
Answer
Q74. A calculation to show the change in total cost as a result of an increase in output is called:
A Marginal cost analysis
B Cost inventory
C A moving average calculation
D Profit modelling
Answer
Q75. In international trade a device used to guarantee that the seller of goods is paid when the goods are delivered is called:
A An intercompany account
B A bill of sale
C A letter of credit
D A purchase order
Answer
Q76. ISO9000 is:
A A quality standard for international manufacturers
B A computer operating system
C The acronym for the Institute of Standards and Operations
D The Japanese standard for continuous improvement
Answer
Q77. Pension funds, insurance companies and so on that trade large volumes of shares are called:
A Venture capitalists
B Institutional investors
C Big hitters
D Market makers
Answer
Q78. A company is registered to operate under UK and US laws if it:
A Has limited liability
B Has an exclusive name
C Has paid in capital
D Is incorporated
Answer
Q79. To protect against losses from downward price movements is to:
A Hedge
B Pool
C Pay off
D None of these
Answer
Q80. The value of a company’s name and reputation is called its:
A Investiture
B Going concern
C Shareholders’ fund
D Goodwill
Answer
Q81. When a company permits others to use its name and to sell its products it has granted a:
A Franchise
B Licensee
C Joint venture
D Takeover
Answer
Q82. An example of an excise tax is:
A Corporation tax
B Tax on fuel
C Inheritance tax
D Income tax
Answer
Q83. When a company sells its accounts receivable