Finance
We estimate BUS-T3 is worth about 25 marks out of 100 under the new Business Studies syllabus. Practise 28 exam-style questions (multiple choice, multi-part, short answer) with instant marking and a worked solution for every question.
START PRACTISINGTopic notes
Finance for HSC Business Studies — objectives of financial management, sources of finance and financial institutions, the financial reports and ratios (with worked examples), limitations of reports, and cash flow, working capital, profitability and global financial management strategies.
- 1What you need to know
- 2The role of financial management
- 3Influences on financial management
- 4Processes of financial management
- 5Financial management strategies
- 6Common mistakes
- 7Exam tips
- 8Links to other topics
Example questions
Example 1 · 1 mark · multiple choice
Which best describes the financial objective of liquidity?
- AUsing assets as productively as possible to earn revenue
- BBeing able to meet long-term debts and remain in business
- CBeing able to pay short-term debts as they fall due
- DEarning the greatest possible profit on sales
Example 2 · 1 mark · multiple choice
Which situation shows the greatest risk to a business's solvency?
- AProfits are rising and the business has little debt
- BCurrent assets are twice as large as current liabilities at year end
- CLiabilities far exceed owners' equity and profits are falling
- DThe business funds its expansion mainly from retained profits
Example 3 · 1 mark · multiple choice
How do unsecured notes differ from debentures?
- AThey must be repaid before debentures if the company goes into liquidation
- BThey give investors part-ownership of the company and a vote at its meetings
- CThey are not secured by company assets, so they usually pay higher interest
- DThey are short-term loans arranged with a bank rather than with investors
Answers and worked solutions appear when you practise these questions.