Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business (my) > Short Answer Questions > Flashcards

Short Answer Questions Flashcards

1
Q

Explain the term ‘limited liability’

A

It means that if the company goes bankrupt, i.e. has debts they’re unable to pay back, the shareholders will only lose the amount they invested in the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Explain the term ‘imprest’

A

The petty cash float given to the petty cashier at the beginning of the month, or of a certain period, to cover small expenses (At the end of the month, the cashier is reimbursed with the amount that was spent to make sure they start off with the same float)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Explain the term ‘effective purchasing’

A

Choosing the supplier who offers the best deal in terms of price, quality, delivery + terms of sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

State two principles of the Sale of Goods + Supply of Service Act 1980 relating to services, and two relating to goods

A

Goods:

  1. All goods must be of merchantable quality
  2. All goods sold must be fit for the purposes intended by the buyer (e.g. lawnmower must cut grass properly)
  3. Must be as described (e.g. in brochure)

Services:

  1. Person supplying the service must have the necessary skill to do so (e.g. installing gas central heating)
  2. They must do the job properly
  3. Any materials they use must be of good quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Explain two ways a company might use its retained earnings/reserves

A
  • to pay for future expansion

- to pay the shareholders a dividend in years where the firm makes a loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does GNP stand for?

What is it?

A

Gross National Product

The total quantity of goods + services produced in a country in any one year (measure of economic growth)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Name four headings used when preparing a business plan

A
  • the business
  • key personnel
  • product/service + the marketplace
  • fixed assets of the business
  • finance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Give an example of a short term loan

A

Bank overdraft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Give an example of a long term loan

A

Mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Give an example of something where ownership is secured upon payment of the last instalment

A

Hire purchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Give an example of a non-repayable source of finance

A

Grant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Give two reasons why a bank may dishonour a cheque

A
  • there’s not enough money in the account to cover the cheque (it’s bounced)
  • if the account holder has asked the bank not to cash the cheque (stopping the cheque)
  • if there’s information missing from the cheque, e.g. the amount
  • if they’re suspicious of the signature, i.e. think it’s been forged
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Identify two documents that must be completed when forming a Private Limited Company

A
  • memorandum of association
  • articles of association
  • form A1
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does ICTU stand for?

A

Irish Congress of Trade Unions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does LRC stand for?

A

Labour Relations Commission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does IBEC stand for?

A

Irish Business + Employers Confederation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does SIPTU stand for?

A

Services, Industrial, Professional + Technical Union

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Name the type of insurance a shop owner would take out to cover fraud/dishonesty of a worker

A

Fidelity guarantee insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Name the type of insurance a shop owner would take out to cover an employee being injured at work

A

Employer’s Liability Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Name the type of insurance a shop owner would take out to cover injuries of customers due to faulty goods/services

A

Product liability insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What type of liability does a co-operative have?

A

Limited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What letters does a private limited company have after its name?

A

Ltd, not PLC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Name two investments on which the return/interest is tax free

A
  • prize bonds
  • savings bonds
  • savings certificates
  • national instalment savings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the currency of Estonia?

A

The euro

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Currency of Japan

A

Yen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Currency of Denmark

A

Krone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Explain, with an example, their term ‘franchise’

A

An arrangement where the owners of a business give permission to someone to set up a branch of the business in another location in return for a fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

List 2 ways of checking the credit rating of a new customer

A
  • ask customer to provide reference from bank to say finances are in healthy state
  • ask customer to pro aide a trade reference from other companies they’ve done business with saying they’ve always paid their debts on time
  • take a look at customer’s accounts
  • pay a credit checking agency a fee to check if the customer owes any money to other firms
  • consult Stubbs Gazette (gives names of forms that have fallen behind in paying debts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What side of the trial balance should import duty be on?

A

Credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Outline two advantages of market research to a business

A
  • they can find out the size of the market that exists for their service/product
  • they can find out who their main competitors are
  • they can decide on a suitable selling price
  • to find out what products/services the consumer wants
31
Q

What is the balance of payments?

A

Total exports minus total imports

32
Q

What are invisible exports? (Or give an example of a type of one)

A

Services that Ireland sells abroad

33
Q

What is import substitution?

A

Making and buying Irish produced goods rather than foreign imports

34
Q

What is the balance of trade?

A

Visible exports minus visible imports

35
Q

What’s the name given to the person who represents a trade union in the workplace?

A

Shop steward

36
Q

Name two duties of the shop steward in the workplace

A
  • to collect the trade union fee (union dues) from the workers each week/month
  • to help the workers solve any problems they may have with the employer
  • to encourage workers to join the trade union
  • to make sure all agreements made between the union and the management are followed by both sides
37
Q

Where in the final accounts of a business should a bank overdraft be entered (expense, gain, balance sheet)

A

Balance sheet

38
Q

Where in the spinal accounts of a business should advertising be entered (expense, gain, balance sheet)

A

Expense

39
Q

Where in the final accounts of a business should stock be entered (expenses, gains, balance sheet)

A

Gains

Double check with dad

40
Q

Where in the final accounts of a business should discount received be entered? (Expenses, gains, balance sheet)

A

Gains + balance sheet

41
Q

Explain two terms of trade that appear on a quotation

A
  • the VAT on the good/service
  • any trade discounts
  • the price of delivery and how long it’ll take
  • the total cost of the product
  • the signature of the sender
42
Q

List four methods of sales promotion

A
  • advertising
  • free gifts
  • two for one (special offers)
  • competitions
43
Q

State two factors a company should consider when choosing a suitable delivery system

A
  • how quickly the goods need to reach their destination, i.e. if they’re perishable they’ll need to get there a lot faster
  • cost - if the form of transport if too expensive to make a profit (e.g. wouldn’t fly eggs)
  • the type of good, e.g. heavy machinery can only be transported by road + sea due to size/weight
  • how far the goods will need to travel
44
Q

Name two conditions, aside from being of merchantable quality, that goods must satisfy under the sale of……

A
  • must be as described

- must be fit for the purpose intended by the buyer

45
Q

What’s the currency of Malta?

A

The euro

46
Q

Currency of Finland

A

Euro

47
Q

Currency of Denmark

A

Krone

48
Q

Name two voluntary deductions from wages

A
  • health insurance

- private pension

49
Q

Name two statutory deductions from wages

A
  • PRSI

- PAYE

50
Q

What are credit notes the source documents for?

A

Sales returns day book

51
Q

What does an actuary do?

A

Calculates the level of risk and premium payable

52
Q

What does a broker do?

A

Advises people on the best policies to suit their needs

53
Q

What does a loss adjuster do?

A

Inspects the damage and prepares a claim on behalf of the client

54
Q

What does an assessor do?

A

Determines the level of compensation to be paid by an insurance company

55
Q

What does ISDN stand for?

A

Integrated Services Digital Network

56
Q

What does DVD stand for?

A

Digital Versatile (Video) Disk

57
Q

What does CPU stand for?

A

Central Processing Unit

58
Q

What does CAM stand for?

A

Computer Aided Manufacture

59
Q

What are the source documents for the purchases book?

A

Invoices received from suppliers

60
Q

What are the source documents for the purchases returns book?

A

Credit notes received from suppliers

61
Q

What are the source documents for the sales returns book?

A

Copies of credit notes sent to customers

62
Q

What are the source documents for the sales book?

A

Copies of invoices sent to customers

63
Q

What is the function of the trial balance in bookkeeping?

A

To check the accuracy of the ledgers

64
Q

What is the function of the folio in bookkeeping?

A

To show which book the corresponding entry to an entry is in, used for cross-checking accounts

65
Q

Distinguish between APR and CAR

A
  • Annual Percentage Rate is the actual rate of interest charged on a loan each year, taking into account that the amount owed is going down each year as we pay back some of the loan
  • Compound Annual Rate is the actual rate of interest you receive from a financial institution on your savings/investment

Essentially:

  • APR is interest charged on borrowings
  • CAR is interest received on savings/investments
66
Q

List 4 items of information to fill in on a petty-cash voucher when making a claim
(Ask dad/look up what exactly this means?!)

A
  • the date
  • the amount to be paid
  • the signature of the claimant
  • the signature of the petty cashier
  • the reason for expenditure
67
Q

What documents proves that a limited liability company exists/has been formed

A

Certificate of Incorporation

68
Q

Explain two reasons why stocktaking is essential in any business

A
  • so the business is aware of its financial situation

- to calculate the value of stock

69
Q

Define impulse buying

A

Buying something on the spur of the moment without thinking of the consequences

70
Q

Outline one possible consequence of impulse buying

A

We may end up spending money we need for an important bill later in the month on something we may not really want or need

71
Q

List two forms of business ownership in which the owners have limited liability

A
  • private limited company

- co-operative

72
Q

Explain the term ‘mixed economic system’

A

In most areas, citizens are free to set up businesses to produce goods + services, provided they stay within the law
In some areas, the government will control an area of business either by issuing licenses or by operating the business themselves

73
Q

Identify an example of capital expenditure by a farmer

A

Pigs/cows/sheep (not for selling)

74
Q

Identify an example of revenues expenditure by a farmer

A

Farm wages/labour

Ask dad: cows for selling?

business (my) (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions