Investment (Capital Expenditure) Levels (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is capital expenditure?
What is capital expenditure?
Money spent on fixed assets like machinery
Which of these is NOT an example of a fixed asset?
Which of these is NOT an example of a fixed asset?
Utilities bills
When might a business invest in capital expenditure for 'replacement and modernisation'?
When might a business invest in capital expenditure for 'replacement and modernisation'?
When existing assets wear out or are outdated
How do investment objectives link to corporate objectives?
How do investment objectives link to corporate objectives?
They flow directly from corporate objectives
Which type of business typically requires more capital investment?
Which type of business typically requires more capital investment?
Manufacturing businesses
How do economic downturns affect business investment spending?
How do economic downturns affect business investment spending?
Businesses often reduce investment spending
What is the formula for calculating ROI?
What is the formula for calculating ROI?
(Profit ÷ Capital invested) × 100
If a business sets a 10% ROI target, what profit is expected per £100 invested?
If a business sets a 10% ROI target, what profit is expected per £100 invested?
£10
Which is a limitation of ROI calculations?
Which is a limitation of ROI calculations?
Based on forecasts that may be inaccurate
Why did BP and Shell cut back investment when oil prices fell?
Why did BP and Shell cut back investment when oil prices fell?
Lower prices meant reduced profitability