Stakeholder Interest (Edexcel 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 the formula for calculating working capital?
What is the formula for calculating working capital?
Current assets - current liabilities
What does solvency mean for a business?
What does solvency mean for a business?
Having sufficient liquid assets to pay bills
Which of these is NOT typically a current asset?
Which of these is NOT typically a current asset?
Property, plant and equipment
Which item is typically included in current liabilities?
Which item is typically included in current liabilities?
Trade and other payables
What do net assets approximately represent?
What do net assets approximately represent?
The value of the business
What is the main concern of suppliers when examining a balance sheet?
What is the main concern of suppliers when examining a balance sheet?
Solvency
A highly leveraged business should consider which financing option to reduce risk?
A highly leveraged business should consider which financing option to reduce risk?
Raising fresh equity capital
Why might employees examine the balance sheet?
Why might employees examine the balance sheet?
To assess if business can afford pay rises
What does working capital measure?
What does working capital measure?
Liquidity, not profitability
What current assets to current liabilities ratio is generally considered healthy?
What current assets to current liabilities ratio is generally considered healthy?
Around 1.5:1