Understanding Business Finance
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General
3 questions
~6 mins
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About This Worksheet
A medium difficulty Business Studies worksheet on finance for grade 7 students. Includes questions on Financial Documents and Performance, Break-Even Analysis and Cash Flow, Sources of Finance.
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Understanding Business Finance
Subject: GeneralGrade: General
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Understanding Business Finance
Instructions: Read each question carefully. Answer all questions in the space provided. For multiple-choice questions, circle the correct answer. For calculation and data response questions, show your working where necessary.
A
Financial Documents and Performance
Understanding key financial documents and how to assess a business's financial health.
1.
What is a balance sheet used for in a business?
[2 marks]ATo show the financial position at a specific date
BTo record daily sales
CTo plan future marketing strategies
DTo calculate employee wages
2.
If a company's total assets are $50,000 and total liabilities are $20,000, what is the owner’s equity?
[3 marks]3.
Name two financial performance ratios used to evaluate a business.
[2 marks]B
Break-Even Analysis and Cash Flow
Understanding how businesses determine their profitability and manage cash.
1.
What does the break-even point indicate for a business?
[2 marks]AWhen the business makes a profit
BWhen the business has no more debts
CWhen total costs equal total revenue
DWhen sales are at their lowest
2.
A business sells a product for $25 each. Fixed costs are $10,000, and the variable cost per unit is $15. How many units must they sell to break even?
[3 marks]3.
Define 'cash flow' in a business context.
[2 marks]C
Sources of Finance
Exploring different ways businesses can raise money to start or grow.
1.
Which of the following is a long-term source of finance?
[2 marks]ABank overdraft
BShare capital
CTrade credit
DCash sales
2.
Name one advantage and one disadvantage of borrowing money from a bank.
[2 marks]D
Business Case Study: GreenTech Electronics
GreenTech Electronics is a startup that sells eco-friendly gadgets. They have recently prepared their financial statements. The owner wants to understand their financial position and plan for growth.
1.
Based on the following simplified balance sheet, calculate the owner’s equity:
Assets: $80,000
Liabilities: $30,000
[3 marks]2.
If GreenTech Electronics wants to expand but has limited cash flow, what are two possible sources of finance they could consider?
[2 marks]3.
Explain why understanding cash flow is important for GreenTech Electronics when planning their expansion.
[3 marks]Quick Actions
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Details
- Created
- 12/18/2025
- Updated
- 12/29/2025
- Type
- worksheet