Practice Contingencies (5.4) - Business Size and Finance - ICSE 12 Business Studies

Practice: Contingencies

Lesson 5.4Business Size and Finance

Practise this section

8 questions

Flashcard drill
2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What are contingencies in business finance?
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Think about what a backup plan means.
Question 2.
Why is it important for businesses to have contingency funds?
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Consider emergencies as part of business operations.
3Question 3.
What are contingencies?
- Planned expenses
- Unexpected costs
- Revenues
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Think about what becomes necessary when something unplanned happens.
4Question 4.
True or False: Contingency funds can only be used for legal issues.
- True
- False
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Look at all potential unexpected events.
Question 5.
A startup optimistically budgets its finances but neglects contingencies, leading to a halt in operations due to unexpected equipment failure. Describe the immediate and long-term financial impacts this could have.
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Consider both short-term operational impacts and implications on trust and future financing.
Question 6.
Analyze the steps a large company should take to ensure adequate contingency funding is available during expansion. What factors should they consider?
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Think about how growth can introduce new challenges.

4 more questions in this section. Enroll free to practise them all.