Finance Chapter 2 - Paper 1

Question 1

Define point of intersection.

Answer 1

Two graphs have the same values for both the dependent variable and independent variable at this point.

Question 2

What is a contract?

Answer 2

An official written agreement.

Question 3

What are regions?

Answer 3

Specified areas.

Question 4

What does ‘=’ mean?

Answer 4

Two things have the same value.

Question 5

What does ‘≠’ mean?

Answer 5

Not equal or do not have the same value.

Question 6

What does ‘<’ mean?

Answer 6

The value on the left of the symbol is smaller than the value on the right of the symbol.

Question 7

What does ‘>’ mean?

Answer 7

The value on the left of the symbol is larger than the value on the right of the symbol.

Question 8

What does ‘≤’ and ‘≥’ mean?

Answer 8

One value is smaller than or equal to another value.

Question 9

What does ‘between’ mean?

Answer 9

A value that is positioned in between two other values but cannot be equal to these two other values.

Question 10

What does ‘from’ mean?

Answer 10

It means that a particular value can be included in the values chosen.

Question 11

What is a budget?

Answer 11

A document that shows predicted income and expenditure for a period of time.

Question 12

What is deficit spending?

Answer 12

Planned spending with borrowed money. (Spending money you don’t have)

Question 12

What is a deficit?

Answer 12

A shortage of money.

Question 13

What is expenditure?

Answer 13

Money spent.

Question 14

What is an income-and-expenditure statement?

Answer 14

A financial statement showing money received and money spent.

Question 15

What is revenue?

Answer 15

Money received.

Question 16

What is surplus?

Answer 16

An excess of income over expenditure.

Question 17

What is infrastructure?

Answer 17

Basic systems and services for an organisation to run smoothly.

Question 18

Define domestic.

Answer 18

of or within a particular country.

Question 19

Define transfers and subsidies.

Answer 19

Money paid by government to reduce the costs of services.

Question 20

Define ‘break-even’?

Answer 20

The amount of income that a business must make to cover all the costs involved in running a business.

Question 21

Define cost price.

Answer 21

The total amount that it costs to make an item or to provide a service.

Question 22

Define loss.

Answer 22

The amount of costs that exceeds income.

Question 23

Define operating costs.

Answer 23

Monthly expenses.

Question 24

Define production costs

Answer 24

Costs that result directly from production of goods or supply a service.

Question 25

Define profit.

Answer 25

The difference between the selling price (usually higher than the cost price) and the cost price.

Question 25

Define selling price.

Answer 25

The price for which an item or service is sold or supplied.

Question 25

Define start-up costs.

Answer 25

Costs involved in setting up the business.

Question 25

What is fudge?

Answer 25

A type of soft sweet made from sugar, butter and milk.