1. There is often a limiting factor that has the greatest impact on stopping a business from achieving its objectives. In most businesses that limiting factor is most likely:

Select one: a. the unrealistic objectives set by management b. the unrealistic goals of production managers c. the ability of the business to advertise its products d. the ability of the business to sell its products

2. The business which is likely to have the lowest investment in working capital is a: Select one: a. service business b. wholesaler c. retailer d. manufacturer

3. Amy's Computers owns a chain of seven shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of September 2018 it had an overdraft of $100,000. In view of this, its managing director has asked you to make a cash forecast for the next six months. You have collected the following information:

Oct. Nov. Dec. Jan. Feb. March $000 $000 $000 $000 $000 $000 Cash Sales forecast 250 200 250 350 200 80 Cash Purchases 180 160 130 40 50 60 Wages and Salaries 40 40 50 40 40 45 Rent 80 Rates 60 Other Expenses 25 25 25 25 25 25 Refurbishing Shops ____ ____ 80 ____ ____ _____ 245 225 285 185 115 190

Refer to the table above. The projected cash balance at the end of November is: Select one:

a. $25,000 b. ($120,000) c. ($100,000) d. ($25,000)

4. An increase in the effort put into collection of accounts receivable will result in ________ in the investment in accounts receivable, ________ in bad debts expense, and ________ in collections expenditure.

Select one:

a.

a decrease; an increase; a decrease

b.

a decrease; an increase; an increase

c.

a decrease; a decrease; an increase

d.

an increase; a decrease; an increase