GCSE Business: Sources of Finance

Front

What does internal mean?

Back

A source from within the business

Front

What does external mean?

Back

A source from outside the business

Front

Which is an example of an internal source of finance? Owners' Funds, Venture Capital, Overdraft, Trade credit

Back

Owners' Funds

Front

Which is an example of an external source of finance? Owners' Funds, Hire Purchase, Retained profits, Sale of assets

Back

Hire Purchase

Front

Which is an example of an external source of finance?

Back

Bank loan

Front

What is an advantage of a bank loan?

Back

You can pay in smaller installments.

Front

What is an advantage of owners' funds?

Back

You don't have to pay it back

Front

What is an advantage of an overdraft?

Back

Useful for relatively small sums and short term finance

Front

What type of finance involves less profit going to the owners?

Back

Retained profit

Front

Which of these facts about venture capital is NOT true? Venture capitalists tend to operate in fairly risky markets, Venture capitalists would be paid a share of the profits, Venture capitalists usually provide money only and have no interest in running the business, Venture capitalists usually invest large sums of money

Back

Venture capitalists usually provide money only and have no interest in running the business